U.S. House Passes H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009

Earlier today, the U.S. House of Representatives passed by a vote of 300 to 114, H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009.
Earlier today, the U.S. House of Representatives passed by a vote of 300 to 114, H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act of 2009. Included in this bill is a lengthy title that contains many favorable provisions for the appraisal profession, amongst other things:
  • Requirements for complete interior inspection appraisals for all subprime loans;
  • Establishment of a federal appraisal independence standard with significant monetary penalties for violations;
  • Modernizing provisions of Title XI of FIRREA to provide additional resources for state enforcement and greater accountability of federal and state appraisal regulators;
  • Required separation and clear disclosure of fees paid to appraisers and fees paid for appraisal administration (i.e., fees paid to appraisal management companies);
  • Limitations on the use of broker price opinions in loan origination; and
  • Registration requirements, and a regulatory framework, for Appraisal Management Companies, with mechanisms to prohibit infiltration by appraisers sanctioned by state regulatory agencies.
The Appraisal Institute would like to thank the more than 100 members of the Leadership Development & Advisory Council who lobbied in favor of H.R. 1728 during their meetings in Washington, D.C. last week. In addition, several hundred members of the Institute contacted their Members of Congress and were instrumental in securing the appraiser-related provisions.
The Mortgage Reform and Anti-Predatory Lending Act of 2009 was introduced in March by Reps. Brad Miller, (D-NC) and Mel Watt, (D-NC). To view the act as it was passed by the House Financial Services Committee, visit 
http://www.appraisalinstitute.org/newsadvocacy/downloads/HR1728FinancialServicesAsReported.pdf.
An additional amendment, with favorable changes to the appraisal sections was offered by Financial Services Committee Chairman Barney Frank (D-MA) on the floor of the House today. To view the floor amendment as it was enacted, visit
http://www.appraisalinstitute.org/newsadvocacy/downloads/HR1728FrankFloorAmendment.pdf.
The bill will now be referred to the U.S. Senate Banking Committee where the timetable for its consideration has not yet been determined.
Stay tuned to
Appraiser News Online for additional information on H.R. 1728 as it becomes available.