WASHINGTON, July 11, 2024 /PRNewswire/ — The Appraisal Foundation concluded a conciliation agreement with the United States Department of Housing and Urban Development (HUD) following the completion of HUD’s investigation of the Foundation’s policies and practices and real property appraiser qualification criteria which began in December 2021 as the result of a rare secretary-initiated political complaint. No findings resulted from the two-and-a-half-year process.
“We are pleased to have reached this conciliation agreement,” said Foundation President Kelly Davids. “We appreciate HUD’s recognition of our proactive efforts to lead the appraisal profession to welcome a new, diverse generation of appraisers and their support of our forthcoming scholarship program to aid new entrants to the field.”
Included in the agreement is a full list of the activities the Foundation has undertaken since 2020, a year prior to the start of the investigation, to promote diversity equity and inclusion in the appraisal profession. This includes:
Creating a Diversity, Equity, and Inclusion (DEI) Special Committee to promote more diversity in the valuation profession.
Hosting a national symposium on fair and affordable housing and appraisal bias.
Implementing the outside DEI consultant’s recommendations to promote diversity on The Appraisal Foundation boards.
Pursuing initiatives with Historically Black Colleges and Universities (HBCU), Hispanic-Serving Institutions (HSI), and educational institutions that attract veterans to create educational programs for aspiring appraisers.
Sponsoring the Appraiser Diversity Initiative, which supports outreach efforts of the Urban League, Fannie Mae, Freddie Mac, and the Appraisal Institute to attract new entrants to the residential appraisal field, foster diversity, and assist with education, training, and experience.
Creating a pathway to become an appraiser and reach the certified appraiser level of credential that does not require a college degree.
Developing a Position Paper, in conjunction with subject matter experts, on Reconsideration of Value that offers proposed best practices for those who wish to build a more relationship-driven and consistent method.
Creating the Council to Advance Residential Equity that brings previously unrecognized stakeholders with a mission of civil rights, fair housing, or consumer advocacy to the table to provide input on proposed changes to standards and qualifications.
Instituting a new process for the public to submit comments, questions, and requests for the boards on any topic at any time.
Adopting the 2024 edition of the Uniform Standards of Professional Appraisal Practice™ (USPAP) which includes a new Nondiscrimination section of the Ethics Rule drafted in consultation with fair housing law firm Relman Colfax PLLC, making it clear that appraisers cannot act with bias and must adhere to all relevant fair housing laws.
Including case studies in the 2024-2025 7-Hour National USPAP Update Course aligned with the new Nondiscrimination section of the Ethics Rule, written in consultation with Relman Colfax.
Adopting and promoting a new, technology-based pathway for aspiring appraisers to obtain experience credit towards fulfilling the experience qualification criteria for becoming an appraiser called the Practical Applications of Real Estate Appraisal™ program (PAREA).
Supporting the approval of the PAREA™ modules as a simulated training alternative for aspiring appraisers to fulfill their experience requirements in 48 states and counting.
Funding the development of a PAREA™ module through the Pathways to Success Initiative that prioritizes serving aspiring appraisers who are people of color, veterans, or those who wish to work in underserved communities.
Adopting changes to the Real Property Appraisal Qualification Criteria that requires valuation bias and fair housing laws and regulations education for incoming and existing credential holders.
Designing resources for consumers to learn more about the appraisal process and how to proceed if they need to make a complaint.
Making significant changes to the Board of Trustees governance structure that includes expanded public interest seats and the separation of financial support from trustee appointment authority, with specific composition goals that include consumer, fair housing, and civil rights advocates; and
Undertaking a second demographic survey of the profession to inform a longitudinal study on diversity across the appraisal profession.
The agreement also provides details on the Foundation’s upcoming scholarship program. This program, a continuation of the Foundation’s Pathway to Success initiative with funding aided by grants and donor contributions, will support aspiring appraisers who are completing their experience requirements through Practical Application of Real Estate Appraisal™ modules. More details, including eligibility and how to apply, will be shared when the program is formally announced.
You can read the full agreement here.
Background: The Appraisal Foundation is the nation’s foremost authority on the valuation profession. The organization sets the Congressionally-authorized standards and qualifications for real estate appraisers, and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals. This work advances the profession by ensuring appraisals are independent, consistent, and objective. More information on The Appraisal Foundation is available at www.appraisalfoundation.org.
Media Contact:Amy KaufmanDirector of CommunicationsThe Appraisal Foundation[email protected]
direct phone 202.624.3048
SOURCE The Appraisal Foundation
