Proposed Bill Would Scrap The Appraisal Foundation, Release GSE Appraisal Data

Originally published on March 31, 2022, by Georgia Kromrei, for

Congress hopes to supplant the appraisal governing body at the center of the industry’s self-regulated framework and make public the trove of appraisal data held by the government-sponsored enterprises.

A draft discussion bill circulated this week, sponsored by House Financial Services Chairperson Maxine Waters (D-CA), would strike the Appraisal Foundation, and replace it with an independent federal agency. The new Federal Valuation Agency would be responsible for developing real estate valuation standards and appraiser criteria, a function the Appraisal Foundation currently performs.

The draft bill also proposed an “Office of Fair Lending” within the new valuations agency, which would report to the head of the agency. That office would oversee fair lending supervision and examination procedures, as well as the consumer complaint process. Consumer complaints during the appraisal process, such as when a borrower challenges the appraised value, are now mostly handled by the lender. The lack of a central reporting system for complaints of bias has made it difficult to determine the scope of the problem.

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