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H.R. 4173 Dodd Frank Act and how it should effect appraisers

APPRAISAL

• Appraisers are to be compensated at a rate that is reasonable and customary for appraisal services in the market area of the property being appraised.
• Home Valuation Code of Conduct (HVCC) sunsets when Consumer Financial Protection Bureau issues interim final regulations implementing the appraisal provisions of the Dodd-Frank Act.
• A subprime mortgage requires a written appraisal of the property to be mortgaged
• The applicant is entitled to one free copy of the appraisal.
• The applicant must be notified that the appraisal is prepared for the sole use of the creditor.
• It is unlawful to coerce, extort, collude, instruct, induce, bribe, or intimidate an appraiser in an attempt to influence the independent judgment of the appraiser.
• An appraiser may consider additional, appropriate property information including additional comparable sales to support an appraisal, provide further detail, or correct errors.
• Appraisal Qualifications Board (AQB) Qualification Criteria for licensed and trainee appraisers becomes mandatory for the states (currently voluntary).
• The Federal Housing Finance Agency (FHFA) and the new Consumer Financial Protection Bureau become members of ASC. The Office of Thrift Supervision is no longer a member of ASC because it is being merged into the Office of the Comptroller of the Currency.

This new bill is to "sunset" the recently enacted Home Valuation Code of Conduct (HVCC).  As with much change appraisers sit by and watch and do their best to stay on top of the many changes, both in the financial industry and USPAP. 

Somebody needs to create a website for the real estate industry to go to log in and check on the recent changes.  HUD alone has many constant changes to our industry in the form of Mortgagee Letters that slip by mostly unnoticed by appraisers.

Many appraisal firms are struggling to find the next assignment and then having to decide whether the fee offered is going to give them any profit at the end of the day.  Change has been the one constant over the past few years so appraisers and business owners in real estate have to be constant in their ability to survive and thrive with the change.