U.S. Code » Title 15 » Chapter CHAPTER 41— CONSUMER CREDIT PROTECTION › Subchapter SUBCHAPTER I— CONSUMER CREDIT COST DISCLOSURE › Part Part B— Credit Transactions

15 U.S.C. § 1639e

Appraisal independence requirements

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(a) In general

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.

(b) Appraisal independenceFor purposes of subsection (a), acts or practices that violate appraisal independence shall include—(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.(c) ExceptionsThe requirements of subsection (b) shall not be construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, consumer, or any other person with an interest in a real estate transaction from asking an appraiser to undertake 1 or more of the following:(1) Consider additional, appropriate property information, including the consideration of additional comparable properties to make or support an appraisal.(2) Provide further detail, substantiation, or explanation for the appraiser’s value conclusion.(3) Correct errors in the appraisal report.(d) Prohibitions on conflicts of interest

No certified or licensed appraiser conducting, and no appraisal management company procuring or facilitating, an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer may have a direct or indirect interest, financial or otherwise, in the property or transaction involving the appraisal.

(e) Mandatory reporting

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.

(f) No extension of credit

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 11 So in original. Probably should be “subsection”. (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.

(g) Rules and interpretive guidelines(1) In general

Except as provided under paragraph (2), the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau may jointly issue rules, interpretive guidelines, and general statements of policy with respect to acts or practices that violate appraisal independence in the provision of mortgage lending services for a consumer credit transaction secured by the principal dwelling of the consumer and mortgage brokerage services for such a transaction, within the meaning of subsections (a), (b), (c), (d), (e), (f), (h), and (i).

(2) Interim final regulations

The Board shall, for purposes of this section, prescribe interim final regulations no later than 90 days after July 21, 2010, defining with specificity acts or practices that violate appraisal independence in the provision of mortgage lending services for a consumer credit transaction secured by the principal dwelling of the consumer or mortgage brokerage services for such a transaction and defining any terms in this section or such regulations. Rules prescribed by the Board under this paragraph shall be deemed to be rules prescribed by the agencies jointly under paragraph (1).

(h) Appraisal report portability

Consistent with the requirements of this section, the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau may jointly issue regulations that address the issue of appraisal report portability, including regulations that ensure the portability of the appraisal report between lenders for a consumer credit transaction secured by a 1-4 unit single family residence that is the principal dwelling of the consumer, or mortgage brokerage services for such a transaction.

(i) Customary and reasonable fee(1) In general

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.

(2) Fee appraiser definition(A) In generalFor purposes of this section, the term “fee appraiser” means a person who is not an employee of the mortgage loan originator or appraisal management company engaging the appraiser and is—(i) a State licensed or certified appraiser who receives a fee for performing an appraisal and certifies that the appraisal has been prepared in accordance with the Uniform Standards of Professional Appraisal Practice; or(ii) a company not subject to the requirements of section 3353 of title 12 that utilizes the services of State licensed or certified appraisers and receives a fee for performing appraisals in accordance with the Uniform Standards of Professional Appraisal Practice.(B) Rule of construction related to appraisal donations

If a fee appraiser voluntarily donates appraisal services to an organization eligible to receive tax-deductible charitable contributions, such voluntary donation shall be considered customary and reasonable for the purposes of paragraph (1).

(3) Exception for complex assignments

In the case of an appraisal involving a complex assignment, the customary and reasonable fee may reflect the increased time, difficulty, and scope of the work required for such an appraisal and include an amount over and above the customary and reasonable fee for non-complex assignments.

(j) Sunset

Effective on the date the interim final regulations are promulgated pursuant to subsection (g), the Home Valuation Code of Conduct announced by the Federal Housing Finance Agency on December 23, 2008, shall have no force or effect.

(k) Penalties(1) First violation

In addition to the enforcement provisions referred to in section 1640 of this title, each person who violates this section shall forfeit and pay a civil penalty of not more than $10,000 for each day any such violation continues.

(2) Subsequent violations

In the case of any person on whom a civil penalty has been imposed under paragraph (1), paragraph (1) shall be applied by substituting “$20,000” for “$10,000” with respect to all subsequent violations.

(3) Assessment

The agency referred to in subsection (a) or (c) of section 1607 of this title with respect to any person described in paragraph (1) shall assess any penalty under this subsection to which such person is subject.

(Pub. L. 90–321, title I, § 129E, as added Pub. L. 111–203, title XIV, § 1472(a), July 21, 2010, 124 Stat. 2187; amended Pub. L. 115–174, title I, § 102, May 24, 2018, 132 Stat. 1299.)Editorial NotesAmendments

2018—Subsec. (i)(2). Pub. L. 115–174 designated existing provisions as subpar. (A) and inserted heading, redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A) and realigned margins, and added subpar. (B).

Statutory Notes and Related SubsidiariesEffective Date

Section effective on the date on which final regulations implementing such section take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 1601 of this title.

Notes of Decisions
Cited in 16 cases (7 in the last 5 years), 2013–2025 · leading case: Sw. Non-Profit Hous. Corp. v. Nowak, Kniffen, Martell, 322 P.3d 204 (Ariz. Ct. App. 2014).
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Sw. Non-Profit Hous. Corp. v. Nowak, Kniffen, Martell, 322 P.3d 204 (Ariz. Ct. App. 2014). · cites it 4× “Southwest points to 15 U.S.C. § 1639e which sets out requirements for independent appraisals.”
Parks v. Speedy Title & Appraisal Review Servs., 318 F. Supp. 3d 1053 (E.D. Ill. 2018). “As Defendants point out, Plaintiff may be referring to 15 U.S.C. § 1639e, a federal statute entitled "Appraisal independence requirements.”
La. Real Est. Appraisers Bd. v. Fed. Trade Comm'n, 917 F.3d 389 (5th Cir. 2019). “After Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"), requiring lenders to compensate fee appraisers "at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised," 15…”
LA Real Est. Appraiser Bd. v. FTC, 976 F.3d 597 (5th Cir. 2020). “” 15 U.S.C. § 1639e(i)(1). In response, the Louisiana legislature amended its own law, the Appraisal Management Company Licensing and Regulation Act (the “AMC Act”), to require that appraisal rates be consistent with Section 1639e and its implementing regulations.”
State Nat'l Bank of Big Spring v. Geithner, 958 F. Supp. 2d 127 (D.D.C. 2013). “See 15 U.S.C. § 1639e(1). The failure to conduct this determination leaves lenders subject to liability and a foreclosure defense by borrowers.”
Blatt v. Capital One Auto Fin., Inc., 237 F. Supp. 3d 688 (M.D. Tenn. 2017). “Finally, the Court finds that the terms contained in the letter mailed to Blatt are sufficient to meet the standards of 15 U.S.C. § 1639e(a), and the letter’s failure to recite the exact words used in the IVR system is immaterial.”
Gregory v. Toler Appraisal Grp., LLC (S.D.W. Va 2023). · cites it 5× “(B) Count III – Violation of 15 U.S.C. § 1639e Ms. Gregory alleges that Gateway has violated 15 U.”
Gregory v. Toler Appraisal Grp., LLC (S.D.W. Va 2023). · cites it 5× “The Complaint contains the following causes of action: Count I – an individual claim of Illegal Loan in Excess of Fair Market Value or Residential Property, as to Gateway; Count II – an individual claim of Breach of Professional Standards and Negligence, as to Toler; and Count…”
Lund v. Wells Fargo Bank Nat'l Ass'n (D. Me. 2025). · cites it 4× “For the reasons that follow, I grant the motion as to the one federal claim brought under 15 U.S.C. § 1639e and dismiss that claim, and I remand the remainder of the case.”
Wilson (Thomas) v. Deutsche Bank Trust Co. Americas (N.D. Tex. 2019). · cites it 3× “V Defendants also move to dismiss the Thomases’ TILA claims under 15 U.S.C. §§ 1639e and 1639h. A The Thomases allege that Ocwen violated 15 U.”
Edwards v. Tennessee Valley Fed. Credit Union (E.D. Tenn. 2024). · cites it 2× “The Truth in Lending Act, 15 U.S.C. § 1639e et seq.; and 2. The Equal Credit Opportunity Act, 15 U.”
Loan Trust, LLC v. Appraisal Source Inc., 2024 NY Slip Op 34517(U) (N.Y. Sup. Ct., New York Cty. 2024). · cites it 2× “FastApp also contends that 15 USC § 1639e (b) and Executive Law§ 160-mmmm bar it from exercising any control over the Appraisers.”
Show all 16 citing cases →
— 15 U.S.C. § 1639e(1) — 1 case
State Nat'l Bank of Big Spring v. Geithner, 958 F. Supp. 2d 127 (D.D.C. 2013). “See 15 U.S.C. § 1639e(1). The failure to conduct this determination leaves lenders subject to liability and a foreclosure defense by borrowers.”
— 15 U.S.C. § 1639e(a) — 4 cases
Blatt v. Capital One Auto Fin., Inc., 237 F. Supp. 3d 688 (M.D. Tenn. 2017). “Finally, the Court finds that the terms contained in the letter mailed to Blatt are sufficient to meet the standards of 15 U.S.C. § 1639e(a), and the letter’s failure to recite the exact words used in the IVR system is immaterial.”
Linstrom v. Lincoln Cnty. Assessor (Or. T.C. 2021).
Wilson (Thomas) v. Deutsche Bank Trust Co. Americas (N.D. Tex. 2019). “V Defendants also move to dismiss the Thomases’ TILA claims under 15 U.S.C. §§ 1639e and 1639h. A The Thomases allege that Ocwen violated 15 U.”
Gregory v. Toler Appraisal Grp., LLC (S.D.W. Va 2023). “(B) Count III – Violation of 15 U.S.C. § 1639e Ms. Gregory alleges that Gateway has violated 15 U.”
— 15 U.S.C. § 1639e(b) — 1 case
Sw. Non-Profit Hous. Corp. v. Nowak, Kniffen, Martell, 322 P.3d 204 (Ariz. Ct. App. 2014). “Southwest points to 15 U.S.C. § 1639e which sets out requirements for independent appraisals.”
— 15 U.S.C. § 1639e(b)(3) — 1 case
Gregory v. Toler Appraisal Grp., LLC (S.D.W. Va 2023). “(B) Count III – Violation of 15 U.S.C. § 1639e Ms. Gregory alleges that Gateway has violated 15 U.”
— 15 U.S.C. § 1639e(c) — 2 cases
Sw. Non-Profit Hous. Corp. v. Nowak, Kniffen, Martell, 322 P.3d 204 (Ariz. Ct. App. 2014). “Southwest points to 15 U.S.C. § 1639e which sets out requirements for independent appraisals.”
Masella v. JP Morgan Chase Bank N.A., 2022 IL App (1st) 210487-U (Ill. App. Ct. 2022).
— 15 U.S.C. § 1639e(e) — 1 case
Edwards v. Tennessee Valley Fed. Credit Union (E.D. Tenn. 2024). “The Truth in Lending Act, 15 U.S.C. § 1639e et seq.; and 2. The Equal Credit Opportunity Act, 15 U.”
— 15 U.S.C. § 1639e(i)(1) — 2 cases
La. Real Est. Appraisers Bd. v. Fed. Trade Comm'n, 917 F.3d 389 (5th Cir. 2019). “After Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"), requiring lenders to compensate fee appraisers "at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised," 15…”
LA Real Est. Appraiser Bd. v. FTC, 976 F.3d 597 (5th Cir. 2020). “” 15 U.S.C. § 1639e(i)(1). In response, the Louisiana legislature amended its own law, the Appraisal Management Company Licensing and Regulation Act (the “AMC Act”), to require that appraisal rates be consistent with Section 1639e and its implementing regulations.”
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