PAVE Continues Work on Action Plan to Advance Property Appraisal and Valuation Equity
The Property Appraisal and Valuation Equity task force continues its work to implement its action plan, and in the process several themes are emerging:
- Task force members and the Appraisal Subcommittee are honing in on appraisal standards and qualification issues, as evidenced by communications sent by the ASC to The Appraisal Foundation. The Appraisal Standards Board is in the middle of an exposure period related to changes to the Ethics Rule in the Uniform Standards of Professional Appraisal Practice that aims to address concerns from the agencies about fair housing law recognition and prioritization within appraisal standards. Likewise, the Appraiser Qualifications Board is developing proposals related to valuation bias and fair housing training requirements for appraisers. Both proposals are expected to be released for further exposure in the coming months.
- Development is underway on standards and guidance related to reconsideration of value processes and procedures. The Consumer Financial Protection Bureau on Oct. 6 posted information on ROV policies, and the Office of the Comptroller of the Currency has been working on this issue for several months. AI expects ROV to be part of future work streams within the agencies, and guidance development is likely.
- Diversity efforts remain a priority both within the agencies and the valuation profession, with programs such as the Appraiser Diversity Initiative — which involves Fannie Mae, Freddie Mac, the National Urban League and the Appraisal Institute — receiving significant attention. ADI programs have so far awarded more than 300 scholarships, with more than 60 scholarship recipients having already completed their trainee education. There is broad recognition and support for furthering these efforts.
Additionally, the agencies are entering into information sharing agreements to evaluate and study appraisal work products and trends. Appraisers are encouraged to pay close attention to identified risk management issues and best practices, such as those noted in the Fair Housing and Discrimination article published in the second quarter 2022 edition of Valuation magazine.