Appraisal Institute Asks Appraisers For Feedback on Home Valuation Protection Program

The following are excerpts from the Appraisal Institutes's March 4, 2008 Memo: Download AI_Home_Valuation_Code_of_Conduct_Ltr_3-4-08.pdf

Yesterday, the Attorney General of New York, Andrew Cuomo, announced an agreement with Fannie Mae, Freddie Mac and the Office of Federal Housing Enterprise Oversight to establish the "Home Valuation Protection Program" to take effect January 1, 2009. The agreement puts in place several significant, and perhaps monumental, changes to the real estate appraisal process for residential mortgage transactions, including the establishment of the following

The Appraisal Institute strongly supports the efforts of Attorney General Cuomo to work with Fannie Mae and Freddie Mac to reinforce the independence of real estate appraisers and the integrity of appraisals.  Further, we welcome the opportunity to provide input to Fannie Mae, Freddie Mac, the Attorney General, and OFHEO on the development and completion of the plan.

We recognize that many members have concerns about aspects of this agreement, as does the Appraisal Institute.  We also understand that jobs are on the line here, as parts of this agreement may have unintended consequences.  Therefore, please be assured that while the Appraisal Institute already has conveyed some of its concerns to Attorney General Cuomo, we intend to use the upcoming review-and-comment period to further scrutinize the agreements, listen to our members and affect changes that will benefit the real estate appraisal profession.

To that end, the Appraisal Institute will seek feedback from its members to help inform the Attorney General, Fannie Mae, Freddie Mac, and OFHEO of issues and concerns arising from the agreement.  As the leaders of the appraisal profession, you can – and should – play a critical role in identifying problems and defining potential solutions to improve the agreement.  To accomplish this, we intend to reach out to members in a variety of formats.

• First, we have established an e-mail account for you to submit comments and concerns – appraisalcomments@appraisalinstitute.org.
• Second, we will request that this issue be placed on the agendas of upcoming regional and chapter meetings to solicit input directly from members.
• Third, our Research Department will conduct a member survey(s) on key points of concern and interest, such as the impact the agreement will have on business operations of fee appraisers and institutional appraisal departments.   

Download AI_Home_Valuation_Code_of_Conduct_Ltr_3-4-08.pdf