Waters Seeks GAO Study on Appraisals – NMP Skip to main content

Waters Seeks GAO Study on Appraisals

Phil Hall
Feb 19, 2020
Photo credit: Getty Images/AndreyPopov

Rep. Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, has requested the Government Accountability Office (GAO) initiate study on the implementation of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by the relevant federal agencies to determine the quality of appraisals on residential properties.
 
Waters, who was joined in her request by Rep. William Lacy Clay (D-MO), chairman of the Subcommittee on Housing, Community Development and Insurance, expressed concerns that the original Congressional intent of Title XI had been weakened by exemptions from the requirement to obtain an appraisal.
 
“Title XI was enacted by Congress in response to the numerous valuation related issues that came to light as a result of investigations and hearings into the causes of the savings and loan crisis of the mid-1980s,” the lawmakers wrote. “These appraisal regulatory provisions were enacted to help ensure the future stability of the deposit insurance fund. While Congress envisioned that most real estate related transactions would be covered by Title XI, that is no longer the case.”
 
The lawmakers also questioned whether federal regulatory increases in the appraisal threshold and the 13 regulatory “carve-outs” to reduce the number of transactions that are classified as federally regulated transactions have done more harm than good for consumers. They also raised concerns on regulations that allow the use of evaluations instead of appraisal for transactions under a specified threshold level.
 
David Bunton, president of The Appraisal Foundation, welcomed the GAO request.
 
"Thirty years ago, Congress passed FIRREA to protect homeowners and the federal deposit insurance fund from the impacts of inaccurate and inflated property valuations," said Bunton. "Over the years, however, federal agencies have created loopholes that exempt 90 percent of residential real estate transactions from the appraisal requirement."

 
Published
Feb 19, 2020
Georgia Governor Signs New Mortgage Licensing Law

Lessens impact on hiring of out-of-state employees with criminal records

Regulation and Compliance
May 10, 2022
10,000 NAHB Members Sign Letter To Biden Seeking Housing Market Help

The letter cites rapidly rising interest rates, rising home prices and rents, and the rising cost of lumber and building materials for significantly decreasing housing affordability.

Construction
May 02, 2022
Pending Home Sales Fall Again

Pending home sales fell for the fifth consecutive month, according to the National Association of Realtors pending home sales index.

Regulation and Compliance
Apr 27, 2022
CFPB Invokes Dormant Authority To Examine Nonbank Companies

Bureau seeking comment on updated procedures

Regulation and Compliance
Apr 25, 2022
FHA Adds 40-Year Loan Modification To Loss Mitigation Options

Joins GSEs, NCUA, & USDA in offering the option.

Regulation and Compliance
Apr 20, 2022
22 AGs Call For Eliminating Mortgage Convenience Fees

Coalition claims fees are nothing more than double payments for services.

Regulation and Compliance
Apr 13, 2022