H.R. 3837 would require escrows for certain mortgage loans, to improve mortgage servicing, to promote sustainable homeownership opportunities, to enhance appraisal quality and standards, to better appraisal oversight, to mitigate appraiser pressure.
Detailed Summary
Escrow, Appraisal, and Mortgage Servicing Improvements Act - Amends the Truth in Lending Act to require a creditor, in a consumer credit transaction secured by the consumer's principal dwelling, to establish an escrow or impound account to pay taxes and hazard insurance, and, if applicable, flood insurance, mortgage insurance, ground rents, and any other required periodic payments or premiums.
Requires written disclosures by the creditor to the consumer regarding: (1) such escrow or impound account; and (2) consumers who opt out of escrow services.
Amends the Real Estate Settlement Procedures Act of 1974 to proscribe specified practices by the servicer of a federally related mortgage, including obtaining force-placed hazard insurance coverage to protect the mortgagee's interest in the property.
Prohibits practices related to default, late fees, or foreclosure.
Requires prompt: (1) crediting of payments; (2) responses to payoff balances; and (3) refund of escrow accounts upon payoff.
Directs the Secretary of Housing and Urban Development to study and report to specified congressional committees on mortgage servicing fraud.
Amends the Truth in Lending Act to: (1) require repayment analyses to include escrow payments; (2) include a written property appraisal as a prerequisite to granting a mortgage; (3) prohibit unfair and deceptive practices and acts relating to consumer credit transactions secured by the principal dwelling, especially in property appraisals; and (4) require a mortgage originator to make available to the credit applicant all appraisal valuation reports no later than three days prior to the transaction closing date.
Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to: (1) include among the functions of the Appraisal Subcommittee protection of the consumer from improper appraisal practices and the predations of unlicensed appraisers; and (2) expand state agency reporting requirements to include transmittal to the Appraisal Subcommittee of reports on claims, disciplinary actions, license and certification revocations, and suspensions.
Prohibits certain interested parties in a real estate transaction involving an appraisal from engaging in specified practices to improperly influence a real estate appraisal in connection with a mortgage loan.
Requires the Comptroller General to study and report to specified congressional committees on possible improvements in the appraisal process and in state compliance programs.
Status of the Legislation
Latest Major Action: 11/7/2007: House committee/subcommittee actions. Status: Ordered to be Reported (Amended) by Voice Vote.
Points in Favor
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Points Against
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Visitor Comments
George
If we are expecting the government to bail out these bad loans, shouldn't we be certain that they are worth what the government is loaning by having trained professionals (Appraisers) value the property instead of just anyone in the industry?
Vote yes on this bill
Bill
Why wouldn't you want this to pass with the mess that we are in now?
Paul
Lets require interior inspections for appraisals. Lack of interior inspections is a big step for the fraud business.
DANIElle Marcian
Great
Paul T
To require an interior inspection for a residential appraisal is just basic common sense. Otherwise why not do an appraisal based on a photo of the front of the house. If nothing else address the problem theres enough finger pointing to last a lifetime.