<< Appraisers continued from Page 120 “While all stakeholders don’t necessarily
recommend the same solutions, they
do see the same problems.”
homebuyers by making the appraisal process more
efficient and allowing more appraisers to work and
share information across states. In turn, this would
increase access to qualified, licensed appraisers and
decrease costs for appraisers, many of which are small
A streamlined structure could prevent some of the
looming problems that lenders and consumers may
have to face if housing demand continues to rise, but
the regulatory system and its burdensome, duplicative requirements are not addressed. Appraisers are
not the only profession calling for appraisal modernization. Real estate brokers, mortgage lenders, homebuilders and others have expressed to Congress the
need for a change to the federal regulatory structure.
Specifically, these groups have asked Congress to
examine the current appraisal-regulatory framework,
appraisal-information systems, the impact of recent
regulatory reforms on the valuation profession and
the availability of qualified appraisers — particularly
in rural areas. While all stakeholders don’t neces-
sarily recommend the same solutions, they do see
the same problems. They acknowledge that Congress
is well-placed to address the need for appraisal mod-
ernization head-on to reduce the burden on the real
estate and finance industries.
Time is of the essence, however, as more buyers and
sellers enter the housing market. Mortgage originators deserve the highest-quality appraisals to protect
their interests and the interest of homebuyers through
a fair value analysis.
n n n
Lenders, originators and consumers should not have
to face losing access to quality appraisals, which
increases risk for all of them. Ultimately, quality
appraisers and appraisals add value to the homebuying process for lenders and homebuyers, as well as
the originators that serve both.
To reduce these challenges and provide benefits
that reach well beyond the appraisal profession, it’s
critical that Congress move toward adopting a structure like the NMLS for appraisers. n
Recently, North Dakota became the first state to ask
for waivers for required independent appraisals in
federally related transactions. Citing several factors,
including a 12 percent increase in the state’s population, North Dakota Gov. Doug Burgum and Lisa Kruse,
commissioner of the Department of Financial Institutions, requested the temporary waiver to allow banks
to do their own property valuations.
While meant to meet the demand for appraisals
in the state, this temporary waiver is certainly not in
the interests of mortgage lenders or the homebuyers
they serve, and it does not address the underlying
issues of overregulation and inefficiencies that have
led to the current situation. This is an example where
being able to seamlessly operate across state lines
would be the optimal solution.
Offering waivers, rather than increased appraiser access, is a short-sighted approach that exacerbates the
negative impact on lenders and consumers by putting
them at even greater risk by not having a quality appraisal performed by a designated professional. Solutions should focus instead on the long-term by recognizing the inefficiency of the current regulatory structure
and emphasizing the need for an NMLS-like structure.
Instituting an NMLS-like regulatory structure
would benefit appraisers, mortgage lenders and