profile picture

 

RICHARD GRECO APPRAISALS
Real Property Appraisers and Consultants
2157B Tomlinson Avenuenue
Bronx, New York 10461
718-518-8588 (Office)
718-319-0720 (Fax)

www.richardgrecoappraisals.com
email: grecoappraisals@aol.com


DODD-FRANK, PUBLIC LAW 111-203
APPRAISAL
INDEPENDENCE REQUIREMENTS

Dear Client, according to the Federal Housing Finance Committee depending on the size of your mortgage lending firm, you can order an appraisal directly with an individual appraiser or an appraisal company. An appraiser and his or her appraisal are APPRAISAL INDEPDENCE COMPLIANT when the appraiser meets the following criteria:

  • An appraiser must be Licensed or Certified in the State in which the property is located. That is it, period. However,
  • Interior and Exterior cellar to roof appraisal inspections
  • FHA and VA Appraisers Certified in New York and Connecticut
  • Second Appraisal requirements of appraisals over 180 days old or as required for current acquisition when price is lower than previous sales price;
  • Full compliance with Uniform Standards of Professional Practice and Title XI of the Financial Institutions Recovery, Reform and Enforcement Act of 1989;
Appraisal Independence Compliance with The Board, the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, the National Credit Union Administration
Board, the Federal Housing Finance Agency
IN ORDER FOR A LENDER TO BE HVCC COMPLIANT THE FOLLOWING ARE THE REQUIREMENTS FOR HVCC COMPLIANCY: 
  • No one employed by the lender or third party ordering the appraisal on behalf of the lender or client shall influence or attempt to influence the development, reporting, result or review of an appraisal through coercion, extortion, collusion, compensation,
    inducement, intimidation, bribery or any other manner including:
  • withholding payment or partial payment or threatening to do so;
  • withholding or threatening to withhold further business;
  • promising future business;
  • conditioning an appraisal order for a specific value to be reached;
  • requesting a predetermined value or desired value to "make the deal work."
  • setting a target value with the exception of providing a required contract of sale;
  • offering stock options to the appraiser as to have the appraiser "play ball" with the lender or loan officer;
  • removing or threatening to remove an appraiser from an approved list of appraiser or in the alternative "blacklisting" an appraiser or placement on an exclusionary list;
  • Ordering a second appraisal for the same property without just cause;
  • Any other act that impairs the appraisers independent judgement from arriving at a value conclusion.

Nothing prohibits the lender from requesting that an appraiser provide additional information concerning his valuation conclusion or to correct factual information errors.

There are two ways you can order a Appraiser Independence Appraisal from Richard Greco Appraisals;

1. First, got to our Home Page at http://www.richardgrecoappraisals.com

2. Then go to the "Order An Appraisal" button directly above the animated Visa/MasterCard Logo;

3. Have the person designated outside of the "commission chain" of your organization who is responsible for ordering your appraisals, Register and Login via the "Order an Appraisal" button;

4. Have he or she complete the registration form. They will receive their own user namer and password thereby protecting and preserving confidentiality of the order and appraisal;

5. Once registered, the designated "Appraisal Coordinator" employee of your organization orders appraisals using our detailed real property appraisal order form. They simply fill in the blanks. And yes, there is a section for comments. IT'S THAT EASY. No telephone calls, no lost time, no communication other than they sending the appraisal order and us instantly receiving the appraisal order. Now, we are both fully Dodd-Frank Public Law 111-203 COMPLIANT or;

6. The "Fax Your Order" Button is to the right of "Order An AppraisaL." Click "Fax Your Order" Button and there is a "Print Faxable Order Form." Follow the instructions printed below that button and your on your way to option 2 of being Dodd-Frank Public Law 111-203 Compliant.

We appreciate all of our clients and their appraisal business. Know now that HVCC is dead as of 11/01/10. During what may be another drastic change in the way we do business together, we want you to know and assure you, that no matter how you order an appraisal through our firm, we at Richard Greco Appraisals, in business since 1969, give you our personal guarantee and commitment of the highest integrity, quality and professionalism in preparing and completing a Compliant FHA, VA, Dodd-Frank, Public Law 111-203 or any other real property appraisal report.

Sincerely,


Richard Greco
Chairman and Founder

The following is the complete text of the "Appraiser Independence Requirements" as written into law and signed by President Obama. And it applies to Fannie Mae, Freddie Mac,

APPRAISER INDEPENDENCE REQUIREMENTS
Dodd-Frank Public Law 111-203
15 U.S.C 1631, Section 129G
Truth In Lending Act

FULL IMPLEMENTATION 04/01/11
AS IT APPLIES TO APPRAISALS AND APPRAISERS


DODD-FRANK RULES ON
HOW TO ORDER AN INDEPENDENT APPRAISAL
BASED ON THE FOLLOWING
APPLICANTS HAVE A RIGHT TO ORDER THEIR OWN APPRAISAL AT THEIR EXPENSE
AND MUST BE ADVISED BY THE LENDER OR THE LENDER FACES A $2000.00 FINE PAYABLE TO THE BORROWER OR APPLICANT
!!!!!

SEC. 1471. PROPERTY APPRAISAL REQUIREMENTS.
 
 Chapter 2 of the Truth in Lending Act (15 U.S.C. 1631 et seq.) is 
amended by inserting after 129G (as added by section 1464(b)) the 
following new section:
``Sec. 129H. <<NOTE: 15 USC 1639h.>> Property appraisal 
 requirements
 
 ``(a) In General.--A creditor may not extend credit in the form of a 
higher-risk mortgage to any consumer without first obtaining a written 
appraisal of the property to be mortgaged prepared in accordance with 
the requirements of this section.
 ``(b) Appraisal Requirements.--
 ``(1) Physical property visit.--Subject to the rules 
 prescribed under paragraph (4), an appraisal of property to be 
 secured by a higher-risk mortgage does not meet the requirement 
 of this section unless it is performed by a certified or 
 licensed appraiser who conducts a physical property visit of the 
 interior of the mortgaged property.
 ``(2) Second appraisal under certain circumstances.--
 
[[Page 124 STAT. 2186]]
 
 ``(A) In general.--If the purpose of a higher-risk 
 mortgage is to finance the purchase or acquisition of 
 the mortgaged property from a person within 180 days of 
 the purchase or acquisition of such property by that 
 person at a price that was lower than the current sale 
 price of the property, the creditor shall obtain a 
 second appraisal from a different certified or licensed 
 appraiser. The second appraisal shall include an 
 analysis of the difference in sale prices, changes in 
 market conditions, and any improvements made to the 
 property between the date of the previous sale and the 
 current sale.
 ``(B) No cost to applicant.--The cost of any second 
 appraisal required under subparagraph (A) may not be 
 charged to the applicant.
 ``(3) Certified or licensed appraiser defined.--For purposes 
 of this section, the term `certified or licensed appraiser' 
 means a person who--
 ``(A) is, at a minimum, certified or licensed by the 
 State in which the property to be appraised is located; 
 and
 ``(B) performs each appraisal in conformity with the 
 Uniform Standards of Professional Appraisal Practice and 
 title XI of the Financial Institutions Reform, Recovery, 
 and Enforcement Act of 1989, and the regulations 
 prescribed under such title, as in effect on the date of 
 the appraisal.
 ``(4) Regulations.--
 ``(A) In general.--The Board, the Comptroller of the 
 Currency, the Federal Deposit Insurance Corporation, the 
 National Credit Union Administration Board, the Federal 
 Housing Finance Agency, and the Bureau shall jointly 
 prescribe regulations to implement this section.
 ``(B) Exemption.--The agencies listed in 
 subparagraph (A) may jointly exempt, by rule, a class of 
 loans from the requirements of this subsection or 
 subsection (a) if the agencies determine that the 
 exemption is in the public interest and promotes the 
 safety and soundness of creditors.
 
 ``(c) Free Copy of Appraisal.-- <<NOTE: Deadline.>> A creditor shall 
provide 1 copy of each appraisal conducted in accordance with this 
section in connection with a higher-risk mortgage to the applicant 
without charge, and at least 3 days prior to the transaction closing 
date.
 
 ``(d) Consumer Notification.--At the time of the initial mortgage 
application, the applicant shall be provided with a statement by the 
creditor that any appraisal prepared for the mortgage is for the sole 
use of the creditor, and that the applicant may choose to have a 
separate appraisal conducted at the expense of the applicant.
 ``(e) Violations.--In addition to any other liability to any person 
under this title, a creditor found to have willfully failed to obtain an 
appraisal as required in this section shall be liable to the applicant 
or borrower for the sum of $2,000.
 ``(f) Higher-risk Mortgage Defined.--For purposes of this section, 
the term `higher-risk mortgage' means a residential mortgage loan, other 
than a reverse mortgage loan that is a qualified mortgage, as defined in 
section 129C, secured by a principal dwelling--
 
[[Page 124 STAT. 2187]]
 
 ``(1) that is not a qualified mortgage, as defined in 
 section 129C; and
 ``(2) with an annual percentage rate that exceeds the 
 average prime offer rate for a comparable transaction, as 
 defined in section 129C, as of the date the interest rate is 
 set--
 ``(A) by 1.5 or more percentage points, in the case 
 of a first lien residential mortgage loan having an 
 original principal obligation amount that does not 
 exceed the amount of the maximum limitation on the 
 original principal obligation of mortgage in effect for 
 a residence of the applicable size, as of the date of 
 such interest rate set, pursuant to the sixth sentence 
 of section 305(a)(2) the Federal Home Loan Mortgage 
 Corporation Act (12 U.S.C. 1454(a)(2));
 ``(B) by 2.5 or more percentage points, in the case 
 of a first lien residential mortgage loan having an 
 original principal obligation amount that exceeds the 
 amount of the maximum limitation on the original 
 principal obligation of mortgage in effect for a 
 residence of the applicable size, as of the date of such 
 interest rate set, pursuant to the sixth sentence of 
 section 305(a)(2) the Federal Home Loan Mortgage 
 Corporation Act (12 U.S.C. 1454(a)(2)); and
 ``(C) by 3.5 or more percentage points for a 
 subordinate lien residential mortgage loan.''.
SEC. 1472. APPRAISAL INDEPENDENCE REQUIREMENTS.
 
 (a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended by inserting after section 129D (as added by 
section 1461(a)) the following new section:
``Sec. 129E. <<NOTE: 15 USC 1639e.>> Appraisal independence 
 requirements
 
 ``(a) In General.--It shall be unlawful, in extending credit or in 
providing any services for a consumer credit transaction secured by the 
principal dwelling of the consumer, to engage in any act or practice 
that violates appraisal independence as described in or pursuant to 
regulations prescribed under this section.
 ``(b) Appraisal Independence.--For purposes of subsection (a), acts 
or practices that violate appraisal independence shall include--
 ``(1) any appraisal of a property offered as security for 
 repayment of the consumer credit transaction that is conducted 
 in connection with such transaction in which a person with an 
 interest in the underlying transaction compensates, coerces, 
 extorts, colludes, instructs, induces, bribes, or intimidates a 
 person, appraisal management company, firm, or other entity 
 conducting or involved in an appraisal, or attempts, to 
 compensate, coerce, extort, collude, instruct, induce, bribe, or 
 intimidate such a person, for the purpose of causing the 
 appraised value assigned, under the appraisal, to the property 
 to be based on any factor other than the independent judgment of 
 the appraiser;
 ``(2) mischaracterizing, or suborning any 
 mischaracterization of, the appraised value of the property 
 securing the extension of the credit;
 ``(3) seeking to influence an appraiser or otherwise to 
 encourage a targeted value in order to facilitate the making or 
 pricing of the transaction; and
 
[[Page 124 STAT. 2188]]
 
 ``(4) withholding or threatening to withhold timely payment 
 for an appraisal report or for appraisal services rendered when 
 the appraisal report or services are provided for in accordance 
 with the contract between the parties.
 
 ``(c) Exceptions.--The requirements of subsection (b) shall not be 
construed as prohibiting a mortgage lender, mortgage broker, mortgage 
banker, real estate broker, appraisal management company, employee of an 
appraisal management company, consumer, or any other person with an 
interest in a real estate transaction from asking an appraiser to 
undertake 1 or more of the following:
 ``(1) Consider additional, appropriate property information, 
 including the consideration of additional comparable properties 
 to make or support an appraisal.
 ``(2) Provide further detail, substantiation, or explanation 
 for the appraiser's value conclusion.
 ``(3) Correct errors in the appraisal report.
 
 ``(d) Prohibitions on Conflicts of Interest.--No certified or 
licensed appraiser conducting, and no appraisal management company 
procuring or facilitating, an appraisal in connection with a consumer 
credit transaction secured by the principal dwelling of a consumer may 
have a direct or indirect interest, financial or otherwise, in the 
property or transaction involving the appraisal.
 ``(e) Mandatory Reporting.--Any mortgage lender, mortgage broker, 
mortgage banker, real estate broker, appraisal management company, 
employee of an appraisal management company, or any other person 
involved in a real estate transaction involving an appraisal in 
connection with a consumer credit transaction secured by the principal 
dwelling of a consumer who has a reasonable basis to believe an 
appraiser is failing to comply with the Uniform Standards of 
Professional Appraisal Practice, is violating applicable laws, or is 
otherwise engaging in unethical or unprofessional conduct, shall refer 
the matter to the applicable State appraiser certifying and licensing 
agency.
 ``(f) No Extension of Credit.--In connection with a consumer credit 
transaction secured by a consumer's principal dwelling, a creditor who 
knows, at or before loan consummation, of a violation of the appraisal 
independence standards established in subsections (b) or (d) shall not 
extend credit based on such appraisal unless the creditor documents that 
the creditor has acted with reasonable diligence to determine that the 
appraisal does not materially misstate or misrepresent the value of such 
dwelling.
 ``(g) Rules and Interpretive Guidelines.--
 ``(1) In general.--Except as provided under paragraph (2), 
 the Board, the Comptroller of the Currency, the Federal Deposit 
 Insurance Corporation, the National Credit Union Administration 
 Board, the Federal Housing Finance Agency, and the Bureau may 
 jointly issue rules, interpretive guidelines, and general 
 statements of policy with respect to acts or practices that 
 violate appraisal independence in the provision of mortgage 
 lending services for a consumer credit transaction secured by 
 the principal dwelling of the consumer and mortgage brokerage 
 services for such a transaction, within the meaning of 
 subsections (a), (b), (c), (d), (e), (f), (h), and (i).
 ``(2) Interim final regulations.-- <<NOTE: Deadline.>> The 
 Board shall, for purposes of this section, prescribe interim 
 final regulations no later than 90 days after the date of 
 enactment of this section defining with specificity acts or 
 practices that violate
 
[[Page 124 STAT. 2189]]
 
 appraisal independence in the provision of mortgage lending 
 services for a consumer credit transaction secured by the 
 principal dwelling of the consumer or mortgage brokerage 
 services for such a transaction and defining any terms in this 
 section or such regulations. Rules prescribed by the Board under 
 this paragraph shall be deemed to be rules prescribed by the 
 agencies jointly under paragraph (1).
 
 ``(h) Appraisal Report Portability.--Consistent with the 
requirements of this section, the Board, the Comptroller of the 
Currency, the Federal Deposit Insurance Corporation, the National Credit 
Union Administration Board, the Federal Housing Finance Agency, and the 
Bureau may jointly issue regulations that address the issue of appraisal 
report portability, including regulations that ensure the portability of 
the appraisal report between lenders for a consumer credit transaction 
secured by a 1-4 unit single family residence that is the principal 
dwelling of the consumer, or mortgage brokerage services for such a 
transaction.
 ``(i) Customary and Reasonable Fee.--
 ``(1) In general.--Lenders and their agents shall compensate 
 fee appraisers at a rate that is customary and reasonable for 
 appraisal services performed in the market area of the property 
 being appraised. Evidence for such fees may be established by 
 objective third-party information, such as government agency fee 
 schedules, academic studies, and independent private sector 
 surveys. Fee studies shall exclude assignments ordered by known 
 appraisal management companies.
 ``(2) Fee appraiser definition.--For purposes of this 
 section, the term `fee appraiser' means a person who is not an 
 employee of the mortgage loan originator or appraisal management 
 company engaging the appraiser and is--
 ``(A) a State licensed or certified appraiser who 
 receives a fee for performing an appraisal and certifies 
 that the appraisal has been prepared in accordance with 
 the Uniform Standards of Professional Appraisal 
 Practice; or
 ``(B) a company not subject to the requirements of 
 section 1124 of the Financial Institutions Reform, 
 Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et 
 seq.) that utilizes the services of State licensed or 
 certified appraisers and receives a fee for performing 
 appraisals in accordance with the Uniform Standards of 
 Professional Appraisal Practice.
 ``(3) Exception for complex assignments.--In the case of an 
 appraisal involving a complex assignment, the customary and 
 reasonable fee may reflect the increased time, difficulty, and 
 scope of the work required for such an appraisal and include an 
 amount over and above the customary and reasonable fee for non-
 complex assignments.
 
 ``(j) Sunset.--Effective on the date the interim final regulations 
are promulgated pursuant to subsection (g), the Home Valuation Code of 
Conduct announced by the Federal Housing Finance Agency on December 23, 
2008, shall have no force or effect.
 ``(k) Penalties.--
 ``(1) First violation.--In addition to the enforcement 
 provisions referred to in section 130, each person who violates 
 this section shall forfeit and pay a civil penalty of not more 
 than $10,000 for each day any such violation continues.
 
[[Page 124 STAT. 2190]]
 
 ``(2) Subsequent violations.-- <<NOTE: Applicability.>> In 
 the case of any person on whom a civil penalty has been imposed 
 under paragraph (1), paragraph (1) shall be applied by 
 substituting `$20,000' for `$10,000' with respect to all 
 subsequent violations.
 ``(3) Assessment.--The agency referred to in subsection (a) 
 or (c) of section 108 with respect to any person described in 
 paragraph (1) shall assess any penalty under this subsection to 
 which such person is subject.''.
 
 (b) Clerical Amendment.--The table of sections for chapter 2 of the 
Truth in Lending Act is amended by inserting after the item relating to 
section 129D (as added by section 1461(c)) the following new items:
 
``129E. Appraisal independence requirements.
``129F. Requirements for prompt crediting of home loan payments.
``129G. Requests for payoff amounts of home loan.
``129H. Property appraisal requirements.''.
 
 (c) Deference.--Section 105 of the Truth in Lending Act (15 U.S.C. 
1604) is amended by adding at the end the following:
 ``(h) Deference.-- <<NOTE: Applicability.>> Notwithstanding any 
power granted to any Federal agency under this title, the deference that 
a court affords to the Bureau with respect to a determination made by 
the Bureau relating to the meaning or interpretation of any provision of 
this title, other than section 129E or 129H, shall be applied as if the 
Bureau were the only agency authorized to apply, enforce, interpret, or 
administer the provisions of this title.''.
 
 (d) Conforming Amendments in Title X Not Applicable to Sections 129E 
and 129H.--Notwithstanding section 1099A, the term ``Board'' in sections 
129E and 129H, as added by this subtitle, shall not be substituted by 
the term ``Bureau''.
SEC. 1473. AMENDMENTS RELATING TO APPRAISAL SUBCOMMITTEE OF FFIEC, 
 APPRAISER INDEPENDENCE MONITORING, 
 APPROVED APPRAISER EDUCATION, APPRAISAL 
 MANAGEMENT COMPANIES, APPRAISER 
 COMPLAINT HOTLINE, AUTOMATED VALUATION 
 MODELS, AND BROKER PRICE OPINIONS.
 
 (a) Threshold Levels.--Section 1112(b) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3341(b)) is 
amended by inserting before the period the following: ``, and receives 
concurrence from the Bureau of Consumer Financial Protection that such 
threshold level provides reasonable protection for consumers who 
purchase 1-4 unit single-family residences''.
 (b) Annual Report of Appraisal Subcommittee.--Section 1103(a) of the 
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3332(a)) is amended at the end by inserting the following new 
paragraph:
 ``(5) transmit an annual report to the Congress not later 
 than June 15 of each year that describes the manner in which 
 each function assigned to the Appraisal Subcommittee has been 
 carried out during the preceding year. The report shall also 
 detail the activities of the Appraisal Subcommittee, including 
 the results of all audits of State appraiser regulatory 
 agencies, and provide an accounting of disapproved actions and 
 warnings taken in the previous year, including a description of 
 the conditions causing the disapproval and actions taken to 
 achieve compliance.''.
 
[[Page 124 STAT. 2191]]
 
 (c) Open Meetings.--Section 1104(b) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3333(b)) is 
amended--
 (1) by inserting ``in public session after notice in the 
 Federal Register, but may close certain portions of these 
 meetings related to personnel and review of preliminary State 
 audit reports,'' after ``shall meet''; and
 (2) by adding after the final period the following: ``The 
 subject matter discussed in any closed or executive session 
 shall be described in the Federal Register notice of the 
 meeting.''.
 
 (d) Regulations.--Section 1106 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3335) is amended--
 (1) by inserting ``prescribe regulations in accordance with 
 chapter 5 of title 5, United States Code (commonly referred to 
 as the Administrative Procedures Act) after notice and 
 opportunity for comment,'' after ``hold hearings''; and
 (2) at the end by inserting ``Any regulations prescribed by 
 the Appraisal Subcommittee shall (unless otherwise provided in 
 this title) be limited to the following functions: temporary 
 practice, national registry, information sharing, and 
 enforcement. <<NOTE: Establishment.>> For purposes of 
 prescribing regulations, the Appraisal Subcommittee shall 
 establish an advisory committee of industry participants, 
 including appraisers, lenders, consumer advocates, real estate 
 agents, and government agencies, and hold meetings as necessary 
 to support the development of regulations.''.
 
 (e) Appraisal Reviews and Complex Appraisals.--
 (1) Section 1110.--Section 1110 of the Financial 
 Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
 U.S.C. 3339) is amended--
 (A) in paragraph (1), by striking ``and'';
 (B) in paragraph (2), by striking the period at the 
 end and inserting ``; and''; and
 (C) by inserting after paragraph (2) the following:
 ``(3) that such appraisals shall be subject to appropriate 
 review for compliance with the Uniform Standards of Professional 
 Appraisal Practice.''.
 (2) Section 1113.--Section 1113 of the Financial 
 Institutions and Reform, Recovery, and Enforcement Act of 1989 
 (12 U.S.C. 3342) is amended by inserting before the period the 
 following: <<NOTE: Definition.>> ``, where a complex 1-to-4 
 unit single family residential appraisal means an appraisal for 
 which the property to be appraised, the form of ownership, the 
 property characteristics, or the market conditions are 
 atypical''.
 
 (f) Appraisal Management Services.--
 (1) Supervision of third party providers of appraisal 
 management services.--Section 1103(a) of the Financial 
 Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
 U.S.C. 3332(a)) (as previously amended by this section) is 
 amended--
 (A) by amending paragraph (1) to read as follows:
 ``(1) monitor the requirements established by States--
 ``(A) for the certification and licensing of 
 individuals who are qualified to perform appraisals in 
 connection with federally related transactions, 
 including a code of professional responsibility; and
 
[[Page 124 STAT. 2192]]
 
 ``(B) for the registration and supervision of the 
 operations and activities of an appraisal management 
 company;''; and
 (B) by adding at the end the following new 
 paragraph:
 ``(6) maintain a national registry of appraisal management 
 companies that either are registered with and subject to 
 supervision of a State appraiser certifying and licensing agency 
 or are operating subsidiaries of a Federally regulated financial 
 institution.''.
 (2) Appraisal management company minimum requirements.--
 Title XI of the Financial Institutions Reform, Recovery, and 
 Enforcement Act of 1989 (12 U.S.C. 3331 et seq.) is amended by 
 adding at the end the following new section (and amending the 
 table of contents accordingly):
``SEC. 1124. <<NOTE: 12 USC 3353.>> APPRAISAL MANAGEMENT COMPANY 
 MINIMUM REQUIREMENTS.
 
 ``(a) In General.-- 
<<NOTE: Regulations. Applicability. States.>> The Board of Governors of 
the Federal Reserve System, the Comptroller of the Currency, the Federal 
Deposit Insurance Corporation, the National Credit Union Administration 
Board, the Federal Housing Finance Agency, and the Bureau of Consumer 
Financial Protection shall jointly, by rule, establish minimum 
requirements to be applied by a State in the registration of appraisal 
management companies. Such requirements shall include a requirement that 
such companies--
 ``(1) register with and be subject to supervision by a State 
 appraiser certifying and licensing agency in each State in which 
 such company operates;
 ``(2) verify that only licensed or certified appraisers are 
 used for federally related transactions;
 ``(3) require that appraisals coordinated by an appraisal 
 management company comply with the Uniform Standards of 
 Professional Appraisal Practice; and
 ``(4) require that appraisals are conducted independently 
 and free from inappropriate influence and coercion pursuant to 
 the appraisal independence standards established under section 
 129E of the Truth in Lending Act.
 
 ``(b) Relation to State Law.--Nothing in this section shall be 
construed to prevent States from establishing requirements in addition 
to any rules promulgated under subsection (a).
 ``(c) Federally Regulated Financial Institutions.-- 
<<NOTE: Applicability.>> The requirements of subsection (a) shall apply 
to an appraisal management company that is a subsidiary owned and 
controlled by a financial institution and regulated by a Federal 
financial institution regulatory agency. An appraisal management company 
that is a subsidiary owned and controlled by a financial institution 
regulated by a Federal financial institution regulatory agency shall not 
be required to register with a State.
 
 ``(d) Registration Limitations.--An appraisal management company 
shall not be registered by a State or included on the national registry 
if such company, in whole or in part, directly or indirectly, is owned 
by any person who has had an appraiser license or certificate refused, 
denied, cancelled, surrendered in lieu of revocation, or revoked in any 
State. <<NOTE: Investigation.>> Additionally, each person that owns 
more than 10 percent of an appraisal management company shall be of good 
moral character, as determined by the State appraiser certifying and 
licensing agency, and shall submit to a
 
[[Page 124 STAT. 2193]]
 
background investigation carried out by the State appraiser certifying 
and licensing agency.
 
 ``(e) Reporting.-- <<NOTE: Regulations.>> The Board of Governors of 
the Federal Reserve System, the Comptroller of the Currency, the Federal 
Deposit Insurance Corporation, the National Credit Union Administration 
Board, the Federal Housing Finance Agency, and the Bureau of Consumer 
Financial Protection shall jointly promulgate regulations for the 
reporting of the activities of appraisal management companies to the 
Appraisal Subcommittee in determining the payment of the annual registry 
fee.
 
 ``(f) Effective Date.--
 ``(1) In general.--No appraisal management company may 
 perform services related to a federally related transaction in a 
 State after the date that is 36 months after the date on which 
 the regulations required to be prescribed under subsection (a) 
 are prescribed in final form unless such company is registered 
 with such State or subject to oversight by a Federal financial 
 institutions regulatory agency.
 ``(2) Extension of effective date.--Subject to the approval 
 of the Council, the Appraisal Subcommittee may extend by an 
 additional 12 months the requirements for the registration and 
 supervision of appraisal management companies if it makes a 
 written finding that a State has made substantial progress in 
 establishing a State appraisal management company registration 
 and supervision system that appears to conform with the 
 provisions of this title.''.
 (3) State appraiser certifying and licensing agency 
 authority.--Section 1117 of the Financial Institutions Reform, 
 Recovery, and Enforcement Act of 1989 (12 U.S.C. 3346) is 
 amended by adding at the end the following: ``The duties of such 
 agency may additionally include the registration and supervision 
 of appraisal management companies and the addition of 
 information about the appraisal management company to the 
 national registry.''.
 (4) Appraisal management company definition.--Section 1121 
 of the Financial Institutions Reform, Recovery, and Enforcement 
 Act of 1989 (12 U.S.C. 3350) is amended by adding at the end the 
 following:
 ``(11) Appraisal management company.--The term `appraisal 
 management company' means, in connection with valuing properties 
 collateralizing mortgage loans or mortgages incorporated into a 
 securitization, any external third party authorized either by a 
 creditor of a consumer credit transaction secured by a 
 consumer's principal dwelling or by an underwriter of or other 
 principal in the secondary mortgage markets, that oversees a 
 network or panel of more than 15 certified or licensed 
 appraisers in a State or 25 or more nationally within a given 
 year--
 ``(A) to recruit, select, and retain appraisers;
 ``(B) to contract with licensed and certified 
 appraisers to perform appraisal assignments;
 ``(C) to manage the process of having an appraisal 
 performed, including providing administrative duties 
 such as receiving appraisal orders and appraisal 
 reports, submitting completed appraisal reports to 
 creditors and underwriters, collecting fees from 
 creditors and underwriters for
 
[[Page 124 STAT. 2194]]
 
 services provided, and reimbursing appraisers for 
 services performed; or
 ``(D) to review and verify the work of 
 appraisers.''.
 
 (g) State Agency Reporting Requirement.--Section 1109(a) of the 
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
U.S.C. 3338(a)) is amended--
 (1) by striking ``and'' after the semicolon in paragraph 
 (1);
 (2) by redesignating paragraph (2) as paragraph (4); and
 (3) by inserting after paragraph (1) the following new 
 paragraphs:
 ``(2) transmit reports on the issuance and renewal of 
 licenses and certifications, sanctions, disciplinary actions, 
 license and certification revocations, and license and 
 certification suspensions on a timely basis to the national 
 registry of the Appraisal Subcommittee;
 ``(3) transmit reports on a timely basis of supervisory 
 activities involving appraisal management companies or other 
 third-party providers of appraisals and appraisal management 
 services, including investigations initiated and disciplinary 
 actions taken; and''.
 
 (h) Registry Fees Modified.--
 (1) In general.--Section 1109(a) of the Financial 
 Institutions Reform, Recovery, and Enforcement Act of 1989 (12 
 U.S.C. 3338(a)) is amended--
 (A) by amending paragraph (4) (as modified by 
 section 1473(g)) to read as follows:
 ``(4) collect--
 ``(A) from such individuals who perform or seek to 
 perform appraisals in federally related transactions, an 
 annual registry fee of not more than $40, such fees to 
 be transmitted by the State agencies to the Council on 
 an annual basis; and
 ``(B) from an appraisal management company that 
 either has registered with a State appraiser certifying 
 and licensing agency in accordance with this title or 
 operates as a subsidiary of a federally regulated 
 financial institution, an annual registry fee of--
 ``(i) in the case of such a company that has 
 been in existence for more than a year, $25 
 multiplied by the number of appraisers working for 
 or contracting with such company in such State 
 during the previous year, but where such $25 
 amount may be adjusted, up to a maximum of $50, at 
 the discretion of the Appraisal Subcommittee, if 
 necessary to carry out the Subcommittee's 
 functions under this title; and
 ``(ii) in the case of such a company that has 
 not been in existence for more than a year, $25 
 multiplied by an appropriate number to be 
 determined by the Appraisal Subcommittee, and 
 where such number will be used for determining the 
 fee of all such companies that were not in 
 existence for more than a year, but where such $25 
 amount may be adjusted, up to a maximum of $50, at 
 the discretion of the Appraisal Subcommittee, if 
 necessary to carry out the Subcommittee's 
 functions under this title.''; and
 
[[Page 124 STAT. 2195]]
 
 (B) by amending the matter following paragraph (4), 
 as redesignated, to read as follows:
 
``Subject to the approval of the Council, the Appraisal Subcommittee may 
adjust the dollar amount of registry fees under paragraph (4)(A), up to 
a maximum of $80 per annum, as necessary to carry out its functions 
under this title. <<NOTE: Deadline.>> The Appraisal Subcommittee shall 
consider at least once every 5 years whether to adjust the dollar amount 
of the registry fees to account for inflation. In implementing any 
change in registry fees, the Appraisal Subcommittee shall provide 
flexibility to the States for multi-year certifications and licenses 
already in place, as well as a transition period to implement the 
changes in registry fees. In establishing the amount of the annual 
registry fee for an appraisal management company, the Appraisal 
Subcommittee shall have the discretion to impose a minimum annual 
registry fee for an appraisal management company to protect against the 
under reporting of the number of appraisers working for or contracted by 
the appraisal management company.''.
 (2) Incremental revenues.--Incremental revenues collected 
 pursuant to the increases required by this subsection shall be 
 placed in a separate account at the United States Treasury, 
 entitled the ``Appraisal Subcommittee Account''.
 
 (i) <<NOTE: 12 USC 3338 note.>> Grants and Reports.--Section 
1109(b) of the Financial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 3338(b)) is amended--
 (1) by striking ``and'' after the semicolon in paragraph 
 (3);
 (2) by striking the period at the end of paragraph (4) and 
 inserting a semicolon;
 (3) by adding at the end the following new paragraphs:
 ``(5) to make grants to State appraiser certifying and 
 licensing agencies, in accordance with policies to be developed 
 by the Appraisal Subcommittee, to support the efforts of such 
 agencies to comply with this title, including--
 ``(A) the complaint process, complaint 
 investigations, and appraiser enforcement activities of 
 such agencies; and
 ``(B) the submission of data on State licensed and 
 certified appraisers and appraisal management companies 
 to the National appraisal registry, including 
 information affirming that the appraiser or appraisal 
 management company meets the required qualification 
 criteria and formal and informal disciplinary actions; 
 and
 ``(6) to report to all State appraiser certifying and 
 licensing agencies when a license or certification is 
 surrendered, revoked, or suspended.''.
 
Obligations authorized under this subsection may not exceed 75 percent 
of the fiscal year total of incremental increase in fees collected and 
deposited in the ``Appraisal Subcommittee Account'' pursuant to 
subsection (h).
 (j) Criteria.--Section 1116 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3345) is amended--
 (1) in subsection (c), by inserting ``whose criteria for the 
 licensing of a real estate appraiser currently meet or exceed 
 the minimum criteria issued by the Appraisal Qualifications 
 Board of The Appraisal Foundation for the licensing of real 
 estate appraisers'' before the period at the end; and
 
[[Page 124 STAT. 2196]]
 
 (2) by striking subsection (e) and inserting the following 
 new subsection:
 
 ``(e) Minimum Qualification Requirements.--Any requirements 
established for individuals in the position of `Trainee Appraiser' and 
`Supervisory Appraiser' shall meet or exceed the minimum qualification 
requirements of the Appraiser Qualifications Board of The Appraisal 
Foundation. The Appraisal Subcommittee shall have the authority to 
enforce these requirements.''.
 (k) Monitoring of State Appraiser Certifying and Licensing 
Agencies.--Section 1118 of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 3347) is amended--
 (1) by amending subsection (a) to read as follows:
 
 ``(a) In General.--The Appraisal Subcommittee shall monitor each 
State appraiser certifying and licensing agency for the purposes of 
determining whether such agency--
 ``(1) has policies, practices, funding, staffing, and 
 procedures that are consistent with this title;
 ``(2) processes complaints and completes investigations in a 
 reasonable time period;
 ``(3) appropriately disciplines sanctioned appraisers and 
 appraisal management companies;
 ``(4) maintains an effective regulatory program; and
 ``(5) reports complaints and disciplinary actions on a 
 timely basis to the national registries on appraisers and 
 appraisal management companies maintained by the Appraisal 
 Subcommittee.
 
The Appraisal Subcommittee shall have the authority to remove a State 
licensed or certified appraiser or a registered appraisal management 
company from a national registry on an interim basis, not to exceed 90 
days, pending State agency action on licensing, certification, 
registration, and disciplinary proceedings. The Appraisal Subcommittee 
and all agencies, instrumentalities, and Federally recognized entities 
under this title shall not recognize appraiser certifications and 
licenses from States whose appraisal policies, practices, funding, 
staffing, or procedures are found to be inconsistent with this title. 
The Appraisal Subcommittee shall have the authority to impose sanctions, 
as described in this section, against a State agency that fails to have 
an effective appraiser regulatory program. In determining whether such a 
program is effective, the Appraisal Subcommittee shall include an 
analysis of the licensing and certification of appraisers, the 
registration of appraisal management companies, the issuance of 
temporary licenses and certifications for appraisers, the receiving and 
tracking of submitted complaints against appraisers and appraisal 
management companies, the investigation of complaints, and enforcement 
actions against appraisers and appraisal management companies. The 
Appraisal Subcommittee shall have the authority to impose interim 
actions and suspensions against a State agency as an alternative to, or 
in advance of, the derecognition of a State agency.''.
 (2) in subsection (b)(2), by inserting after ``authority'' 
 the following: ``or sufficient funding''.
 
 (l) Reciprocity.--Subsection (b) of section 1122 of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3351(b)) is amended to read as follows:
 ``(b) Reciprocity.--Notwithstanding any other provisions of this 
title, a federally related transaction shall not be appraised
 
[[Page 124 STAT. 2197]]
 
by a certified or licensed appraiser unless the State appraiser 
certifying or licensing agency of the State certifying or licensing such 
appraiser has in place a policy of issuing a reciprocal certification or 
license for an individual from another State when--
 ``(1) the appraiser licensing and certification program of 
 such other State is in compliance with the provisions of this 
 title; and
 ``(2) the appraiser holds a valid certification from a State 
 whose requirements for certification or licensing meet or exceed 
 the licensure standards established by the State where an 
 individual seeks appraisal licensure.''.
 
 (m) Consideration of Professional Appraisal Designations.--Section 
1122(d) of the Financial Institutions Reform, Recovery, and Enforcement 
Act of 1989 (12 U.S.C. 3351(d)) is amended by striking ``shall not 
exclude'' and all that follows through the end of the subsection and 
inserting the following: ``may include education achieved, experience, 
sample appraisals, and references from prior clients. Membership in a 
nationally recognized professional appraisal organization may be a 
criteria considered, though lack of membership therein shall not be the 
sole bar against consideration for an assignment under these 
criteria.''.
 (n) Appraiser Independence.--Section 1122 of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3351) is amended by adding at the end the following new subsection:
 ``(g) Appraiser Independence Monitoring.--The Appraisal Subcommittee 
shall monitor each State appraiser certifying and licensing agency for 
the purpose of determining whether such agency's policies, practices, 
and procedures are consistent with the purposes of maintaining appraiser 
independence and whether such State has adopted and maintains effective 
laws, regulations, and policies aimed at maintaining appraiser 
independence.''.
 (o) Appraiser Education.--Section 1122 of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is 
amended by inserting after subsection (g) (as added by subsection (l) of 
this section) the following new subsection:
 ``(h) Approved Education.--The Appraisal Subcommittee shall 
encourage the States to accept courses approved by the Appraiser 
Qualification Board's Course Approval Program.''.
 (p) Appraisal Complaint Hotline.--Section 1122 of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3351), as amended by this section, is amended by adding at the end the 
following new subsection:
 ``(i) Appraisal Complaint National Hotline.-- 
<<NOTE: Deadline. Determination.>> If, 6 months after the date of the 
enactment of this subsection, the Appraisal Subcommittee determines that 
no national hotline exists to receive complaints of non-compliance with 
appraisal independence standards and Uniform Standards of Professional 
Appraisal Practice, including complaints from appraisers, individuals, 
or other entities concerning the improper influencing or attempted 
improper influencing of appraisers or the appraisal process, the 
Appraisal Subcommittee shall establish and operate such a national 
hotline, which shall include a toll-free telephone number and an email 
address. If the Appraisal Subcommittee operates such a national hotline, 
the Appraisal Subcommittee shall refer complaints for further action to 
appropriate governmental bodies, including a State appraiser certifying 
and licensing agency, a financial institution regulator,
 
[[Page 124 STAT. 2198]]
 
or other appropriate legal authorities. For complaints referred to State 
appraiser certifying and licensing agencies or to Federal regulators, 
the Appraisal Subcommittee shall have the authority to follow up such 
complaint referrals in order to determine the status of the resolution 
of the complaint.''.
 
 (q) Automated Valuation Models.--Title XI of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3331 et seq.), as amended by this section, is amended by adding at the 
end the following new section (and amending the table of contents 
accordingly):
``SEC. 1125. <<NOTE: 12 USC 3354.>> AUTOMATED VALUATION MODELS 
 USED TO ESTIMATE COLLATERAL VALUE FOR 
 MORTGAGE LENDING PURPOSES.
 
 ``(a) In General.--Automated valuation models shall adhere to 
quality control standards designed to--
 ``(1) ensure a high level of confidence in the estimates 
 produced by automated valuation models;
 ``(2) protect against the manipulation of data;
 ``(3) seek to avoid conflicts of interest;
 ``(4) require random sample testing and reviews; and
 ``(5) account for any other such factor that the agencies 
 listed in subsection (b) determine to be appropriate.
 
 ``(b) Adoption of Regulations.--The Board, the Comptroller of the 
Currency, the Federal Deposit Insurance Corporation, the National Credit 
Union Administration Board, the Federal Housing Finance Agency, and the 
Bureau of Consumer Financial Protection, in consultation with the staff 
of the Appraisal Subcommittee and the Appraisal Standards Board of the 
Appraisal Foundation, shall promulgate regulations to implement the 
quality control standards required under this section.
 ``(c) Enforcement.--Compliance with regulations issued under this 
subsection shall be enforced by--
 ``(1) with respect to a financial institution, or subsidiary 
 owned and controlled by a financial institution and regulated by 
 a Federal financial institution regulatory agency, the Federal 
 financial institution regulatory agency that acts as the primary 
 Federal supervisor of such financial institution or subsidiary; 
 and
 ``(2) with respect to other participants in the market for 
 appraisals of 1-to-4 unit single family residential real estate, 
 the Federal Trade Commission, the Bureau of Consumer Financial 
 Protection, and a State attorney general.
 
 ``(d) Automated Valuation Model Defined.--For purposes of this 
section, the term `automated valuation model' means any computerized 
model used by mortgage originators and secondary market issuers to 
determine the collateral worth of a mortgage secured by a consumer's 
principal dwelling.''.
 (r) Broker Price Opinions.--Title XI of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.), 
as amended by this section, is amended by adding at the end the 
following new section (and amending the table of contents accordingly):
``SEC. 1126. <<NOTE: 12 USC 3355.>> BROKER PRICE OPINIONS.
 
 ``(a) General Prohibition.--In conjunction with the purchase of a 
consumer's principal dwelling, broker price opinions may not be used as 
the primary basis to determine the value of a piece
 
[[Page 124 STAT. 2199]]
 
of property for the purpose of a loan origination of a residential 
mortgage loan secured by such piece of property.
 ``(b) Broker Price Opinion Defined.--For purposes of this section, 
the term `broker price opinion' means an estimate prepared by a real 
estate broker, agent, or sales person that details the probable selling 
price of a particular piece of real estate property and provides a 
varying level of detail about the property's condition, market, and 
neighborhood, and information on comparable sales, but does not include 
an automated valuation model, as defined in section 1125(c).''.
 (s) Amendments to Appraisal Subcommittee.--Section 1011 of the 
Federal Financial Institutions Examination Council Act of 1978 (12 
U.S.C. 3310) is amended--
 (1) in the first sentence, by adding before the period the 
 following: ``, the Bureau of Consumer Financial Protection, and 
 the Federal Housing Finance Agency''; and
 (2) by inserting at the end the following: ``At all times at 
 least one member of the Appraisal Subcommittee shall have 
 demonstrated knowledge and competence through licensure, 
 certification, or professional designation within the appraisal 
 profession.''.
 
 (t) Technical Corrections.--
 (1) Section 1119(a)(2) of the Financial Institutions Reform, 
 Recovery, and Enforcement Act of 1989 (12 U.S.C. 3348(a)(2)) is 
 amended by striking ``council,'' and inserting ``Council,''.
 (2) Section 1121(6) of the Financial Institutions Reform, 
 Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350(6)) is 
 amended by striking ``Corporations,'' and inserting 
 ``Corporation,''.
 (3) Section 1121(8) of the Financial Institutions Reform, 
 Recovery, and Enforcement Act of 1989 (12 U.S.C. 3350(8)) is 
 amended by striking ``council'' and inserting ``Council''.
 (4) Section 1122 of the Financial Institutions Reform, 
 Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is 
 amended--
 (A) in subsection (a)(1) by moving the left margin 
 of subparagraphs (A), (B), and (C) 2 ems to the right; 
 and
 (B) in subsection (c)--
 (i) by striking ``Federal Financial 
 Institutions Examination Council'' and inserting 
 ``Financial Institutions Examination Council''; 
 and
 (ii) by striking ``the council's functions'' 
 and inserting ``the Council's functions''.
SEC. 1474. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT.
 
 Subsection (e) of section 701 of the Equal Credit Opportunity Act 
(15 U.S.C. 1691) is amended to read as follows:
 ``(e) Copies Furnished to Applicants.--
 ``(1) In general.-- <<NOTE: Deadline.>> Each creditor shall 
 furnish to an applicant a copy of any and all written appraisals 
 and valuations developed in connection with the applicant's 
 application for a loan that is secured or would have been 
 secured by a first lien on a dwelling promptly upon completion, 
 but in no case later than 3 days prior to the closing of the 
 loan, whether the creditor grants or denies the applicant's 
 request for credit or the application is incomplete or 
 withdrawn.
 
[[Page 124 STAT. 2200]]
 
 ``(2) Waiver.--The applicant may waive the 3 day requirement 
 provided for in paragraph (1), except where otherwise required 
 in law.
 ``(3) Reimbursement.--The applicant may be required to pay a 
 reasonable fee to reimburse the creditor for the cost of the 
 appraisal, except where otherwise required in law.
 ``(4) Free copy.--Notwithstanding paragraph (3), the 
 creditor shall provide a copy of each written appraisal or 
 valuation at no additional cost to the applicant.
 ``(5) Notification to applicants.--At the time of 
 application, the creditor shall notify an applicant in writing 
 of the right to receive a copy of each written appraisal and 
 valuation under this subsection.
 ``(6) Valuation defined.--For purposes of this subsection, 
 the term `valuation' shall include any estimate of the value of 
 a dwelling developed in connection with a creditor's decision to 
 provide credit, including those values developed pursuant to a 
 policy of a government sponsored enterprise or by an automated 
 valuation model, a broker price opinion, or other methodology or 
 mechanism.''.
SEC. 1475. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974 AMENDMENT 
 RELATING TO CERTAIN APPRAISAL FEES.
 
 Section 4 of the Real Estate Settlement Procedures Act of 
1974 <<NOTE: 12 USC 2603.>> is amended by adding at the end the 
following new subsection:
 
 ``(c) The standard form described in subsection (a) may include, in 
the case of an appraisal coordinated by an appraisal management company 
(as such term is defined in section 1121(11) of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3350(11))), a clear disclosure of--
 ``(1) the fee paid directly to the appraiser by such 
 company; and
 ``(2) the administration fee charged by such company.''.
SEC. 1476. GAO STUDY ON THE EFFECTIVENESS AND IMPACT OF VARIOUS 
 APPRAISAL METHODS, VALUATION MODELS AND 
 DISTRIBUTIONS CHANNELS, AND ON THE HOME 
 VALUATION CODE OF CONDUCT AND THE 
 APPRAISAL SUBCOMMITTEE.
 
 (a) In General.--The Government Accountability Office shall conduct 
a study on--
 (1) the effectiveness and impact of--
 (A) appraisal methods, including the cost approach, 
 the comparative sales approach, the income approach, and 
 others that may be available;
 (B) appraisal valuation models, including licensed 
 and certified appraisals, broker-priced opinions, and 
 automated valuation models; and
 (C) appraisal distribution channels, including 
 appraisal management companies, independent appraisal 
 operations within mortgage originators, and fee-for-
 service appraisers;
 (2) the Home Valuation Code of Conduct; and
 (3) the Appraisal Subcommittee's functions pursuant to title 
 XI of the Financial Institutions Reform, Recovery, and 
 Enforcement Act of 1989.
 
 (b) Study.--Not later than--
 (1) <<NOTE: Deadline.>> 12 months after the date of 
 enactment of this Act, the Government Accountability Office 
 shall submit a study
 
[[Page 124 STAT. 2201]]
 
 to the Committee on Banking, Housing, and Urban Affairs of the 
 Senate and the Committee on Financial Services of the House of 
 Representatives; and
 (2) <<NOTE: Deadline. Reports.>> 90 days after the date of 
 enactment of this Act, the Government Accountability Office 
 shall provide a report on the status of the study and any 
 preliminary findings to the Committee on Banking, Housing, and 
 Urban Affairs of the Senate and the Committee on Financial 
 Services of the House of Representatives.
 
 (c) Content of Study.--The study required by this section shall 
include an examination of the following:
 (1) Appraisal approaches, valuation models, and distribution 
 channels.--
 (A) The prevalence, alone or in combination, of 
 certain appraisal approaches, models, and channels in 
 purchase-money and refinance mortgage transactions.
 (B) The accuracy of these approaches, models, and 
 channels in assessing the property as collateral.
 (C) Whether and how these approaches, models, and 
 channels contributed to price speculation during the 
 previous cycle.
 (D) The costs to consumers of these approaches, 
 models, and channels.
 (E) The disclosure of fees to consumers in the 
 appraisal process.
 (F) To what extent the usage of these approaches, 
 models, and channels may be influenced by a conflict of 
 interest between the mortgage lender and the appraiser 
 and the mechanism by which the lender selects and 
 compensates the appraiser.
 (G) The suitability of these approaches, models, and 
 channels in rural versus urban areas.
 (2) Home valuation code of conduct (hvcc).--
 (A) How the HVCC affects mortgage lenders' selection 
 of appraisers.
 (B) How the HVCC affects State regulation of 
 appraisers and appraisal distribution channels.
 (C) How the HVCC affects the quality and cost of 
 appraisals and the length of time to obtain an 
 appraisal.
 (D) How the HVCC affects mortgage brokers, small 
 businesses, and consumers.
 
 (d) Additional Study Required.--
 (1) In general.-- <<NOTE: Deadline.>> Not later than 18 
 months after the date of enactment of this Act, the Government 
 Accountability Office shall submit a study to the Committee on 
 Banking, Housing, and Urban Affairs of the Senate and the 
 Committee on Financial Services of the House of Representatives.
 (2) Content of additional study.--The study required under 
 paragraph (1) shall include--
 (A) an examination of--
 (i) the Appraisal Subcommittee's ability to 
 monitor and enforce State and Federal 
 certification requirements and standards, 
 including by providing a summary with a 
 statistical breakdown of enforcement actions taken 
 during the last 10 years;
 
[[Page 124 STAT. 2202]]
 
 (ii) whether existing Federal financial 
 institutions regulatory agency exemptions on 
 appraisals for federally related transactions 
 needs to be revised; and
 (iii) whether new means of data collection, 
 such as the establishment of a national 
 repository, would benefit the Appraisal 
 Subcommittee's ability to perform its functions; 
 and
 (B) recommendations from this examination for 
 administrative and legislative action at the Federal and 
 State level.
 
 Subtitle G--Mortgage Resolution and Modification
 
SEC. 1481. <<NOTE: 12 USC 5220b.>> MULTIFAMILY MORTGAGE RESOLUTION 
 PROGRAM.
 
 (a) Establishment.--The Secretary of Housing and Urban Development 
shall develop a program under this subsection to ensure the protection 
of current and future tenants and at-risk multifamily properties, where 
feasible, based on criteria that may include--
 (1) creating sustainable financing of such properties, that 
 may take into consideration such factors as--
 (A) the rental income generated by such properties; 
 and
 (B) the preservation of adequate operating reserves;
 (2) maintaining the level of Federal, State, and city 
 subsidies in effect as of the date of the enactment of this Act;
 (3) providing funds for rehabilitation; and
 (4) facilitating the transfer of such properties, when 
 appropriate and with the agreement of owners, to responsible new 
 owners and ensuring affordability of such properties.
 
 (b) Coordination.--The Secretary of Housing and Urban Development 
may, in carrying out the program developed under this section, 
coordinate with the Secretary of the Treasury, the Federal Deposit 
Insurance Corporation, the Board of Governors of the Federal Reserve 
System, the Federal Housing Finance Agency, and any other Federal 
Government agency that the Secretary considers appropriate.
 (c) Definition.--For purposes of this section, the term 
``multifamily properties'' means a residential structure that consists 
of 5 or more dwelling units.
 (d) Prevention of Qualification for Criminal Applicants.--
 (1) In general.-- <<NOTE: Time period.>> No person shall be 
 eligible to begin receiving assistance from the Making Home 
 Affordable Program authorized under the Emergency Economic 
 Stabilization Act of 2008 (12 U.S.C. 5201 et seq.), or any other 
 mortgage assistance program authorized or funded by that Act, on 
 or after 60 days after the date of the enactment of this Act, if 
 such person, in connection with a mortgage or real estate 
 transaction, has been convicted, within the last 10 years, of 
 any one of the following:
 (A) Felony larceny, theft, fraud, or forgery.
 (B) Money laundering.
 (C) Tax evasion.
 (2) Procedures.--The Secretary shall establish procedures to 
 ensure compliance with this subsection.
 
[[Page 124 STAT. 2203]]
 
 (3) Report.--The Secretary shall report to the Committee on 
 Financial Services of the House of Representatives and the 
 Committee on Banking, Housing, and Urban Affairs of the Senate 
 regarding the implementation of this provision. The report shall 
 also describe the steps taken to implement this subsection.
SEC. 1482. <<NOTE: 12 USC 5219a.>> HOME AFFORDABLE MODIFICATION 
 PROGRAM GUIDELINES.
 
 (a) Net Present Value Input Data.--The Secretary of the Treasury (in 
this section referred to as the ``Secretary'') shall revise the 
supplemental directives and other guidelines for the Home Affordable 
Modification Program of the Making Home Affordable initiative of the 
Secretary of the Treasury, authorized under the Emergency Economic 
Stabilization Act of 2008 (Public Law 110-343), to require each mortgage 
servicer participating in such program to provide each borrower under a 
mortgage whose request for a mortgage modification under the Program is 
denied with all borrower-related and mortgage-related input data used in 
any net present value (NPV) analyses performed in connection with the 
subject mortgage. Such input data shall be provided to the borrower at 
the time of such denial.
 (b) Web-based Site for NPV Calculator and Application.--
 (1) NPV calculator.--In carrying out the Home Affordable 
 Modification Program, the Secretary shall establish and maintain 
 a site on the World Wide Web that provides a calculator for net 
 present value analyses of a mortgage, based on the Secretary's 
 methodology for calculating such value, that mortgagors can use 
 to enter information regarding their own mortgages and that 
 provides a determination after entering such information 
 regarding a mortgage of whether such mortgage would be accepted 
 or rejected for modification under the Program, using such 
 methodology.
 (2) Disclosure.--Such Web site shall also prominently 
 disclose that each mortgage servicer participating in such 
 Program may use a method for calculating net present value of a 
 mortgage that is different than the method used by such 
 calculator.
 (3) Application.--The Secretary shall make a reasonable 
 effort to include on such World Wide Web site a method for 
 homeowners to apply for a mortgage modification under the Home 
 Affordable Modification Program.
 
 (c) Public Availability of NPV Methodology, Computer Model, and 
Variables.--The Secretary shall make publicly available, including by 
posting on a World Wide Web site of the Secretary--
 (1) the Secretary's methodology and computer model, 
 including all formulae used in such computer model, used for 
 calculating net present value of a mortgage that is used by the 
 calculator established pursuant to subsection (b); and
 (2) all non-proprietary variables used in such net present 
 value analysis.
SEC. 1483. <<NOTE: 12 USC 5219b.>> PUBLIC AVAILABILITY OF 
 INFORMATION OF MAKING HOME AFFORDABLE 
 PROGRAM.
 
 (a) Revisions to Program Guidelines.--The Secretary of the Treasury 
(in this section referred to as the ``Secretary'') shall revise the 
guidelines for the Home Affordable Modification Program of the Making 
Home Affordable initiative of the Secretary of the
 
[[Page 124 STAT. 2204]]
 
Treasury, authorized under the Emergency Economic Stabilization Act of 
2008 (Public Law 110-343), to provide that the data being collected by 
the Secretary from each mortgage servicer and lender participating in 
the Program is made public in accordance with subsection (b).
 (b) <<NOTE: Deadlines.>> Public Availability.--Data shall be made 
available according to the following guidelines:
 (1) <<NOTE: Reports. Web posting.>> Not more than 14 days 
 after each monthly deadline for submission of data by mortgage 
 servicers and lenders participating in the Program, reports 
 shall be made publicly available by means of a World Wide Web 
 site of the Secretary, and by submitting a report to the 
 Congress, that shall includes the following information:
 (A) The number of requests for mortgage 
 modifications under the Program that the servicer or 
 lender has received.
 (B) The number of requests for mortgage 
 modifications under the Program that the servicer or 
 lender has processed.
 (C) The number of requests for mortgage 
 modifications under the Program that the servicer or 
 lender has approved.
 (D) The number of requests for mortgage 
 modifications under the Program that the servicer or 
 lender has denied.
 (2) <<NOTE: Records.>> Not more than 60 days after each 
 monthly deadline for submission of data by mortgage servicers 
 and lenders participating in the Program, the Secretary shall 
 make data tables available to the public at the individual 
 record level. The <<NOTE: Regulations.>> Secretary shall issue 
 regulations prescribing--
 (A) the procedures for disclosing such data to the 
 public; and
 (B) such deletions as the Secretary may determine to 
 be appropriate to protect any privacy interest of any 
 mortgage modification applicant, including the deletion 
 or alteration of the applicant's name and identification 
 number.
SEC. 1484. PROTECTING TENANTS AT FORECLOSURE EXTENSION AND 
 CLARIFICATION.
 
 The Protecting Tenants at Foreclosure Act is amended--
 (1) in section 702 (12 U.S.C. 5220 note)--
 (A) in subsection (a)(2), by striking ``, as of the 
 date of such notice of foreclosure''; and
 (B) in subsection (c), by inserting after the period 
 the following: ``For purposes of this section, the date 
 of a notice of foreclosure shall be deemed to be the 
 date on which complete title to a property is 
 transferred to a successor entity or person as a result 
 of an order of a court or pursuant to provisions in a 
 mortgage, deed of trust, or security deed.''; and
 (2) in section 704 (12 U.S.C. 5201 note), by striking 
 ``2012'' and inserting ``2014''.
 
[[Page 124 STAT. 2205]]
 
 Subtitle H--Miscellaneous Provisions
 
SEC. 1491. SENSE OF CONGRESS REGARDING THE IMPORTANCE OF 
 GOVERNMENT-SPONSORED ENTERPRISES REFORM 
 TO ENHANCE THE PROTECTION, LIMITATION, 
 AND REGULATION OF THE TERMS OF 
 RESIDENTIAL MORTGAGE CREDIT.
 
 (a) Findings.--The Congress finds as follows:
 (1) The Government-sponsored enterprises, Federal National 
 Mortgage Association (Fannie Mae) and the Federal Home Loan 
 Mortgage Corporation (Freddie Mac), were chartered by Congress 
 to ensure a reliable and affordable supply of mortgage funding, 
 but enjoy a dual legal status as privately owned corporations 
 with Government mandated affordable housing goals.
 (2) In 1996, the Department of Housing and Urban Development 
 required that 42 percent of Fannie Mae's and Freddie Mac's 
 mortgage financing should go to borrowers with income levels 
 below the median for a given area.
 (3) In 2004, the Department of Housing and Urban Development 
 revised those goals, increasing them to 56 percent of their 
 overall mortgage purchases by 2008, and additionally mandated 
 that 12 percent of all mortgage purchases by Fannie Mae and 
 Freddie Mac be ``special affordable'' loans made to borrowers 
 with incomes less than 60 percent of an area's median income, a 
 target that ultimately increased to 28 percent for 2008.
 (4) To help fulfill those mandated affordable housing goals, 
 in 1995 the Department of Housing and Urban Development 
 authorized Fannie Mae and Freddie Mac to purchase subprime 
 securities that included loans made to low-income borrowers.
 (5) After this authorization to purchase subprime 
 securities, subprime and near-prime loans increased from 9 
 percent of securitized mortgages in 2001 to 40 percent in 2006, 
 while the market share of conventional mortgages dropped from 
 78.8 percent in 2003 to 50.1 percent by 2007 with a 
 corresponding increase in subprime and Alt-A loans from 10.1 
 percent to 32.7 percent over the same period.
 (6) In 2004 alone, Fannie Mae and Freddie Mac purchased 
 $175,000,000,000 in subprime mortgage securities, which 
 accounted for 44 percent of the market that year, and from 2005 
 through 2007, Fannie Mae and Freddie Mac purchased approximately 
 $1,000,000,000,000 in subprime and Alt-A loans, while Fannie 
 Mae's acquisitions of mortgages with less than 10 percent down 
 payments almost tripled.
 (7) According to data from the Federal Housing Finance 
 Agency (FHFA) for the fourth quarter of 2008, Fannie Mae and 
 Freddie Mac own or guarantee 75 percent of all newly originated 
 mortgages, and Fannie Mae and Freddie Mac currently own 13.3 
 percent of outstanding mortgage debt in the United States and 
 have issued mortgage-backed securities for 31.0 percent of the 
 residential debt market, a combined total of 44.3 percent of 
 outstanding mortgage debt in the United States.
 (8) On September 7, 2008, the FHFA placed Fannie Mae and 
 Freddie Mac into conservatorship, with the Treasury
 
[[Page 124 STAT. 2206]]
 
 Department subsequently agreeing to purchase at least 
 $200,000,000,000 of preferred stock from each enterprise in 
 exchange for warrants for the purchase of 79.9 percent of each 
 enterprise's common stock.
 (9) The conservatorship for Fannie Mae and Freddie Mac has 
 potentially exposed taxpayers to upwards of $5,300,000,000,000 
 worth of risk.
 (10) The hybrid public-private status of Fannie Mae and 
 Freddie Mac is untenable and must be resolved to assure that 
 consumers are offered and receive residential mortgage loans on 
 terms that reasonably reflect their ability to repay the loans 
 and that are understandable and not unfair, deceptive, or 
 abusive.
 
 (b) Sense of the Congress.--It is the sense of the Congress that 
efforts to enhance by the protection, limitation, and regulation of the 
terms of residential mortgage credit and the practices related to such 
credit would be incomplete without enactment of meaningful structural 
reforms of Fannie Mae and Freddie Mac.
SEC. 1492. GAO STUDY REPORT ON GOVERNMENT EFFORTS TO COMBAT 
 MORTGAGE FORECLOSURE RESCUE SCAMS AND 
 LOAN MODIFICATION FRAUD.
 
 (a) Study.--The Comptroller General of the United States shall 
conduct a study of the current inter-agency efforts of the Secretary of 
the Treasury, the Secretary of Housing and Urban Development, the 
Attorney General, and the Federal Trade Commission to crackdown on 
mortgage foreclosure rescue scams and loan modification fraud in order 
to advise the Congress to the risks and vulnerabilities of emerging 
schemes in the loan modification arena.
 (b) Report.--
 (1) In general.--The Comptroller General shall submit a 
 report to the Congress on the study conducted under subsection 
 (a) containing such recommendations for legislative and 
 administrative actions as the Comptroller General may determine 
 to be appropriate in addition to the recommendations required 
 under paragraph (2).
 (2) Specific topics.--The report made under paragraph (1) 
 shall include--
 (A) an evaluation of the effectiveness of the inter-
 agency task force current efforts to combat mortgage 
 foreclosure rescue scams and loan modification fraud 
 scams;
 (B) specific recommendations on agency or 
 legislative action that are essential to properly 
 protect homeowners from mortgage foreclosure rescue 
 scams and loan modification fraud scams; and
 (C) the adequacy of financial resources that the 
 Federal Government is allocating to--
 (i) crackdown on loan modification and 
 foreclosure rescue scams; and
 (ii) the education of homeowners about 
 fraudulent scams relating to loan modification and 
 foreclosure rescues.
SEC. 1493. REPORTING OF MORTGAGE DATA BY STATE.
 
 (a) In General.--Section 104(a) of the Helping Families Save Their 
Homes Act of 2009 (division A of Public Law 111-22) <<NOTE: 12 
USC 1715z-25.>> is amended--
 
[[Page 124 STAT. 2207]]
 
 (1) in paragraph (2), by striking ``resulting'' and 
 inserting ``in each State that result'';
 (2) in paragraph (3), by inserting ``each State for'' after 
 ``modifications in''; and
 (3) in paragraph (4), by inserting ``in each State'' after 
 ``total number of loans''.
 
 (b) Conforming Amendment.--Section 104(b)(1)(A) of such Act is 
amended by adding at the end the following 
sentence: <<NOTE: Deadline.>> ``Not later than 60 days after the date 
of the enactment of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, the Comptroller of the Currency and the Director of the 
Office of Thrift Supervision shall update such requirements to reflect 
amendments made to this section by such Act.''.
SEC. 1494. STUDY OF EFFECT OF DRYWALL PRESENCE ON FORECLOSURES.
 
 (a) Study.--The Secretary of Housing and Urban Development, in 
consultation with the Secretary of the Treasury, shall conduct a study 
of the effect on residential mortgage loan foreclosures of--
 (1) the presence in residential structures subject to such 
 mortgage loans of drywall that was imported from China during 
 the period beginning with 2004 and ending at the end of 2007; 
 and
 (2) the availability of property insurance for residential 
 structures in which such drywall is present.
 
 (b) Report.--Not later than the expiration of the 120-day period 
beginning on the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall submit to the Congress a report on 
the study conducted under subsection (a) containing its findings, 
conclusions, and recommendations.
SEC. 1495. <<NOTE: 15 USC 1601 note.>> DEFINITION.
 
 For purposes of this title, the term ``designated transfer date'' 
means the date established under section 1062 of this Act.
SEC. 1496. EMERGENCY MORTGAGE RELIEF.
 
 (a) Emergency Homeowners' Relief Fund.-- <<NOTE: Effective date. 12 
USC 2706 note.>> Effective October 1, 2010, and notwithstanding any 
other provision of law, there is hereby made available to the Secretary 
of Housing and Urban Development such sums as are necessary to provide 
$1,000,000,000 in assistance through the Emergency Homeowners' Relief 
Fund, which such Secretary shall establish pursuant to section 107 of 
the Emergency Housing Act of 1975 (12 U.S.C. 2706), as such Act is 
amended by this section, for use for emergency mortgage assistance in 
accordance with title I of such Act.
 
 (b) Reauthorization of Emergency Mortgage Relief Program.--Title I 
of the Emergency Housing Act of 1975 is amended--
 (1) in section 103 (12 U.S.C. 2702)--
 (A) in paragraph (2)--
 (i) by striking ``have indicated'' and all 
 that follows through ``regulation of the holder'' 
 and insert ``have certified'';
 (ii) by striking ``(such as the volume of 
 delinquent loans in its portfolio)''; and
 (iii) by striking ``, except that such 
 statement'' and all that follows through 
 ``purposes of this title''; and
 
[[Page 124 STAT. 2208]]
 
 (B) in paragraph (4), by inserting ``or medical 
 conditions'' after ``adverse economic conditions'';
 (2) in section 104 (12 U.S.C. 2703)--
 (A) in subsection (b), by striking ``, but such 
 assistance'' and all that follows through the period at 
 the end and inserting the 
 following: <<NOTE: Determination.>> ``. The amount of 
 assistance provided to a homeowner under this title 
 shall be an amount that the Secretary determines is 
 reasonably necessary to supplement such amount as the 
 homeowner is capable of contributing toward such 
 mortgage payment, except that the aggregate amount of 
 such assistance provided for any homeowner shall not 
 exceed $50,000.'';
 (B) in subsection (d), by striking ``interest on a 
 loan or advance'' and all that follows through the end 
 of the subsection and inserting the following: ``(1) the 
 rate of interest on any loan or advance of credit 
 insured under this title shall be fixed for the life of 
 the loan or advance of credit and shall not exceed the 
 rate of interest that is generally charged for mortgages 
 on single-family housing insured by the Secretary of 
 Housing and Urban Development under title II of the 
 National Housing Act at the time such loan or advance of 
 credit is made, and (2) no interest shall be charged on 
 interest which is deferred on a loan or advance of 
 credit made under this title. In establishing rates, 
 terms and conditions for loans or advances of credit 
 made under this title, the Secretary shall take into 
 account a homeowner's ability to repay such loan or 
 advance of credit.''; and
 (C) in subsection (e), by inserting after the period 
 at the end of the first sentence the following: ``Any 
 eligible homeowner who receives a grant or an advance of 
 credit under this title may repay the loan in full, 
 without penalty, by lump sum or by installment payments 
 at any time before the loan becomes due and payable.'';
 (3) in section 105 (12 U.S.C. 2704)--
 (A) by striking subsection (b);
 (B) in subsection (e)--
 (i) by inserting ``and emergency mortgage 
 relief payments made under section 106'' after 
 ``insured under this section''; and
 (ii) by striking ``$1,500,000,000 at any one 
 time'' and inserting ``$3,000,000,000'';
 (C) by redesignating subsections (c), (d), and (e) 
 as subsections (b), (c), and (d), respectively; and
 (D) by adding at the end the following new 
 subsection:
 
 ``(e) <<NOTE: Guidelines. Procedures.>> The Secretary shall 
establish underwriting guidelines or procedures to allocate amounts made 
available for loans and advances insured under this section and for 
emergency relief payments made under section 106 based on the likelihood 
that a mortgagor will be able to resume mortgage payments, pursuant to 
the requirement under section 103(5).'';
 (4) in <<NOTE: 12 USC 2706.>> section 107--
 (A) by striking ``(a)''; and
 (B) by striking subsection (b);
 (5) in section 108 (12 U.S.C. 2707), by adding at the end 
 the following new subsection:
 
[[Page 124 STAT. 2209]]
 
 ``(d) Coverage of Existing Programs.-- <<NOTE: Determination.>> The 
Secretary shall allow funds to be administered by a State that has an 
existing program that is determined by the Secretary to provide 
substantially similar assistance to homeowners. After such determination 
is made such State shall not be required to modify such program to 
comply with the provisions of this title.'';
 (6) in section 109 (12 U.S.C. 2708)--
 (A) in the section heading, by striking 
 ``authorization and'';
 (B) by striking subsection (a);
 (C) by striking ``(b)''; and
 (D) by striking ``1977'' and inserting ``2011'';
 (7) by striking sections 110, 111, and 113 (12 U.S.C. 2709, 
 2710, 2712); and
 (8) by redesignating section 112 (12 U.S.C. 2711) as section 
 110.
SEC. 1497. <<NOTE: 42 USC 5301 note.>> ADDITIONAL ASSISTANCE FOR 
 NEIGHBORHOOD STABILIZATION PROGRAM.
 
 (a) In General.-- <<NOTE: Effective date. State and local 
governments.>> Effective October 1, 2010, out of funds in the Treasury 
not otherwise appropriated, there is hereby made available to the 
Secretary of Housing and Urban Development $1,000,000,000, and the 
Secretary of Housing and Urban Development shall use such amounts for 
assistance to States and units of general local government for the 
redevelopment of abandoned and foreclosed homes, in accordance with the 
same provisions applicable under the second undesignated paragraph under 
the heading ``Community Planning and Development--Community Development 
Fund'' in title XII of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 217) to amounts 
made available under such second undesignated paragraph, except as 
follows:
 (1) Notwithstanding the matter of such second undesignated 
 paragraph that precedes the first proviso, amounts made 
 available by this section shall remain available until expended.
 (2) The 3rd, 4th, 5th, 6th, 7th, and 15th provisos of such 
 second undesignated paragraph shall not apply to amounts made 
 available by this section.
 (3) Amounts made available by this section shall be 
 allocated based on a funding formula for such amounts 
 established by the Secretary in accordance with section 2301(b) 
 of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 
 note), except that--
 (A) <<NOTE: Deadline.>> notwithstanding paragraph 
 (2) of such section 2301(b), the formula shall be 
 established not later than 30 days after the date of the 
 enactment of this Act;
 (B) notwithstanding such section 2301(b), each State 
 shall receive, at a minimum, not less than 0.5 percent 
 of funds made available under this section;
 (C) the Secretary may establish a minimum grant 
 amount for direct allocations to units of general local 
 government located within a State, which shall not 
 exceed $1,000,000;
 (D) <<NOTE: Procedures.>> each State and local 
 government receiving grant amounts shall establish 
 procedures to create preferences
 
[[Page 124 STAT. 2210]]
 
 for the development of affordable rental housing for 
 properties assisted with amounts made available by this 
 section; and
 (E) the Secretary may use not more than 2 percent of 
 the funds made available under this section for 
 technical assistance to grantees.
 (4) Paragraph (1) of section 2301(c) of the Housing and 
 Economic Recovery Act of 2008 shall not apply to amounts made 
 available by this section.
 (5) <<NOTE: Applicability.>> The fourth proviso from the end 
 of such second undesignated paragraph shall be applied to 
 amounts made available by this section by substituting ``2013'' 
 for ``2012''.
 (6) <<NOTE: Definition.>> Notwithstanding section 2301(a) 
 of the Housing and Economic Recovery Act of 2008, the term 
 ``State'' means any State, as defined in section 102 of the 
 Housing and Community Development Act of 1974 (42 U.S.C. 5302), 
 and the District of Columbia, for purposes of this section and 
 this title, as applied to amounts made available by this 
 section.
 (7)(A) <<NOTE: Election violations.>> None of the amounts 
 made available by this section shall be distributed to--
 (i) any organization which has been convicted for a 
 violation under Federal law relating to an election for 
 Federal office; or
 (ii) any organization which employs applicable 
 individuals.
 (B) <<NOTE: Definition.>> In this paragraph, the term 
 ``applicable individual'' means an individual who--
 (i) is--
 (I) employed by the organization in a 
 permanent or temporary capacity;
 (II) contracted or retained by the 
 organization; or
 (III) acting on behalf of, or with the express 
 or apparent authority of, the organization; and
 (ii) has been convicted for a violation under 
 Federal law relating to an election for Federal office.
 (8) An eligible entity receiving a grant under this section 
 shall, to the maximum extent feasible, provide for the hiring of 
 employees who reside in the vicinity, as such term is defined by 
 the Secretary, of projects funded under this section or contract 
 with small businesses that are owned and operated by persons 
 residing in the vicinity of such projects.
 
 (b) Additional Amendments.--
 (1) <<NOTE: 42 USC 5301 note.>> Section 2301.--Section 
 2301(f)(3)(A)(ii) of the Housing and Economic Recovery Act of 
 2008 (42 U.S.C. 5301(f)(3)(A)(ii))--
 (A) is amended by striking ``for the purchase and 
 redevelopment of abandoned and foreclosed upon homes or 
 residential properties that will be used''; and
 (B) <<NOTE: Applicability.>> shall apply with 
 respect to any unexpended or unobligated balances, 
 including recaptured and reallocated funds made 
 available under this Act, section 2301 of the Housing 
 and Economic Recovery Act of 2008 (42 U.S.C. 5301), and 
 the heading ``Community Planning and Development--
 Community Development Fund'' in title XII of division A 
 of the American Recovery and Reinvestment Act of 2009 
 (Public Law 111-5; 123 Stat. 217).
 
[[Page 124 STAT. 2211]]
 
 (2) Notice of foreclosure.--For any amounts made available 
 under this section, under division B, title III of the Housing 
 and Economic Recovery Act of 2008 (42 U.S.C. 5301), or under the 
 heading ``Community Planning and Development--Community 
 Development Fund'' in title XII of division A of the American 
 Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 
 Stat. 217), the date of a notice of foreclosure shall be deemed 
 to be the date on which complete title to a property is 
 transferred to a successor entity or person as a result of an 
 order of a court or pursuant to provisions in a mortgage, deed 
 of trust, or security deed.
SEC. 1498. <<NOTE: Grants. 12 USC 1701x-2.>> LEGAL ASSISTANCE FOR 
 FORECLOSURE-RELATED ISSUES.
 
 (a) Establishment.--The Secretary of Housing and Urban Development 
(hereafter in this section referred to as the ``Secretary'') shall 
establish a program for making grants for providing a full range of 
foreclosure legal assistance to low- and moderate-income homeowners and 
tenants related to home ownership preservation, home foreclosure 
prevention, and tenancy associated with home foreclosure.
 (b) Competitive Allocation.-- <<NOTE: States and local 
organizations.>> The Secretary shall allocate amounts made available for 
grants under this section to State and local legal organizations on the 
basis of a competitive process. For purposes of this subsection ``State 
and local legal organizations'' are those State and local organizations 
whose primary business or mission is to provide legal assistance.
 
 (c) Priority to Certain Areas.--In allocating amounts in accordance 
with subsection (b), the Secretary shall give priority consideration to 
State and local legal organizations that are operating in the 125 
metropolitan statistical areas (as that term is defined by the Director 
of the Office of Management and Budget) with the highest home 
foreclosure rates.
 (d) Legal Assistance.--
 (1) In general.--Any State or local legal organization that 
 receives financial assistance pursuant to this section may use 
 such amounts only to assist--
 (A) homeowners of owner-occupied homes with 
 mortgages in default, in danger of default, or subject 
 to or at risk of foreclosure; and
 (B) tenants at risk of or subject to eviction as a 
 result of foreclosure of the property in which such 
 tenant resides.
 (2) Commence use within 90 days.--Any State or local legal 
 organization that receives financial assistance pursuant to this 
 section shall begin using any financial assistance received 
 under this section within 90 days after receipt of the 
 assistance.
 (3) Prohibition on class actions.--No funds provided to a 
 State or local legal organization under this section may be used 
 to support any class action litigation.
 (4) Limitation on legal assistance.--Legal assistance funded 
 with amounts provided under this section shall be limited to 
 mortgage-related default, eviction, or foreclosure proceedings, 
 without regard to whether such foreclosure is judicial or 
 nonjudicial.
 (5) Effective date.--Notwithstanding any other provision of 
 this Act, this subsection shall take effect on the date of the 
 enactment of this Act.
 
[[Page 124 STAT. 2212]]
 
 (e) Limitation on Distribution of Assistance.--
 (1) In general.--None of the amounts made available under 
 this section shall be distributed to--
 (A) <<NOTE: Election violations.>> any organization 
 which has been convicted for a violation under Federal 
 law relating to an election for Federal office; or
 (B) any organization which employs applicable 
 individuals.
 (2) Definition of applicable individuals.--In this 
 subsection, the term ``applicable individual'' means an 
 individual who--
 (A) is--
 (i) employed by the organization in a 
 permanent or temporary capacity;
 (ii) contracted or retained by the 
 organization; or
 (iii) acting on behalf of, or with the express 
 or apparent authority of, the organization; and
 (B) has been convicted for a violation under Federal 
 law relating to an election for Federal office.
 
 (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $35,000,000 for each of fiscal years 2011 
through 2012 for grants under this section.
 
 

Mortgage Calculator

$
%
%
yrs
$

Today's Rates

Mtg Loan Rate APR
30-yr Fixed 3.88% 4.01%
15-yr Fixed 3.19% 3.36%
1-yr Adj 2.74% 3.4%
* national averages
SHOCKED ABOUT YOUR PROPERTY TAX?

CALL 718-518-8588

or visit

www.PropertyTaxSlayer.net

Got a Question?

Do you have a question relating to real estate appraisals? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question