New Feds Rule: Will it Help?

[Julio E. Sune Jr. (FL)]

http://realtytimes.com/rtpages/20080730_fedrule.htm

"Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home's value."

To enforce or not to enforce....that will be the question.

 

[Don Clark]

http://realtytimes.com/rtpages/20080730_fedrule.htm

"Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home's value."

To enforce or not to enforce....that will be the question.

The big question I have is....who will enforce it? State Appraisal Boards, Commissions, Councils, etc do not have enforcement power over creditors and mortgage brokers. Few states will go after mortgage brokers for such infractions. So........who will enforce the rule?????

 

[Michael Tipton]

The big question I have is....who will enforce it? State Appraisal Boards, Commissions, Councils, etc do not have enforcement power over creditors and mortgage brokers. Few states will go after mortgage brokers for such infractions. So........who will enforce the rule?????

Will HUD enforce the appraiser independence section, it will be their rule?

 

[Smokey Bear]

What's the penalty for coercion? And they left out the remaining loan originators?

 

[Ken B]

What's the penalty for coercion? And they left out the remaining loan originators?

Lenders are considered "creditors" under the Act.

The TILA is enforced by the FTC in actions against non-bank entities and by the appropriate federal agency (Federal Reserve, FDIC, NCUA, etc) in actions against bank entities.

 

[Michael Tipton]

What's the penalty for coercion? And they left out the remaining loan originators?

Civil monetary penalities section begins on line 21 page 407 with reference to section 536(a) of this Act. Beginning on line 7 of page 407 is a listing of "job titles" of several interested third parties associated with a RE transactionn.

http://www.house.gov/apps/list/press/financialsvcs_dem/hr3221_bill_text.pdf

 

[Couch Potato]

The big question I have is....who will enforce it? State Appraisal Boards, Commissions, Councils, etc do not have enforcement power over creditors and mortgage brokers. Few states will go after mortgage brokers for such infractions. So........who will enforce the rule?????

The state licensing boards for loan originators will be in charge of enforcement (or HUD for those states that fail to set up their own system.) It will be up to the public to demand states do their job. The fact that HUD will be positioned to take over their licensing power should help motivate them to action.

 

[Mystery man3]

The Status Quo

Relying on enforcement from the states to stop appraiser coercion is a terrible idea.

Its been working great so far. With no enforcement you will get the same result.

 

[Ken B]

Who does what to who?

http://www.ftc.gov/os/2008/01/P064808frb.pdf

 

[Mike Garrett RAA]

Original question is ......

answer is ..... yes!