SEC-322 -- APPRAISAL SERVICES.


 Section 202(e) of the National Housing Act (12 U.S.C. 1708(e)) is
amended by adding at the end the following new paragraphs:

 "(3) Direct Endorsement Program.-

 "(A) Any mortgagee that is authorized by the Secretary to process
mortgages as a direct endorsement mortgagee (pursuant to the
single-family home mortgage direct endorsement program established by
the Secretary) may contract with an appraiser chosen at the discretion
of the mortgagee for the performance of appraisals in connection with
such mortgages. Such appraisers may include appraisal companies
organized as corporations, partnerships, or sole proprietorships.

 "(B) Any appraisal conducted pursuant to subparagraph (A) shall be
conducted by an individual who complies with the qualifications or
standards for appraisers established by the Secretary pursuant to
section 202(e) of the National Housing Act.

 "(C) In conducting an appraisal, such individual may utilize the
assistance of others, who shall be under the direct supervision of the
individual responsible for the appraisal. The individual responsible for
the appraisal shall personally approve and sign any appraisal report.

 "(4) Fee Panel Appraisers.-

 "(A) Any individual who is an employee of an appraisal company
(including any company organized as a corporation, partnership, or sole
proprietorship) and who meets the qualifications or standards for
appraisers and inclusion on appraiser fee panels established by the
Secretary, shall be eligible for assignment to conduct appraisals for
mortgages under this title in the same manner and on the same basis as
other approved appraisers.

 "(B) With respect to any employee of an appraisal company described
in subparagraph (A) who is offered an appraisal assignment in connection
with a mortgage under this title, the person utilizing the appraiser may
contract directly with the appraisal company employing the appraiser for
the furnishing of the appraisal services.".