Appraisal Subcommittee; Notice of Termination of Residential Temporary Waiver Relief
| Published date | 02 December 2019 |
| Citation | 84 FR 65980 |
| Record Number | 2019-26030 |
| Section | Notices |
| Court | Federal Financial Institutions Examination Council |
Federal Register, Volume 84 Issue 231 (Monday, December 2, 2019)
[Federal Register Volume 84, Number 231 (Monday, December 2, 2019)]
[Notices]
[Page 65980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26030]
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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL
[Docket No. AS19-09]
Appraisal Subcommittee; Notice of Termination of Residential
Temporary Waiver Relief
AGENCY: Appraisal Subcommittee of the Federal Financial Institutions
Examination Council.
ACTION: Notice of termination of residential temporary waiver relief.
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SUMMARY: The Appraisal Subcommittee (ASC) of the Federal Financial
Institutions Examination Council (FFIEC) is providing notice of
termination of temporary waiver relief of appraiser credentialing
requirements for appraisals of federally related transactions (FRTs)
under $500,000 for 1-to-4 family residential real estate transactions
throughout the State of North Dakota which was granted by Order for a
period of one year pursuant to section 1119(b) of Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989,
as amended (Title XI) and the rules promulgated thereunder. The Order
provided that the temporary waiver for residential real estate
transactions would terminate 60 days after the effective date of a
final rule issued by the federal banking agencies increasing the
appraisal exemption threshold limit for residential real estate
transactions. The federal banking agencies issued a final rule that
increased the appraisal exemption threshold for residential real estate
transactions with an effective date of October 9, 2019. The Order
specified that the temporary waiver for residential real estate
transactions will terminate 60 days after the effective date of that
rule, which will occur on December 8, 2019.
FOR FURTHER INFORMATION CONTACT: James R. Park, Executive Director, at
(202) 595-7575, or Alice M. Ritter, General Counsel, at (202) 595-7577,
ASC, 1325 G Street NW, Suite 500, Washington, DC 20005.
SUPPLEMENTARY INFORMATION: Section 1119(b) of Title XI authorizes the
ASC to waive, on a temporary basis and with concurrence of the FFIEC,
``any requirement relating to certification or licensing of a person to
perform appraisals under [Title XI]'' upon ``a written determination
that there is a scarcity of certified or licensed appraisers to perform
appraisals in connection with [FRTs] \1\ in a State, or in any
geographical political subdivision of a State, leading to significant
delays in the performance of such appraisals.'' \2\ The ASC has
promulgated regulations that set forth procedures \3\ governing the
processing of temporary waiver requests.
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\1\ ``Federally related transaction'' (FRT) refers to any real
estate related financial transaction which: (a) A federal financial
institutions regulatory agency engages in, contracts for, or
regulates; and (b) requires the services of an appraiser. (Title XI
Sec. 1121 (4), 12 U.S.C. 3350.)
\2\ 12 U.S.C. 3348(b).
\3\ 12 CFR part 1102, subpart A.
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On August 1, 2018, the Governor of North Dakota, the North Dakota
Department of Financial Institutions, and the North Dakota Bankers
Association (Requester) submitted a temporary waiver request to the
ASC. The Requester sought a temporary waiver of not less than five
years of appraiser credentialing requirements for appraisals of FRTs
under $500,000 for 1-to-4 family residential real estate transactions
and under $1,000,000 for agricultural and commercial real estate
transactions throughout the State of North Dakota.\4\
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\4\ On September 7, 2018, the ASC responded with a request for
clarification and additional information, and on April 10, 2019, the
Requester submitted an additional letter with a clarification of the
request and additional information.
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On July 9, 2019, the ASC convened a Special Meeting to consider the
request. Based on the information provided by the Requester, the North
Dakota Real Estate Appraiser Qualifications and Ethics Board (Appraiser
Board), and by the public through comment letter submissions, the ASC
issued an Order approving a limited version of the waiver request.\5\
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\5\ An approval of a temporary waiver by the ASC is subject to
the approval of the FFIEC. (See 12 U.S.C. 3348(b); 12 CFR 1102.5.)
On July 12, 2019, the FFIEC approved the temporary waiver granted by
the ASC on July 9, 2019.
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The Order, which was published in the Federal Register,\6\ in
pertinent part included the following:
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\6\ 84 FR 38630 (Aug. 7, 2019).
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A temporary waiver of appraiser credentialing requirements
for appraisals of FRTs under $500,000 for 1-to-4 family residential
real estate transactions throughout the State of North Dakota for a
period of one year, unless the federal banking agencies issue a rule
increasing appraisal exemption threshold limits for residential real
estate transactions, in which case the residential waiver will
terminate 60 days after the effective date of that threshold increase.
The federal banking agencies issued a final rule increasing the
appraisal exemption threshold limits for residential real estate
transactions with an effective date of October 9, 2019.\7\ The
temporary waiver for residential real estate transactions terminates by
its own terms 60 days after the effective date of that rule, which will
occur on December 8, 2019.
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\7\ 84 FR 53579 (Oct. 8, 2019).
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* * * * *
By the Appraisal Subcommittee.
Dated: November 26, 2019.
Arthur Lindo,
Chairman.
[FR Doc. 2019-26030 Filed 11-29-19; 8:45 am]
BILLING CODE 6700-01-P
