On April 20th, the House Financial Services Committee approved the “Real Estate Valuation Fairness and Improvement Act” (HR 2553), which would establish an interagency task force that would analyze collateral underwriting standards and guidance and provide resources for promoting diversity within the appraisal profession.
If passed, the bill’s new task force would consist of 14 stakeholders from various federal regulatory agencies, who would identify best-practices and help develop more consistent policies and procedures for these agencies when regulating both commercial and residential real estate appraisals.
The task force would review various items, including appraisals, AVMs, the procedures for managing reconsideration of value by consumers, and common collateral underwriting challenges – such as energy-efficient housing and inactive markets. The new task force would also be required to determine and resolve any racial disparities that exist when valuing homes and would evaluate any barriers to entering the appraisal profession, such as the minimum qualifications, racial bias, etc.
In addition, the new bill would also require the Appraisal Subcommittee to establish a program that issues grants to state agencies, non-profits, and universities to help promote more diversity and inclusion within the appraisal profession.
The “Real Estate Valuation Fairness and Improvement Act” now moves to a full House vote, though no date has been scheduled yet.
For more information, or to see the bill in its entirety, click here.