Appraisal Institute applauds Congress for passing housing billMortgagePress.comAppraisal Institute, HR 3221, GSEs, FHA
The nation's largest organization of professional real estate
appraisers, the Appraisal Institute, applauded enactment of House
Resolution 3221 (HR 3221), a law passed by Congress last weekend
and signed by President Bush, that contains several large housing
related initiatives, including the housing regulatory overhaul of
mortgage giants Fannie Mae and Freddie Mac, and a modernization of
the Federal Housing Administration (FHA). In addition, HR 3221
contains provisions that reinforce the importance of competently
prepared real estate appraisals to the mortgage lending
process.
"We applaud Congress for turning to highly qualified real estate
appraisers to handle critical real estate valuation questions
facing homeowners and financial institutions in todays mortgage
market," said Bill Garber, director of government and external
relations for the Appraisal Institute. "Our organization believes
that quality valuations performed by competent and ethical
appraisers are an essential part of government guaranteed loans and
were delighted that Congress has taken steps to ensure the
governments lending policies are safeguarded."
HR 3221 is notable in that its provisions require and recognize
the benefit of highly competent and qualified appraisers. The
bill's foreclosure prevention program calls for using appraisals to
write down loans to their current market value. Furthermore, the
bill raises the bar to become an FHA-approved appraiser by
requiring all appraisers who perform valuations for FHA-backed
loans to be state certified or professionally designated and to
have demonstrated verifiable education in FHA appraisal
requirements. Thirdly, the bill strengthens the existing FHA single
family appraisal program by prohibiting coercion of appraisers by
all parties involved in a real estate transaction, including
lenders, brokers, appraisal management companies and others.
"From modernizing the FHA, to helping neighborhoods hit by the
foreclosure crisis, HR 3221 is a strong response to the current
housing crisis," noted Garber. "We look forward to working with
FHA, other federal agencies, consumers and lenders on its swift
implementation."
For more information, visit www.appraisalinstitute.org.
