NAHB Seeks Reform Of Residential Appraisal System

Posted by Orb Staff on February 21, 2013 No Comments
Categories : Residential Mortgage

13345_appraisal NAHB Seeks Reform Of Residential Appraisal System Serious problems in the residential appraisal process must be addressed in order to restore confidence in the residential real estate market and to establish a foundation for sustainable growth of the U.S. economy, according to a new white paper from the National Association of Home Builders (NAHB).

The white paper, titled ‘Comprehensive Blueprint for Residential Appraisal Reform,’ observes that appraisals are regulated by the states, so standards and requirements vary greatly, resulting in a system many people consider as being inconsistent and confusing. The white paper is the product of the NAHB Appraisal Working Group, which was formed last year to develop recommendations for comprehensive residential appraisal reform.

‘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,’ says Rick Judson, NAHB chairman and a home builder from Charlotte, N.C. ‘Until we see meaningful appraisal reform, the U.S. housing finance system will be operating under unprecedented uncertainty.’

The Appraisal Working Group addressed the need for reform in four areas: regulatory framework and oversight; data and technology; professional standards; and practice, process and procedures.

In its white paper, the Appraisal Working Group states that the regulatory framework for real estate valuation needs to foster more effective oversight of standards, guidance and enforcement. The white paper's goals are to better integrate and streamline the existing requirements set forth by various entities to ensure that residential appraisals occur in a coordinated and effective manner and are subject to uniform and consistent standards.

The white paper is now available online.

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