ALEXANDRIA, Va. (3/25/14)--The National Credit Union Administration and other federal financial regulators on Monday approved a joint proposal to impose minimum requirements for appraisal management companies (AMC). The NCUA discussed the proposal at its open board meeting last week.
The proposal soon will be published in the Federal Register and will be open for public comment for 60 days. Federal regulators have asked for comments on all aspects of the proposal.
The six federal financial regulatory agencies that comprise the Federal Financial Institutions Examination Council, including the NCUA, are proposing the rule to implement Dodd-Frank Act requirements meant to better ensure the quality of appraisals and assure compliance with the Truth-in-Lending Act.
NCUA staff last week said the AMC proposal should not have a measurable impact on credit unions (News Now March 21). It would set minimum requirements for registration and supervision of AMCs--the intermediaries for appraisers and lenders that provide appraisal services.
These requirements would apply to states that elect to establish an agency with authority to register and supervise appraisal management companies.
Under the joint-agency plan, an appraisal management company that is a subsidiary of a financial institution and regulated by a federal financial services regulatory agency would not be required to register with a state, but would otherwise be required to meet the same minimum requirements as other appraisal management companies.
The Credit Union National Association will be evaluating the impact of the proposal and will provide a summary in its Regulatory Comment Call.