Capital rules, appraisals, and what’s next in DC
In this issue:
- Capital proposal puts appraised value at the center of mortgage risk
- Stronger Together: How the AI community fuels better work and bigger opportunities
- Trending Topics Thursday: Mortgage modernization signals from the Executive Order (free webinar)
- 2026 AIERF & Appraisal Journal awards: Celebrating this year’s recipients
Insights
Bank Capital Proposal Creates Opportunity to Reinforce the Value of Appraisals
Two recent policy developments are shaping the future of mortgage lending—and creating an important opportunity for the appraisal profession to engage.
Federal bank regulators have proposed changes to capital rules that would more directly tie a mortgage’s risk level to its loan-to-value (LTV) ratio. In practical terms, that means the relationship between the loan amount and the market value of the property would play a larger role in how lenders assess risk and allocate capital.
Even small differences in appraised value may shift a loan into a different LTV category, potentially affecting how costly that loan is for a bank to hold. This framework reinforces a core principle long understood by appraisers: Credible, well-supported valuations are essential to sound lending decisions.
At the same time, a recent executive order on housing and mortgage credit calls for reducing the regulatory burden and expanding access to credit, including modernizing appraisal processes. That effort may encourage greater use of appraisal waivers, automated valuation models, and other alternatives in appropriate cases.
Taken together, these developments highlight both change and opportunity.
While some lower-risk, lower-LTV loans may move toward more streamlined valuation approaches, the increased emphasis on LTV in capital rules strengthens the case for accurate, independent appraisals where risk matters most. As lenders become more sensitive to how valuation affects capital and pricing, the need for reliable collateral assessment becomes clearer, not weaker.
The bank capital proposal is currently open for public comment, and the Appraisal Institute’s Government Affairs team is actively engaged. We will be advocating for policies that recognize the critical role of professional appraisers in ensuring credible valuations, particularly in a more risk-sensitive regulatory framework.
The bottom line: As policymakers seek to balance efficiency with risk management, this is a pivotal moment to reinforce the profession’s value. With thoughtful engagement, appraisers are well-positioned to help shape policies that both expand access to credit and uphold the integrity of real estate valuation.
Your Benefits
Stronger Together: The Power of the Appraisal Institute Community
For many appraisers, professional growth starts with education, but it’s the community that sustains it. After earning the SRA designation, Jon “Jay” Dawson, SRA, RS, described a transformation that went far beyond coursework. What began as a pursuit of deeper knowledge evolved into something more meaningful: connection.
The SRA designation did more than add letters after my name. It fundamentally changed how I approach appraisal work… and connected me with a professional community that continues to push me to improve.
— Jon “Jay” Dawson, SRA, RS
Through the Appraisal Institute, Dawson found a network of designated professionals committed to high standards, continuous improvement, and mutual support. Within this community, members don’t just exchange ideas, they refer complex assignments, expand each other’s opportunities, and hold one another to a higher level of practice.
The result? Broader experience, stronger work quality, and a career no longer limited to a single type of client or assignment.
The Appraisal Institute community is more than a professional network, it’s a shared commitment to excellence that helps members grow, adapt, and thrive in a changing industry.
Attend the 2026 Annual Conference
We are excited to gather in just three weeks for the 2026 Annual Conference. Make your plans to join us in Nashville! At this two-day event, you can attend Continuing Education sessions for residential and commercial appraisers, hear updates about the regulatory environment, participate in business development trainings, join coaching sessions, discover artificial intelligence tools, see a first look at the new editions of AI's core textbooks, celebrate at the awards banquet, and more. Plus, join us for a night of networking and fun at Nashville Underground, as we strike a new chord in valuation.
AI Blog
The Exhibitor Hall is where conference ideas turn into practical tools for your day-to-day work.
A new blog previews what to expect at the 2026 Annual Conference, including technology and data providers to live demonstrations and networking opportunities. Learn how to plan your time, evaluate solutions, and make the most of this core conference experience.
Read the blog to see why the Exhibitor Hall deserves a spot on your schedule.
Trending Topics Thursdays:
Sign up for our next free webinar
The Mortgage Modernization Push: What Washington Is Signaling on Valuation
April 23, 2026 11:00 CDT
What’s the policy direction and what are the early signals from FHFA, HUD/FHA, VA, CFPB, and the banking regulators? Our Government Relations team and outside lobbying consultants will provide a Washington rundown and translate it into practical impacts for valuation stakeholders.
Speakers:
Scott Dibiasio, Director, Government Affairs
Brian Rodgers, Senior Manager of Federal Affairs, Government Affairs
Special Guest (TBA)
Advocacy Updates
IRS Appraisal Penalty Process Draws Congressional Scrutiny
Congressman David Kustoff (R-TN) recently submitted a written question for the record following a House Ways and Means Committee hearing on March 4th at which the Internal Revenue Service CEO Frank Bisignano testified, highlighting longstanding concerns from the appraisal community regarding the agency’s handling of penalties tied to non-cash charitable contribution appraisals. His inquiry focuses on whether sufficient valuation expertise is applied in enforcement decisions and encourages consideration of an independent appraisal review panel to help ensure fairness, consistency, and due process in these cases. Responses are typically requested within a few weeks, but timing varies and can extend longer depending on the issue.
Member Moves and Media
Jon DiPietra, MAI, Highlights Lifelong Learning and the Value of the MAI Designation
Jon DiPietra, MAI, Executive Vice President and cofounder of H&T Appraisal, emphasizes the importance of continuous education and the MAI designation in his Medium article, “Why I Never Stop Learning in a Business That’s Always Changing.”
Real Estate Horizons
Stay updated and check out links to the latest major real estate industry stories!
More Opportunities to Learn
Search the latest educational offerings! Find National and Chapter-sponsored classroom, synchronous, and online opportunities.
Your Community
Announcing the 2026 AIERF and The Appraisal Journal Award Recipients
The Appraisal Institute Education and Relief Foundation (AIERF) plays a vital role in supporting the appraisal profession and strengthening its future.
Through initiatives such as the Y.T. and Louise Lee Lum Library, educational scholarships, and university outreach grants, AIERF is committed to expanding access to knowledge, fostering professional development, and investing in the next generation of appraisers. Each year, the Foundation provides more than $100,000 in scholarships to members, college students, and PAREA participants, helping to build a stronger and more inclusive profession.
The AIERF Awards recognize individuals whose leadership and service have made a meaningful impact on appraisal education, research, and the advancement of the profession.
This year’s recipients are:
Y.T. and Louise Lee Lum Award – Malinda Griffin
Awarded for a distinguished contribution to the appraisal profession during the preceding year
George L. Schmutz Award – Bradley R. Carter, MAI
Recognizing an outstanding technical manuscript or publication on real estate valuation
Dr. William N. Kinnard, Jr. Award – James B. Atwood, SRA
Recognizing professionalism in education and contributions to the development of the real estate appraisal field
James H. Pritchett Award – Scott D. Delahooke, MAI, SRA
Honoring a Designated Member for outstanding contributions to appraisal education or mentoring, with emphasis on litigation and condemnation
Swango Award – James Amorin, MAI, SRA, AI-GRS
Presented for the best original article in The Appraisal Journal by a practicing appraiser, with practical application to the profession
Armstrong/Kahn Award – Nicholas W. Carter, MAI, SRA
Recognizing the most outstanding article published in The Appraisal Journal addressing concepts and practical issues in valuation
Armstrong/Kahn Award – David C. Lennhoff, MAI, SRA, AI-GRS
Recognizing the most outstanding article published in The Appraisal Journal addressing concepts and practical issues in valuation
Please join us in congratulating this year’s AIERF award recipients and celebrating their contributions to advancing the profession.
To learn more about the AIERF Awards visit the AIERF Awards page.
Until Next week
Team Appraisal Institute
