The Dodd-Frank Wall Street Reform and Consumer Protection Act
In our recent blog post, “Mortgage Players Look to Soften Bill,” we wrote about a new real estate bill – the Dodd-Frank Wall Street Reform and Consumer Protection Act, known simply as HR 4173 – that Congress was working on, and how mortgage lenders were hoping that some of the provisions in the bill would be adjusted to improve the state of the real estate appraisal industry.
Well, the final version of the bill is ready for a vote, and the real estate appraisal community is applauding the new measures, which are the first modernization of U.S. real estate appraisal regulations since the Financial Institutions Reform Recover and Enforcement Act (FIRREA) was enacted in 1989.
“We applaud the conference committee’s efforts and urge Congress to pass HR 4173,” said Appraisal Institute President Leslie Sellers. “We are extremely pleased that this bill will protect consumers by encouraging the use of highly trained and competent real estate appraisers with much-needed resources for oversight and enforcement.”
If passed, the measure would:
Establish a federal appraisal independence standard, sunsetting the HVCC
Require AMCs to register with state agencies
Enhance appraiser competency provisions, including clarification regarding consideration of professional appraisal designations
Provide financial resources for oversight and enforcement
The vote is slated to take place sometime in July.
