Appraisal Subcommittee Enforcement Authority Regarding State Boards

[TerryRohrer]

This has been out for a month and I haven't seen it addressed here, nor many other places. One recent count suggested there were 19 comments (not sure if it was total, or by appraisers). For all the ink spilled over regulation of appraisers and/or AMCs, it seems to be a rather muted response.

Appraisal Subcommittee Enforcement Authority Regarding the Effectiveness of State Appraiser and Appraisal Management Company Regulatory Programs​

"SUMMARY:
The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council invites comment on a proposed rule to implement a framework to govern the ASC's enforcement authority regarding the effectiveness of Appraiser and Appraisal Management Company (AMC) Programs overseen by State Appraiser Regulatory Agencies. The proposed rule would codify the existing compliance review process with modifications. The proposed rule would require an analysis to assess program effectiveness, outline requirements for maintaining effective programs, and authorize the ASC to bring enforcement actions against such agencies that fail to maintain effective programs."

Federal Register :: Request Access

https://www.govinfo.gov/content/pkg/FR-2024-12-06/pdf/2024-27698.pdf

 

[Joe Flacco]

Seems like the proposed rule is long overdue.

Who is going to do the required analysis? I want to do that.

 

[George Hatch]

At least an appraiser would know what they're looking for.

 

[Elliott]

Jeremy Bagott's take on the 'new rules.' (1/3/25):

"VENTURA, Calif. (January 3, 2025) – In the final days of the Biden administration, an obscure U.S. agency hopes the commotion of the holidays and upcoming inauguration will help it skirt the U.S. Constitution via the regulatory process. The tiny agency, and the special interests it panders to, hopes Americans will be too busy to notice.

In early December, the obscure agency, known as the Appraisal Subcommittee of the Federal Financial Institutions Examination Council, initiated a federal rulemaking to consolidate its power. It wants to authorize itself to bring enforcement actions against any state agency that refuses to fulfill its agenda and do its work.

The tiny federal agency, long captured by the U.S. housing lobby, plays an outsized role in how America’s 82 million single-family homes are valued. Its actions have helped contribute to the current housing inflation.

The agency already informally violates the Constitution’s anti-commandeering clause by coercing state and territorial appraiser regulatory bodies to do its bidding. The federal agency also commandeers state and territorial governments to provide it its entire operating budget in the form of pass-throughs from fees levied on state licensees. This allows it to operate outside the annual Congressional appropriations process and outside accountability.
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The tiny federal agency is currently commandeering state licensing agencies in all 50 states and several U.S. territories. It now wants to codify the overreach in a regulation. This must be stopped."
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What? No comment period?

 

[Terrel L. Shields]

It wants to authorize itself to bring enforcement actions against any state agency that refuses to fulfill its agenda and do its work.

Arkansas has a statute of limitations that is 3 years long. Record keeping is required for 5 years. To comply with the STATE LAW, our board got sued over the issue of going back 5 years to punish people. In the end, the appraiser sued (who just happened to be an attorney as well) not only won $4,000 from the board but the board had to codify that the board could not punish anyone for events that happened beyond the SOL. Except you do have to keep your files 5 years.

The ASC had a cow over it. Demanded the board reverse their position. Well, the board told them to take a hike. It is STATE LAW. If the Federales want to dictate state regulations, then they need to nationalize appraisal licenses. One license, one country. Well, not gonna do that are they? Not enough money in it.

The strings to the ASC should be cut. It needs to be advisory only and the pay of the board members should be limited to $1 and zero travel expenses.