NAHB this week publicly released a “Comprehensive Blueprint for Residential Appraisal Reform” that sets forth our association’s recommendations for addressing serious problems in the residential appraisal process.
This landmark white paper, completion which was first announced to association members right after the 2013 International Builders’ Show, notes that — because appraisals are governed by multiple public and private entities and ultimately by states — standards and requirements can vary greatly, resulting in a system that is inconsistent, confusing and does not serve consumers well.
To address these problems, a special Appraisal Working Group was established last year to develop formal recommendations for comprehensive residential appraisal reform. Members of the working group included home builders as well as representatives from the financial and appraisal sectors, and input was sought from representatives of every stakeholder group.
Praising the efforts of Appraisal Working Group, co-Chairs Barry Rutenberg and Joe Robson, 2013 NAHB Chairman Rick Judson noted that, “Even as the residential construction industry shows signs of recovery, housing activity is thwarted by an appraisal system that remains dysfunctional and is a major impediment to a stable housing finance framework. Until we see meaningful appraisal reform, the U.S. housing finance system will be operating under unprecedented uncertainty.”
The white paper offers specific recommendations for changes to all aspects of the appraisal system, and will form the basis of our outreach to policymakers as we encourage them to move forward on its proposals. To access the report, visitwww.nahb.org/appraisalwhitepaper.