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GAO report 2004.The Real Estate Appraisal Industry

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Maverick

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Certified Residential Appraiser
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Oklahoma
http://www.gao.gov/new.items/d04580t.pdf

"Opportunities to Enhance Oversight of the Real Estate Appraisal Industry"

The report contains a plethora of problems and concerns by "industry participants"........Yet "No Clear Consensus Regarding the Need for Changes to the Title XI Regulatory Structure"

The conclusion states "Title XI brought about significant changes in the real estate appraisal industry. According to federal financial institution regulators, real estate appraisals have not been a major factor in the failure of federally insured financial institutions since the passage of Title XI."

It is clear what was known and perhaps misunderstood.

However, is hindsight 20/20 or did/do "regulators" ("(FRS), (FDIC), (OCC), (OTS), (NCUA)") know better in terms of where we were then and are today? Is the 2008 Criteria appropriate and sufficient in terms of what remains in existence? http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=2&DID=628&DOC=FILE.PDF I think not, to my knowledge H.R. 3535 introduced September 2007 is the only Bill that actually amends FIRREA. I do not know if the Bill may be dead but nothing indicated other than introduction. The importance of H.R. 3535 http://www.govtrack.us/congress/billtext.xpd?bill=h110-3535 is that it effectively eliminates the DeMinimis. Who among the lenders and "regulators" would want that?

Everything is the same but different!!!!!!!!!!!!!!!!!!!!!!!!!!

Respectfully,

Maverick
 
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Mike Kennedy

Elite Member
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Sep 28, 2003
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State
New York
SEC. 3. SCOPE OF APPRAISAL REQUIREMENTS.
  • (a) In General- Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is amended by striking `federally related transaction' and `federally related transactions' each place each such term appears and inserting `real estate related financial transaction' or `real estate related financial transactions', as the case may be.
    (b) Technical and Conforming Amendments-
    • (1) The heading of section 1120 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3349) is amended by striking `federally related transactions' and inserting `real estate related financial transactions'.

      (2) Section 1121 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350) is amended--
      • (A) by striking paragraph (4); and
        (B) in paragraph (5), by striking `any transaction involving' and inserting `any consumer transaction involving'.
      • -----------------------------------

        OUTSTANDING.!!:beer:
 

Carnivore

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Professional Status
Certified Residential Appraiser
State
North Carolina
Mike,

That is huge! Absolutely Huge! Does this strike a near fatal blow to BPO's and AVM's? Does it keep them from hiding under the GSE Umbrella?
 

Francois K. Gregoire

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Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I think not, to my knowledge H.R. 3535 introduced September 2007 is the only Bill that actually amends FIRREA. I do not know if the Bill may be dead but nothing indicated other than introduction.

The importance of H.R. 3535 http://www.govtrack.us/congress/billtext.xpd?bill=h110-3535 is that it effectively eliminates the DeMinimis. Who among the lenders and "regulators" would want that?

Everything is the same but different!!!!!!!!!!!!!!!!!!!!!!!!!!

Respectfully,

Maverick

H.R. 3012 has a section to amend FIRREA

http://thomas.loc.gov/cgi-bin/query/F?c110:1:./temp/~c110w0Q0T0:e75942:

But it is H.R. 3915 that passed the House (November 15, 2007). Vote was 291 - 127. There are amendments to FIRREA in this bill also. Many were in amendments to the bill offered by Rep. Paul Kanjorski from Pennsylvania. NAR and the Appraisal Institute worked closely with Kanjorski's staff on the amendments. Some are good, some not so good. It will get sorted out in the Senate.

http://thomas.loc.gov/cgi-bin/query/D?c110:3:./temp/~c110CL9vnn::
 
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Doug in NC

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Jan 17, 2002
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Certified Residential Appraiser
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North Carolina
Mike,

That is huge! Absolutely Huge! Does this strike a near fatal blow to BPO's and AVM's? Does it keep them from hiding under the GSE Umbrella?

I suspect lenders are watching this a lot closer than any of us appraisers. Big money from interested parties, like big banks, is what puts most of our elected representatives (I use that term loosely) in office. I have zero confidence in Congress to do what is right. They do what they have to do to keep their campaign contributions coming in, out of pure self-interest. If lenders allowed legislators to increase their cost of business, in the form of eliminating bpos and avms, I would be shocked.
 

Carnivore

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

Your probably correct. Although it is an major election year ahead. The populist movement is to help consumers. Millions are suffering because of Black Top Hat Bankers with Churchill Cigars. The democrats are going to be in total control January 2009. They are going to do anything to make that happen.
 

Maverick

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Sophomore Member
Joined
Feb 19, 2004
Professional Status
Certified Residential Appraiser
State
Oklahoma
3915

http://www.govtrack.us/congress/billtext.xpd?bill=h110-3915

TITLE VII--APPRAISAL ACTIVITIES

SEC. 703. APPRAISAL SUBCOMMITTEE OF FIEC, APPRAISER INDEPENDENCE, AND APPROVED APPRAISER EDUCATION

.(3) THRESHOLD LEVELS- In establishing a threshold level under section 1112(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3341(b)), each agency shall determine in writing that the threshold level provides reasonable protection for consumers who purchase 1-4 unit single-family residences.

Please, anyone correct me if wrong. The above still leaves the "regulators" to determine the DeMinimis remains?

SEC. 704. STUDY REQUIRED ON IMPROVEMENTS IN APPRAISAL PROCESS AND COMPLIANCE PROGRAMS.

(a) Study- The Comptroller General shall conduct a comprehensive study on possible improvements in the appraisal process generally, and specifically on the consistency in and the effectiveness of, and possible improvements in, State compliance efforts and programs in accordance with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. In addition, this study shall examine the existing de minimis loan levels established by Federal regulators for compliance under title XI and whether there is a need to revise them to reflect the addition of consumer protection to the purposes and functions of the Appraisal Subcommittee.(b) Report- Before the end of the 18-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report on the study under subsection (a) to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, together with such recommendations for administrative or legislative action, at the Federal or State level, as the Comptroller General may determine to be appropriate.

Encourage your U.S. Senator to understand revision of the so called "threshold", the repercussions, make a decision and eliminate it. Why allow "regulators, "each agency" and now the Comptroller General to determine said "reasonable protection"? And, all that after 18 months presuming 3915 passes the Senate in current language.

Respectfully,

Maverick
 
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Maverick

Thread Starter
Sophomore Member
Joined
Feb 19, 2004
Professional Status
Certified Residential Appraiser
State
Oklahoma
MBA on 3915

http://www.mortgagebankers.org/NewsandMedia/PressCenter/58172.htm

"I regret that we cannot support this bill.”

http://www.stlouisfed.org/hmdaregcamendments/pages/hoepa_status.html

"Regulation Z in Sections 32 and 34. HOEPA loans are also referred to as “high-cost mortgages.”

"HOEPA covers closed-end loans secured by the borrower’s principal residence, other than home purchase loans, with rates or fees above certain thresholds or “triggers.” HOEPA has an APR trigger and a points and fees trigger. APR triggers:
The APR at consummation exceeds the yield for comparable Treasury securities by more than 8 percentage points.
or
Points and fees trigger:
The total points and fees paid by the consumer exceed the greater of 8 percent of the loan amount or a set dollar amount ($547 for 2007). The exact dollar amount is adjusted annually, based on the Consumer Price Index. The fee-based trigger was recently amended by the Board to include amounts paid at closing for optional credit life, accident, health or loss-of-income insurance; and for other debt-protection products written in connection with the credit transition.

HOEPA loans are not only about the home loan but additional, "optional" insurance products.

Now reason closely what has been stated by Mr. Quinn "the American dream of homeownership" vs. "HOEPA covers closed-end loans........other than home purchase loans".

Is anyone getting the picture as to how "thresholds" play into such loan programs? Maybe that will make more sense of the post http://appraisersforum.com/showthread.php?t=129325
and related links. "My local Credit Union will provide 100% Equity loans based on "Assessed Value". No inspections of any kind nada, just my word I live in the Taj Mahal with full staff maintaining the entire property."


Respectfully,

Maverick

P.S. Conversation with attorney for a large appraisal organization indicates H.R. 3535 is basically dead.
 
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