Mortgage Threshold Update, FSA Rule Change, & Last Call for LRR
In this issue:
- Appraisal Institute pushes back on proposed appraisal threshold increase
- FSA expands use of evaluations and older appraisals in farm lending
- Last chance to complete your LRR for a 2027 committee appointment
Appraisal Institute Leads Coalition on Mortgage Credit Modernization
The Appraisal Institute recently led a coalition of national appraisal organizations in responding to federal financial regulators as they consider implementation of the Administration's Executive Order on promoting access to mortgage credit. The coalition's letter addressed a proposal to increase the current $400,000 residential appraisal threshold to $650,000, urging regulators to take a risk-based approach and opposing the increase without evidence that it won't raise collateral risk. The coalition also raised concerns about the growing use of evaluations outside the traditional appraisal regulatory framework and noted that automated valuation tools carry particular challenges in rural markets with limited comparable sales.
FSA Expands Use of Evaluations and Older Appraisals in Farm Lending
The U.S. Department of Agriculture's Farm Service Agency has issued a final rule that could significantly affect agricultural appraisers and the valuation process for certain farm loans. The rule, effective October 1, 2026, expands FSA's ability to use real estate evaluations in place of traditional appraisals for qualifying transactions of $500,000 or less, and allows the agency to rely on direct loan appraisals up to 36 months old under certain conditions. Evaluations under the rule may be prepared by individuals who are not state-licensed appraisers and are not required to follow USPAP, and the Appraisal Institute is watching closely for guidance on qualification standards.
AI Blog
Before appraisers learn how to develop an opinion of value, they need to understand the professional standards that govern the work.
A new AI blog explores how the 15-Hour National USPAP® Course gives aspiring appraisers a foundation in ethics, competency, scope of work, record keeping, and professional responsibility, and helps prepare them to apply those standards to real-world assignments.
The next live online session runs October 5–8, with an evening schedule designed to accommodate those working during the day.
Sign up for Our Next Free Webinar
State Legislative Developments Affecting Appraisers and Real Estate Valuation
Thu, Sep 17, 2026 11:00 AM CDT
State legislatures are considering a growing range of policies with direct implications for appraisers and appraisal practice. This webinar will examine Appraisal Institute–supported statutes of repose that would establish reasonable time limits on appraiser liability, foreign-ownership proposals that could place new responsibilities on appraisers, and other emerging state-level issues affecting the profession.
The session will also explore broader real estate legislation that appraisers should understand, including property assessment changes, rent-control measures, affordable housing initiatives, and other policies that could influence property values, market conditions, and appraisal assignments.
Speaker: Scott DiBiasio, Director of Government Affairs, Appraisal Institute
Review Case Studies - General
Put the concepts from Review Theory-General into practice by preparing two review reports based on real-world case studies.
Classroom
Instructor(s): Robert L. Moorman, MAI, SRA, AI-GRS
Sponsor: Chicago Chapter
Date: October 12-16, 2026
Time: 8:30AM - 5:00PM (CST)
Synchronous
Instructor(s): Robert L. Moorman, MAI, SRA, AI-GRS
Sponsor: Appraisal Institute
Date: November 9-19, 2026
Time:11:00AM - 2:30PM (CST)
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
Now Accepting Nominations for the George L. Schmutz Award
The George L. Schmutz Award is entering a new chapter.
The award recognizes an outstanding technical publication that advances the real estate valuation profession. Beginning with the 2026 award cycle, the Appraisal Institute is expanding the nomination process to invite members to nominate eligible
If you've read a book that has made a meaningful contribution to valuation theory, methodology, or professional practice, we encourage you to submit a nomination.
Already eligible for consideration this year are The Valuation of Vineyards, Wineries, Breweries, and Distilleries by Byron B. Hinton, MAI, and Self Storage Economics and Appraisal, Second Edition, by R. Christian Sonne, MAI.
Know another publication that deserves recognition? We'd love to hear about it.
Nominations close September 15, 2026.
Last Chance: Complete the LRR by Tomorrow!
There’s just one day left to be considered for a 2027 Appraisal Institute national committee appointment!
The deadline to complete the Leadership Resource Registry (LRR) is tomorrow, September 16, 2026. Whether you're a current volunteer, seeking reappointment, or looking to get involved for the first time, now is the time to act. If your current committee term ends on December 31, 2026, you must also complete the LRR by tomorrow to be considered for reappointment.
Here’s how to get started:
- Complete the LRR. Select the volunteer leadership opportunities that interest you.
- Tell us about you. Use the “Additional Information” section to highlight your skills, experience, and interests.
- Update your AI member profile. Make sure your contact information and member profile are current.
Don’t miss the deadline. Complete the LRR by September 16, 2026, to be considered for a 2027 national committee appointment.
Want to serve closer to home?
Explore volunteer leadership opportunities with your local AI chapter by contacting your chapter directly.
Until next time,
Appraisal Institute