The federal financial agencies, along with the regulator of Fannie Mae and Freddie Mac, yesterday proposed minimum requirements for state supervision of appraisal management companies. The proposed rules were issued under the Dodd-Frank Act.
The rule would not require states to regulate AMCs, but if states do, AMCs must register in the state, use only state-certified or licensed appraisers for federally related transactions and ensure appraisals are independent. The rule also proposes specific powers and authorities for the state agencies.
Read the proposed rule.