On December 6, 2024, the Appraisal Subcommittee (ASC) of the FFIEC issued 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 ASC compliance review process consistent with the ASC's current practices and processes for conducting compliance reviews, with some modifications and minor corrections.
The ASC’s proposed rule aims to establish an effective and consistent enforcement approach to the Subcommittee’s oversight of State Appraiser Regulatory Agencies. The ASC believes that the rule, if finalized, would:
Significantly improve its effectiveness in monitoring and bringing enforcement actions against State Appraiser Regulatory Agencies that may not have effective Appraiser and Appraisal Management Company (AMC) Programs;
Be beneficial in clarifying requirements for State Appraiser Regulatory Agencies to promote the effectiveness of their Appraiser and AMC Programs; and
Provide additional transparency to State Appraiser Regulatory Agencies and other stakeholders regarding the ASC's procedures for monitoring Appraiser and AMC Programs and the potential for enforcement actions against State Appraiser Regulatory Agencies.
Comments on the proposed rule will be accepted until February 4, 2025.
The proposed rule can be found here.