FIRREA Title XI (Real Estate Appraisal Reform Amendments, 12 U.S.C.) § 3356 — Exemption from appraisals of real estate located in rural areas
FIRREA Title XI (Real Estate Appraisal Reform Amendments, 12 U.S.C.), §3356 Exemption from appraisals of real estate located in rural areas. Full verbatim text from the Office of the Law Revision Counsel's United States Code (USLM XML, release point 119-111).
Verbatim regulatory text
Verbatim provisions from FIRREA Title XI (Real Estate Appraisal Reform Amendments, 12 U.S.C.) § 3356 — Exemption from appraisals of real estate located in rural areas — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
12 U.S.C. §3356(a)
(a) DefinitionsIn this section— (1) the term “mortgage originator” has the meaning given the term in section 1602 of title 15; and (2) the term “transaction value” means the amount of a loan or extension of credit, including a loan or extension of credit that is part of a pool of loans or extensions of credit.
12 U.S.C. §3356(b)
(b) Appraisal not requiredExcept as provided in subsection (d), notwithstanding any other provision of law, an appraisal in connection with a federally related transaction involving real property or an interest in real property is not required if— (1) the real property or interest in real property is located in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations; (2) not later than 3 days after the date on which the Closing Disclosure Form, made in accordance with the final rule of the Bureau of Consumer Financial Protection entitled “Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)” (78 Fed. Reg. 79730 (December 31, 2013)), relating to the federally related transaction is given to the consumer, the mortgage originator or its agent, directly or indirectly— (A) has contacted not fewer than 3 State certified appraisers or State licensed appraisers, as applicable, on the mortgage originator’s approved appraiser list in the market area in accordance with part 226 of title 12, Code of Federal Regulations; and (B) has documented that no State certified appraiser or State licensed appraiser, as applicable, was available within 5 business days beyond customary and reasonable fee and timeliness standards for comparable appraisal assignments, as documented by the mortgage originator or its agent; (3) the transaction value is less than $400,000; and (4) the mortgage originator is subject to oversight by a Federal financial institutions regulatory agency.
12 U.S.C. §3356(c)
(c) Sale, assignment, or transferA mortgage originator that makes a loan without an appraisal under the terms of subsection (b) shall not sell, assign, or otherwise transfer legal title to the loan unless— (1) the loan is sold, assigned, or otherwise transferred to another person by reason of the bankruptcy or failure of the mortgage originator; (2) the loan is sold, assigned, or otherwise transferred to another person regulated by a Federal financial institutions regulatory agency, so long as the loan is retained in portfolio by the person; (3) the sale, assignment, or transfer is pursuant to a merger of the mortgage originator with another person or the acquisition of the mortgage originator by another person or of another person by the mortgage originator; or (4) the sale, loan, or transfer is to a wholly owned subsidiary of the mortgage originator, provided that, after the sale, assignment, or transfer, the loan is considered to be an asset of the mortgage originator for regulatory accounting purposes.
12 U.S.C. §3356(d)
(d) ExceptionSubsection (b) shall not apply if— (1) a Federal financial institutions regulatory agency requires an appraisal under section 225.63(c), 323.3(c), 34.43(c), or 722.3(e) of title 12, Code of Federal Regulations; or (2) the loan is a high-cost mortgage, as defined in section 1602 of title 15.
12 U.S.C. §3356(e)
(e) Anti-evasion Each Federal financial institutions regulatory agency shall ensure that any mortgage originator that the Federal financial institutions regulatory agency oversees that makes a significant amount of loans under subsection (b) is complying with the requirements of subsection (b)(2) with respect to each loan.
12 U.S.C. §3356 note — source credit and editorial notes (not statute text)
(Pub. L. 101–73, title XI, § 1127, as added Pub. L. 115–174, title I, § 103, May 24, 2018, 132 Stat. 1299.)
Get this regulation in your AI window
Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.
Add to Claude shows the one-time setup: paste one address, no account with us. Add to ChatGPT adds the free C4C app from ChatGPT’s app directory. Either way it’s free.
Get notified if this rule changes
One email when FIRREA Title XI (Real Estate Appraisal Reform Amendments, 12 U.S.C.) § 3356 — Exemption from appraisals of real estate located in rural areas changes: what changed, the new verbatim text, and the effective date. Nothing else.
Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.
Source of record: https://claudeforcompliance.com/regs/firrea-12usc-3356/
· register firrea-12usc-3356 · verbatim, source-snapshotted regulator text from the
Claude for Compliance corpus. To work from every register at once, download the corpus
and follow the methodology.