RICHARD GRECO APPRAISALS
Real Property Appraisers and Consultants
1803 Radcliff Avenue
Bronx, New York 10462
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.