Full Transparency in Fee Disclosure
HB 3619 has been referred to the House Financial Services Committee. VaCAP has learned over the weekend that HB 3619 has been introduced in the US House of Representatives. HB 3619, short titled “Appraisal Reform Act of 2019” amends the Financial Institutions Reform, Recovery and Enforcement Act. The main change to FIRREA deals with appraisal management company and appraiser trainee registries and the addition of a member of the Veterans Affairs on the Appraisal Subcommittee.
The bill also modifies Section 2603, the Uniform Settlement Statement, by changing one simple word from “may” to “shall”. This bill requires appraisal management companies to disclose their fee on the settlement statement, as well as the fee they paid to the appraiser. Full transparency!
Will this impact appraisers? Not at first, but in time, consumers will notice this third party fee and questions will be asked. Lenders will have to explain. Could this be the beginning of the end of AMCs? See the bill below.
SEC. 5. REQUIREMENT TO DISCLOSE APPRAISAL FEES.
Section 4(c) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2603(c)) is amended by striking “may” and inserting “shall”.
12 U.S.C 2603 (c) Disclosure of fees
The standard form described in subsection (a) include, in the case of an appraisal coordinated by an appraisal management company (as such term is defined in section 3350(11) of this title), a clear disclosure of—
(1) the fee paid directly to the appraiser by such company; and
(2) the administration fee charged by such company.
Please take moment and contact the US House Financial Services Committee and express your support for HB 3619.
Committee Address and E-mail
U.S. House Committee on Financial Services Democrats
2129 Rayburn House Office Building
Washington, DC 20515
Phone: (202) 225-4247
Fax: (202) 225-6952
The Virginia Real Estate Appraisal Board Quarterly Meeting will be held on July 30th @ 10:00 AM
Department of Professional & Occupational Regulation
9960 Mayland Drive
Richmond, Virginia 23233
This meeting will be of particular interest as the Proposed Hybrid Appraisal Guidance Document will be discussed and voted on. In case you did not get a chance to view all the public comments that were posted on Town Hall, there were 153 comments posted, with all but a handful cited public trust concerns with these products. The comments can be viewed here.
See the meeting on Town Hall