Appraisal Groups Concerned Over Mortgage Fraud and Responsible Lending Act

As mortgage fraud remains a serious problem for communities across the country, the Appraisal Institute, the American Society of Appraisers (ASA) and the American Society of Farm Managers and Rural Appraisers (ASFMRA) continue to voice their support for congressional action to abate mortgage fraud, particularly The Responsible Lending Act (H.R. 1295).

In a joint letter to Michael G. Oxley (R-OH) and Barney Frank (D-MA), chairman and ranking member, respectively, of the House Financial Services Committee, the appraisal organizations urged the Congressmen to address the issue of mortgage fraud and enact reforms that are provided for in H.R. 1295.

“This legislation provides flexible solutions to real world problems in the mortgage market,” said Richard D. Powers, MAI, SRA, President of the Appraisal Institute. “Mortgage fraud is reaching epidemic proportions, but there is still time for Congress to address this effectively.”

H.R. 1295, pending before the Financial Services Committee, seeks to establish new standards to accomplish the following aims:

• Curb predatory lending practices
• Register mortgage brokers
• Abate appraiser intimidation
• Improve accountability and enforcement practices of federal and state appraiser regulators.

“Most mortgage brokers remain unlicensed, despite there being industry support to do so,” said Powers. “Federal and state appraiser regulators also face funding and enforcement challenges - both of these issues are addressed proactively by H.R. 1295.”

Those seeking a Florida home loan need to be aware of such scams. Conduct proper research into the Florida mortgage broker with whom you’re aligned.