Another ‘Pile on Appraisers’ Diatribe?
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The National Association of Realtors held their “Virtual Appraisal Summit” on Aug. 5, 2020, focusing on ‘fair housing and the appraisal industry.’
We were fortunate to have Craig Morley, President of the National Association of Appraisers, represent us appraisers, but his presentation was only scheduled for 15 minutes. I’m hoping when he sees this message, he will provide more info about his presentation and the outcome of the “Summit.”
Craig’s presentation had the title: Abilities and Limitations of Appraising Real Estate Under Today’s Rules
Craig Morley, Managing Partner, Accurity Valuation/Morley & McConkie, LLC
I’m just hoping that this Summit was not another ‘pile on appraisers’ diatribe as was done at the Congressional hearing in 2019, when appraisers were blamed for holding back the value of black-owned properties.
In the article below, there is a link to the recording of this meeting, roughly 60 minutes. I have not listened to it.
This was what was reported in RISMedia on Aug. 6, 2020:
NAR’s Virtual Appraisal Summit Examines Intersection of Fair Housing, Appraisal Industry By RISMedia Staff
At its annual Appraisal Summit, held Wednesday, Aug. 5, the National Association of REALTORS® (NAR) continued to examine ways in which its 1.4 million members can help identify and eliminate racial discrimination from U.S. real estate markets. This year’s summit, Fair Housing Issues in Real Estate Appraisal, was precipitated by recent research suggesting home valuation processes could be influencing the wealth gap between White and Black households in America.
“It is well documented that homeownership provides long-term wealth while helping to ensure the financial stability of future generations,” NAR President Vince Malta said in his opening remarks Wednesday afternoon. “However, it has become more apparent over recent months that not everyone in this country encounters the same economic and societal opportunities. I believe REALTORS® have an obligation to actively promote equality, inclusion and acceptance throughout America’s real estate industry, and it is important to me that NAR act as a leader on the issues of housing equality and affordability.”
NAR and its guests examined recent claims that home valuation processes might play a factor in exacerbating racial inequality in America. Ultimately, panelists agreed that more fair and equitable valuation systems would help increase Black homeownership rates and close the aforementioned wealth gap. A recording of the event can be found at this link.
“Today’s event illustrates an important way that structural barriers can persist in homeownership outcomes,” Michael Neal, senior research associate at the Urban Institute’s Housing Finance Policy Center, said Wednesday. “These racial disparities can make Black households more vulnerable in the midst of an economic recession.”
Also joining Neal and Malta were Andre Perry, fellow at the Brookings Institute; Elizabeth Peetz, vice president of government affairs for the Colorado Association of REALTORS®; and Craig Morley, managing partner at Accurity Valuation/Morley & McConkie.
NAR Chief Economist Lawrence Yun recently highlighted a number of proposals that could address lingering racial wealth and homeownership gaps, including building more homes to increase supply and make it easier to convert from renting to owning; increasing access to down payment assistance; and expanding alternative credit scoring models to include rent and utility payments, among others.
Along with the Urban Institute and the National Association of Real Estate Brokers, NAR in 2019 also worked to develop a five-point framework to address the Black homeownership gap. Specifically, the plan calls on the nation to (1) advance policy solutions at the local level; (2) tackle housing supply constraints and affordability; (3) promote an equitable and accessible housing finance system; (4) provide further outreach and counseling initiatives for renters and mortgage-ready millennials; and (5) focus on sustainable homeownership and preservation initiatives.
For more information, please visit www.nar.realtor.
What exactly does “more fair and equitable valuation systems” mean?? The Yun NAR proposals don’t mention anything about appraisal valuations.
The Five Point Plan promoted by the Urban Institute has only ONE very small recommendation regarding values: “Monitor real-time home values and home equity at the local level.”
None of these proposals say anything about ‘appraisals’, or even hint at how ‘appraisals’ might be holding back a segment of the population from greater financial satisfaction.
In light of the above, it seems to me pretty disingenuous that the “Appraisal Industry” has a target on our back, stuck there by folks a lot farther up the food chain than the local appraiser who just tries to establish a fair value for properties, based on local historical data.