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It’s where relocation appraising was defined.

 

As of this writing, the meaning of the word certified has not been clarified by the FHA nor whether current FHA appraisers will be grandfathered in.

In a next-day response to one appraiser’s inquiry, the FHA replied, “We are currently working with our attorneys to interpret this provision and therefore do not have a definitive answer at this time as to whether or not licensed appraisers will continue to qualify for the Roster. FHA guidance will be issued in the near future.”
 

In any case, it might not be a bad time to brush up on FHA guidelines (see below).

 

Appraiser Independence
H.R. 3221 also supports appraiser independence. It prohibits all parties involved in a real estate transaction, including mortgage lenders, brokers, bankers, real estate agents/brokers, appraisal management companies and their employees, or any other person with an interest in a real estate transaction, from improperly influencing an appraiser. This provision protects appraisers working under the Hope for Homeowners

Program & the FHA Appraiser Roster.

The bill also establishes a nationwide loan originator licensing and registration system that will set minimum standards for loan originators, which is expected to improve oversight of mortgage brokers and loan officers.

 

Resources
You can find the entire text of H.R. 3221, as well as a summary of what is most relevant to appraisers, posted at WorkingRE.com; Sidebar. You will also find the H.R. 3221 Cost Estimate completed by the Congressional Budget Office (CBO) and a number of FHA links, including: FHA Residential Appraisal Requirements, How to Become an FHA Appraiser (and check your status) and HUD’s Client Information and Policy System (download various handbooks).  

Appraising FHA Today

 

Bonding Requirement & HVCC Follow Up

You might recall a story we did several issues ago on the appraiser bonding requirement contained in Senate Bill S.2452 (WorkingRE.com; Premium Content - Will Appraiser Bond Requirement Put You out of Business?)

We received a very large response to that story, including this from commercial appraiser Stephen Fleschler. “Typical (commercial) appraisals are in the $1 million to $10 million range with major appraisals in the $10 to $500 million range. We appraise shopping centers, industrial buildings and parks, office buildings and high rises.  In prior years, I averaged $250 million in appraised values. This would translate at one percent of value surety bonding to $2.5 million with a bond cost of $25,000.  That amount is prohibitively expensive and cannot be passed on to clients. The average appraisal fee for fee simple single tenant industrial properties is about $2,500 and increases with complexity and size of my appraisals. I will have to quit being one of the 3,100 licensed Calif. appraisers if this bond measure is approved.”
 

The following response, from the office of Senator Dianne Feinstein (D-Calif.), was forwarded by another reader (see below). The Senator’s answer indicates that more pressure may be needed to get the message across to Congress that the bonding requirement for appraisers is untenable. You can locate and provide feedback to your Senators about this bill here: http://www.senate.gov/general/contact_information/senators_cfm.cfm.

----- Original Message -----

From: senator@feinstein.senate.gov

To: XXXXXXXXX

Sent: Tuesday, July 15, 2008 9:41 AM

Subject: U.S. Senator Dianne Feinstein responding to your message

 

Dear XXXXXX:

 

           Thank you for contacting me to express your concerns about legislation to regulate the home appraisal industry. I appreciate the time you took to write and welcome the opportunity to respond.

 

           I am a cosponsor of the "Home Ownership Preservation and Protection Act of 2007" (S. 2452), introduced by Senator Christopher J. Dodd (D-CT) on December 12, 2007. As you know, this bill would require all appraisers to obtain a bond equal to one percent of the value of their annual home appraisals. It would also allow homeowners to collect on this bond in certain cases of appraiser error.

 

           I understand your concern that the bonding requirement in Senator Dodd's bill may place a financial burden on small companies. Representative Brad Miller (D-NC) has introduced similar legislation to increase oversight and regulate the appraisal industry while not requiring appraiser bonding known as the "Mortgage Reform and Anti-Predatory Lending Act of 2007" (H.R. 3915). Please know that I will keep your thoughts in mind should either S. 2452 or H.R. 3915 come before the full Senate.

           

Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.

 

Sincerely yours,

Dianne Feinstein
        United States Senator

Status of the Bills

According to GovTrack.us, as of this writing, H.R. 3915 has been passed in the House. The bill now goes on to be voted on in the Senate. Keep in mind that debate may be taking place on a companion bill in the Senate, rather than on this particular bill.

S. 2452 is in the first step in the legislative process. Introduced bills go first to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills never make it out of committee. Keep in mind that sometimes the text of one bill is incorporated into another bill, and in those cases the original bill, would seem to be abandoned.

HVCC
Regarding the HVCC (Home Valuation Code of Conduct) component of the Fannie-Cuomo agreement, no news has been made public yet as to whether any changes to the agreement will be made. We will keep you posted.