H.R. 3221 Appraiser FRT death knell kicked back to the HOUSE.

[Mike Kennedy]

.ALIVE and WELL......SENATE KICKS IT BACK TO THE HOUSE.......UNLESS PUBLISHED ELSEWHERE TO THE CONTRARY...... and already stricken, H.R. 3221 still contains the mandatory BOND provision for FRT appraisals........




Senate Passes Housing Bill Back to House
After fierce debate, the Senate will send a massive housing package, which includes new appraisal requirements as part of a broad plan to prevent foreclosures, back to the House for final reconciliation. The bill, H.R. 3221, contains several large housing related initiatives, including the housing regulatory overhaul of mortgage giants Fannie Mae and Freddie Mac, a modernization of the Federal Housing Administration and a major expansion of the FHA's insurance programs to help borrowers refinance out of loans they can't afford. [FONT=Arial, Helvetica, sans-serif]

[FONT=Arial, Helvetica, sans-serif]FULL STORY[/FONT][/FONT]

 

[Randolph Kinney]

It would seem to me that AMCs might have a problem complying with the bond requirement.

 

[amluscombe]

It seems to me that many appraisers (myself included) will have a hard time complying with the bond requirement. Will the House revise it and when will we actually know anything??? Also, should we still be contacting our state representatives to ask that the bond issue be stricken? Please keep us posted Mr. Kennedy....your wisdom is appreciated.

 

[Darrel Clark]

I just reviewed the most current version of this bill. I didn't see anything about the bond provision. But maybe I missed it.

 

[Mztk1]

Here is the most current version and there is nothing about an appraiser obtaining a bond. There is a provision that a mortgage broker bond must be in place in lieu of a financial audit if the broker chooses.

http://www.govtrack.us/congress/billtext.xpd?bill=h110-3221

 

[Mike Boyd]

I just reviewed the most current version of this bill. I didn't see anything about the bond provision. But maybe I missed it.

Likewise..............................

 

[Mike Phillips]

I don't care one way or the other. All I know is this: if there is an ideal, such as encouraging/attaining a much higher percentage of competently prepared appraisals, then that ideal ain't going to "happen" unless there are consequences for it "not happening."

I wish appraisers could agree on that notion, if nothing else. And if I'm making a wish list detailing points on which we all agree I'd add (2) enforcement will NEVER come form the states because (a) the requirements for enforcement at the state level was an unfunded federal mandate and (b) the states don't have a dog in the enforcement fight.

Someone mentioned the AMCs. Seems to me, so far, they aren't really concerned with quality appraisals, just fast and cheap, quasi-lender-compliant appraisals that "appear" to be "adequate" products because they meet certain guidelines. So what do they do if the bond requirement passes?

Seems to me, regarding the AMCs, we should draw the enemy onto the field of battle that we already know so well and force them accept their fair share of liability.

 

[Mztk1]

There is too much money in bad loans and not enough loss.

With Fannie and Freddie private entities their CEOs and big wigs make a fortune by lending even to unqualified persons, as do the banks. When things go bad, the government bails them out. Making bad loans with bad appraisals or good loans with good appraisals makes no difference. These guys are in a win-win situation. Not only that, they have the money to bribe - whoops, I mean donate - to political campaigns, which includes governors who sign the bill that funds appraisal boards to enforce the appraisal regulations. We are regulators who get in the way of the "Free Market". Everytime you hear a politician spouting the free market, that is a euphimism for "I'm getting rich exploiting everyone and I don't want it to stop".

 

[c w d]

I don't care one way or the other. All I know is this: if there is an ideal, such as encouraging/attaining a much higher percentage of competently prepared appraisals, then that ideal ain't going to "happen" unless there are consequences for it "not happening."

Mike, there are already substantial consequences in place. The absence is in the enforcement. When an appraiser can substantially inflate appraisals as a matter of normal business for 15 plus years it doesn't matter what penalties are on the books if noone cares to actually discover the wrong doings. And I know appraisers who are in business and have been for 30+ years who I wouldn't trust their opinion as far as I could throw their SUV. The only result of perpetually increasing penalties with no enforcement is to set in place a system of penalties that utterly destroys any appraiser who commits the most benign of errors and that happens to be caught on those off occasions that the states actually do enforce the regulations. What you'll end up with is a regulatory system in which noone will turn in anyone for fear of retribution and having the regulatory axe pointed at their own necks for the smallest of errors.

 

[Mike Phillips]

Mike, there are already substantial consequences in place. The absence is in the enforcement. When an appraiser can substantially inflate appraisals as a matter of normal business for 15 plus years it doesn't matter what penalties are on the books if noone cares to actually discover the wrong doings. And I know appraisers who are in business and have been for 30+ years who I wouldn't trust their opinion as far as I could throw their SUV. The only result of perpetually increasing penalties with no enforcement is to set in place a system of penalties that utterly destroys any appraiser who commits the most benign of errors and that happens to be caught on those off occasions that the states actually do enforce the regulations. What you'll end up with is a regulatory system in which noone will turn in anyone for fear of retribution and having the regulatory axe pointed at their own necks for the smallest of errors.

OK. Then I guess we are all just p$$$$$g into the wind. My bad.