How the NAR Settlement Could Impact Appraisers' Work
In this issue:
- State Expansion: Alabama is the 39th state to approve PAREA, pushing toward nationwide adoption.
- Graduate Success: 21 new participants in March; 100% exam pass rate among graduates.
- PAREA Support & Impact: 32 scholarships awarded; 175 participants, 28 graduates, 17 now licensed.
Insights
What the NAR Settlement Could Mean for Appraisers
Fannie Mae issued a policy clarification last week related to seller-paid real estate agent commissions considering the proposed settlement in the Burnett and Moehrl cases involving the National Association of REALTORS®. While no changes have been made to Fannie Mae’s Selling Guide policies, the notice reaffirmed that seller-paid buyer agent commissions—when common and customary—are not subject to interested party contribution (IPC) limits.
So, what does this mean for appraisers?
For now, your responsibilities remain the same: analyze all sales concessions, report them clearly, and determine whether they impacted the contract price. However, the real estate landscape may shift. If buyers begin paying their own agents more frequently, or if seller-paid commissions fall outside customary practices, appraisers will need to pay closer attention to how those fees are structured and whether they affect value.
Keep an eye on your local market. What’s common and customary today may not be tomorrow—and that could influence how commissions are treated in appraisals and lending decisions.
Three Candidates Seeking to Become 2026 AI Vice President
The process for nomination and election of the Appraisal Institute’s 2026 vice president has begun. The following individuals (listed alphabetically) have announced their candidacies and will come before the National Nominating Committee at its May 7 meeting in Chicago:
- Ryan Hlubb, MAI, SRA
- Byron Miller, SRA, AI-RRS
- Steve Stiloski, MAI
Appraisal Institute members may view the candidate biographies and questionnaires (log-in required) and provide letters of recommendation by 5 p.m. CT on May 2.
Correspondence should be addressed to Sandy Adomatis, SRA, chair, 2025 National Nominating Committee, and emailed to Joan Barngrover, board secretary and special assistant to the CEO.
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Appraising the Profession: Chief Appraisers on Trends, Performance & the Road Ahead
May 22, 11 AM - 12 PM ET
Join us for a candid conversation with two leading chief appraisers—one in commercial real estate and one in residential—as they share what they’re seeing across the profession today.
In this exclusive webinar, you’ll gain insight into the trends shaping the valuation landscape, how chief appraisers are evaluating appraiser performance, and the guidance they’re offering to help appraisers thrive in a changing environment. Whether you specialize in residential or commercial work, this session will offer practical takeaways and thought-provoking commentary from two voices at the center of the industry.
What you’ll learn:
- Key trends and challenges in both residential and commercial valuation
- What chief appraisers look for in appraisal quality and performance
- How expectations are shifting—and what appraisers can do to stay ahead
- Advice and insights from top decision-makers working with appraisers every day
Who should attend:
Appraisers, appraisal managers, lenders, AMCs, regulators, and anyone with a stake in the future of valuation.
Advocacy Updates
Tough Questions on Appraisal Bias Deserve Real Answers
During recent Fair Housing Month forums hosted by the Maryland and New Jersey Civil Rights Commissions, Scott DiBiasio, the Appraisal Institute’s Director of Government Relations, delivered a series of pointed, public questions challenging ongoing claims about appraisal bias. His remarks, made during two separate events on April 11 and April 14, raised critical concerns that continue to go unanswered.
Speaking during both sessions—each focused on equity in valuation—DiBiasio challenged the narrative that appraisers are the root cause of racial disparities in property values:
“Why are appraisers and appraisals continuously being scapegoated for exposing real estate value inequities that stem from deeply flawed, government-imposed policies like redlining, exclusionary zoning, and other discriminatory practices?”
“Appraisers do not create the market—we report it. We do not have the power to artificially inflate or deflate property values. That would be illegal. Blaming appraisers for systemic injustices they did not cause is not only misguided—it’s outrageous.”
He continued:
“If you want to fix disparities in property valuations, fix the broken systems that created them. But stop unfairly targeting appraisers. Enough is enough.”
DiBiasio also demanded accountability on the evidence behind the bias claims:
Of the more than 300 appraisal-related complaints filed with HUD’s Office of Fair Housing and Equal Opportunity, not a single case has resulted in findings that an appraiser acted illegally or inappropriately. How many fully adjudicated cases in the last five years—whether by HUD, a state appraiser commission, or a civil rights commission—have concluded that an appraiser violated fair housing law by considering personal characteristics in a valuation?
To date, the answer appears to be none—aside from a single case in Colorado that has resulted in a formal charge and is now under Department of Justice review.
By delivering these remarks twice in one week—first in Maryland, then again in New Jersey—DiBiasio sent a clear message: the Appraisal Institute stands firmly for fair housing and equity, but we will not allow appraisers to be unfairly vilified for systemic problems beyond their control.
These questions have been asked, publicly and unequivocally. We will continue pressing for the truth—and defending the integrity of the profession.
HUD Deputy Assistant Secretary to Address Legislative Day
The Appraisal Institute is pleased to announce that Matt Jones, Deputy Assistant Secretary for Single Family Housing, at the U.S. Department of Housing & Urban Development will be a featured speaker during AI’s first-ever Legislative Day, taking place May 14-15 in Washington, D.C.
Mr. Jones will join Rep. Mike Flood (R-NE), House Financial Services Subcommittee on Housing and Insurance, as featured speakers during the event which will bring together AI members from across the country to engage with lawmakers and advance solutions that support credible, independent appraisal practice.
Appraisal Requirements Suspended in LA
On April 15, federal bank regulatory agencies ordered a temporary suspension of certain appraisal requirements for real estate-related transactions in Los Angeles County and other regions impacted by California wildfires and straight-line winds. This temporary measure allows banks and credit unions to assist families and businesses more quickly, without the immediate necessity of obtaining a formal appraisal.
However, financial institutions must still ensure that the real estate values support their lending decisions in accordance with the Interagency Appraisal and Evaluation Guidelines. Regulatory agencies will actively oversee lending practices to ensure transactions continue to meet safety and soundness standards.
This temporary relief is intended to help financial institutions originate and modify loans more efficiently in disaster-stricken areas, where conducting standard appraisals has become difficult. By reducing loan processing times, the measure aims to support and accelerate disaster recovery efforts. The order was adopted in accordance with federal law that allows the agencies to make exceptions to FIRREA’s appraisal requirements in federally declared disaster areas.
The temporary exemption remains effective until January 8, 2028. Further details can be found in the Federal Register notice titled, "Temporary Exceptions to FIRREA Appraisal Requirements in Los Angeles County as Affected by California Wildfires and Straight-line Winds."
The Appraisal Institute encourages banks to use appraisal exemptions selectively and prudently in disaster-affected areas, ensuring that lending decisions remain safe, sound, and aligned with responsible risk management practices.
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House Subcommittee Chairman to Address Attendees at AI Legislative Day — Free Registration Available
The Appraisal Institute is honored to welcome US Rep. Mike Flood (R-NE)—Chairman of the House Financial Services Subcommittee on Housing and Insurance—as a featured speaker at the inaugural Legislative Day, taking place May 14–15 in Washington, D.C.
As chairman of the subcommittee with direct oversight of key appraisal policy issues, Rep. Flood is uniquely positioned to share insights on the legislative landscape impacting real estate valuation and the appraisal profession. His participation highlights the importance of Legislative Day as a critical platform for appraisers to make their voices heard at the highest levels of government.
Appraisers from across the country will gather in the nation’s capital for advocacy training, meetings with elected officials, and discussions aimed at advancing solutions that protect and strengthen credible, independent appraisal practice.
Registration is free—don’t miss this chance to engage with one of the most influential figures in appraisal policy.
Click here to register at no cost and be part of this important event.
Until next week,
Team Appraisal Institute
