Appraisal Institute applauds House passage of mortgage reform billMortgagePress.comAppraisal Institute, House of Representatives, HR 1728, Mortgage Reform and Anti-Predatory Lending Act of 2009, Jim Amorin
The Appraisal Institute is applauding the U.S. House of
Representatives for voting to adopt HR 1728, the Mortgage Reform
and Anti-Predatory Lending Act of 2009, a bill that would eliminate
a number of regulatory loopholes in the mortgage lending system and
strengthen the appraisal regulatory structure. Having passed the
House by a 300-114 vote, the bill will now be referred to the U.S.
Senate Banking Committee where the timetable for its consideration
has not yet been determined.
"Our organization would like to thank members of the House, the
House Financial Services Committee and the hundreds of Appraisal
Institute members who contacted their representatives in support
for the passage of the Mortgage Reform Act," said Jim Amorin, MAI,
SRA, president of the Appraisal Institute. "We believe the American
public as well as the mortgage lending industry will benefit
greatly from an approach that focuses on going back to basics,
tougher enforcement, and sound collateral valuation policies and
practices."
In testimony last month before the House Financial Services
Committee, Amorin had presented lawmakers with a short list of
reforms the Appraisal Institute believes are needed to protect the
safety and soundness of mortgage finance system transactions.
Featured in this bill is language that contains many favorable
provisions for the appraisal profession that are consistent with
many reforms recommended by the Appraisal Institute. These include,
amongst other things:
• Requirements for complete interior inspection appraisals
for all sub-prime loans;
• Establishment of a federal appraisal independence
standard with significant monetary penalties for violations;
• Modernizing provisions of Title XI of FIRREA (enacted by
Congress in 1989 to require certification and licensure for real
estate appraisers) to provide additional resources for state
enforcement and greater accountability of federal and state
appraisal regulators;
·• Required separation and clear disclosure of fees
paid to appraisers and fees paid for appraisal administration
(i.e., fees paid to appraisal management companies);
·• Limitations on the use of broker price opinions in
loan origination; and
·• Registration requirements, and a regulatory
framework, for Appraisal Management Companies, with mechanisms to
prohibit infiltration by appraisers sanctioned by state regulatory
agencies.
"We are pleased with the actions taken in the House to curb
abusive lending practices. This is a significant step in the right
direction," noted Amorin.
The Mortgage Reform and Anti-Predatory Lending Act of 2009 was
introduced in March by Reps. Brad Miller (D-NC) and Mel Watt
(D-NC).
To view HR 1728 as it was passed by the House Financial Services
Committee, click here.
An additional amendment, with favorable changes to the appraisal
sections was offered by Financial Services Committee Chairman
Barney Frank (D-MA) on the floor of the House prior to the vote. To
view the floor amendment as it was enacted, click
here.
For more information, visit www.appraisalinstitute.org.
