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The American Guild of Appraisers, Chapter 44, of the Office and Professional Employees International Union of the AFL-CIO (AGA, OPEIU/AFL-CIO) wishes to add its name to the attached letter on behalf of our professional appraiser members; and our thirteen million consumer members and their families, with the additional concerns:
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American Guild of Real Estate Appraisers Office of the National President
October, 2, 2015 By electronic delivery to: The Honorable Daniel K. Tarullo, Chairman, FFIEC and Member Board of Governors of the Federal Reserve System 20th Street and C Street NW Washington, DC 20551 [email protected] The Honorable Richard Cordray, Director Bureau of Consumer Financial Protection 1275 First Street, NE Washington, DC 20002 [email protected] The Honorable Debbie Matz, Chairman National Credit Union Administration 1775 Duke Street Alexandria, VA 22314 [email protected] The Honorable Martin J. Gruenberg, Vice Chairman, FFIEC and Chairman Federal Deposit Insurance Corporation 20th Street and C Street NW Washington, DC 20551 [email protected] The Honorable Thomas J. Curry, Comptroller Office of the Comptroller of the Currency 400 7th Street, SW, Mail Stop 3E-218 Washington, DC 20219 [email protected] The Honorable Lauren Kingry, Superintendent Arizona Department of Financial Institutions 2910 N. 44th Street, Suite 310 Phoenix, AZ 85018 [email protected]
Re: FFIEC Requested Action on TRID Lady and Gentlemen:
The American Guild of Appraisers, Chapter 44, of the Office and Professional Employees International Union of the
AFL‐CIO (AGA, OPEIU/AFL‐CIO) wishes to add its name to the attached letter on behalf of our professional
appraiser members; and our thirteen million consumer members and their families, with the additional concerns:
As written, TRID necessarily embeds an appraisal fee cap determined by third party service providers other than
appraisers, within the initial consumer disclosure provided to prospective borrowers.
The perception of these providers as to what constitutes “customary and reasonable fees” as required under Dodd‐
Frank is at odds with what appraisers consider to be customary or reasonable. Current procedures for determining
C&R fees are also ambiguous and subject to gross abuse.
TRID also incorporates non‐appraiser third fees under the term “Appraiser Fees. “ These are more properly
described as lender and or third party appraisal management related administrative fees. Incorporating them as a
single line disclosure item misleads consumers as to the true cost of real estate appraisals, and subjects them to
added risk of inadequate service.
We urge that CFPB be directed to work with all national appraiser guilds, peer organizations and state coalitions in
order to resolve these issues at the same time they are dealing with the other concerns cited in the original letter.
Respectfully Submitted;
Peter Vidi, President
AGA, OPEIU/AFL‐CIO
September 8, 2015 By electronic delivery to: The Honorable Daniel K. Tarullo, Chairman, FFIEC and Member Board of Governors of the Federal Reserve System 20th Street and C Street NW Washington, DC 20551 [email protected] The Honorable Richard Cordray, Director Bureau of Consumer Financial Protection 1275 First Street, NE Washington, DC 20002 [email protected] The Honorable Debbie Matz, Chairman National Credit Union Administration 1775 Duke Street Alexandria, VA 22314 [email protected]
The Honorable Martin J. Gruenberg, Vice Chairman, FFIEC and Chairman Federal Deposit Insurance Corporation 20th Street and C Street NW Washington, DC 20551 [email protected] The Honorable Thomas J. Curry, Comptroller Office of the Comptroller of the Currency 400 7th Street, SW, Mail Stop 3E-218 Washington, DC 20219 [email protected] The Honorable Lauren Kingry, Superintendent Arizona Department of Financial Institutions 2910 N. 44th Street, Suite 310 Phoenix, AZ 85018 [email protected]
Re: FFIEC Requested Action on TRID Lady and Gentlemen: The undersigned trade associations write with great urgency regarding implementation and examination issues stemming from the TILA/RESPA Integrated Disclosure (TRID) rule effective on October 3, 2015. In official issuances and communications to Congress, the Consumer Financial Protection Bureau (CFPB) recognized that the TRID rule poses “significant implementation challenges” for industry, and has indicated that regulators will be sensitive to the good-faith efforts of lenders to comply with the TRID requirements in a timely manner. However, we believe that without formal guidance, fear of enforcement actions for errors committed in good faith will severely constrain consumer access to needed mortgage credit. We urge the Federal Financial Institutions Examination Council (FFIEC) to provide needed certainty by articulating precise policies for examining and supervising financial institutions for the initial months after the TRID implementation date. The TRID rule is unique in scope and complexity, and it affects every stage of the mortgage origination process, beginning before the consumer applies for a loan and continuing beyond the settlement process. Transitioning to the new TRID regulatory framework is a sea change for every participant in the mortgage lending
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process: borrowers, lenders, appraisers, agents, brokers, builders, investors and other service providers. Industry stakeholders have undertaken extensive efforts to comply with these rules, but, even now, they are discovering significant compliance issues. These discoveries raise liability concerns that cannot be realistically resolved before the October 3 deadline, as many will require formal authoritative guidance. FFIEC should formally implement a clearly articulated transition period that addresses how regulators will oversee and examine regulated institutions for TRID compliance during this transition period. We ask that FFIEC recognize the severe penalties that can arise under these new rules, and establish predictable regulatory restraint by enunciating clear guidelines that, if met in good faith, would afford institutions with enforcement and examination relief for a reasonable time period following October 3. We look forward to working with you on this important effort. In order to ensure the success of the new disclosures, it is imperative that supervision is applied consistently with the objective of achieving compliance without disrupting consumer access to credit. American Bankers Association American Land Title Association American Escrow Association The Appraisal Firm Coalition Appraisal Institute Collateral Risk Network Consumer Bankers Association Community Home Lenders Association Consumer Mortgage Coalition Community Mortgage Lenders Credit Union National Association Housing Policy Council Independent Community Bankers of America Mortgage Bankers Association National Association of Home Builders National Association of Mortgage Brokers National Association of REALTORS Real Estate Services Providers Council, Inc. (RESPRO)
