Appraisal Institute Leads Coalition on Mortgage Credit Modernization
The Appraisal Institute is leading a coalition urging federal regulators to take a risk-based approach to mortgage credit modernization. The coalition supports responsible innovation while emphasizing credible appraisals, appraiser independence and consumer protection.
Summary
The Appraisal Institute is leading a coalition of national appraisal organizations in urging federal regulators to pursue mortgage credit modernization without compromising credible collateral valuation, appraiser independence or consumer protection. The coalition opposes increasing the residential appraisal threshold from $400,000 to $650,000 without evidence that the change would not increase collateral risk and supports maintaining the $1 million threshold for transactions requiring certified appraisers. The groups also raised concerns about relying on alternative valuation methods, particularly in rural markets where limited data and unique properties can make automated valuations more challenging.