Federal Agency in Charge of Appraisers

Having a federal agency in charge of appraisers will be a NIGHTMARE. Leave it to the states as it is now. ALL appraisers should be SWAMPING their state representatives with calls & emails in OPPOSITION to newly introduced H.R. Bill entitled: Fair Appraisal and Inequity Reform Act of 2022. DO IT NOW. **Remind them all that the job of a Professional Real Estate Appraiser is to PROTECT THE PUBLIC TRUST. That’s what we are in place for!

With all of the ridiculous changes proposed with “PAREA”, we know exactly where this is headed. Appraisers coming out of their “PAREA” certification will be able to start appraisal work with no supervision at all. PLUS, AMCs will be recruiting them like crazy in order to be “in house” appraisers that will do exactly as they are told.

APPRAISER INDEPENDENCE WILL BE NO MORE

Whether or not appraisers are “organized” under a common banner, we are still able to exert our influence on our OWN REPRESENTATIVES to fight this garbage before it’s too late.

CONTACT YOUR REPRESENTATIVES TODAY! MULTIPLE TIMES!

But please, please, please don’t say anything so stupid that it will be turned around and used against us.

That’s already happened with an appraiser from my state that emailed an ignorant rant to Maxine Waters about this.

Here’s my letter to my own representative about this Bill:

The Honorable Gregory F. Murphy, MD
U.S. Congressman, North Carolina, 3rd District
1105 Corporate Dr., Suite C
Greenville, NC 27858
Phone: 252-931-1003

Dear Dr. Murphy,

I am writing to express my deep concern for proposed legislation I have become aware of.

This legislation is being proposed by Congresswoman Maxine Waters (D-California), Chairwoman of the House Committee on Financial Services. This proposed legislation comes as a result of the hearing held March 29, 2022, entitled;

“Devalued, Denied and Disrespected; How Home Appraisal Bias and Discrimination are Hurting Homeowners and Communities of Color”

You may read the discussion draft of the proposed legislation at the link above. This proposal would create a new federal agency and replace the current Appraisal Foundation and it’s Boards.

I watched the entire hearing with great interest as I am a Professional Appraiser. While the issue of bias in appraisals appears to be a new issue, the subject actually began back in 2019. A hearing was held June 20, 2019 entitled;

“What’s Your Home Worth? A Review of the Appraisal Industry”

That hearing introduced data presented by Andre Perry of the Brookings Institute, which began the basis for actions since taken to attempt to address a conclusion brought on by the data. However, the actual data and the data collection procedure have never been analyzed to determine if the conclusion drawn was accurate and correct.

Since that time, there have been studies by Fannie Mae that have relied on the same data presented by Andre Perry from the Brookings Institute. See “Fannie Mae; Appraising the Appraisal”

Since the Brookings Data has never been properly researched to confirm its accuracy, using it as a basis for other studies causes issues. The importance of this issue deserves extensive independent study before any action is taken.

In the course of my education and training as an Appraiser, I was constantly reminded that to do my job correctly and effectively, I always had to come from a position of neutrality. Remain neutral, unbiased (not for or against anyone) not as an advocate for any party to the transaction. I was taught that an appraiser is the ONLY party to a transaction that does not benefit directly and that a Professional Appraiser is in place to *protect the public trust.*

I genuinely and sincerely believe that and that is the way I have always done my job. The vast majority of appraisers do the same. No one is saying that there is never a case of racial bias in any appraisal, however if there are such cases, each state has an independent Appraisal Board to file complaints. These boards perform extensive investigations into all complaints against appraisers and take appropriate disciplinary action, including revoking their licenses when needed.

I do NOT agree that creating a new federal agency is the solution…While I agree wholeheartedly as a Professional Appraiser that ANY type of bias in appraisals is completely unacceptable, I do NOT agree that creating a new federal agency is the solution. I believe that it will create unintended consequences for the borrowing public and for the Appraisal Profession, as well as cause severe changes in our economy of which mortgage lending and home buying is an important part. Previous attempts at legislation affecting the Appraisal Industry have not necessarily been complete successes. I refer you to the Home Valuation Code of Conduct / HVCC (2009) and to the Dodd–Frank Wall Street Reform and Consumer Protection Act (2010).

I encourage you as my representative to get involved immediately. Time is of the essence as Congresswoman Waters gave the Financial Services Committee Members only 5 days from March 29, 2022 to respond to her proposal. This legislation is being put on an unnecessarily “fast track”.

Thank you for taking action on an issue that affects so many.

Sincerely,
(my contact info redacted)

Now… let’s get to work putting a stop to this ridiculous Bill.