Credit unions and other interested parties have 60 days to comment on proposed rules issued by the Federal Reserve aimed at ensuring that appraisers make decisions without the influence of those who could derive financial benefits from those decisions.
The rules would prohibit coercion and other similar actions aimed at encouraging appraisers not to make independent judgments; prohibits appraisers and appraisal management companies from having financial or other interests in the properties or the transactions; prohibits creditors from extending credit-based appraisals if they know of coercion or conflicts of interest; requires creditors and others who know about appraiser misconduct to report them to state licensing agencies; and requires creditors that hire appraisers to pay "reasonable and customary compensation."
The Fed was required to issue the rules as one of the provisions of the financial overhaul bill passed by Congress and signed by President Obama in July.
