On October 11, the Federal Housing Finance Agency (FHFA) hosted more than 40 appraisal and mortgage industry professionals – ranging from housing industry trade groups, appraiser associations, lenders, data vendors, and government agencies – for a day-long discussion about important appraisal-related topics. In convening this workshop, FHFA's goal was to identify and define the issues and challenges facing the appraisal industry and to explore potential solutions.
The workshop started with a panel of industry experts providing background and perspectives on where the appraisal industry is today, and how it could develop in the future. After a panel discussion with representatives from Fannie Mae and Freddie Mac, FHFA staff facilitated small-group, collaborative roundtable discussions on several topics including: appraiser shortages, licensing requirements, barriers to entry into the profession, and opportunities to modernize the appraisal process.
Under the umbrella of industry challenges, specific issues identified and discussed by industry participants included:
- Licensing requirements and appraiser shortages;
- Low appraisal fees and short turn-times contribute to shortages in rural markets;
- The need for alternative paths to licensure to the college degree requirements;
- A source of meaningful training for new appraisers;
- Adding provisions in licensing requirements that would allow trainees to gain practical experience; and,
- Use of technology to help trainees gain practical experience.
In discussing modernization of the appraisal process and developing possible solutions to current challenges, industry participants shared the following views:
- The need for updated appraisal forms and/or data structures;
- Use of technology to train appraisers;
- Market relevant data, available to the Enterprises, could be provided to appraisers; and,
- Solutions to the appraisal problem that address the gap between the use of automated valuation models and a full appraisal.
Next Steps
Our Appraisal Industry Workshop was meant to be a starting point for conversations that can uncover solutions to meet current industry challenges, provide for a faster, more efficient appraisal process, and identify process changes and technology innovations that can create new opportunities for appraisers and other providers of valuation-related services.
We look forward to continuing this discussion and encourage industry stakeholders to continue sharing their insights.
Tagged: Appraisals; Mortgage
By: Bob Witt
Senior Policy Analyst
Office of Housing & Regulatory Policy