TAF Fair Housing Report Released; PAVE Report Due Soon

The National Fair Housing Alliance, under contract by the Appraisal Subcommittee and the Council on Licensure, Enforcement and Regulation, on Jan. 19 released its report on whether the Uniform Standards of Professional Appraisal Practice and Appraiser Qualifications Criteria support or promote fairness, equity, objectivity and diversity in both appraisals and the training and credentialing of appraisers.

The findings and recommendations are far reaching and address appraisal standards, appraiser qualifications and mortgage processes and procedures; some recommendations will require legislative action.

“The report acknowledges that enhanced standards and greater diversity within the profession are critical elements in addressing equity and rooting out bias in appraisal, and we agree,” said Appraisal Institute President Jody Bishop, MAI, SRA, AI-GRS.

The report recommends that consumers be considered intended users of appraisal reports under USPAP, that TAF develop guidance around reconsideration of value policies and procedures related to communications with consumers, that an emphasis be placed on fair housing education, and that several governance issues be reviewed, including the makeup of the ASB and AQB to how proposals are exposed and ultimately adopted.

Another report, this one from the Property Appraisal and Valuation Equity Task Force, known as PAVE, is expected soon and its findings and recommendations will be reported to President Biden by late February or early March. The findings are expected to address consumer disclosures and appeals processes, diversity efforts within the valuation profession, education and the appraisal regulatory structure.

The Appraisal Institute has participated with the PAVE Task Force through both listening sessions and meetings with White House and agency staff. AI has also engaged with congressional oversight offices because the task force is expected to issue several recommendations that would requiring congressional action.

Combined, the two reports are expected to set the stage for an active regulatory and legislative year for the valuation profession.