The 2009 National Association of Realtors President, Charles McMillan testified before the House Financial Services Committee on HR 1728, “the Mortgage Reform and Anti-Predatory Lending Act of 2009” last week. While discussing the legislation, Mr. McMillan specifically addressed Title VI – Appraisal Activities saying “H.R. 1728 strikes an appropriate balance by strengthening the accountability and oversight of appraisers while also creating new consumer protections.”
In his testimony, Mr. McMillan also referred to NAR’s Responsible Lending Policy, which recommends the following measures to strengthen the appraisal process:
1) Require lenders to inform each borrower of the method used to value the property in connection with the mortgage application, and give the borrower the right to receive a copy of each appraisal.
2) Establish enhanced penalties against those who improperly influence the appraisal process. Those with an interest in the outcome of an appraisal should only request the appraiser to (1) consider additional information about the property; (2) provide further detail, substantiation, or explanation for the appraisal; and (3) correct errors.
3) Provide federal assistance to states to strengthen regulatory and enforcement activities related to appraisals.
4) Support enhanced education and qualifications for appraisers.
HR 1728 was introduced by Representative Brad Miller (NC) on March 26, 2009.