During today’s Committee vote, an amendment offered jointly by Sen. Robert Casey (D-PA) and Sen. Mel Martinez (R-FL), was approved to revamp requirements for eligibility to the FHA Appraiser Roster. Under the amendment, all new FHA appraisers must be members of nationally recognized professional appraisal organizations or state Certified, in addition to having completed education on FHA appraisal requirements.  The amendment is recognition that FHA appraisals are unique and should be performed by experienced and qualified appraisers. Further, the amendment adds to requirements for appraiser independence in FHA appraisals and new appraisals as part of the proposed foreclosure prevention program at FHA also supported by the Appraisal Institute.

“We strongly support the Casey/Martinez FHA appraisal amendment and the appraisal requirements contained in the Senate bill,” said Bill Garber, Director of Government and External Relations of the Appraisal Institute. “With FHA playing an increasing important role in the housing market, and given the importance of appraisals to foreclosure prevention efforts outlined in the bill, it is critical that FHA appraisals be accurate and reliable and performed by competent appraisers. This amendment and the underlying provisions of the bill are a sound and reasonable step forward for FHA appraisals, and complement the work performed by Rep. Paul Kanjorski on this issue in the House.”

An amendment proposed by Sen. Elizabeth Dole (R-NC) to supersede the recent appraisal agreement between the Attorney General of New York, Fannie Mae, Freddie Mac, the Office of Federal Housing Enterprise Oversight failed to be included in the bill passed by the Committee and was not offered as an amendment because of heavy opposition from several Committee members, including the Committee Chairman, Sen. Christopher Dodd (D-CT) and Sen. Charles Schumer (D-NY).

The bill, entitled the Federal Housing Finance Regulatory Reform Act, is the companion bill to legislation that passed the House last month (H.R. 3221). For more information on the Senate bill, visit the Senate Banking Committee at http://banking.senate.gov/public/index.cfm?FuseAction=Articles.Detail&Article_id=60e2e758-a69d-4ce5-b1a1-efe4e9ef58d2&Month=5&Year=2008