Recently members of the PAVE task force and the Senate Financial Services Committee have developed an inappropriate solution to symptoms of inequity in the mortgage industry. They are looking to create a Federal Valuation Agency that will remove any power from the Appraisal Foundation under the Appraisal Subcommittee.

This is an unwarranted power grab by the federal government and is inappropriate and will cause much harm to American Real Estate Values, especially those of minority neighborhoods and rural areas. Many homeowners may become misunderstanding regarding their home values, standards and appraisal requirements will change with strong influences on value. This will create a tremendous amount of distrust among the American public.

The solutions to the current appraisal industry rely on lender policies, individual appraiser actions, and socio-economic improvements for minorities. The answer is not destroy the fundamentals of value, and give power to those that look to profit from it (and there will be).

Read this Testimony by Tobias Peter from AEI regarding refuting any evidence that the PAVE task force and this new legislation relies on.

https://www.aei.org/research-products/testimony/faulty-evidence-and-misdiagnosed-solutions/

The PAVE task force is expecting change in the appraisal industry, without considering the current Fair Housing laws that are in place today and how that affects appraisers and home owners. This is another attempt to blame honest members of the appraisal industry for the shortcomings of lenders, GSE's and failed USPAP policies at the Appraisal Foundation.