May 23, 2018
House Passes Dodd-Frank Reform Bill Complete with Appraisal Revisions
The U.S. House of Representatives on May 22 passed bi-partisan legislation that would roll back many post-financial-crisis banking rules found in the Dodd-Frank Act. The White House said President Trump will sign the bill before Memorial Day.
The Appraisal Institute took no position on the bill, which the Senate approved in March, but endorsed changes to appraisal exemptions included in the measure. The bill clarifies that a bank must engage at least three appraisers on the bank’s approved appraiser list, in the local market area and in compliance with existing appraiser independence requirements. It also establishes a reasonable timeliness standard.
“Thank you for including several clarifying provisions relating to rural residential appraisals to Section 103 of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act,” the Appraisal Institute and 33 other real estate valuation groups wrote to Sen. Mike Crapo, R-Idaho, chair of the Senate Committee on Banking, Housing and Urban Affairs, in a March 13 letter.
“These provisions will help ensure that banks make a good faith effort to place the appraisal with local market appraisers, consistent with the bill’s intent,” the organizations’ letter said.
If the President signs the bill, it would mark the most significant revision of banking rules since Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, a sweeping financial regulatory law enacted in response to the 2008 economic crisis.
Learn more about the banking reform bill.