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Dodd-Frank mandatory reporting

Discussion in 'Illinois' started by Pat Butler, Mar 17, 2011.

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  1. Pat Butler

    Pat Butler Senior Member

    6
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    How is the state going to handle the requirements in Dodd-Frank for anyone involved in a consumer transaction to have to report any USPAP violations?

    This is an insane law. I can't remember the last time I saw an appraisal w/o a USPAP violation. Fortunately, I do very little review work. But is the state now going to go after appraisers who comment about bad appraisals when they don't follow up with a formal complaint?
     
  2. Brian Weaver

    Brian Weaver Senior Member

    1
    Apr 16, 2005
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Illinois
    Dodd-Frank has no enforcement mechanism right now. I've already redesigned complaint forms to accommodate AMC/Lender Mandatory Reporting. We'll see how all of this shakes out...but I'm not worried about it at the moment.
     
  3. NORTON

    NORTON Senior Member

    0
    Oct 10, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    so they got the mandatory reporting without C & R...sounds like the banks did alright.
     
  4. Brian Weaver

    Brian Weaver Senior Member

    1
    Apr 16, 2005
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Illinois
    We have a provision for C&R fees in our proposed AMC bill...but, it doesn't mean anything until and unless the feds figure out how to apply it. States can't get into price fixing...and trust me...you wouldn't want us to.

    Appraisers would like...in a perfect appraisal world...to be paid 2X to 3X what they're getting now for AMC work.

    Who figures that out? FHA? VA? Old HUD 1's? The GAO?

    Be careful what you wish for.
     
  5. Pat Butler

    Pat Butler Senior Member

    6
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    thanks for the info Brian. It will be interesting to see how this goes. I didn't realize there was no enforcement mechanism at this point.
     
  6. Mike Kennedy

    Mike Kennedy Elite Member

    38
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York

    Enforcement Provision

    "SEC. 1472. APPRAISAL INDEPENDENCE REQUIREMENTS.
    (a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (15
    U.S.C. 1631 et seq.) is amended by inserting after section 129D
    (as added by section 1461(a)) the following new section:

    ‘‘§ 129E. Appraisal independence requirements

    ‘‘(e) MANDATORY REPORTING.—Any mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person involved in a real estate transaction involving an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer who has a reasonable basis to believe an appraiser is failing to comply with the Uniform Standards of Professional Appraisal Practice, is violating applicable laws, or is otherwise engaging in unethical or unprofessional conduct, shall refer the matter to the applicable State appraiser certifying and licensing agency."
     
    Last edited: Mar 18, 2011
  7. DTB

    DTB Elite Member

    28
    Jun 11, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    The State of Illinois is already in the busines of setting fees, it is called Prevailing Wage and yes they do enforce it. Just not in the appraisal realm, yet.
     
  8. DTB

    DTB Elite Member

    28
    Jun 11, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Apparently everyone agrees or finds parallel situations not to be of value? :shrug:
     
  9. BNICK

    BNICK Sophomore Member

    0
    Jul 9, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    DTB , you are so correct just ask a non union road contractor trying to bid on a State of Illinois road project .
     
  10. Brian Weaver

    Brian Weaver Senior Member

    1
    Apr 16, 2005
    Professional Status:
    Gvmt Agency, FNMA, HUD, VA etc.
    State:
    Illinois
    Don't think for a moment that the Final Interim Rules are in any way...final. That's years away.
    11 states REQUIRE notarized complaints. I'd be curious to see how all of these AMCs plan on fulfilling that.
     
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