WASHINGTON—The Fair Appraisal and Inequity Reform Act of 2022 was introduced by a House Financial Services Committee hearing on bias and discrimination in the home appraisal process by Chairwoman Maxine Waters (D-CA).
The legislation incorporates recommendations from the Biden Administration's Property Appraisal and Valuation Equity (PAVE) task force.
Ahead of the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler sent a letter to the committee sharing support for alternative appraisal processes such as appraisal bifurcation, desktop appraisals, and exterior only appraisals, which can help with flexibility.
Support for Greater Diversity
In addition, Thaler expressed the association’s support for efforts to expand the diversity of the appraiser workforce as well as efforts to create a more streamlined and accurate valuation process.
PAVE’s final action plan and report – issued last week – found an evident market value gap between majority-Black and majority-White neighborhoods for over several decades, noting that undervaluation often results in a negative impact on both the seller and buyer, sometimes leading to higher required down payments that can cause the sale to fall through.