Real Estate Appraisal Reform Act of 1988

Summary

Real Estate Appraisal Reform Act of 1987 - Title I: Federal Interagency Appraisal Council - Establishes the Federal Interagency Appraisal Council. Transfers to the Council the authority of the following Federal agencies and instrumentalities with respect to appraisal standards and appraiser qualification functions: (1) Federal bank regulatory agencies; (2) the Veterans Administration and the Federal Housing Administrator; (3) the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; (4) the Securities and Exchange Commission; (5) the Federal Financial Institutions Examination Council; (6) the General Services Administration; and (7) the Farmers Home Administration. Requires the Council to: (1) issue rules describing categories of real estate-related financial transactions which constitute federally covered transactions under this Act; (2) prescribe uniform standards for the performance of such real estate appraisals; (3) establish requirements for the certification of persons who are qualified to perform appraisals; (4) directly grant certification to and supervise the activities of such persons in States which do not have an approved State appraiser certifying agency; (5) monitor and oversee the activities of approved State appraiser certifying agencies; and (6) report to the Congress not later than January 31 of each year on Council activities and any problems encountered in carrying out its functions. Requires uniform standards prescribed by the Council to: (1) be designed to produce an accurate assessment of the market value of the subject of the appraisal; (2) prescribe the contents of and the manner in which an appraisal shall be performed and the factors which may be considered in performing an appraisal; (3) require the use of state-of-the-art appraisal techniques; (4) permit certain functions in connection with the appraisal to be performed by non-certified persons so long as the final appraisal document is approved and signed by a certified person; (5) prohibit the performance of appraisals by persons who have any financial interest in the property being appraised; and (6) recognize and reflect differences in the types of real estate on which appraisals are performed. Allows such standards to incorporate appraisal standards promulgated by a government agency or by the appraisal industry, if such standards meet the requirements of this Act. Requires appraiser certification requirements to: (1) prescribe a code of ethical responsibility and a level of competency which a person must satisfy to qualify for certification; (2) prescribe the procedures and testing requirements under which a certification shall be granted; (3) modify certification requirements for appraisers with prior experience; (4) set forth the criteria and circumstances under which disciplinary action shall be taken against a certified appraiser; (5) insure the performance of accurate and independent appraisals; and (6) recognize and reflect differences in required skills on different types of real estate. Requires appraisal standards and appraiser certification requirements to be prescribed in accordance with Federal procedures, including the holding of public hearings. Requires appraisal standards to be proposed not later than 18 months after the date of enactment of this Act and adopted not later than 24 months after the date of enactment. Requires appraiser certification requirements to be proposed not later than 12 months after the date of enactment of this Act and adopted not later than 18 months after the date of enactment. Grants the Council oversight and disciplinary authority over State certifying agencies and certified appraisers. Directs the Council to: (1) determine which real estate-related financial transactions are of sufficient financial or public policy importance as to require the performance of a certified appraiser; and (2) prescribe rules describing such transactions in accordance with this Act, and designate them as federally covered transactions within 24 months after the date of enactment of such Act. Describes transactions which may be so designated, including any transactions involving $1,000,000 or more of appraised property. Sets forth the membership of the Council and administrative provisions. Requires the Council to have two advisory committees to be known as: (1) the Real Estate Appraiser Committee to provide advice, information, analysis, and recommendations concerning real estate appraisal standards and requirements for certification of appraisers; and (2) the Real Estate Appraisal User Committee to provide advice, information, analysis, and recommendations concerning the use of appraisals in real estate-related financial transactions. Authorizes appropriations to the Council. Authorizes the Council to assess and collect fees from each person who receives a certification and each person who obtains an appraisal for a commercial for-profit transaction. Provides for the transfer of personnel in accordance with the transfer of functions under this Act. Title II: Approval of State Appraiser Certifying Agencies; Certification of Appraisers - Provides for the Council to approve State certifying agencies which function in accordance with the requirements under this Act. Provides for certifying appraisers by the State certifying agency or by the Council in States which do not have such an agency or in States with a non-approved agency. Title III: Appraisals in Federally Covered Transactions - Sets forth penalties for any person: (1) to knowingly seek, obtain, or give money or any other thing of value in exchange for the performance of an appraisal by a person who is not a certified appraiser; and (2) who is not a certified appraiser to knowingly provide an appraisal. Requires Federal agencies to use the services of a certified appraiser if a fee is involved. Title IV: General Provisions and Definitions - Specifies the Federal bank regulatory agencies as: (1) the Federal Reserve Board; (2) the Federal Deposit Insurance Corporation; (3) the Office of the Comptroller of the Currency; (4) the Federal Home Loan Bank Board; and (5) the National Credit Union Administration. Requires Federal agency reports of disciplinary and enforcement actions to the Council and the appropriate State certifying agency.

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Documents

2 official files

• Reported to House amended, Part I

  summary · EN · 28 September 1988

  Open at official source

• Introduced in House

  summary · EN · 20 November 1987

  Open at official source

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