I 

110TH CONGRESS 

1ST SESSION H. R. 1723 

To amend the National Housing Act to ensure fair appraisals in connection 

with mortgages insured under the FHA single family mortgage insurance 

program. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 27, 2007 

Mr. WILSON of Ohio (for himself and Mr. CLAY) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL 

To amend the National Housing Act to ensure fair appraisals 

in connection with mortgages insured under the FHA 

single family mortgage insurance program. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fair FHA Appraisals 

5 Act of 2007’’. 

6 SEC. 2. CIVIL MONEY PENALTIES FOR IMPROPERLY INFLU7 ENCING APPRAISALS. 

8 Paragraph (2) of section 536(b) of the National 

9 Housing Act (12 U.S.C. 1735f–14(b)(2)) is amended— 


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1 (1) in subparagraph (B), by striking ‘‘or’’ at 

2 the end; 

3 (2) in subparagraph (C), by striking the period 

4 at the end and inserting ‘‘; or’’; and 

5 (3) by adding at the end the following new sub6 paragraph: 

7 ‘‘(D) in the case of an insured mortgage under 

8 title II for a 1- to 4-family residence, directly or in9 directly compensating, instructing, inducing, coerc10 ing, or intimidating any person who conducts an ap11 praisal of the property in connection with such mort12 gage, or attempting, directly or indirectly, to com13 pensate, instruct, induce, coerce, or intimidate such 

14 a person, for the purpose of causing the appraised 

15 value assigned to the property under the appraisal 

16 to be based on any other factor other than the inde17 pendent judgment of such person exercised in ac18 cordance with applicable professional standards.’’. 

19 SEC. 3. BLIND DRAWS FOR APPRAISERS. 

20 Subsection (e) of section 202 of the National Housing 

21 Act (12 U.S.C. 1708(e)) is amended— 

22 (1) in paragraph (1)— 

23 (A) in subparagraph (A), by striking 

24 ‘‘and’’ at the end; 


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1 (B) in subparagraph (B), by striking the 

2 period at the end and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following new 

4 subparagraph: 

5 ‘‘(C) that in the case of each mortgage for a 1- 

6 to 4-family residence to be insured under title II, the 

7 appraisal shall be conducted by appraiser who is se8 lected by the Secretary on a rotating basis, mort9 gage-by-mortgage, from a list of appraisers, which 

10 shall be developed by the Secretary, who meet the 

11 qualifications and requirements of this subsection.’’; 

12 and 

13 (2) in paragraph (3)— 

14 (A) in subparagraph (A), by striking ‘‘may 

15 contract with an appraiser chosen at the discre16 tion of the mortgagee’’ and all that follows 

17 through the end of the last sentence and insert18 ing the following: ‘‘shall utilize, for the perform19 ance of appraisals in connection with such 

20 mortgages, only appraisers selected in the man21 ner provided under paragraph (1)(C).’’; and 

22 (B) in subparagraph (C), by striking ‘‘In 

23 conducting an appraisal’’ and inserting the folVerDate Aug 31 2005 22:46 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1723.IH H1723

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1 lowing: ‘‘In cases of conducting a limited num2 ber of appraisals within a limited rural area’’. 

Æ 


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