Its “blueprint” for reform focuses on streamlining standards and their enforcement, expanding education and training, and upgrading real estate data.
- By John Caulfield - John Caulfield is senior editor for Builder magazine.
A “dysfunctional” appraisal system can be fixed only if its regulatory framework is streamlined, its credentialing standards are made uniform, and the criteria used to ascertain real estate valuations are based on a combination of cost, income, and sales comparisons.
Such are the findings of a white paper released by NAHB on January 24, which spells out the association's “blueprint” for appraisal reform including a host of recommendations formulated last year by a working group comprised of builders and officials from the financial and appraisal sectors.
The goal of reform, NAHB states, is to “rebuild the nation’s housing finance system …, restore confidence in the real estate market, and establish a foundation for sustainable growth in the U.S. economy.”
The working group broke down its recommendations into four areas:
- Regulatory framework and oversight.
- Data and technology.
- Professional standards.
- Practices, processes and procedures
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