HR 3126, the “Consumer Financial Protection Act of 2009,” passed the House Financial Services Committee on October 22 with an amendment that would ultimately sunset the Home Valuation Code of Conduct (HVCC).
The amendment sponsor, Representative Gary Miller (D-CA), and Representative Paul Kanjorski (D-PA), agreed to work on the amendment language before floor consideration to include the appraisal language from HR 1728, the “Mortgage Reform and Anti-Predatory Lending Act.” The amendment requires the new Consumer Financial Protection Agency to promulgate an appraisal independence rule within 60 days of enactment of HR 3126. The HVCC would sunset upon the effective date of the appraisal independence rule.
The National Association of REALTORS® has been calling for a moratorium to address the unintended consequences of HVCC and its implementation. In June, NAR reiterated calls for a moratorium on HVCC in a letter to New York Attorney General Cuomo and Federal Housing Finance Agency (FHFA) Director James Lockhart. NAR President Charles McMillan followed up the letter in meetings with the New York Attorney General’s office, FHFA Director Lockhart, and Fannie Mae. NAR also supports HR 3044, which would impose an 18-month moratorium on the HVCC.
HR 3126 is expected to receive a floor vote in the House in mid-November. Enactment is far from certain, however, as there is no companion bill in the Senate yet.
