Which agency regulates the transactions in relation to appraisals?

The Appraisal Subcommittee is the agency responsible for regulating transactions related to appraisals. It operates under the auspices of the federal government and is tasked with overseeing the real estate appraisal process, ensuring compliance with federal laws and regulations. This includes monitoring the appraisal standards and practices across different states to ensure consistency and reliability in appraisals, which are critical for property valuation and lending processes.

By focusing on effective oversight of appraisal practices, the Appraisal Subcommittee helps to maintain integrity within the real estate market, protects consumers, and supports fair lending standards. This regulatory role is essential for upholding the quality and accountability of appraisals, which are vital for determining property values and facilitating real estate transactions.

In contrast, while other agencies like the Federal Trade Commission and the Department of Housing and Urban Development play important roles in consumer protection and housing policy, they do not specifically regulate the appraisal process itself. The Federal Reserve, primarily involved in the nation's monetary policy, does not have direct oversight over appraisal transactions either. Thus, the Appraisal Subcommittee stands out as the correct choice for this particular regulatory function.