Appraisal Fee Transparency
Bill H.R.3619 has left the House and is now ready for consideration in the Senate.
There are a number of key issues presented in this bill. Three of them jumped out at me:
SEC. 3. TRAINEE APPRAISERS.
(12) TRAINEE APPRAISER.
— The term ‘trainee appraiser’ means an individual who meets the minimum criteria established by the Appraiser Qualification Board for a trainee appraiser license and is credentialed by a State appraiser certifying and licensing agency.”
This definition is critical to help undo the logjam that appraisers face bringing more people into the appraisal profession.
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”.
This enables appraisers to show the amount of their fee in relation to the AMC portion so the consumer is made aware, of why the cost might seem unusually high. Appraiser routinely receive only 30% to 50% of what the consumer pays as “appraisal fee” – and why REVAA lobbies so hard to prevent this.
SEC. 6. INCLUSION OF DESIGNEE OF SECRETARY OF VETERANS AFFAIRS ON APPRAISAL SUBCOMMITTEE.
– The first sentence of section 1011 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3310) is amended by inserting “the Department of Veterans Affairs,” after “Protection,”.
This helps address the pro-banking bias on the ASC board as I discussed here.