May 16, 2018
AI to Lobby Lawmakers on Exemptions, Modernizing Appraisal Regulatory System
More than 100 Appraisal Institute professionals will go to Capitol Hill on May 17 to discuss safety and soundness concerns and urge congressional support for regulatory relief and appraisal modernization, the Appraisal Institute reported May 16.
Attendees of AI’s annual Leadership Development and Advisory Council conference, held May 16-18 in Washington, will talk to lawmakers about three pieces of legislation introduced this session:
HR 3221, which provides an exemption from overlaying appraisals for high-risk loans if they are under $250,000 and kept in the bank’s portfolio for at least three years.
S. 2155, which provides an allowance from appraisal requirements with loans held in portfolio in rural areas if lenders are unsuccessful in placing an appraisal assignment with appraisers on their approved appraiser list.
HR 3561, which permits appraisers to use information based solely on data from a property inspection performed by a third party for VA loans.
AI professionals will lobby lawmakers on several additional key issues, including:
Clarifying the intent of HR 3561 to ensure property inspectors are to be affiliated with appraisers. The VA confirms this is the intent of the bill, but it’s still undefined.
Reforming the overall appraisal regulatory structure instead of establishing exemptions. Doing so would alleviate appraisal shortage concerns by making the valuation profession more efficient and attractive to prospective appraisers while mitigating a buildup of risk in the financial system.