WashingtonWatch.com - H.R. 1723, The Fair FHA Appraisal Act of 2007

Comment by Frank Hammond (March 14, 2008, 01:00:00)

Fri, 14 Mar 2008 00:00:00 EDT

This is the only way the coercion of appraisers by mortgage brokers can be eliminated from the process. If a broker controls an appraiser's livelihood inflated values will result. Mortgage brokers often make payment for appraisals contingent on the results of the appraisal. This is a fact of life in the appraisal business. The rotation of appraisers, a blind draw, is the only way to insure that Broker coercion is eliminated....

Comment by Len Fishman (November 6, 2007, 01:00:00)

Tue, 06 Nov 2007 00:00:00 EST

This bill would turn back the clock to the mid-1990's when FHA used a "blind draw" for appraisers. Lenders, Realtors and homeowners were bribing appraisers on a daily basis and some appraisers learned how to "pressure" people the lenders, Realtors and homeowners into larger fees and other items of payment. Appraisers are regulated - we don't need a flawed system to re-appear... we need enforcement of existing rules, regulations and laws!...

Revision by webmaster (August 2, 2007, 01:00:00)

Thu, 02 Aug 2007 00:00:00 EDT

H.R. 1723 would amend the National Housing Act to ensure fair appraisals in connection with mortgages insured under the FHA single family mortgage insurance program.

Detailed Summary

Fair FHA Appraisals Act of 2007 - Amends the National Housing Act to subject to civil money penalties actions that improperly influence appraisals for an FHA insured mortgage for a small-family residence by compensating, instructing, inducing, coercing, or intimidating any person who conducts an appraisal in connection with such mortgage in order to cause the appraised value to be based on any other factor other than the independent judgment exercised in accordance with professional standards.

Modifies FHA mortgage insurance appraisal standards to require that: (1) the appraisal be conducted by an appraiser selected by the Secretary of Housing and Urban Development on a rotating basis, mortgage-by-mortgage, from a list of appraisers (blind draws) developed by the Secretary; and (2) an authorized mortgagee use only appraisers selected in accordance with such list.

Restricts use by a qualified appraiser of the assistance of others to cases where a limited number of appraisals is conducted within a limited rural area.

Status of the Legislation

Latest Major Action: 6/7/2007: Referred to House subcommittee. Status: Referred to the Subcommittee on Housing and Community Opportunity.

Points in Favor

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Points Against

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Revision by webmaster (August 2, 2007, 01:00:00)

Thu, 02 Aug 2007 00:00:00 EDT

H.R. 1723 would amend the National Housing Act to ensure fair appraisals in connection with mortgages insured under the FHA single family mortgage insurance program.

Detailed Summary

Restricts use by a qualified appraiser of the assistance of others to cases where a limited number of appraisals is conducted within a limited rural area.

Status of the Legislation

Latest Major Action: 6/7/2007: Referred to House subcommittee. Status: Referred to the Subcommittee on Housing and Community Opportunity.

Points in Favor

(Log in to edit the wiki and be the first to show why the bill should pass!)

Points Against

(Log in to edit the wiki and be the first to show why the bill should not pass!)

Status as of June 28, 2007

Thu, 28 Jun 2007 00:00:00 EDT

6/28/2007: Referred to Senate committee. Status: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Status as of June 7, 2007

Thu, 07 Jun 2007 00:00:00 EDT

6/7/2007: Referred to House subcommittee. Status: Referred to the Subcommittee on Housing and Community Opportunity.

Comment by Association for Homeowners Across America (May 2, 2007, 01:00:00)

Wed, 02 May 2007 00:00:00 EDT

This bill is long over due. Far too often builders, lenders, realtors and even homebuyers attempt to influence the assessed value of the property in question. This practice has artificially driven prices up and made other similar homes more expensive and less affordable to to potential homebuyers. This bill will bring integrity back to the appraisal process within the FHA loan program....