Appraiser’s Perspective on the FHFA Valuation Modernization Summit
Originally published on February 25, 2025
The Federal Housing Finance Agency (FHFA) held its second Valuation Modernization Summit on Feb. 26 in Washington, D.C., bringing together industry stakeholders to discuss the future of real estate valuation. The Appraisal Institute was represented at the Summit by Immediate Past President Sandra Adomatis, SRA; Director of Government Affairs Scott DiBiasio; and Senior Manager of Federal Affairs Brian Rodgers.
From an appraiser’s standpoint, the discussions underscored significant shifts in valuation process and procedure, the growing reliance on alternative appraisal processes and the challenges these changes pose to the profession. One of the primary topics was the expanded use of inspection-informed appraisal waivers to reduce borrower costs. While this initiative enhances efficiency, it also raises concerns expressed by the Appraisal Institute about the diminishing role of appraisers in the valuation process. Similarly, the increased adoption of hybrid appraisals may accelerate turnaround times but brings into question the reliability of third-party data collectors who lack the expertise and accountability of licensed appraisers.