The Network Speaks Out
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VaCAP and 27 other State Appraisal Organizations reached out to the House Finance Services Committee concerning the upcoming Subcommittee meeting entitled “What’s Your Home Worth? A Review of the Appraisal Industry” on June 20th. The Network stresses the most qualified to testify on the appraisal profession is an appraiser. The letter also outlines some of the flaws, inconsistencies and realities of the effects of appraisal management companies and how the GSE’s current “appraisal modernization plan” is actually harmful to consumers, investors, lenders, the housing market and the economy as a whole. Fannie Mae’s own publications are being used as documentation. Hopefully the committee members ask the right questions on consumer protection.
The letter the Network sent can be found below.
Those testifying at this hearing as we understand are:
VaCAP has no knowledge of the questions and testimony that will be presented at this hearing, however, we will have representatives attending in person. The hearing is open to the public and can be streamed if travelling to DC is not your top priority. To set up streaming, go to the House Financial Services Committee website and click on the meeting.
Congress enacted the Federal Financial Institution Reform, Recovery, and Enforcement Act of 1989 in the wake of the banking disaster that was due in part to a lack of appraisal standards. It is difficult now to understand this present drive to replace the analyses and informed opinions of a highly regulated professional who has years of experience, hundreds of hours of specialized education, and extensive local market knowledge, as well as errors and omissions insurance, with untrained and unregulated “inspectors” (essentially photographers) and opaque computer programs. This push to eliminate the single independent and unbiased valuation puts the unsuspecting public at great risk. Homebuying decisions are highly personal ones; analyzing those decisions requires nuances only a highly qualified human can recognize. The integrity of the housing industry depends upon maintaining public trust.