Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to provide the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FIEC) with a consumer protection mandate.
Directs the Subcommittee to monitor the efforts of, and requirements established by, states and federal financial institutions regulatory agencies to protect consumers from improper appraisal practices and from predations of unlicensed appraisers in consumer credit transactions secured by a consumer's principal dwelling.
Requires the Subcommittee to detail in its annual report to Congress: (1) the results of all audits of state appraiser regulatory agencies; and (2) an accounting of disapproved actions and warnings taken in the previous year, including the conditions causing the disapproval and the actions taken to achieve compliance.
Requires meetings of the Subcommittee to be open to the public.
Requires: (1) all property appraisals performed within a state to be prepared by appraisers licensed or certified within the state where the property is located; and (2) all appraisal reviews to be performed by an appraiser licensed or certified by a state appraisal board.
Requires the Subcommittee to monitor state requirements for the registration and supervision of an appraisal management company.
Directs the Subcommittee to maintain a national registry of appraisal management companies that either are: (1) registered with and subject to supervision of a state appraiser certifying and licensing agency; or (2) operating subsidiaries of a federally regulated financial institution.
Requires the Appraiser Qualifications Board of the Appraisal Foundation to establish minimum qualifications a state must apply in the registration of appraisal management companies, including specified requirements.
Requires the appropriate federal financial institution regulatory agency to develop regulations affecting the operations of any appraisal management company that is a subsidiary owned and controlled by a federally regulated financial institution.
Sets forth: (1) registration limitations; (2) additional state agency reporting requirements; and (3) revised registry fees.
Authorizes the Subcommittee to award grants to state appraiser certifying and licensing agencies in order to support their compliance with this Act.
Authorizes the Subcommittee to:
(1) remove a state licensed or certified appraiser or a registered appraisal management company from a national registry on an interim basis pending state agency action on licensing, certification, registration, and disciplinary proceedings;
(2) impose sanctions against a state agency that fails to have an effective appraiser regulatory program; and
(3) impose interim actions and suspensions against a state agency as an alternative to, or in advance of, derecognition of a state agency.
Requires a state appraiser certifying or licensing agency to issue a reciprocal certification or license for an individual with a valid certification or license from another state in compliance with this Act whose licensure standards meet or exceed those of the first state.
Requires the Subcommittee to monitor each state appraiser certifying and licensing agency to determine whether: (1) its policies, practices, and procedures are consistent with the purposes of maintaining appraiser independence; and (2) such state maintains effective regulations, and policies regarding maintaining appraiser independence.
Requires the Subcommittee, one year after enactment of this Act, to establish and operate an Appraisal Complaint National Hotline, including a toll-free telephone number and an email address, if none exists by that time.
Directs the Subcommittee to promulgate regulations to implement quality control standards governing automated valuation models (computerized models used by mortgage originators and secondary market issuers to determine the collateral worth of a mortgage secured by a consumer's principal dwelling).
Prohibits broker price opinions from being used as the primary basis to evaluate property for loan origination in connection with a residential mortgage loan secured by such property.
Amends the Federal Financial Institutions Examination Council Act of 1978 to require that at all times at least one member of the Appraisal Subcommittee have demonstrated knowledge and competence through licensure, certification, or professional designation within the appraisal profession.