Wednesday, June 30, 2010

The financial reform bill and appraisers

From Appraisal Today, Ann O'Rourke, Editor/Publisher:

The official name, as of today, is "Dodd-Frank Wall Street Reform and Consumer Protection Act." It passed a joint house/senate 20-hour conference Friday and is sent to Congress for voting. Of course, if it was just about appraisals, it would not have moved so fast.

If you have any other versions of the bill, don't use them as there have been some changes.

Hopefully, the bill will be approved by Congress this week. Lots of HVCC content such as no value pressure, etc. It requires AMC regulation and registration. The bill makes changes to FIRREA, RESPA, and other regulations.

Here's an excerpt:

From the Dodd bill "(i) CUSTOMARY AND REASONABLE FEE.-

"(1) IN GENERAL.-Lenders and their agents shall compensate fee appraisers at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised. Evidence for such fees may be established by objective third-party information, such as government agency fee schedules, academic studies, and independent private sector surveys. Fee studies shall exclude assignments ordered by known appraisal management companies."

It is the biggest federal changes for appraisers since FIRREA in 1989. FIRREA had many major requirements, such as appraiser licensing. I don't know what that means for appraisers and federal regulations.

The full Dodd Bill (appraisals start on page 2205)

Also of interest, Alamode publishes an Appraisal Fee Reference, which gives shows the median and average fees of reporting appraisers. So if you are not sure what the 'customary and reasonable' fees are in our area, you can look here. At least it gives an idea of what is happening, and is a little more reliable than individual anecdotal evidence...

No comments:

Post a Comment