The federal financial agencies, along with the regulator of Fannie Mae and Freddie Mac, finalized minimum requirements for state supervision of appraisal management companies. The rule was issued under the Dodd-Frank Act.
The rule does 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. However, in states that do not establish an AMC regulatory structure within three years, non-federally regulated AMCs may not provide services for federally related transactions, such as loans backed by Fannie or Freddie.
Federally regulated AMCs will be required to meet the same standards as state-regulated companies, with the exception of a requirement for state registration.
Read the final rule.