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“We applaud the conference committee’s efforts and urge Congress to pass H.R. 4173,” said Appraisal Institute President Leslie Sellers, MAI, SRA. “We are extremely pleased that this bill will protect consumers by encouraging the use of highly trained and competent real estate appraisers with much-needed resources for oversight and enforcement.”

In addition to authorizing grant funding for state oversight and enforcement, H.R. 4173 would require that “reasonable and customary” fees be paid to appraisers. Appraisers have complained that with the growth of appraisal management companies since the Home Valuation Code of Conduct’s implementation in May 2009, they have experienced sharply reduced fees from AMCs. “Reasonable and customary” fees will reflect what the appraiser would typically be paid for the assignment absent the involvement of an AMC, with violations subject to severe penalties under the Truth in Lending Act.

“This is extremely important for consumers and mortgage lenders,” Sellers said. “With distressed sales prevalent in the market, it is critical that highly trained appraisers be actively involved in the mortgage market. In recent years, the inability to earn customary and reasonable fees has been a significant obstacle for many highly trained appraisers, whose experience is badly needed to assist with the economic recovery.”

Additionally, the measure would:
-Establish a federal appraisal independence standard, sunsetting the HVCC.
-Require AMCs to register with state agencies.
-Enhance appraiser competency provisions, including clarification regarding consideration of professional appraisal designations.
-Provide financial resources for oversight and enforcement.
-Separate AMC and appraisal fees on the HUD-1 Statement.