Hr 3837

[Carmella]

Has anyone heard of any recent updates about HR 3837?

Whats the latest news?

Thanks,
Joey

 

[Mike Kennedy]

still pending........

In an attempt to further ensure property appraisals remain independent and free of lender influence, Cuomo backed the Escrow, Appraisal, and Mortgage Servicing Improvements Act (H.R. 3837), federal legislation that was introduced in November of 2007.

H.R. 3837 was eventually rolled into another House bill: The Mortgage Reform and Anti-Predatory Lending Act of 2007 (H.R. 3915), which successfully passed on November 15, 2007.

The Senate currently has no counterpart for the legislation, but it’s anticipated that they will consider the Houses’ bill with expected negotiation.​

Concerning appraisers, H.R. 3915 will do the following:

• Prohibit specified interested parties in a real estate transaction from engaging in certain practices to influence improperly the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan.
• Direct the Comptroller General to study and report to Congress on possible improvements in the appraisal process, including the consistency and the effectiveness of improvements in state compliance efforts and programs in accordance with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).
• Require that, in any case in which an appraisal is performed in connection with an extension of credit secured by an interest in real property, the mortgage originator make available to the credit applicant a copy of all appraisal valuation reports upon completion, but no later than three business days before the transaction closing date.

The legislation also calls for the creation of an Appraisal Subcommittee, charged with “protecting consumers from improper appraisal practices and the predations of unlicensed appraisers.” According to the bill, each individual state’s licensing authority will be required to report to the subcommittee all “sanctions, disciplinary actions, license and certification revocations, and license and certification suspensions.” The subcommittee will also “monitor state appraiser certifying and licensing agencies for compliance with certain requirements.”

To read a summary of H.R. 3915, click here.​