Below is a list of the Bills that may affect appraiser’s independence. We will have a course on this with speakers from Fannie Mae once they have finalized their anticipated changes. The HVCC became effective on 5/1/2009. FHA's HVCC became effective on 2/15/2010.
New Bills 2010
California
SB237 OREA to regulate AMC's in California
AB33 To combine OREA, DRE & Dept. of Corporations
AB1796 To give OREA more regulatory power over AMC's
Nationally
HR3044 18 Month Moratorium on HVCC
HR4173 Passed by the House, waiting for the Senate - Stops HVCC
Congressional Bills
H.R. 3915 Mortgage Reform and Anti-Predatory Lending Act 11/07
Fines for lender pressure
Penalties for non-payment of appraisals
ASC gained authority to issue rules involving temporary practice, national
registry information sharing and enforcement
ASC to complete an annual audit of state regulatory agencies and provide
an accounting of disapproved actions and warnings in the previous year.
Must report any appraiser who they believe is violating applicable laws.
Seems to preclude the use of AVM’s or BPO’s for high-price loans.
H.R. 1852 Expanding American Home Ownership 9/07
Illegal to interfere with the appraised value by intimidation, coercion,
instruction or any other means. Affects FHA loan program.
H.R. 1723 Fair FHA Appraisal Act - Pending
Secretary of HUD selects appraisers on a rotating basis from approval list.
H.R. 3012 Fair Mortgage Practices Act – Pending
National System for licensing residential mortgage loan originators.
H.R. 2061 Predatory Mortgage Lending Practices Reduction Act - Pending
Requires mortgage brokers to be licensed and bans pressure on appraisers and forbids
unfair or deceptive acts while providing sub-prime mortgage loans.
Homeownership Preservation and Protection Act of 2007 - Pending
Cannot hire appraiser on expectation that appraiser will “hit’ the needed value
S. 1299 Borrower’s Protection Act - Pending
Increases Federal oversight of mortgage brokers and establishes standard regarding
a borrower’s ability to repay a loan. Holds lenders accountable for actions of brokers
and appraisers. Mortgage professionals would be required to report suspected fraudulent
activities and would be given safe harbor from liability when reporting suspicious events.
S. 1222 Stop Fraud Act - Pending
Authorizes criminal penalties against persons doing fraud in lending
Nationwide Licensing System for U.S. Mortgage Lenders 1/2/08
For mortgage lenders, mortgage brokers and loan officers
Tracks licensing, employment history and enforcement actions.
Idaho, Iowa, Kentucky, Massachusetts, Nebraska, New York, and Rhode Island to
initiate the program, with 40 additional states in 2008.
FHA
Pending legislation to return to draw system
FNMA
Mortgage Brokers
Cannot directly order appraisals
Use funding source or appraisal management company.
Mortgage Bankers
Choose appraiser or use appraisal management company
Management Companies
Max. 20% ownership by lender/client
Does it create independence?
Two GSE’s signed separate agreements suited to their own internal structure. For the Fannie Mae agreement, visit
www.ofheo.gov/media/agreements/3308FannieAgree.pdf
For the Freddie Mac agreement, visit
www.ofheo.gov/media/agreements/3308FreddieAgree.pdf
Sites for comments on possible FNMA changes
Fannie Mae
http://www.ric-surveys.com/se.ashx?s=7205300750A3F19F
Andrew Cuomo
http://www.oag.state.ny.us/online_forms/email_ag.jsp
Appraisal Institute
appraisalcomments@appraisalinstitute.org
Others
http://www.thepetitionsite.com/1/Home-Valuation-Code-of-Conduct
http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/90day-home-valuation-code.html
http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2008/03/appraisal-organ.html |
