15 U.S.C. §1639e — Appraisal independence requirements
TILA's appraisal independence section (Dodd-Frank §1472). General unlawfulness of acts violating appraisal independence, enumerated prohibited acts (coercion/mischaracterization/targeted-value influence/payment withholding), mandatory reporting duty to State appraiser licensing agency, no-extension-of-credit rule on known violations, and customary-and-reasonable fee duty to fee appraisers. Implemented in Regulation Z §1026.42. Bootstrap target for Round C promotion; obligations populated from candidate file.
Verbatim regulatory text
Verbatim provisions from 15 U.S.C. §1639e — Appraisal independence requirements — 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.
15 U.S.C. §1639e(a) — General unlawfulness of acts violating appraisal independence
It shall be unlawful, in extending credit or in providing any services for a consumer credit transaction secured by the principal dwelling of the consumer, to engage in any act or practice that violates appraisal independence as described in or pursuant to regulations prescribed under this section.
15 U.S.C. §1639e(b)(1)-(4) — Enumerated acts violating appraisal independence
(b) Appraisal independence For purposes of subsection (a), acts or practices that violate appraisal independence shall include—
15 U.S.C. §1639e(e) — Mandatory reporting to State appraiser licensing agency
Any mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person involved in a real estate transaction involving an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer who has a reasonable basis to believe an appraiser is failing to comply with the Uniform Standards of Professional Appraisal Practice, is violating applicable laws, or is otherwise engaging in unethical or unprofessional conduct, shall refer the matter to the applicable State appraiser certifying and licensing agency.
15 U.S.C. §1639e(f) — No extension of credit when creditor knows of independence violation
In connection with a consumer credit transaction secured by a consumer’s principal dwelling, a creditor who knows, at or before loan consummation, of a violation of the appraisal independence standards established in subsections [1] (b) or (d) shall not extend credit based on such appraisal unless the creditor documents that the creditor has acted with reasonable diligence to determine that the appraisal does not materially misstate or misrepresent the value of such dwelling.
15 U.S.C. §1639e(i)(1) — Customary and reasonable fee to fee appraisers
Lenders and their agents shall compensate fee appraisers at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised. Evidence for such fees may be established by objective third-party information, such as government agency fee schedules, academic studies, and independent private sector surveys. Fee studies shall exclude assignments ordered by known appraisal management companies.
15 U.S.C. §1639e(b)(1)-(4) — Enumerated acts violating appraisal independence — enumerated items (chapeau recall fix)
(1) any appraisal of a property offered as security for repayment of the consumer credit transaction that is conducted in connection with such transaction in which a person with an interest in the underlying transaction compensates, coerces, extorts, colludes, instructs, induces, bribes, or intimidates a person, appraisal management company, firm, or other entity conducting or involved in an appraisal, or attempts, to compensate, coerce, extort, collude, instruct, induce, bribe, or intimidate such a person, for the purpose of causing the appraised value assigned, under the appraisal, to the property to be based on any factor other than the independent judgment of the appraiser; (2) mischaracterizing, or suborning any mischaracterization of, the appraised value of the property securing the extension of the credit; (3) seeking to influence an appraiser or otherwise to encourage a targeted value in order to facilitate the making or pricing of the transaction; and (4) withholding or threatening to withhold timely payment for an appraisal report or for appraisal services rendered when the appraisal report or services are provided for in accordance with the contract between the parties.