President Signs Dodd-Frank Reform Bill Complete with Appraisal Revisions
President Trump on May 24 signed into law S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, legislation intended to bring regulatory relief to small and midsized banks by rolling back parts of the Dodd-Frank Act.
The Appraisal Institute took no position on the bill but endorsed changes to appraisal exemptions included in the legislation. The law 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 a coalition of 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 letter stated.
Passage of the legislation marks 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.