Builder Review Daily is highlighting the top 12 actions taken on behalf of Home Builders so far this Spring.
Accomplishment number 5: Providing Home Builder Recommendations for Resolving Issues Regarding New-Home Appraisals to Congress and Regulators
With faulty appraisals continuing to be a major cause of home sales falling through, NAHB has continued its aggressive outreach to lawmakers, regulators, banks and appraisers on ways to resolve this issue, while our specially tasked Appraisal Working Group has been working to develop new methods to help our members obtain needed financing.
The House Insurance, Housing and Community Opportunity Subcommittee on June 28 held a hearing on appraisal oversight at which NAHB submitted a statement for the record on the need to resolve an appraisal process that has gone seriously awry. NAHB identified the following key areas to improve current appraisal requirements and practices:
Strengthen education, training and experience requirements for appraisers of new home construction.
Improve the quantity and quality of data for new construction.
Develop new appraisal standards and best practices for conducting appraisals in distressed markets.
Develop processes for expedited appeals of inaccurate or faulty appraisals.
Strengthen oversight of appraisal activities.Meanwhile, NAHB’s Appraisal Working Group has continued its work in developing a white paper on improving the accuracy of residential appraisals. This group is chaired by NAHB Chairman Barry Rutenberg and Past Chairman Joe Robson, and includes NAHB members as well as outside experts from the appraisal and lending communities. The group is developing recommendations for changes in the areas of regulation and oversight, appraisal practices and standards, appraiser education and experience requirements, and data and technology. The working group will complete the white paper by this year’s Fall Board of Directors Meeting.