20th July 2011

Consumers and Appraisers – Grab your ankles : Filibuster in progress

posted in Dodd-Frank C&R Topics |

The senate is in charge and are holding up any nominee to head the Consumer Financial Protection Bureau.

Mike Konzal states

What are the strengths of the way the CFPB is structured in the Dodd-Frank Act? There are many, especially the consolidation of consumer regulation and focus on research. But three structural strengths stand out: it has a single director, there’s been careful attention paid to its budgeting process and it is just like other regulators in terms of accountability but with focus on consumer protection as its primary goal. These three parts of the CFPB were carefully planned, designed and fought for.

….[Those three] major strengths — a director, funding and accountability with a focus on consumer protection — are exactly what the Republicans want to dismantle. No doubt they are trying to stall and annoy the implementation of Dodd-Frank and prevent the CFPB from doing all its work — of course they are — but if there were three critical points where they could significantly weaken what the CFPB can do, these would be those three.

They are essentially violating their oath of office by promising to keep anyone from running the agency unless some changes are made.

So what does this mean to appraisers?

Nothing new and nothing being done about the ‘Customary and Reasonable Fee” provision enacted by Dodd-Frank.

As usual we are in another waiting game with our hands tied.

Troutman Sanders of the CFPB team stated

The appraiser fee and independence provisions contained in Dodd-Frank were designed to address concerns that lenders were using less expensive appraisal management companies (“AMCs”) hired or owned by lenders at the expense of independent, high-quality appraisals. As a result, AMCs may be a regulatory target of the CFPB after the Bureau’s July 21, 2011 transfer date.

The Bureau will assume rulemaking and enforcement authority for Dodd Frank’s appraisal fee provisions after July 21st. Notably, the CFPB will be enforcing Dodd-Frank’s penalties for lenders violating appraiser independence standards which are currently $10,000 a day for the first violation and $20,000 a day for each additional violation.

Again, I urge you to get involved. Stay up to date with the news and join your local appraiser coalitions! Contact your state licensing agency, congress and other regulators. Only together can we win this battle against the appraisal management companies that are destroying our industry.

Bryan Knowlton
California Real Estate Appraiser
http://www.appraiserincome.com

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