VP Vacancy, Environmental Risk Updates, and More
In this issue:
- Vice President Vacancy: The Appraisal Institute is accepting recommendations for the 2025 Vice President
- Be Featured in AI Marketing: We’ve created a way for you to submit photos and videos of your chapters and teams
- Environmental Risk Updates: Join our free webinar to learn how sustainability issues are playing a role in real estate valuation
- Fair Housing Funding: Proposed FY26 budget eliminates funding for FHIP
Insights
Proposed Budget Eliminates Program Behind Misleading Appraisal Campaigns
The President’s proposed FY 2026 budget eliminates funding for the Fair Housing Initiatives Program (FHIP), a longstanding grant program that has supported advertising campaigns mischaracterizing the role of appraisers and the valuation process. In recent years, FHIP-funded initiatives have contributed to public confusion and unfairly targeted the profession with messaging that lacked balance and factual grounding.
FHIP has also provided grants to local organizations that have filed complaints against appraisers—sometimes without substantiated claims—raising due process concerns and contributing to a climate of mistrust. While the budget proposal retains funding for the Fair Housing Assistance Program (FHAP)—which supports state and local enforcement agencies—it marks a shift away from using federal resources to fund advocacy efforts that may misinform the public or overreach in enforcement.
At the same time, the U.S. Department of Housing and Urban Development (HUD) has transitioned its complaint intake process. All housing discrimination complaints, including those related to appraisals, must now be submitted through the Office of Fair Housing and Equal Opportunity (FHEO) online portal—a move that promotes greater consistency.
Importantly, despite the heightened scrutiny and media attention, there have been no fully adjudicated cases in which any appraiser or appraisal firm has been found to have violated fair housing laws or engaged in unlawful or even professionally inappropriate conduct related to alleged valuation bias or discrimination. The absence of such findings reinforces the need for careful, credible review processes and a clear distinction between unsupported claims and substantiated violations.
In fact, some cases alleging discrimination by appraisers have been dismissed. For example, in Davoli-Turner v. Henley Appraisals LLC et al. brought by the Miami Valley Fair Housing Center, U.S. District Judge Walter Rice (Southern District of Ohio) dismissed the case, stating: “While there is no requirement that Plaintiffs must provide allegations that detail disparate impact or direct evidence of the discrimination, the Court is not required to blindly ignore the obvious alternative theory: that Henley honestly thought the property was worth the amount that he appraised it for.”
The Appraisal Institute remains committed to promoting fair housing through accurate, data-driven dialogue—and to protecting the integrity and credibility of the valuation profession.
Now Accepting Recommendations: 2025 Vice President Vacancy
The National Nominating Committee invites members to submit recommendations for candidates to fill the 2025 Vice President vacancy. The elected individual will advance to the roles of 2026 President-Elect, 2027 President, and 2028 Immediate Past President.
If you want to be considered—or know someone who meets the qualifications—please send a written recommendation to:
Sandra K. Adomatis, SRA
Chair, 2025 National Nominating Committee
c/o Joan Barngrover
Email: jbarngrover@appraisalinstitute.org
We must receive all recommendations by June 23, 2025, at 5:00 p.m. CT.
The National Nominating Committee will contact potential candidates to outline the next steps in the selection process. You can find the qualifications, eligibility requirements, and duties of the Vice President in the Appraisal Institute Bylaws and on the Appraisal Institute website.
Help Lead Appraisal Institute into 2026 Get Involved: Call for 2026 Volunteers is Now Open!
The Appraisal Institute is seeking volunteers to help shape the future of our organization.
Whether you’re a seasoned volunteer or ready to take that first step, serving on a committee is one of the most direct ways to influence the future of the valuation profession. Opportunities are available in areas like strategic planning, education, finance, and diversity initiatives, as well as in the Appraisal Institute Education & Relief Foundation (AIERF) and the Appraisal Institute Insurance Trust (AIIT).
✅ Already serving? If you’re eligible for reappointment, you’ll still need to log into the Leadership Resource Registry (LRR) and submit your selections.
🕓 Deadline: August 31, 2025
How to Volunteer
- Step 1: Complete the LRR. Click “+ Add Volunteer Selections” button, you’ll be able to choose where you’d like to serve — at the National, Region, or Chapter level.
- Step 2: Highlight your strengths! Click the “Additional Information” button below to tell us where your skills and experience can best support AI’s committees and initiatives.
- Step 3: Update your AI member profile. Complete your personal information within your AI member account, including as much demographic information as you are comfortable sharing. The more information you provide the better we can match you with opportunities. Help us grow and diversify our leadership pool!
Take your seat at the table—your experience, insights, and ideas are essential.
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Environmental Risk Updates for Appraisers
June 26 | 12:00 p.m. ET
Environmental and sustainability issues are playing a growing role in real estate valuation and risk analysis. This timely webinar will provide appraisers with essential updates on a range of emerging environmental risk topics, including:
- ESG (Environmental, Social, Governance) considerations for appraisers
- Resiliency and sustainability measures in real estate
- Evolving practices in Phase I and Phase II Environmental Site Assessments (ESAs)
- Integration of appraisal and environmental functions within financial institutions and advisory firms
Learn how these trends are shaping due diligence, valuation reporting, and client expectations. This session will help you navigate shifting standards and strengthen your risk awareness.
Panelists:
- Justin Slack, MAI, SRA, AI-GRS, AI-RRS, Chief Appraiser and Environmental Risk Manager, WaFd Bank
- Derek Ezovski, President, Outsourced Risk Management Solutions (ORMS)
Advocacy Updates
Appraisal Institute Champions PAREA Adoption in Wisconsin and Indiana
The Appraisal Institute (AI) continues to lead the profession in advocating for the adoption of the Practical Applications of Real Estate Appraisal (PAREA) as a modern, experience-based pathway to licensure. In recent weeks, AI submitted official comments and testimony in both Wisconsin and Indiana, reinforcing its strong support for expanding licensure options beyond the traditional supervisor and trainee model.
On June 3, AI Director of Government Affairs Scott DiBiasio provided oral and written testimony before the Wisconsin Real Estate Appraisers Board and the Department of Safety and Professional Services in support of Clearinghouse Rule 25-025. The rule would formally recognize PAREA as a valid pathway to meet experience requirements under Wisconsin law.
“PAREA is producing exceptionally well-prepared appraisers who are entering the profession with a strong foundation in both theory and practice,” DiBiasio stated. “We encourage the Board to finalize this rule and position Wisconsin as a national leader in licensure modernization.”
On May 30, AI submitted a second comment letter to the Indiana Real Estate Appraiser Licensure and Certification Board on LSA Document 24-631. DiBiasio praised Indiana’s steps toward PAREA adoption and suggested a technical clarification to ensure the rule aligns with current Appraiser Qualifications Board (AQB) standards. At present, only certified residential PAREA programs are approved by the AQB.
In both states, AI emphasized that PAREA offers a rigorous, simulation-based training model that helps remove longstanding barriers to entry, particularly for those without access to a supervisory appraiser. The Appraisal Institute launched its AQB-approved Licensed Residential PAREA program in 2023 and is currently piloting a Certified Residential PAREA program with active participants.
“PAREA opens doors for new entrants while upholding public trust through structured, technology-driven experience,” DiBiasio said.
The Appraisal Institute continues to work with regulators across the country to support PAREA implementation and promote scalable, forward-looking solutions to strengthen the valuation profession.
Fannie Mae and Freddie Mac Release Major Updates to Selling Guide
Fannie Mae and Freddie Mac have issued selling guide notices outlining key updates that will impact appraisers and lenders. The key points include:
- UAD 3.6 Implementation: A new policy supplement supports the transition to redesigned appraisal reporting, including a dynamic Uniform Residential Appraisal Report (URAR) for all property types and valuation methods. Appraisal form numbers are retired. Required for all submissions starting Nov. 2, 2026.
- ANSI Standard Update: Terminology now aligns with ANSI Z765-2021. Terms like “gross living area” are replaced with “above-grade finished area.” Full compliance is required for loan applications dated on or after Sept. 8, 2025.
- Lender QC Modernization: Selling Guide Subpart D1 has been overhauled to clarify expectations, improve efficiency, and enhance oversight of appraisers and property data collectors.
- Refinance Clarification: DU findings may now be used to confirm Fannie Mae ownership in limited cash-out refinance transactions with high LTV ratios.
For full details and the UAD 3.6 Policy Supplement, visit Fannie Mae’s Uniform Appraisal Dataset webpage and Freddie Mac’s Selling Updates.
Real Estate Horizons
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Your Community
Be Featured in AI Marketing!
Our members are what makes the Appraisal Institute tick, and we want to highlight the work you and your teams are doing. So, we've created a way for you to submit your photos and videos!
If you have photos or videos from recent events, behind-the-scenes moments within your teams, or an on-site experience at an appraisal you'd like to share, please send them our way. Your content will help us authentically showcase our members and what you are doing!
To submit, simply click here to upload photos and videos. We'll make sure to provide content credit to you as well. Thanks for sharing your moments—we can't wait to spotlight the AI community!
Until next week,
Team Appraisal Institute
