House Passes Dodd-Frank Reform Bill | Appraisal Revisions Included in Legislation
On May 22, the U.S. House of Representatives passed legislation that amends banking regulations detailed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Following the 2007 financial crisis, the Dodd-Frank Act has regulated the financial industry to prevent another recession by creating more transparency with consumers.
The Economic Growth, Regulatory Relief and Consumer Protection Act makes changes regarding consumer mortgages, credit reporting and loans, and its recent passing has many divided.
“It’s very hard to watch the Senate vote to ignore the painful lessons from the causes of the Great Recession 10 years ago,” said Mike Litt, U.S. PIRG Consumer Campaign Director. “The warning signs are plain to see.”
However, on the other side, many are praising the Senate and House for passing the bill.
Senate Banking Chairman Mike Crapo said, “This step toward right-sizing regulation will allow local banks and credit unions to focus more on lending, in turn propelling economic growth.”
Even builders are sharing their support for the bill. Randy Noel, National Association of Home Builders Chairman said, “[This bill] will bring much-needed regulatory relief to regional and community banks and ease tight credit constraints that have hurt home buyers and home builders alike.
Key provisions within the bill include:
- A new category of qualified mortgage (QM) loan for Insured institutions and credit unions with less than $10 billion in consolidated assets.
- If a fee appraiser voluntarily donates appraisal services to an organization eligible to receive tax-deductible charitable contributions, such voluntary donation shall be considered customary and reasonable.
- Appraisal exemptions for loans in rural areas.
Read all of the provisions here.