The following is an excerpt regarding the Interim Final Rule of TIL, Reg Z

(f) Customary and reasonable compensation —

(1) Requirement to provide customary and reasonable
compensation to fee appraisers. In any covered transaction, the creditor and its agents shall
compensate a fee appraiser for performing appraisal services at a rate that is customary and reasonable
for comparable appraisal services performed in the geographic market of the property being appraised.
For purposes of paragraph (f) of this section, “agents” of the creditor do not include any fee appraiser as
defined in paragraph (f)(4)(i) of this section.

(2)  Presumption of compliance. A creditor and its agents shall be presumed to comply with paragraph (f)
(1) if—
(i) The creditor or its agents compensate the fee appraiser in an amount that is reasonably related to
recent rates paid for comparable appraisal services performed in the geographic market of the property
being appraised. In determining this amount, a creditor or its agents shall review the factors below and
make any adjustments to recent rates paid in the relevant geographic market necessary to ensure that
the amount of compensation is reasonable:
(A) The type of property,
(B) The scope of work,
(C) The time in which the appraisal services are required to be performed,
(D) Fee appraiser qualifications,
(E) Fee appraiser experience and professional record, and
(F) Fee appraiser work quality; and

(ii) The creditor and its agents do not engage in any anticompetitive acts in violation of state or federal
law that affect the compensation paid to fee appraisers, including

(A) Entering into any contracts or engaging in any conspiracies to restrain trade through methods such
as price fixing or market allocation, as prohibited under section 1 of the Sherman Antitrust Act, 15 U.S.C.
1, or any other relevant antitrust laws; or
(B) Engaging in any acts of monopolization such as restricting any person from entering the relevant
geographic market or causing any person to leave the relevant geographic market, as prohibited under
section 2 of the Sherman Antitrust Act, 15 U.S.C. 2, or any other relevant antitrust laws.

(3) Alternative presumption of compliance. A creditor and its agents shall be presumed to comply with
paragraph (f)(1) if the creditor or its agents determine the amount of compensation paid to the fee
appraiser by relying on information about rates that:

(i) Is based on objective third-party information, including fee schedules, studies, and surveys prepared
by independent third parties such as government agencies, academic institutions, and private research
(ii) Is based on recent rates paid to a representative sample of providers of appraisal services in the
geographic market of the property being appraised or the fee schedules of those providers; and
(iii) In the case of information based on fee schedules, studies, and surveys, such fee schedules,
studies, or surveys, or the information derived therefrom, excludes compensation paid to fee appraisers
for appraisals ordered by appraisal management companies, as defined in paragraph (f)(4)(iii) of this

(4) Definitions. For purposes of this paragraph (f), the following definitions apply:
(i) Fee appraiser. The term “fee appraiser” means—
(A) A natural person who is a state-licensed or state-certified appraiser and receives a fee for performing
an appraisal, but who is not an employee of the person engaging the appraiser; or
(B) An organization that, in the ordinary course of business, employs state-licensed or state-certified
appraisers to perform appraisals, receives a fee for performing appraisals, and is not subject to the
requirements of section 1124 of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3331 et seq. ).
(ii) Appraisal services. The term “appraisal services” means the services required to perform an
appraisal, including defining the scope of work, inspecting the property, reviewing necessary and
appropriate public and private data sources (for example, multiple listing services, tax assessment
records and public land records), developing and rendering an opinion of value, and preparing and 
submitting the appraisal report.

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