The U.S. House of Representatives passed the Mortgage Reform and Anti-Predatory Lending Act of 2009. The bill, H.R. 1728, passed by a vote of 300 to 114 on May 7, 2009. The bill includes provisions that will impact appraisers including:
- Requirements for complete interior inspection appraisals for all subprime loans;
- Establishment of a federal appraisal independence standard with significant monetary penalties for violations;
- Modernizing provisions of Title XI of FIRREA 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.
The bill now will be considered by the SenateSenate Banking Committee. There is no timetable yet for its consideration.