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House Financial Services Committee today approved HR 1728

Discussion in 'General Real Estate and Real Estate Finance' started by Michael Tipton, Apr 30, 2009.

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  1. Michael Tipton

    Michael Tipton Senior Member

    0
    Sep 25, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Washington, DC - The House Financial Services Committee today approved H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009, aimed at curbing abusive and predatory lending – a major factor in the nation’s highest home foreclosure rate in 25 years. The bill would outlaw many of the egregious industry practices that marked the subprime lending boom, and it would prevent borrowers from deliberately misstating their income to qualify for a loan.
    The legislation, sponsored by Reps. Brad Miller (D-NC), Mel Watt (D-NC), and Barney Frank (D-MA), was approved by a vote of 49- 21. The House of Representatives is expected to consider H.R. 1728 as soon as next week.

    http://www.house.gov/apps/list/press/financialsvcs_dem/prss042909.shtml
     
  2. dobie

    dobie Senior Member

    7
    Oct 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New Jersey
    Big deal.

    Call me when they outlaw BPO's, AVM's and lower the de minimus to $100K.

    That'll be a start.
     
  3. Green Hornet

    Green Hornet Senior Member

    0
    Dec 29, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    It appears to render BPOs and AVMs worthless in a mortgage situation. I am sure there will be some loopholes, but not a bad start.

    ------------------------------

    SEC. 601. PROPERTY APPRAISAL REQUIREMENTS.

    Section 129 of the Truth in Lending Act (15 U.S.C. 1639) is amended by inserting after subsection (u) (as added by section 303(f)) the following new subsection:

    ‘(v) Property Appraisal Requirements-

    ‘(1) IN GENERAL- A creditor may not extend credit in the form of a mortgage referred to in section 103(aa) to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared in accordance with the requirements of this subsection.

    ‘(2) APPRAISAL REQUIREMENTS-

    ‘(A) PHYSICAL PROPERTY VISIT- An appraisal of property to be secured by a mortgage referred to in section 103(aa) does not meet the requirement of this subsection unless it is performed by a qualified appraiser who conducts a physical property visit of the interior of the mortgaged property.

    ‘(B) SECOND APPRAISAL UNDER CERTAIN CIRCUMSTANCES-

    ‘(i) IN GENERAL- If the purpose of a mortgage referred to in section 103(aa) is to finance the purchase or acquisition of the mortgaged property from a person within 180 days of the purchase or acquisition of such property by that person at a price that was lower than the current sale price of the property, the creditor shall obtain a second appraisal from a different qualified appraiser. The second appraisal shall include an analysis of the difference in sale prices, changes in market conditions, and any improvements made to the property between the date of the previous sale and the current sale.

    ‘(ii) NO COST TO CONSUMER- The cost of any second appraisal required under clause (i) may not be charged to the consumer.

    ‘(C) QUALIFIED APPRAISER DEFINED- For purposes of this subsection, the term ‘qualified appraiser’ means a person who--

    ‘(i) is certified or licensed by the State in which the property to be appraised is located; and

    ‘(ii) performs each appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and the regulations prescribed under such title, as in effect on the date of the appraisal.

    ‘(3) FREE COPY OF APPRAISAL- A creditor shall provide 1 copy of each appraisal conducted in accordance with this subsection in connection with a mortgage referred to in section 103(aa) to the consumer without charge, and at least 3 days prior to the transaction closing date.

    ‘(4) CONSUMER NOTIFICATION- At the time of the initial mortgage application, the consumer shall be provided with a statement by the creditor that any appraisal prepared for the mortgage is for the sole use of the creditor, and that the consumer may choose to have a separate appraisal conducted at their own expense.

    ‘(5) VIOLATIONS- In addition to any other liability to any person under this title, a creditor found to have willfully failed to obtain an appraisal as required in this subsection shall be liable to the consumer for the sum of $2,000.’.
     
  4. dobie

    dobie Senior Member

    7
    Oct 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New Jersey
    This bill still has a long road to travel. Even if it becomes law it's only because the banking industry is on it's a## and can't mount any effective opposition.

    It's similar to when FIRREA was passed and the de minimus was what, $50k to start. Once the industry got back on it's feet they attacked that de minimus rule and made it $250K.
     
  5. Green Hornet

    Green Hornet Senior Member

    0
    Dec 29, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    Your dog would be ashamed at your negative approach. Not what you would expect from a Dobie.

    So they attacked the $50,000 de minimus, but there is still a de minimus and it has helped you for many years.
     
  6. rcsone

    rcsone Senior Member

    0
    May 26, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Oklahoma
    ....bite or no bite-----this is the legs we hafta stand on........best to all.........rs
     
  7. dobie

    dobie Senior Member

    7
    Oct 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New Jersey
    Get real! It is what it is. In the long run the banks will never stand for elimination of AVM's and full inspections on every deal or even a majority of deals.
     
  8. Green Hornet

    Green Hornet Senior Member

    0
    Dec 29, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    Dobie,

    I agree that if the banks could, they would get rid of appraisers yesterday. We slow down the process and raise to many issues. We are to messy. They will continue efforts to minimize us and eliminate us.

    The real question....are we better off with the bill or without it? From what I have read, we would be better off, at least for the next few years.

    It may slow down their efforts to eliminate the appraiser and give us a chance.
     
  9. Karl

    Karl Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Arizona
    Reading this thread I still want to believe you that have to stay in this profession stand a change BUT!! seems nothing is going to please some of you. Think what would have happened IF that amendment had NOT been added,.

    You also MAY want to contact the author of the amendment & find out where the idea came from. What you all going to do IF the idea came from an Appraisal ORGANIZATION??????
     
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