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--
(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
(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'.
END
