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In Part I (see below) I wrote about the Consumer Protection Act of 2009 and its implications to the appraisal industry in its current form.  This bill has not passed the Senate, but it supported by President Obama.  

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The Consumer Protection Act is a bill which passed the U.S. House on December 11, 2009 and has been introduced to the Senate for consideration. This 1705-page bill is supported by President Obama and is a response to the recent financial crises.  It seeks to address a myriad of concerns – from predatory lending to unregulated derivatives. This bill is expected to be signed into law in some form. [more]


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The housing bust has exerted tremendous stress upon the lending community.  According to the FDIC, 140 banks closed in 2009 and in 2010, 26 were closed as of March 7.   FDIC chairwoman Sheila Bair has stated that she expects the 2010 number to exceed that of 2009.

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Wrapping up the AARO conference today. One of the speakers in a session about AMCs pointed out concerns appraisers should have with some AMC contracts.

Indemnification Clauses!

Many AMC contracts contain language that shifts all the AMC's liability for the work they do onto the shoulders of the appraiser. For example, one contract requires the appraiser to pay the fine an AMC may be assessed for the work done on a report. Without this type of language the appraiser remains responsible for her/his work, so why should they have to pay for the AMC as well?
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A report released this week by Realty Trac, an online foreclosure marketplace, indicates a jump of 21% in foreclosures last year. In an interview with the Wall Street Journal, Vice President Rick Sharga spoke of the coming foreclosures in 2010.

Sharga noted that the current government intervention through loan modifications has not greatly helped those in need, and those who entered the program had a high rate of default. [more]


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Washington, DC – Chairman Frank, on behalf of the House conferees, released the House offer on the titles listed below.  The issues will be subject to debate when the House-Senate Conference Committee convenes in room SD-106, Dirksen Senate Office Building, at 12:00 p.m. June 22. 2010.

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