Washington, DC – U.S. Representative Judy Biggert (R-IL-13) today spoke at a press conference with Senators Bob Casey (D-PA) and Mel Martinez (R-FL) and Congressman Paul Kanjorski (D-PA) to announce the introduction of the Fair Value and Independent Appraisal Act. She delivered the following remarks:
“Thank you all for being here today.
“This is one of several good, bi-partisan proposals that could be enacted NOW to help homeowners and address one of the major factors undermining the housing market.
“It’s a non-controversial bill that won’t discourage investment, doesn’t limit the availability of credit, and doesn’t waste taxpayer money to bail out those who engaged in inappropriate or recklessly irresponsible behavior.
“Paying for the mistakes of reckless actors is the last thing that cash-strapped Americans want to do – especially as they prepare to send the federal government more of their hard-earned money this tax day.
“There’s no silver bullet to our housing slump. It’s being driven by a number of forces. But mortgage fraud is one of the key factors undermining our housing market, especially in major cities. Last year alone, mortgage fraud increased by 42 percent. Since 2000, it has grown an astounding 1,200 percent. We must end this trend to prevent more Americans from being victimized, and to put our economy back on track.
“That’s why I am pleased to be the lead Republican cosponsor of Rep. Kanjorski’s bill, which closely mirrors the bill being introduced today by Senators Casey and Martinez.
“As a former real estate attorney, I know that transparency in the homebuying process is critical for both homeowners and investors. And the Fair Value and Independent Appraisal Act is up to the task. It will improve the integrity, independence, and transparency of the appraisal process.
“In Chicago, we have had many problems with mortgage flipping and inflated appraisals. Our papers are filled with stories about low-income, elderly, and even mentally-disabled homeowners who have lost their houses to these schemes. Gang-bangers discovered it was easier to steal mortgage money than to sell drugs. And fraudulent appraisals are a key component of almost all of these scams.
“This legislation will help weed out bad actors so that homebuyers don’t get the wool pulled over their eyes.
“I strongly urge House and Senate leaders to act quickly on this common-sense, bi-partisan reform that can start helping homeowners – and the economy – NOW. It’s a far better approach to the problem than engaging in a bidding war over how much taxpayer funding should be spent on bail outs.
“I’d also like to thank Senators Casey (D-PA) and Martinez (R-FL) and Congressman Paul Kanjorski (D-PA) for all their hard work on this issue. And I look forward to working with you all to get this bill to the President’s desk.”
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