RICHARD GRECO APPRAISALS www.richardgrecoappraisals.com 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:
Appraisal Independence Compliance with The Board, the Comptroller of the Currency, IN ORDER FOR A LENDER TO BE HVCC COMPLIANT THE FOLLOWING ARE THE REQUIREMENTS FOR HVCC COMPLIANCY:
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 https://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, 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 FULL IMPLEMENTATION 04/01/11 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. |
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