Current Federal Legislation in the works

These are the current bills that were pending and would most be affecting appraisers

These bills were found at the federal level and are of concern to us appraisers. These are my short interpretations. Please read them for yourself and determine your position and write your congress people and senators. I try to keep current according to the site but can't promise it is up to the minute or complete. I last looked 2/18/10

Check out this site- Thomas legislative search

S2860-Fair Value and Independent Appraisal Act

 This appears to be a good bill to support. It talks about appraiser independence and actual fines for those who coerce appraisers as well as some times when a physical inspection of the property. Referred to the committee on banking housing and urban affairs 4/15/08. This bill seems to have disappeared at last count it had over 100 sponsors.

HR3915-Mortgage Reform and Anti-Predatory Lending Act of 2007

 (Engrossed as Agreed to or Passed by House requires license for loan agents. Talks about appraiser independence and penalties for violating it. It increases registry fees. This is long and one of four versions. Referred to banking subcommittee 12/3/07. pay close attention to section 701-704of both versions.

HR3221 American Housing Rescue and Foreclosure Act of 2008

This is a very long and complex bill and there are four versions of it running around. Pay attention to section 229 that talks about making it illegal to unduly influence an appraiser. This is also the bill that we are working on with Senator Dole to try and make the Cuomo Deal void as it should be. This bill has been very busy lately and may pass soon. This bill was signed into law on july 30th,2008. This also has new requirements for FHA appraisals and appraisers.

HR6116 Saving Family Homes Act of 2008

This bill allows families that are foreclosed on to continue to live in the house paying rent at the current market rent rate determined by an independent appraiser while it is foreclosure. this bill has a 5 year from enactment sunset clause. This bill was introduced 5/21/08 and referred to the house committee on financial services. This ought to be an interesting one if it goes anywhere.

HR5857 title IX especially Homeownership Protection and Housing Market Stabilization Act of 2008.

This bill talks about the requirement for interior inspections, appraiser independence and that recognized designations may be considered in the assignment of an appraisal. It also requires the lender to pay for a second appraisal if there was a purchase of the property within the past 180 days. It was sent to house subcommittee and subcommittee on military personal 5/23/08.

HR 2061 Predatory Mortgage Practices Reduction Act

This bill calls for licensing of mortgage lenders and brokers including testing. It also set fines for unduly influencing an appraiser of $10,000 per day. This bill has been sitting in the committee on financial services since 4/26/07. 

HR5818 Neighborhood Stabilization Act of 2008.

This would allow the US government to make loans and buy houses that have gone into foreclosure. Passed by house sent to senate committee 5/12/08. There are four versions of this bill floating around.

HR6254 Temporary FHA Direct Endorsement Lender Participation Act of 2008

The bill is to allow a study of lenders, brokers and appraiser performance for neighborhood watch programs. It has a sunset clause for 12/08 and was introduced 6/12/08 it was referred to the house committee on financial services.

HR6078 Green Act of 2008 sec 21 in particular( this bill has not moved in over a year) bill talks about the need for appraisers to include "green" improvements and requiring appraisers to consider energy efficient items in appraisal.

    `(f) Requirements for Appraisers Regarding Energy-Efficiency Features- The Appraisal Subcommittee shall establish requirements for State certification of State certified real estate appraisers and for State licensing of State licensed appraisers, to ensure that appraisers consider and are qualified to consider, in determining the value of a property, any renewable energy sources for, or energy-efficiency or energy-conserving improvements or features of, the property.'.see section copied below.

 

    (c) Guidelines for Appraising Photovoltaic Measures and Training of Appraisers- Section 1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is amended by adding at the end the following new subsection:

 

    `(g) Guidelines for Appraising Photovoltaic Measures and Training of Appraisers- The Appraisal Subcommittee shall, in consultation with the Secretary of Housing and Urban Development, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, establish specific guidelines for--

 

      `(1) appraising off- and on-grid photovoltaic measures for compliance with the appraisal standards prescribed pursuant to section 1110(2);

 

      `(2) requirements under section 1116(f) for certification of State certified real estate appraisers and for State licensing of State licensed appraisers, to ensure that appraisers consider, and are qualified to consider, such photovoltaic measures in determining the value of a property; and

 

      `(3) training of appraisers to meet the requirements established pursuant to paragraph (2) of this subsection.'.

      This house committee is discussing this bill as of 7/31/08

      HR6853-Nationwide Mortgage Fraud Coordinator Act of 2008

      pay special attention to section 2 d1 that gives the FBI authority to participate in the detection, investigation and prosecution of mortgage fraud and includes appraiser involvement and enabling of mortgage fraud. It was introduced 9/9/08 and received 9/23/08 in the senate.  

      HR5678-neighborhood rescue and stabilization act of 2008

      This bill talks about buying houses that are abandoned or or foreclosed in the form of grants to be allocated according to number of foreclosures in the area among other criteria. section 3b speaks of limitations of use of the funds to buy the houses based on the most up to date appraisal as defined by the secretary. This was submitted and sent to committee 4/2/08.

       HR6899-comprehensive American Energy and Security and consumer protection Act. sec 620 especially requires appraisers to be certified to give appropriate credit in appraisals for energy efficient or alternative amenities. This bill has not moved since 12/08.

      SEC. 620. CONSIDERATION OF ENERGY-EFFICIENCY IMPROVEMENTS IN APPRAISALS. 

        (a) Appraisals in Connection With Federally Related Transactions-
          (1) REQUIREMENT- Section 1110 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339) is amended--
            (A) in paragraph (1), by striking `and' at the end;
            (B) by redesignating paragraph (2) as paragraph (3); and
            (C) by inserting after paragraph (1) the following new paragraph:

       

          `(2) that such appraisals be performed in accordance with appraisal standards that require, in determining the value of a property, consideration of any renewable energy sources for, or energy-efficiency or energy-conserving improvements or features of, the property; and'.

       

          (2) REVISION OF APPRAISAL STANDARDS- Each Federal financial institutions regulatory agency shall, not later than 6 months after the date of the enactment of this Act, revise its standards for the performance of real estate appraisals in connection with federally related transactions under the jurisdiction of the agency to comply with the requirement under the amendments made by paragraph (1) of this subsection.

       

        (b) Appraiser Certification and Licensing Requirements- Section 1116 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3345) is amended--

       

          (1) in subsection (a), by inserting before the period at the end the following: `, and meets the requirements established pursuant to subsection (f) for qualifications regarding consideration of any renewable energy sources for, or energy-efficiency or energy-conserving improvements or features of, the property';

       

          (2) in subsection (c), by inserting before the period at the end the following: `, which shall include compliance with the requirements established pursuant to subsection (f) regarding consideration of any renewable energy sources for, or energy-efficiency or energy-conserving improvements or features of, the property';

       

          (3) in subsection (e), by striking `The' and inserting `Except as provided in subsection (f), the'; and

       

          (4) by adding at the end the following new subsection:

       

        `(f) Requirements for Appraisers Regarding Energy-Efficiency Features- The Appraisal Subcommittee shall establish requirements for State certification of State certified real estate appraisers and for State licensing of State licensed appraisers , to ensure that appraisers consider and are qualified to consider, in determining the value of a property, any renewable energy sources for, or energy-efficiency or energy-conserving improvements or features of, the property.'.

       

        (c) Guidelines for Appraising Photovoltaic Measures and Training of Appraisers - Section 1122 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is amended by adding at the end the following new subsection:

       

        `(g) Guidelines for Appraising Photovoltaic Measures and Training of Appraisers - The Appraisal Subcommittee shall, in consultation with the Secretary of Housing and Urban Development, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, establish specific guidelines for--

       

          `(1) appraising off- and on-grid photovoltaic measures for compliance with the appraisal standards prescribed pursuant to section 1110(2);

       

          `(2) requirements under section 1116(f) for certification of State certified real estate appraisers and for State licensing of State licensed appraisers , to ensure that appraisers consider, and are qualified to consider, such photovoltaic measures in determining the value of a property; and

       

          `(3) training of appraisers to meet the requirements established pursuant to paragraph (2) of this subsection

      This bill was introduced 9/28/08 and read in senate only. it has been sitting in committee since 11/08

      H.R.421
      Title: To amend the Emergency Economic Stabilization Act of 2008 to restrict which assets banks can write off as loss for purposes of the Troubled Assets Relief Program, and for other purposes.
      Sponsor: Rep Meek, Kendrick B. [FL-17] (introduced 1/9/2009)      Cosponsors (None)
      Latest Major Action: 1/9/2009 Referred to House committee. Status: Referred to the House Committee on Financial Services.
      SUMMARY AS OF:
      1/9/2009--Introduced. -this bill went nowhere as of 1/27/10

       

      Troubled Assets Relief Program Targeted Assets Act of 2009 - Amends the Emergency Economic Stabilization Act of 2008 (EESA) to authorize the Secretary of the Treasury to establish the Troubled Asset Restoration and Assistance Program (TARAP) to allow the Treasury to purchase lender or servicer losses on rehabilitated mortgages, on terms and conditions determined by the Secretary.

      Directs the Treasury, acting through TARAP, to pay up to 80% of the difference between the original asset and the rehabilitated asset to the lender or servicer under certain conditions.

      Permits the portion of the difference between the original asset and the rehabilitated asset to the lender or servicer that is not paid for by the Secretary to be written to loss.

      Requires any regulations and other guidance the Secretary may issue to determine qualifications for an independent appraiser, and make final determinations as to: (1) whether an asset is troubled; (2) what the values are that will determine the amount of purchase; (3) the amount of reductions in the purchase price for certain otherwise ineligible assets; and (4) any other functionality issues required to operate the program.

      Authorizes the Secretary, conforming to specified guidelines, to make all necessary rules and determinations regarding documented best efforts, required timelines, and other processes and procedures.

      Identifies criteria for eligible assets and eligible lenders or servicers.

      Sunsets TARAP on December 31, 2009.

      Prohibits, for a 90-day period, a mortgage servicer, or holder, from taking action to initiate a foreclosure, or any action in connection with a foreclosure already instituted (other than to suspend it), with respect to any eligible mortgage of a consumer.

      Entitles a consumer to defer initiation of a foreclosure, or any action in connection with one already instituted by any creditor, servicer, or holder of a mortgage, until the end of the 90-day period beginning on the date of the enactment of this Act.

      HR1728 especially title 6

      This provides a requirement for a physical appraisal to be completed for all subprime loans and a second appraisal if it is a resale or refi within 180 days of the last sale of the property. provides protection for appraisers from unfair practices and coercion from lenders. It also prohibits an appraiser or AMC from having an interest in the property being appraised.  It also prohibits BPOs from being used as a basis for loans. It also requires that the fee paid to the appraiser be separated from the administration or other fees on the settlement statement. it is still sitting in committee since 5/12/09

      HR2108 sec 4

      this bill talks about subprime loans and making it  a crime to knowingly submit a misleading appraisal for the lender or undue influencing an appraisal. It also provides for penalties for those do the undue influencing. referred to house committee 4/27/09 (no movement 1/27/10

      hr2336 sec 20

       requires that energy items be included in appraisal with special education in how to determine valuation of special energy  items. it has not moved since 4/27/10 as of 6/29/10. it has recently been amended.

Hr4173 it is in the banking committee as of 1/20/10 This is a long and complicated bill. This seems to be the part we should be concerned with but go ahead and read the entire thing.

SEC. 4312. APPRAISAL INDEPENDENCE REQUIREMENTS.

    (a) Promulgation of New Requirements- The Director shall lead a Negotiated Rulemaking Committee under the Federal Advisory Committee Act and the Negotiated Rulemaking Act to promulgate appraisal independence requirements for residential loan purposes, and such Committee shall promulgate such requirements not later than the end of the 60-day period beginning on the date of the enactment of this title.

    (b) Certain Regulation Requirements- Regulations promulgated by the Negotiated Rulemaking Committee under this section--

      (1) shall not prohibit lenders, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation from accepting any appraisal report completed by an appraiser selected, retained, or compensated in any manner by a mortgage loan originator--

        (A) licensed or registered in accordance with section 1501 et seq. of the SAFE Mortgage Licensing Act of 2008; and

        (B) subject to State or Federal laws that make it unlawful for a mortgage loan originator to make any payment, threat, or promise, directly or indirectly, to any appraiser of a property, for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property, except that nothing in this section shall prohibit a person with an interest in a real estate transaction from asking an appraiser to--

          (i) consider additional, appropriate property information;

          (ii) provide further detail, substantiation, or explanation for the appraiser's value conclusion; or

          (iii) correct errors in the appraisal report; and

      (2) shall include a requirement that lenders and their agents compensate appraisers at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised.

    (c) Sunset- Effective on the date the appraisal independence requirements are promulgated pursuant to subsection (a), the Home Valuation Code of Conduct announced by the Federal Housing Finance Agency on December 23, 2008, shall have no force or effect

  • S1379 sec 16 energy efficiency in housing act of 2009
  • requires appraisers to be certified to include values for energy effiicent items in all federal related transactions. introduced 6/25/09 and no movement yet.

HR2454 American clean energy and security act of 2009 sec 299A The ASC shall make requirements for appraisers to appraise green items. It is sitting in committee since 7/7/09.

 
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