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MARTINEZ:  HOUSING RELIEF BILL HEADED TO WHITE HOUSE

Measure includes Martinez provisions to create loan originator licensing and FHA appraisal standards

The legislation includes a measure authored by Senators Martinez and Dianne Feinstein (D-CA) to create national licensing and oversight standards for residential mortgage loan originators. The Secure and Fair Enforcement in Mortgage Licensing (SAFE) act is intended to eliminate bad actors from the mortgage business and require loan originators to meet minimum national standards to ensure they are professional, competent and trustworthy.

Senator Martinez also authored a provision with Senator Bob Casey (D-PA) to include stricter appraisal standards for Federal Housing Administration (FHA)-backed loans as part of the Hope for Homeowners measure. It requires that appraisers of property insured by FHA be certified by the state where the property is located, or by a nationally recognized professional appraisal organization, and have demonstrated verifiable education in FHA appraisal requirements. The Hope for Homeowners is a voluntary program that will allow distressed homeowners facing foreclosure to refinance into a more affordable, secure FHA-backed mortgage.

The legislation will now be sent to the White House where the President is expected to sign the measure into law.

Select link below to read the full article.

http://martinez.senate.gov/public/index.cfm?FuseAction=NewsReleases.View&ContentRecord_id=e058a8fe-36e5-4cd2-88f0-1907c76393b1&Region_id=&Issue_id=&CFID=948617&CFTOKEN=44263180

"I paid for the appraisal, so it's mine to do as I please, correct?"

No. The rights to the appraisal are retained by the "client" or entity that actually engaged the appraiser to complete the assignment,  irregardless of who pays for the appraisal. Information about the appraisal, or actual hard or soft copies of it can only be transmitted to "the client." This is based on federal legislation in the Equal Credit Opportunity Act.  To obtain a copy, the borrower must request a copy from the lender / client who ordered it.

"So, what if I decide to use a different lender, you can just switch the name, right?"

No. A different lender, by law requires a completely new appraisal assignment.

Further explanation of both of these questions is available by clicking on the USPAP link below.

uspap.pdf