179 
gage collateral valuations produced by broker price opin-
ions, automated valuation models, licensed appraisals, and 
certified appraisals, among others, and the quality of ap-
praisals provided through different distribution channels, 
including appraisal management companies, independent 
appraisal operations within a mortgage originator, and fee- 
for-service appraisals. The study shall also include an anal-
ysis and statistical breakdown of enforcement actions taken 
during the last 10 years against different types of apprais-
ers, including certified, licensed, supervisory, and trainee 
appraisers. Furthermore, the study shall examine the bene-
fits and costs, as well as the advantages and disadvantages, 
of establishing a national repository to collect data related 
to real estate property collateral valuations performed in 
the United States. 
(b) REPORT.—Before the end of the 18-month period 
beginning on the date of the enactment of this Act, the 
Comptroller General shall submit a report on the study 
under subsection (a) to the Committee on Financial Serv-
ices of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate, to-
gether with such recommendations for administrative or 
legislative action, at the Federal or State level, as the Comp-
troller General may determine to be appropriate. 
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180 
SEC. 605. EQUAL CREDIT OPPORTUNITY ACT AMENDMENT. 
Subsection (e) of section 701 of the Equal Credit Op-
portunity Act ( U.S.C. 1691) is amended to read as follows: 
‘‘(e) COPIES FURNISHED TO APPLICANTS.— 
‘‘(1) IN GENERAL.—Each creditor shall furnish 
to an applicant a copy of any and all written ap-
praisals and valuations developed in connection with 
the applicant’s application for a loan that is secured 
or would have been secured by a first lien on a dwell-
ing promptly upon completion, but in no case later 
than 3 days prior to the closing of the loan, whether 
the creditor grants or denies the applicant’s request 
for credit or the application is incomplete or with-
drawn. 
‘‘(2) WAIVER.—The applicant may waive the 3 
day requirement provided for in paragraph (1), ex-
cept where otherwise required in law. 
‘‘(3) REIMBURSEMENT.—The applicant may be 
required to pay a reasonable fee to reimburse the 
creditor for the cost of the appraisal, except where 
otherwise required in law. 
‘‘(4) FREE
COPY.—Notwithstanding paragraph 
(3), the creditor shall provide a copy of each written 
appraisal or valuation at no additional cost to the 
applicant. 
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181 
‘‘(5) NOTIFICATION TO APPLICANTS.—At the time 
of application, the creditor shall notify an applicant 
in writing of the right to receive a copy of each writ-
ten appraisal and valuation under this subsection. 
‘‘(6) REGULATIONS.—The Board shall prescribe 
regulations to implement this subsection within 1 
year of the date of the enactment of this subsection. 
‘‘(7) VALUATION DEFINED.—For purposes of this 
subsection, the term ‘valuation’ shall include any esti-
mate of the value of a dwelling developed in connec-
tion with a creditor’s decision to provide credit, in-
cluding those values developed pursuant to a policy of 
a government sponsored enterprise or by an auto-
mated valuation model, a broker price opinion, or 
other methodology or mechanism.’’. 
SEC. 606. REAL ESTATE SETTLEMENT PROCEDURES ACT OF 
1974 AMENDMENT RELATING TO CERTAIN AP-
PRAISAL FEES. 
Section 4 of the Real Estate Settlement Procedures Act 
of 1974 is amended by adding at the end the following new 
subsection: 
‘‘(c) The standard form described in subsection (a) 
shall include, in the case of an appraisal coordinated by 
an appraisal management company (as such term is de-
fined in section 1121(11) of the Financial Institutions Re-
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182 
form, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3350(11))), a clear disclosure of— 
‘‘(1) the fee paid directly to the appraiser by 
such company; and 
‘‘(2) the administration fee charged by such com-
pany.’’. 
TITLE VII—SENSE OF CONGRESS 
REGARDING 
THE 
IMPOR-
TANCE 
OF 
GOVERNMENT 
SPONSORED 
ENTERPRISES 
REFORM 
SEC. 701. SENSE OF CONGRESS REGARDING THE IMPOR-
TANCE OF GOVERNMENT-SPONSORED ENTER-
PRISES REFORM TO ENHANCE THE PROTEC-
TION, LIMITATION, AND REGULATION OF THE 
TERMS OF RESIDENTIAL MORTGAGE CREDIT. 
(a) FINDINGS.—The Congress finds as follows: 
(1) The Government-sponsored enterprises, Fed-
eral National Mortgage Association (Fannie Mae) 
and the Federal Home Loan Mortgage Corporation 
(Freddie Mac), were chartered by Congress to ensure 
a reliable and affordable supply of mortgage funding, 
but enjoy a dual legal status as privately owned cor-
porations with Government mandated affordable 
housing goals. 
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183 
(2) In 1996, the Department of Housing and 
Urban Development required that 42 percent of 
Fannie Mae’s and Freddie Mac’s mortgage financing 
should go to borrowers with income levels below the 
median for a given area. 
(3) In 2004, the Department of Housing and 
Urban Development revised those goals, increasing 
them to 56 percent of their overall mortgage purchases 
by 2008, and additionally mandated that 12 percent 
of all mortgage purchases by Fannie Mae and Freddie 
Mac be ‘‘special affordable’’ loans made to borrowers 
with incomes less than 60 percent of an area’s me-
dian income, a target that ultimately increased to 28 
percent for 2008. 
(4) To help fulfill those mandated affordable 
housing goals, in 1995 the Department of Housing 
and Urban Development authorized Fannie Mae and 
Freddie Mac to purchase subprime securities that in-
cluded loans made to low-income borrowers. 
(5) 
After 
this 
authorization 
to 
purchase 
subprime securities, subprime and near-prime loans 
increased from 9 percent of securitized mortgages in 
2001 to 40 percent in 2006, while the market share 
of conventional mortgages dropped from 78.8 percent 
in 2003 to 50.1 percent by 2007 with a corresponding 
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