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Comments from California appraisers requested RE: SB 322

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Michael Tipton

Thread Starter
Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I ran across the attached article regarding recently signed (10/2007) law associated with SB 322.

Does this only apply to loans originated within California or all loans originated by California lenders? If applicable for out of state properties, who do we (out of state appraisers) contact to file a complaint?

Senator Michael J. Machado (D-Linden), Chair of the Senate Banking, Finance & Insurance Committee, announced Friday that Governor Schwarzenegger signed Senate Bill (SB) 223. Machado introduced SB 223 in February, as part of a broad-based response to the problems pervading California’s mortgage and housing markets. The bill, an urgency measure that becomes effective immediately upon the Governor’s signature, will help prevent real estate professionals from colluding to inflate property appraisals.

...
SB 223 is the first California or federal law that explicitly forbids persons involved in a real estate transaction from pressuring an appraiser to ‘hit’ a target value. The bill punishes violators with license suspension or revocation and with potential civil action. “I expect SB 223 to act as both a deterrent and a mechanism for punishing those who violate its provisions,” concluded Machado.

SB 223 was supported by several industry groups and consumer advocacy organizations, including the Appraisal Institute, the American Society of Appraisers, the California Mortgage Bankers Association, Countrywide, the California Association of Mortgage Brokers, the Fair Lending Alliance, and the Greenlining Institute.
...

http://www.californiachronicle.com/articles/viewArticle.asp?articleID=39730
 

Brad Ellis

Senior Member
Joined
Feb 7, 2006
Professional Status
Certified Residential Appraiser
State
California
Michael,

I cannot see how CA can police the activities of anyone outside CA. Further, the lenders you cite, if they operate in CA, must be licensed to do business in this state; however, if they are federally regulated, it is doubtful that CA will be able to sanction them. This appears to be the same reason why Cuomo did not sure WAMU- due to their federal regulatory oversight.

I have not read it but wouold assume it applies to CA appraisers, CA mortgage and RE brokers, and state chartered banks.

Just a guess though...


Brad
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Brad,

Maybe they can not control the big banks but they certainly can cut off the broker and mortgage banker pipelines to the big banks.
 

fritzvogel

Senior Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
New York
Please keep all emails of requests to increase value or alter reports. I even have a digital voice recorder on the phone line for "threats" etc. Even if you don't think about it much, or have a low of bad, ugly clients, please collect this data. He said she said does not cut in hearings.
My secretary has a standard statement to LO's, "Please put your request in email so we can keep track".
 
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