For Immediate Release
June 6, 2019
(Washington, DC) – The Appraisal Foundation, the nation’s foremost authority on the valuation profession, is pleased Senator John Thune (R-SD) introduced legislation in the U.S. Senate to improve the process of obtaining Federal Housing Administration (FHA)- insured mortgages and increase the number of real estate appraisers, particularly in rural areas that face severe shortages.
SB 1722 will allow licensed real estate appraisers to once again perform FHA appraisals. Currently, only certified appraisers, who must meet higher qualifications, are the only appraisers permitted to perform the work as a result of National Housing Act of 2008. Prior to passage of that law, FHA-backed mortgage appraisals could be conducted by both certified and licensed appraisers.
The two largest secondary mortgage market enterprises, Fannie Mae and Freddie Mac, allow licensed appraisers to conduct appraisals for mortgages bought by their organizations.
“Restoring the ability of licensed appraisers to perform appraisals for FHA mortgages is a positive move for the consumer, the federal government and the appraisal profession,” said David Bunton, President of TAF. “Licensed real estate appraisers are fully qualified to perform FHA appraisals and allowing them to do so will increase the number of professionals available to meet the demand for their services. That should result in quicker and more efficient closings for FHA loans,” he added.
“We applaud Sen. Thune and the bill’s co-sponsors for recognizing the need to provide more appraisers and offering a solution to a problem that is especially acute in rural areas,” said Bunton.
The number of active Licensed Residential real estate appraiser credentials fell by 74% from 2006 to 2018, according to data from the Appraisal Subcommittee. The reduction was most pronounced in rural areas, where licensed real estate appraisers often work in multiple trades or professions such as real estate brokerage, insurance, notary public and appraising.
“When part-time appraisers were faced with having to meet the higher qualifications for certification, many opted out and let their appraisal license lapse,” said Bunton.
“An increased pool of qualified appraisers is essential to maintaining the safety and soundness of the real estate transaction,” he added.
“The Appraisal Foundation urges the Senate to act promptly on this legislation. Swift passage of this bill will bring immediate relief to consumers, and additional work to real estate appraisers everywhere, especially in rural areas,” Bunton concluded.
The Appraisal Foundation is the nation’s foremost authority on the valuation profession. The organization sets the Congressionally-authorized standards and qualifications for real estate appraisers, and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals. This work advances the profession by ensuring appraisals are independent, consistent, and objective. More information on The Appraisal Foundation is available at www.appraisalfoundation.org.
Media Contact: David Greer
Director of Communications
The Appraisal Foundation
direct phone 202.624.3048