U.S. Rep. Tom Emmer (R-MN) is urging the Federal Housing Finance Agency (FHFA) to reform regulations for home appraisers to reduce the growing backlogs in the homebuying process.
“Over the past 12 years, we have seen a 20 percent to 25 percent decline in the number of registered appraisers, causing homebuyers to face increasing wait times and inflated prices when seeking a home appraisal,” Emmer said.
In a letter to FHFA Acting-Director Sandra Thompson, Emmer called for the FHFA to review the current efficacy of appraisal management company models. These companies often serve as unnecessary middlemen in the appraisal process and can drive up costs for consumers. Emmer also requested that the FHFA further evaluate alternatives to the traditional appraisal, including when and how automated valuations models (AVM), hybrid appraisals, desktop appraisals, and other valuation products could be used safely.
Emmer also called on Thompson to reassess the current minimum educational and professional standards for appraisers, such as the requirement appraisers hold a college degree. Instead, there should be qualification alternatives, Emmer said, to ensure the industry maintains necessary standards without imposing unnecessary barriers for new professional entrants.
“Americans deserve the opportunity to buy a home without hidden costs. The FHFA should use their authority to update and improve the regulations pertaining to the appraiser industry in order to encourage more entrants into the profession, eliminate additional costs on homebuyers, and ultimately strengthen our economy,” Emmer added.