[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1723 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1723

    To amend the National Housing Act to ensure fair appraisals in 
connection with mortgages insured under the FHA single family mortgage 
                           insurance program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 27, 2007

Mr. Wilson of Ohio (for himself and Mr. Clay) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the National Housing Act to ensure fair appraisals in 
connection with mortgages insured under the FHA single family mortgage 
                           insurance program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair FHA Appraisals Act of 2007''.

SEC. 2. CIVIL MONEY PENALTIES FOR IMPROPERLY INFLUENCING APPRAISALS.

    Paragraph (2) of section 536(b) of the National Housing Act (12 
U.S.C. 1735f-14(b)(2)) is amended--
            (1) in subparagraph (B), by striking ``or'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(D) in the case of an insured mortgage under title II for 
        a 1- to 4-family residence, directly or indirectly 
        compensating, instructing, inducing, coercing, or intimidating 
        any person who conducts an appraisal of the property in 
        connection with such mortgage, or attempting, directly or 
        indirectly, to compensate, instruct, induce, coerce, or 
        intimidate such a person, for the purpose of causing the 
        appraised value assigned to the property under the appraisal to 
        be based on any other factor other than the independent 
        judgment of such person exercised in accordance with applicable 
        professional standards.''.

SEC. 3. BLIND DRAWS FOR APPRAISERS.

    Subsection (e) of section 202 of the National Housing Act (12 
U.S.C. 1708(e)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
            ``(C) that in the case of each mortgage for a 1- to 4-
        family residence to be insured under title II, the appraisal 
        shall be conducted by appraiser who is selected by the 
        Secretary on a rotating basis, mortgage-by-mortgage, from a 
        list of appraisers, which shall be developed by the Secretary, 
        who meet the qualifications and requirements of this 
        subsection.''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``may contract 
                with an appraiser chosen at the discretion of the 
                mortgagee'' and all that follows through the end of the 
                last sentence and inserting the following: ``shall 
                utilize, for the performance of appraisals in 
                connection with such mortgages, only appraisers 
                selected in the manner provided under paragraph 
                (1)(C).''; and
                    (B) in subparagraph (C), by striking ``In 
                conducting an appraisal'' and inserting the following: 
                ``In cases of conducting a limited number of appraisals 
                within a limited rural area''.
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