Certified Residential Appraiser Practice Exam

Did the Dodd-Frank Act give the ASC authority to create a National Registry of appraisal management companies?

1. True

2. False

3. Only for state-licensed firms

4. Only for federal agencies

The correct answer is: True

The Dodd-Frank Act, which was enacted in response to the financial crisis of 2008, indeed granted the Appraisal Subcommittee (ASC) the authority to establish a National Registry specifically for appraisal management companies (AMCs). This was part of a broader effort to enhance oversight and regulation of appraisal practices in the mortgage industry. This registry allows states to verify that AMCs meet the necessary criteria and comply with relevant standards, promoting transparency and accountability in the appraisal process. The creation of such a registry is significant because it helps ensure that AMCs operate in a manner that upholds the integrity of the appraisal profession and protects consumers. By giving the ASC this authority, the Dodd-Frank Act aimed to improve the quality of appraisals and prevent conflicts of interest that could arise during property valuations. Thus, the correct answer reflects the Dodd-Frank Act's intentions and the legislative powers granted to the ASC concerning the regulation of appraisal management companies.