110 HR 1723 IH: Fair FHA Appraisals Act of U.S. House of Representatives 2007-03-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 1723 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.

1.

Short title

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

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. .

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.