Magazine article American Banker

Lawmakers' Letter Prompts 'Fax Alert.' (Excerpts from Legislators' Letter on Appraisal Standards to Bankers and Excerpt from Independent Bankers Association of America Response Letter) ( ) (Transcript)

Magazine article American Banker

Lawmakers' Letter Prompts 'Fax Alert.' (Excerpts from Legislators' Letter on Appraisal Standards to Bankers and Excerpt from Independent Bankers Association of America Response Letter) ( ) (Transcript)

Article excerpt

The battle over new appraisal standards began to heat up on Capitol Hill last week. In a "Dear Colleague" letter, four lawmakers said an amendment they plan to offer will do litle more than reaffirm current law. Bank groups have responded with nationwide faxes blistering and amendment and urging bankers to lobby against it.

Here are excerpts from the letter signed by Rep. Charles E. Schumer, D-N.Y.; Rep. Henry B. Gonzalez, D-Tex.; Rep. Peter Deutsch, D-Fla.; and Rep. Floyd H. Flake, D-N.Y., followed by an excerpt from a "fax alert" sent out by the Independent Bakers Association of America.

Despite what you may have heard, this amendment will not change the statutory appraisal standards adopted in 1989.

Rather, we simply intend to reaffirm the most basic principle of that landmark bill: the evaluation of collateral take by financial institutions for loans should be performed by state-licensed and -certified -- i.e., qualified -- professionals utilizing proven and professional appraisal principles.

Standards for Short-Form Appraisals

The national standards-setting board for professional appraisers has recently adopted new standards for short-form appraisals, which will take less time and cost the consumer less money. These short-form appraisals will provide consumer protection and proper safeguards for the lending institutions.

All we intend to say in our amendment is that short-form appraisals may be used by lenders whenever federal regulators permit, and all appraislas must be done by state-licensed and -certified appraisers, inclduing bank employees who have obtained the requisite state license or certification. …

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