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ASC Policy Statements


Introduction and Purpose

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), as amended (Title XI) established the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (ASC). The purpose of Title XI is to provide protection of Federal financial and public policy interests by upholding Title XI requirements for appraisals performed for federally related transactions.  Specifically those appraisals shall be performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct will be subject to effective supervision.  Pursuant to Title XI, one of the ASC's core functions is to monitor the requirements established by the States for certification and licensing of appraisers qualified to perform appraisals in connection with federally related transactions.  The ASC performs periodic Compliance Reviews of each State appraiser regulatory program (Program) to determine compliance, or lack thereof, with Title XI, and to assess the Program's implementation of the AQB Criteria as adopted by the Appraiser Qualifications Board (AQB).  


Pursuant to authority granted to the ASC under Title XI, the ASC adopted revised Policy Statements, effective June 1, 2013 (unless otherwise stated therein), to provide States with the necessary information to maintain their Programs in compliance with Title XI.  Policy Statements 1 through 7 correspond with the categories that are evaluated during the Compliance Review process and included in the ASC Compliance Review Report (Report) and Policy Statement 8 sets forth required procedures in the event that interim sanctions are imposed against a State by the ASC:  


  • Policy Statement 1  --  Statutes, Regulations, Policies and Procedures Governing State Programs
  • Policy Statement 2  --  Temporary Practice 
  • Policy Statement 3  --  National Registry
  • Policy Statement 4  --  Application Process 
  • Policy Statement 5  --  Reciprocity
  • Policy Statement 6  --  Education
  • Policy Statement 7  --  State Agency Enforcement 
  • Policy Statement 8  --  Interim Sanctions


Also included are two appendices.  Appendix A, Compliance Review Process, provides an overview of State Compliance Reviews and contains a new rating system to provide greater gradation in the ASC Findings regarding State compliance. The new rating system will be used for Compliance Reviews commencing on or after June 1, 2013.  Appendix B, Glossary of Terms, clarifies the meaning of terms as used in the Policy Statements.  


Background


Policy Statements were initially adopted in 1993 by the ASC to assist States in developing and maintaining their Programs in compliance with Title XI and were substantively supplemented in 1997 to address issues related to temporary practice and reciprocity.  Since 1997, the Policy Statements remained largely unchanged with the exception of amendments made in 2008 to Policy Statement 10, Enforcement.  Passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) in 2010 and implementation of the ASC's revised Compliance Review process in 2009 necessitated revision of the Policy Statements to enhance guidance for States as they implement changes required by the Dodd-Frank Act.  


Following are links to the Policy Statements, effective June 1, 2013, and the Federal Register Notice of Adoption:

Policy Statements

Federal Register Notice


Policy Statement documents provided for historical reference:




2013 - ASC Policy Statements (Revised) - 2013
2013 - Press Release - ASC Revised Policy Statements
Superseded - 1997 - ASC Policy Statements
Superseded - 2000 - Ltr to All States - Policy Statements 1 and 10 - 2000
Superseded - 2007 - ASC Policy Statements
Superseded - 2007 - Comment Ltrs from States on Policy Statement 10G
Superseded - 2007 - Ltr to All States - Policy Statement 10G
Superseded - 2007 - Ltr to All States - Policy Statement 10G
Superseded - 2008 - ASC Policy Statements
Superseded - 2008 - Ltr from AZ Board of Appraisal - comments on Policy Statement 10G