Final Rule on requirements for AMCs

A joint press release has been issued by the six federal financial regulatory agencies (OCC, FRB, FDIC, CFPB, FHFA, NCUA) announcing the issuance of a final rule that implements minimum requirements for state registration and supervision of appraisal management companies (AMCs). An AMC is an entity that provides appraisal management services to lenders or underwriters or other principals in the mortgage market. Under the rule, states may elect to register and supervise AMCs. The AMC minimum requirements in the final rule apply to states that elect to register and supervise AMCs, as AMCs are defined in the rule. The final rule does not compel a state to establish an AMC registration and supervision program, and no penalty is imposed on a state that does not establish a regulatory structure for AMCs. The final rule will become effective 60 days after publication in the Federal Register. The compliance date for federally regulated AMCs (those that are subsidiaries of insured depository institutions) is no later than 12 months from the effective date of the rule. The FDIC issued FIL-19-2-15 regarding the new rule.