On January 12, 2018, NAR submitted a comment letter to the Appraiser Qualifications Board (AQB) in response to the Fourth Exposure Draft concerning proposed changes to the AQB’s Real Property Appraiser Qualification Criteria.
In recent years, NAR has heard concerns regarding a perceived shortage in appraisers, long turnaround times for appraisals, higher and/or rush fees in certain areas, and difficulty in bringing new appraisers into the profession. Earlier this year, NAR released the Appraiser Trends Study. Ken Fears talks with us about the survey’s findings in this episode.
The Appraisal Qualifications Board (AQB) released the Fourth Exposure Draft of Proposed Changes to the Real Property Appraiser Qualifications. The Exposure Draft proposes three major changes related to education and experience.
Federal agencies announced they have eased Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) appraisal requirements for areas of Florida, Georgia, Puerto Rico, Texas, and the U.S. Virgin Islands that have been declared major disaster areas by President Trump due to Hurricanes Harvey, Irma, and Maria.
NAR sent a comment letter to Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System (collectively the Federal Banking Agencies) supporting a proposed increase to the appraisal threshold for commercial real estate Federally Related Transactions from $250,000 to $400,000.
NAR sent a letter to the Federal Housing Finance Agency (FHFA), as well as to Fannie Mae and Freddie Mac (collectively the GSEs), commenting on the recent decision by Fannie Mae and Freddie Mac to allow for data-based valuations rather than traditional in-person appraisals in certain purchase transactions.
Analysis suggests that while industry constraints may improve in the short-run, the long-term constraints are significant. Neither expanded training of new entrants nor automation alone will solve anticipated growth in demand on the appraisal industry.