REAL ESTATE APPRAISAL AMENDMENT.

SEC. 964. REAL ESTATE APPRAISAL AMENDMENT.Section 1112 of the Financial Institution Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3341) is amended— (1) by striking “Each Federal financial institutions” and inserting “(a) In General.—Each Federal financial institutions”; and (2) by adding at the end the following new subsections: “(b) Threshold Level.—Each Federal financial institutions regulatory agency and the Resolution Trust Corporation may establish a threshold level at or below which a certified or licensed appraiser is not required to perform appraisals in connection with federally related transactions, if such agency determines in writing that such threshold level does not represent a threat to the safety and soundness of financial institutions. “(c) GAO Study of Appraisals in Connection With Real Estate Related Financial Transactions Below the Threshold Level.— “(1) Study required.— At the end of the 18-month period, and the end of the 36-month period, beginning on the date of the enactment of this subsection, the Comptroller General 106 STAT. 3895of the United States shall conduct a study on the adequacy and quality of appraisals or evaluations conducted in connection with real estate related financial transactions below the thresh-old level established under subsection (b), taking into account— “(A) the cost to any financial institution involved in any such transaction; “(B) the possibility of losses to the Bank Insurance Fund, the Savings Association Insurance Fund, or the National Credit Union Share Insurance Fund: “(C) the cost to any customer involved in any such transaction; and “(D) the effect on low-income housing. “(2) Reports to congress and the appropriate federal financial institutions regulatory agencies.—Upon completing each of the studies required under paragraph (1), the Comptroller General shall submit a report on the Comptroller General’s findings and conclusions with respect to such study to the Federal financial institutions regulatory agencies, the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate, together with such recommendations for legislative or administrative action as the Comptroller General determines to be appropriate.”.