AMC Supporting Statement

CONTROLLED

“MINIMUM REQUIREMENTS FOR APPRAISAL
MANAGEMENT COMPANIES”
OMB CONTROL NUMBER 2590-0013
SUPPORTING STATEMENT

A. JUSTIFICATION
1. Circumstances Necessitating the Collection of Information
In 2015, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the
Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Bureau of
Consumer Financial Protection (Bureau), and FHFA (collectively, the Agencies) jointly issued
regulations 1 to implement provisions of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) relating to the eligibility of appraisal management companies
(AMCs) to provide appraisal management services for real estate related financial transactions
that are engaged in, contracted for, or regulated by a “federal financial institutions regulatory
agency” or the Resolution Trust Corporation (Federally related transactions). 2 Generally, these
statutory provisions provide that an AMC either be registered with a State’s appraiser certifying
and licensing agency or be subject to oversight by a federal financial institutions regulatory
agency in order to participate in a Federally related transaction. 3
As required by the Dodd-Frank Act provisions, the Agencies’ joint AMC regulations establish
minimum requirements for the registration and supervision of AMCs to be applied by states that
have elected to establish an appraiser certifying and licensing agency with authority to register
and supervise AMCs (participating states). 4 The joint regulations also implement the statutory
requirement that states report to the Appraisal Subcommittee (ASC) of the Federal Financial
Institutions Examination Council (FFIEC) the information required by the ASC to administer a
national registry of AMCs (AMC National Registry or Registry). 5 The AMC National Registry
See 80 FR 32658 (June 9, 2015). By agreement, the responsibility for clearance under the PRA of information
collections contained in the joint regulations is shared only by the FDIC, OCC, the Board, and FHFA.
2
See 12 U.S.C. 3350(4), (5). “Federal financial regulatory agency” includes the FDIC, OCC, the Board, and
National Credit Union Administration. See 12 U.S.C. 3350(6).
3
Section 1117 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), 12
U.S.C. 3346, permits states to establish an appraiser certifying and licensing agency “to assure the availability
of State certified and licensed appraisers for the performance in a State of appraisals in federally related
transactions and to assure effective supervision of the activities of certified and licensed appraisers.” The DoddFrank Act amended section 1117 to provide that the duties of a state appraiser certifying and licensing agency may
also include the registration and supervision of AMCs. Although states are not required by federal law to register
and supervise AMCs, or even to establish an appraiser certifying and licensing agency, an AMC that is not
registered with such a state agency (except for those regulated by a federal financial institutions regulatory agency)
may not participate in a federally related transaction in that state. See 12 U.S.C. 3353(f)(1).
4
See 12 CFR 1222.23.
5
See 12 U.S.C. 3353(e).
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includes AMCs that are either: (1) subsidiaries owned and controlled by an insured depository
institution (as defined in 12 U.S.C. 1813) and regulated by either the FDIC, OCC, or the Board
(federally regulated AMCs) 6; or (2) registered with, and subject to supervision of, a state
appraiser certifying and licensing agency. FHFA’s AMC regulation, located at Subpart B of 12
CFR part 1222, is substantively identical to the AMC regulations of the FDIC, OCC, and the
Board and contains the recordkeeping and reporting requirements described in Item #2 below. 7
2. Use of Data
The information collection requirements of the joint AMC regulations fall into four general
categories: reporting requirements imposed on states, recordkeeping requirements imposed on
states, and disclosure requirements imposed on AMCs. These categories of collections and the
use of the data collected are described below:
I.

State Reporting Requirements (formerly IC #1)

The regulation requires that each State electing to register AMCs for purposes of permitting
AMCs to provide appraisal management services relating to covered transactions in the state
submit to the ASC the information regarding such AMCs required to be submitted by ASC
regulations or guidance concerning AMCs that operate in the State. 8 The FDIC has determined
not to include this IC in their PRA renewal because the ASC had issued its own regulation
governing the information collection. 9 FHFA concurs with this reasoning and will not request to
renew the State Reporting Requirements IC included in the 60-day notice and that IC will be
removed.
II.

State Recordkeeping Requirements (Redesignated IC #1, formerly IC #2)

States seeking to register AMCs must have an AMC registration and supervision program. The
regulation requires each participating State to establish and maintain within its appraiser
certifying and licensing agency a registration and supervision program with the legal authority
and mechanisms to: (i) review and approve or deny an application for initial registration; (ii)
periodically review and renew, or deny renewal of, an AMC’s registration; (iii) examine an
AMC’s books and records and require the submission of reports, information, and documents;
(iv) verify an AMC’s panel members’ certifications or licenses; (v) investigate and assess
potential violations of laws, regulations, or orders; (vi) discipline, suspend, terminate, or deny
registration renewals of, AMCs that violate laws, regulations, or orders; and (vii) report
violations of appraisal-related laws, regulations, or orders, and disciplinary and enforcement
actions to the ASC. 10

See 12 CFR 1222.21(k) (defining “Federally regulated AMC”).
See 12 CFR §§ 1222.20-1222.26. For clarity, the regulatory citations herein are to FHFA’s version of the joint
regulations only.
8
See 12 CFR 1222.26.
9
See Federal Deposit Insurance Corporation, Agency Information Collection Activities: Proposed Collection
Renewal; Comment Request, 86 FR 58269, 58274 (Oct. 21, 2021).
10
See 12 CFR 1222.23(a).
6
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The regulation requires each participating state to impose requirements on AMCs that are not
federally regulated (non-federally regulated AMCs) to: (i) register with and be subject to
supervision by a state appraiser certifying and licensing agency in each state in which the AMC
operates; (ii) use only state-certified or state-licensed appraisers for federally regulated
transactions in conformity with any federally regulated transaction regulations; (iii) establish and
comply with processes and controls reasonably designed to ensure that the AMC, in engaging an
appraiser, selects an appraiser who is independent of the transaction and who has the requisite
education, expertise, and experience necessary to competently complete the appraisal assignment
for the particular market and property type; (iv) direct the appraiser to perform the assignment in
accordance with the Uniform Standards of Professional Appraisal Practice; and (v) establish and
comply with processes and controls reasonably designed to ensure that the AMC conducts its
appraisal management services in accordance with sections 129E(a) through (i) of the Truth-inLending Act. 11
FHFA has redesignated this IC as IC#1 from IC#2.
III.

AMC Disclosure Requirements (State-Regulated AMCs) (Redesignated IC#2,
formerly IC #3)

The regulation provides that an AMC may not be registered by a state or included on the AMC
National Registry if the company is owned, directly or indirectly, by any person who has had an
appraiser license or certificate refused, denied, cancelled, surrendered in lieu of revocation, or
revoked in any state for a substantive cause. 12 The regulation also provides that an AMC may
not be registered by a state if any person that owns 10 percent or more of the AMC fails to
submit to a background investigation carried out by the state appraiser certifying and licensing
agency. 13 Thus, each AMC registering with a state must provide information to the state on
compliance with those ownership restrictions. Further, the regulation requires that a federally
regulated AMC report to the state or states in which it operates the information required to be
submitted by the state pursuant to the ASC’s policies, including policies regarding the
determination of the AMC National Registry fee, and information regarding compliance with the
ownership restrictions described above. 14
In FHFA’s 60-day notice, we combined federally and non-federally regulated AMCs in IC#3. 15
Subsequently, the FDIC issued its 30-day notice dividing the same information collected in
FHFA’s IC#3 into two different ICs: one for state-regulated AMCs, for which FHFA would take
10 percent of the burden (FDIC IC#3); and one for federally regulated AMCs, for which FHFA
would take zero burden (FDIC IC#4). 16 FHFA concurs with this approach and revises its
submission by disaggregating the federally regulated and state-regulated AMCs and
redesignating the IC as IC#2 from IC#3. FHFA’s redesignated IC#2 now only applies to stateSee 12 CFR 1222.23(b). Sections 129E(a) through (i) of the Truth-in-Lending Act are located at 15
U.S.C. 1639e(a)-(i).
12
See 12 CFR §§ 1222.24(a), 25(b).
13
See 12 CFR 1222.24(b).
14
See 12 CFR 1222.25(c).
15
See 86 FR 47107, 47108-47109.
16
86 FR at 58275-58277.
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regulated AMCs and corresponds to FDIC’s IC#3. 17 FHFA is also changing the classification
from reporting to disclosure and renaming it “AMC Disclosure Requirements (State-regulated
AMCs).”
IV.

AMC Disclosure Requirements (Written Notice of Appraiser Removal From Network
or Panel), (Redesignated IC #3, formerly IC #4)

An entity meets the definition of an AMC that is subject to the requirements of the AMC
regulation if, among other things, it oversees an appraiser panel of more than 15 state-certified or
state-licensed appraisers in a state, or 25 or more state-certified or state-licensed appraisers in
two or more states, within a given 12-month period. 18 For purposes of determining whether a
company qualifies as an AMC under that definition, the regulation provides that an appraiser in
an AMC’s network or panel is deemed to remain on the network or panel until: (i) the AMC
sends a written notice to the appraiser removing the appraiser with an explanation; or (ii)
receives a written notice from the appraiser asking to be removed or a notice of the death or
incapacity of the appraiser. 19 The AMC would retain these notices in its files. FHFA is also
redesignating this IC from #4 to #3, changing the classification from reporting to disclosure, and
renaming it “AMC Disclosure Requirements (Written Notice of Appraiser Removal From
Network or Panel).” FHFA has redesignated this IC to #3 from #4.
3. Use of Information Technology
The rule does not specify the manner in which the information must be retained or reported.
This has been left to the discretion of the either the ASC or the individual participating states,
which may use any available type of information technology to meet the requirements of the
rule.
4. Efforts to Identify Duplication
The information that AMCs and participating states are required to report or retain under the rule
is not available from any alternative sources.
5. Impact on Small Entities
This information collection does not have a significant economic impact on a substantial number
of small entities.
6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction
The various aspects of this information collection are primarily event-driven. Less frequent
collections would compromise the effectiveness of the AMC regulations’ substantive
requirements.
FHFA’s redesignated IC#2 now collects information relating only to state regulated AMCs, but FHFA will still be
allocated only 10 percent of the burden, in alignment with the FDIC’s 30-day notice. See Id. at 58277 (FDIC IC#3).
18
See 12 CFR 1222.21(c)(1)(iii).
19
See 12 CFR 1222.22(b).
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7. Circumstances Requiring Special Information Collection
There are no special circumstances that would require FHFA to conduct the information
collection in a manner inconsistent with the guidelines provided in Item 7.
8. Solicitation of Comments on Information Collection
In accordance with the requirements of 5 CFR 1320.8(d), FHFA published an initial notice and
request for comments regarding the renewal of the PRA clearance for this information collection
in the Federal Register on August 23, 2021 (60-day notice). 20 The 60-day comment period
closed on October 22, 2021. FHFA received one comment, which is included as an attachment
to this Supporting Statement.
The commenter questions FHFA’s estimate that 3,860 entities meet the regulatory definitions of
an AMC. The commenter stated that “[b]ased on the federal definition of an AMC and our
understanding of the number of state licensed AMCs, this estimate of approximately 3,860
entities meeting the definition of an AMC seems exceedingly high. We believe there are
approximately 300 licensed entities doing business as AMCs.”
The commenter does not provide any detail to explain how they arrived at their much lower
estimate of 300 compared to FHFA and FDIC’s 3,860. Their comment gives no basis to
ascertain the source of the discrepancy, either as to the underlying data or the analysis of the
regulatory definition of AMCs.
FHFA has reviewed the comment and continues to have confidence in the 3,860 estimate of
AMCs. ASC’s 2020 Annual Report states that “[a]s of December 31, 2020, the Registry
contained 3,417 AMCs.” 21 The FDIC’s review determined that there are 3,854 total active
AMCs in the Registry (both federally and non-federally regulated) as of June 2021, which we
rounded to 3,860 in our 60-day notice. FHFA concurs with the FDIC’s review of the ASC
Registry in June 2021. 22 Both the FDIC analysis and the ASC Annual Report substantiate
FHFA’s estimate and confirms our concurrence with the FDIC’s review. FHFA remains
confident that the number is accurate.
Because the FDIC’s documentation of the ASC Registry review is non-public, FHFA has
included in the 30-day notice a reference to the ASC Annual Report’s statement that there were
3,417 AMCs at the close of 2020. This public information will assist the commenters and other
members of the public to understand that FHFA’s estimate is in the correct range.
9. Provision of Payments to Respondents
No payments or gifts are made to respondents.
See 86 FR 47107 (Aug. 23, 2021).
See 2020 Annual Report, Appraisal Subcommittee,
https://www.asc.gov/Documents/AnnualReports/2020%20ASC%20Annual%20Report.pdf at 17.
22
See 86 FR at 58276.
20
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10. Assurance of Confidentiality
The Agencies have not provided, and are not required to provide, any assurance of
confidentiality with respect to the information to be collected.
11. Questions of Sensitive Nature
There are no questions of a sensitive nature in this information collection.
12. Estimated Burden of Information Collection
Each of the Agencies’ AMC regulations contains reporting and recordkeeping requirements
applying to participating states and to both federally regulated and non-federally regulated
AMCs. 23 FHFA estimates that approximately 3,860 entities meet the regulatory definition of an
“appraisal management company,” based on FDIC’s review of the ASC’s National Registry as of
June 2021. 24 There are 3,820 state-regulated AMCs. 25
Unlike the insured depository institutions regulated by the OCC, FDIC, and the Board, none of
FHFA’s regulated entities owns or controls an AMC or, by law, could ever own or control an
AMC. Accordingly, the Agencies have agreed that responsibility for the burdens arising from
reporting and recordkeeping requirements imposed upon federally regulated AMCs are to be
split evenly among the OCC, FDIC, and the Board and that FHFA will not include those burdens
in its totals. The four Agencies have agreed to split the total burdens imposed upon participating
states and upon non-federally regulated AMCs evenly between them (i.e., by taking
responsibility for 25 percent of the burden per agency).
Thus, for IC #1, which relates to reporting and recordkeeping requirements imposed upon
participating states, each agency is responsible for 25 percent of the total estimated burden. For
IC #3, which relates to disclosure requirements imposed upon both federally regulated AMCs
and non-federally regulated AMCs, the OCC, FDIC, and the Board are each responsible for 30
percent of the total burden, while FHFA is responsible only for 10 percent of the total burden. 26
To estimate wages, FHFA reviewed May 2020 data for wages (by industry and occupation) from
the U.S. Bureau of Labor Statistics (BLS) for credit intermediation and related activities (NAICS
5220A1) for seven occupations of interest: accountants and auditors; compliance officers;
financial analysts; legal occupations; management occupations; software developers; and
statisticians. To estimate compensation costs associated with the information collection, FHFA
uses $100.89 per hour, which is based on the average of the 75th percentile for seven
occupations adjusted for inflation (5.41 percent between May 2020 and September 2021), plus
In FHFA’s regulations, this definition is set forth at 12 CFR 1222.21(c).
86 FR at 58276.
25
Id.
26
As described above, FHFA’s IC#2 now collects information relating only to state regulated AMCs. However,
FHFA will still be allocated only 10 percent of the burden for IC#2 per agreement with the agencies. See 86 FR at
58277.
23
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an additional 32.8 percent for benefits (based on the percent of total compensation allocated to
benefits as of Q2 2021 for NAICS 522: credit intermediation and related activities).
The total annualized hour burden placed on respondents by the information collection in the joint
AMC regulations to be 8,208 hours, with associated costs of $828,105.12. The FHFA estimates
its share of the hour burden to be 837 hours, with associated costs of $84,444.93. The
calculations for each of FHFA’s three ICs are described below. The other three Agencies take a
combined burden of 7,371 hours, which includes an additional 78 hours for the information
collection containing only federally regulated AMCs, which FHFA no longer takes, as described
above. 27 The totals for all Agencies for IC#1-3 below add up to 8,130 hours. With the addition
of the 78 hours taken solely by the OCC, FDIC, and Federal Reserve, the total burden from all
four agencies is 8,208.
IC #1 State Recordkeeping Requirements
States without a current AMC certifying and licensing program that elect to establish such a
program as a result of the rule maintain records related to the rule’s substantive requirements.
According to the ASC, there were 4 states that had not developed a system to register and
oversee AMCs. 28
•

Attributable to all Agencies combined:
o Number of states without current AMC certifying and licensing programs: 4
o Recordkeeping activities per state: 1
o Total recordkeeping activities: 4
o Recordkeeping time per activity: 40 hours
o Total hours attributable to all Agencies combined: 160

•

Attributable to FHFA:
o Percentage of burden: 25%
o Recordkeeping time per activity: 40 hours
o Total hours attributable to FHFA: 40
o Hourly rate: $100.89
o Total compensation costs attributable to FHFA: $4,035.60

IC #2 AMC Disclosure Requirements (State-Regulated AMCs)
State-regulated AMCs disclose to states information necessary to determine whether any person
that owns more than 10 percent of the AMC has had an appraiser license or certificate refused,
denied, cancelled, surrendered in lieu of revocation, or revoked in any state. The Agencies
estimate that each AMC will operate in an average of 19.56 states and that approximately 2 of
those states would not have AMC registration systems (4/55 x 19.56 = 1.422 states, rounded up
to 2 states). The AMCs will need to submit information to each of those states.
See 86 FR at 58277. The additional 78 hours are in FDIC’s IC#4.
Appraisal Institute “Enacted State AMC Laws,” https://www.appraisalinstitute.org/advocacy/enacted-state-amclaws1/.
27
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•

Attributable to all Agencies combined:
o Number of AMCs: 3,820
o Reports per AMC: 2
o Total reports: 7,640
o Preparation time per report: 1 hour
o Total hours attributable to all Agencies combined: 7,640

•

Attributable to FHFA:
o Percentage of burden: 10%
o Preparation time per report: 1 hour
o Total hours attributable to FHFA: 764
o Hourly rate: $100.89
o Total compensation costs attributable to FHFA: $77,079.96.

IC #3 AMC Disclosure Requirements (Written Notice of Appraiser Removal From
Network or Panel)
State-regulated AMCs disclose written notices sent or received regarding appraiser removal from
the AMC’s network or panel. The Agencies estimate that 4,130 appraisers annually will be laid
off or resign from an AMC or have their licenses revoked, generating one removal notice sent or
received per appraiser.
•

Attributable to all Agencies combined:
o Number of appraisers leaving AMCs: 4,130
o Removal notices sent or received by AMC per appraiser: 1
o Total removal notices sent or received by AMCs: 4,130
o Reporting time per notice: 0.08 hours
o Total hours attributable to all Agencies combined: 330

•

Attributable to FHFA:
o Percentage of burden: 10%
o Reporting time per notice: 0.08 hours
o Total hours attributable to FHFA: 33
o Hourly rate: $100.89
o Total compensation costs attributable to FHFA: $3,329.37

13. Estimated Total Annualized Cost Burden to Respondents
The FHFA has not identified any start-up costs to respondents. It is expected that states and
AMCs will already have the infrastructure in place to carry out the rule’s reporting and
recordkeeping requirements.
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14. Estimated Cost to the Federal Government
There will be no costs to the Federal government associated with this information collection.
15. Reasons for Change in Burden
Compared to the estimates contained in FHFA’s 2018 Supporting Statement, the total estimated
burden associated with this information collection increased from 1,445 to 8,208, with FHFA’s
portion of the burden rising proportionally, from 183 hours to 837 hours. This increase is due
almost entirely to the increase from 200 to 3,860 in the Agencies’ estimate as to the number of
entities that qualify as an “AMC” for purposes of the joint AMC regulations and the related
information collection.
16. Plans for Tabulation, Statistical Analysis and Publication
FHFA will not publish the results of this information collection.
17. If Seeking Approval to Not Display the Expiration Date for OMB Approval of the
Information Collection, Explain the Reasons Why Display Would Be Inappropriate
FHFA plans to display the expiration date for OMB approval.
18. Explain Each Exception to the Topics of the Certification Statement Identified in
“Certification for Paperwork Reduction Act Submission.”
There are no exceptions to the certification statement identified in Item 18.
B.

COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS

This information collection does not employ statistical methods.

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