Jeff Dickstein, Pro Teck’s Chief Compliance Officer, is responsible for Pro Teck’s adherence with all state, federal and industry regulations. With Notes from the Regulatory Road, Jeff provides timely commentary on what is happening in the industry.
The end of January and early February were jam packed with regulatory news and updates — especially as a new administration began to make its presence felt in The White House. With sweeping changes to the nation’s regulatory framework anticipated to come down the pike, I expect the months ahead to be filled with a variety of regulatory updates and news.
The following are updates of regulatory meetings and discussion that I attended on Capitol Hill post-inauguration:
- Notice on Regulatory Freeze — January 20th
The White House Chief of Staff signed a memorandum titled “Regulatory Freeze Pending Review” on Jan. 20th. This memorandum means the following will be impacted:
- Notice of Proposed Rulemaking to Implement Collection and Transmission of Annual AMC Registry Fees previously published for comment.
- Proposed Revised Policy Statements presently published for comment.
Further updates on this regulatory freeze can be found here.
- Meetings on the Hill — February 10th
The House Financial Services Committee on Nov. 16, 2016 held a hearing on “Modernizing Appraisals: A Regulatory Review and the Future of the Industry.” Since then a new administration and Congress have convened, adding a number of new Senate and House members on committees focused on housing.
- Guillermo Ortiz, Legislative Correspondent for Senate Subcommittee on Housing (Min. Leader Senator Mendoza of New Jersey)
- Will Gardner, Legal Counsel for Senate Subcommittee on Housing (Chair, Senator Tim Scott of South Carolina)
- Matt Jones, Staff at U.S. Senate Banking Committee
- Travis Hill, Senior Council for Committee on Banking, Housing and Urban Affairs
- Andy Taylor, Deputy Chief of Staff & Chairman’s Designee, (Congressman Sean Duffy of Wisconsin, Member of the House Financial Services Committee)
- Esther Kahng, counsel at U.S. House of Representatives
- Theresa Dumais, Director of Housing Policy (House Financial Services Committee, Minority)
All of the meetings mentioned above were held to introduce REVAA and AMC’s to existing and new members of both legislative bodies overseeing housing policy. These discussions better enable us to have a seat at the table and make sure we are part of the discussion when Appraisal Reform is going to be reviewed.
We were told by representatives from both the Senate and House side that there are a number of legislative issues that were more of a priority — such as the Affordable Care Act, Flood Insurance and Choice Act 2.0, which would remove or replace items in Dodd/Frank Financial Reform.
An early draft of Choice 2.0 indicates there are no appraisal related issues on the table. We were told that if Appraisal Reform was to be looked into, it would be closer to the end of this year.
Illinois AMC Regulation Act
In Illinois there is proposed legislation — Senate Bill 1817 — that would repeal the existing AMC regulation/registration act. This bill has a lot of steam and looks like it will pass.
If it does pass this means that an AMC cannot perform valuation services in Illinois for Federally Regulated Transactions (FRT) per the Dodd/Frank Act after August 2018.
The State of Illinois is attempting to get rid of this regulation because some feel that because the AMC statue only covers FRTs (Federally Regulated Transactions), and FRTs only account for 8-10% of all loans being done in Illinois, that the cost to regulate AMCs to cover such a small percentage of loans is not a value add.
Down the Regulatory Road
Upcoming meetings include:
- IAC meeting on February 23rd.
- February 24-28 I will be speaking in Kentucky at the Kentucky Appraisal Board Meetings. I will also be speaking at the March and April meetings. Each meeting is in a different location of the state.
As always, I will keep you apprised of all developments in the months to come.