For years, REALTORS® and appraisers have worked with Members of Congress and governmental agencies to resolve challenges in the appraisal process. Some of the frustration among the various parties to a real estate transaction can be attributed to provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act and to Appraisal Management Companies (AMC).
To better address these concerns and resolve the issues, the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity held a hearing entitled “Appraisal Oversight: The Regulatory Impact on Consumers and Businesses” on June 28.
The two-hour hearing consisted of two panels.
• Mr. William B. Shear, Director, Financial Markets and Community Investment, Government Accountability Office
• Mr. Don Rodgers, President, Association of Appraiser Regulatory Officials
• Mr. James R. Park, Executive Director, Appraisal Subcommittee, Federal Financial Institutions Examination Council
• Mr. David Berenbaum, Chief Program Officer, National Community Reinvestment Coalition
• Mr. David Bunton, President, Appraisal Foundation
• Mr. Francois K. Gregoire, 2011 Chair, National Association of REALTORS®, Appraisal Committee
• Mr. Don Kelly, Executive Director, Real Estate Valuation Advocacy Association (REVAA), on behalf of REVAA and the Coalition to Facilitate Appraisal Integrity Reform
• Ms. Karen J. Mann, President, Mann & Associates Appraisers, on behalf of the American Society of Appraisers
•Ms. Sara Stephens, President, Appraisal Institute
Testifying on behalf of NAR was Francois “Frank” Gregoire, a Floridian and appraiser member of NAR and two-time Chair of the Appraisal Committee.
An Update on Mr. Gregoire’s Testimony from NAR’s Appraisal Insight Blog
“NAR testified on concerns with the appraisal profession, particularly the role being played by appraisal management companies (AMCs). Other issues include the credible valuation of real property, including appraiser competency and local market knowledge and challenges in accurately estimating market value in stabilizing markets. Developing and reporting property values more accurately is critical to improving market performance, reducing risk and strengthening the housing finance system. Mr. Gregoire said, “REALTORS® know that an accurate appraisal is an important part of the home buying process and that a strong and independent appraisal industry is critical to restoring faith in the mortgage origination process.”
Congressman Al Green’s Support
Financial Services Committee Member Congressman Al Green read from HAR’s letter of support and recognized HAR Chairman Wayne Stroman and TAR President-Elect Shad Bogany in his comments. Representative Green has been active in listening to REALTORS®‘ concerns and helped to facilitate the appraisal hearing.
Several Members of Congress were in and out of the hearing, including Rep. Green, because two high-profile events were taking place in Washington at the time: the U. S. Supreme Court ruled on the Affordable Care Act and Congress voted to charge U. S. Attorney General Eric Holder with contempt of Congress.
Your HAR Governmental Affairs Team will continue to keep our members informed as the issues raised are addressed and resolved.