Appraisal Institute President Leslie Sellers, MAI, SRA, and Appraisal Institute Chief Executive Officer Frederick H. Grubbe reiterated the importance of safeguarding real estate appraiser independence while also promoting appraiser competency to the nation’s top financial policy regulators. The two spoke at a Feb. 23 meeting of the Real Estate Advisory Council of the Federal Reserve Bank of Atlanta.
In their presentation, "Elevating the Real Estate Appraisal Function," Sellers and Grubbe noted the significant role independent appraisers play when it comes to protecting the best interests of borrowers and lenders alike.
"Appraisers have a duty to uphold the public trust. As such, we strongly believe that the Federal Reserve has a unique opportunity to provide bold leadership on these serious issues," Sellers said. "We could not be more pleased with the receptivity to our remarks and the discussion that ensued."
Among the issues Sellers and Grubbe addressed during their presentation were the needs to establish a Federal Reserve Chief Appraiser position to emphasize competency and independence; to clearly define fair value vs. market value; and to stress the use of collateral valuation as an essential element to commercial real estate workouts.
In addition, Sellers and Grubbe recommended that the Fed sponsor a national conference where all stakeholders in the valuation process could come together to review current standards, identify problems and create solutions.
The pair offered the Appraisal Institute’s assistance with any questions or needs the Fed may have when it comes to strengthening the health of our nation’s real estate markets.
The presentation continues the relationship between the Appraisal Institute and the Federal Bank of Atlanta. Last year, Grubbe was appointed to the bank’s Real Estate Advisory Council. As such, he provides advice and counsel on real estate issues to Dennis P. Lockhart, president and CEO of the Sixth District Federal Reserve Bank.