124 STAT. 2186 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(A) IN GENERAL.—If the purpose of a higher-risk mort- gage is to finance the purchase or acquisition of the mort- gaged property from a person within 180 days of the pur- chase or acquisition of such property by that person at a price that was lower than the current sale price of the property, the creditor shall obtain a second appraisal from a different certified or licensed appraiser. The second appraisal shall include an analysis of the difference in sale prices, changes in market conditions, and any improve- ments made to the property between the date of the pre- vious sale and the current sale. ‘‘(B) NO COST TO APPLICANT.—The cost of any second appraisal required under subparagraph (A) may not be charged to the applicant. ‘‘(3) CERTIFIED OR LICENSED APPRAISER DEFINED.—For pur- poses of this section, the term ‘certified or licensed appraiser’ means a person who— ‘‘(A) is, at a minimum, certified or licensed by the State in which the property to be appraised is located; and ‘‘(B) performs each appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and the regulations pre- scribed under such title, as in effect on the date of the appraisal. ‘‘(4) REGULATIONS.— ‘‘(A) IN GENERAL.—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 shall jointly pre- scribe regulations to implement this section. ‘‘(B) EXEMPTION.—The agencies listed in subparagraph (A) may jointly exempt, by rule, a class of loans from the requirements of this subsection or subsection (a) if the agencies determine that the exemption is in the public interest and promotes the safety and soundness of creditors. ‘‘(c) FREE COPY OF APPRAISAL.—A creditor shall provide 1 copy of each appraisal conducted in accordance with this section in connection with a higher-risk mortgage to the applicant without charge, and at least 3 days prior to the transaction closing date. ‘‘(d) CONSUMER NOTIFICATION.—At the time of the initial mort- gage application, the applicant shall be provided with a statement by the creditor that any appraisal prepared for the mortgage is for the sole use of the creditor, and that the applicant may choose to have a separate appraisal conducted at the expense of the applicant. ‘‘(e) VIOLATIONS.—In addition to any other liability to any per- son under this title, a creditor found to have willfully failed to obtain an appraisal as required in this section shall be liable to the applicant or borrower for the sum of $2,000. ‘‘(f) HIGHER-RISK MORTGAGE DEFINED.—For purposes of this section, the term ‘higher-risk mortgage’ means a residential mort- gage loan, other than a reverse mortgage loan that is a qualified mortgage, as defined in section 129C, secured by a principal dwelling— Deadline.
