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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fair FHA Appraisals 
Act of 2007’’. 
SEC. 2. CIVIL MONEY PENALTIES FOR IMPROPERLY INFLU-
ENCING APPRAISALS. 
Paragraph (2) of section 536(b) of the National 
Housing Act (12 U.S.C. 1735f–14(b)(2)) is amended— 
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(1) in subparagraph (B), by striking ‘‘or’’ at 
the end; 
(2) in subparagraph (C), by striking the period 
at the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(D) in the case of an insured mortgage under 
title II for a 1- to 4-family residence, directly or in-
directly compensating, instructing, inducing, coerc-
ing, or intimidating any person who conducts an ap-
praisal of the property in connection with such mort-
gage, or attempting, directly or indirectly, to com-
pensate, instruct, induce, coerce, or intimidate such 
a person, for the purpose of causing the appraised 
value assigned to the property under the appraisal 
to be based on any other factor other than the inde-
pendent judgment of such person exercised in ac-
cordance with applicable professional standards.’’. 
SEC. 3. BLIND DRAWS FOR APPRAISERS. 
Subsection (e) of section 202 of the National Housing 
Act (12 U.S.C. 1708(e)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by striking 
‘‘and’’ at the end; 
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(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) that in the case of each mortgage for a 1- 
to 4-family residence to be insured under title II, the 
appraisal shall be conducted by appraiser who is se-
lected by the Secretary on a rotating basis, mort-
gage-by-mortgage, from a list of appraisers, which 
shall be developed by the Secretary, who meet the 
qualifications and requirements of this subsection.’’; 
and 
(2) in paragraph (3)— 
(A) in subparagraph (A), by striking ‘‘may 
contract with an appraiser chosen at the discre-
tion of the mortgagee’’ and all that follows 
through the end of the last sentence and insert-
ing the following: ‘‘shall utilize, for the perform-
ance of appraisals in connection with such 
mortgages, only appraisers selected in the man-
ner provided under paragraph (1)(C).’’; and 
(B) in subparagraph (C), by striking ‘‘In 
conducting an appraisal’’ and inserting the fol-
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lowing: ‘‘In cases of conducting a limited num-
ber of appraisals within a limited rural area’’. 
Æ 
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