What We’re Hearing About Senate Action on Appraisal Legislation
In this issue:
- Valuation Reset: CalSTRS CRE allocations and what it means for appraisers
- CREXI Demonstration: Exclusive benefit for AI members
- ROAD to Housing Act: Provisions directly affecting appraisal profession
- Annual Conference: Secure your Early Bird pricing
Last Day to Apply
Licensed & Certified Residential PAREA Scholarships
Today, September 12, is the final day to apply in Q3 for The Appraisal Foundation’s PAREA Scholarships, which cover 100% of costs for AQB-approved Licensed Residential and Certified Residential programs, including the Appraisal Institute’s PAREA offerings. Complete your Readiness Checklist and submit your application today.
Registration is Now Open for 2026 Annual Conference!
We’re back in tune – and we can’t wait to see you in Nashville!
Join hundreds of valuation professionals April 14-15, 2026, for the Appraisal Institute Annual Conference, packed with energy, innovation and connections you won’t find anywhere else. This year’s conference theme, Back in Tune: Striking a New Chord in Valuation, highlights hands-on learning, interactive demos and practical insights to help you thrive in a changing profession.
Insights
What a “Valuation Reset” Means for Appraisers
The California State Teachers’ Retirement System (CalSTRS), one of the largest public pension funds in the U.S., is reassessing its real estate portfolio considering what its consultants describe as a “valuation reset.” Summarized at a Sept. 3 CalSTRS board of directors meeting, analysts suggested that values across most property sectors had dropped 15–35 percent from their peaks, creating entry points that large investors consider attractive.
Where Allocations Are Headed
CalSTRS’s consultants recommended greater exposure to industrial and multifamily residential properties — sectors with solid fundamentals that appear well-positioned even after pricing adjustments. Conversely, they urged trimming exposure to office, where uncertainty around demand and utilization continues to cloud the outlook.
These allocation choices matter for appraisers because they often foreshadow shifts in transaction activity:
- Industrial and multifamily are likely to generate more investment, lending, and development activity, which can translate into stronger demand for valuation work.
- Office properties may see more complex appraisal assignments, with investors and lenders closely scrutinizing rents, occupancy, and potential reuse scenarios.
Why This Matters to Appraisers
Institutional behavior is a useful barometer for the broader market. If large funds begin deploying capital into certain property types, it signals that they view risk and reward as favorable at current levels. For appraisers, this has several implications:
- Anticipating demand: More transaction activity in multifamily and industrial means more appraisals, feasibility analyses, and portfolio reviews.
- Navigating stress: Office assignments may require heightened attention to market dynamics, lease terms, and alternative use potential.
- Enhancing credibility: In a market still adjusting to new pricing realities, appraisers’ independent analyses are essential for lenders, investors, and public institutions alike.
The Bigger Picture
The idea of a “valuation reset” highlights just how dynamic the real estate market remains. While CalSTRS’s consultants see opportunities at current levels, the pace of change means appraisers must continually update their understanding of sector-specific trends.
For the appraisal profession, this is both a challenge and an opportunity: a challenge because the environment is more uncertain, but an opportunity because clients rely more heavily than ever on appraisers to interpret shifting conditions with objectivity and insight.
The institutional pivot toward industrial and multifamily — and away from office — may not play out the same way everywhere, but it provides a timely reminder: when capital changes course, appraisers are at the forefront of explaining what those moves mean for local markets and for value.
Your Benefits
CREXI Demonstration Available to Appraisal Institute Members
Crexi Intelligence is the most innovative research and analytics software designed for the CRE industry. Join an exclusive webinar on September 17 at 2 PM ET for Appraisal Institute members to explore the full benefits of an Intelligence subscription including:
- Comprehensive Sales & Lease Comparables: Access 84M sales comps and 1.5M lease data points nationwide with exclusive marketplace transaction details that go beyond public records. This includes comprehensive property data on 150+ million properties with transaction history, featuring 46M+ broker-reported and county-verified sales comps.
- Enhanced Financing Analysis: Leverage mortgage history on 8M+ properties with detailed loan information, including private loan data with maturity dates and properties in pre-foreclosure from county and third-party partnerships, to better understand market dynamics and financing trends.
- Streamlined Report Generation: Create dynamic, nationwide market reports and access leasing data, history, and trends across key markets for any property type, saving significant research time while strengthening the quality of your deliverables.
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Handling Reconsideration of Value Requests: Best Practices from the Field
September 18, 2025
Reconsideration of Value (ROV) requests are becoming more common as consumers, lenders, and regulators look for greater transparency and accountability in the appraisal process. This Trending Topics Thursday webinar will bring together perspectives from Fannie Mae and practicing appraisers to help clarify how ROVs work in practice, what lenders are asking for, and how appraisers can respond while upholding professional standards.
Rachel Beam of Fannie Mae will provide an overview of the GSE’s approach to ROVs, including recent guidance and expectations for lenders. Megan Judd, SRA, AI-RRS, will share insights from her workshop on consumer appraisal appeals, offering practical guidance for appraisers facing ROV requests in the field.
Join us for this timely discussion to better understand the evolving ROV landscape and what it means for your work.
Learning Objectives
- Understand current Fannie Mae guidance and expectations on Reconsideration of Value.
- Explore practical strategies for appraisers responding to ROV requests.
- Examine consumer and lender perspectives driving the increase in ROV activity.
- Identify best practices that protect both consumers and appraisers while maintaining public trust.
Advocacy Updates
ROAD to Housing Act (S. 2651) May Be Attached to NDAA — Key Appraisal Provisions to Watch
The bipartisan ROAD to Housing Act of 2025 (S. 2651) recently passed by the Senate Banking, Housing and Urban Affairs Committee, is now part of the Manager's Amendment to the must-pass National Defense Authorization Act (NDAA). This development significantly boosts the bill’s chances of passing the Senate.
Key Provisions Impacting the Appraisal Profession
- Appraisal Industry Improvement Act (Sec. 403):
Expands eligibility for FHA appraisals to include licensed appraisers and allows credentialed trainee appraisers to be included in the National Registry. This provision aims to strengthen the pipeline of new appraisers. - Appraisal Modernization Act (Sec. 705):
Requires lenders to adopt standardized policies for reconsiderations of value and second appraisals, while directing a federal study on the feasibility of a public, downloadable appraisal-level database. These measures are designed to enhance consistency, transparency, and data access in the mortgage process.
Legislative Outlook
With these provisions now included in the NDAA, the bill is expected to pass the Senate. However, challenges remain as negotiations with the House will likely shape the final outcome. The appraisal-related reforms may become points of contention in those discussions, with potential changes emerging as part of the House–Senate conference process.
Appraisal Institute’s Role
The Appraisal Institute strongly supported the Committee-passed version of S. 2651 and continues to closely monitor its progress. We will keep members updated as the legislative process unfolds and as key negotiations in the House come into focus.
Recap: California Bureau of Real Estate Appraisers Town Hall Focused on Licensure, AMC Oversight, and Communication
On September 9, 2025, the California Bureau of Real Estate Appraisers (BREA) held a public town hall meeting with stakeholders from across the state to discuss regulatory priorities and gather feedback from the appraisal community.
The BREA addressed strategies to expand entry into the profession, including strengthening supervisory pathways, considering alternative routes to licensure, and supporting career growth opportunities. These discussions reflected ongoing concerns about workforce development and the need to attract new appraisers.
Participants also engaged in a robust dialogue on whether California, currently a non-mandatory state, should transition to a mandatory framework. Pros and cons of such a change were shared, along with experiences from other jurisdictions. Stakeholders identified which valuation functions might be prioritized if California were to adopt a mandatory system.
In addition, the BREA reviewed options for strengthening its enforcement statutes and regulatory tools. Key topics included enhancing oversight of appraisal management companies (AMCs), aligning regulatory frameworks with statutory and USPAP requirements, and exploring additional enforcement-related education for licensees.
The BREA emphasized the importance of maintaining open communication channels with appraisers and the public. The meeting highlighted efforts to improve existing outreach tools and consider new communication media to broaden engagement.
The town hall concluded with an open comment period, giving stakeholders the chance to raise issues not formally on the agenda. Many expressed appreciation for the opportunity to participate in the discussion.
The Appraisal Institute’s California Government Relations Committee participated in the meeting and is currently gathering all available information related to the ongoing discussion about whether California should remain non-mandatory or transition to a mandatory framework.
Real Estate Horizons
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Your Community
Annual Awards Deadline Extended
We are excited to share that the Appraisal Institute’s annual awards will once again take center stage at the AI Annual Conference. These prestigious honors represent the highest level of recognition in our profession, and there is no better place to celebrate them than in front of peers from across the country.
To support this return to a time-honored tradition, we have extended the nomination deadline to December 1, 2025. This gives you extra time to reflect on the colleagues, mentors, and leaders whose contributions deserve the spotlight.
If you have already submitted a nomination, you’re all set — no further action is needed. Your submission has been received and will be reviewed as planned.
Don’t miss the chance to help us showcase the very best in AI. Your nomination could be the one that elevates a deserving member to the national spotlight.
Submit your nominations today and be part of honoring excellence across our profession!
Until Next week
Team Appraisal Institute
