RICS, along with several other appraisal organizations, sent a letter to the Federal Reserve, Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency requesting that the agencies hold a public meeting as part of the process to determine whether to increase the residential appraisal threshold from $250,000 to $400,000, the company announced.
In its letter, RICS stated that appraisals that are completed to a common standard help in providing transparency – and a public hearing on the matter will only serve to strengthen trust in the policy decisions that have the potential for real impact on consumers’ lives.
“In an environment that is rife with uncertainty, transparency is crucial,” said Michael Zuriff, head of regulation at RICS, in the letter. “Appraisals that are completed to a common standard help in providing that transparency – and a public hearing on the matter will only serve to strengthen trust in the policy decisions that have the potential for real impact on consumers’ lives.”
In the letter, the organizations point to the recently concluded Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) process’s findings that no increase in the threshold was merited, driven in part by broad stakeholder opposition to such an increase. In addition, the organizations emphasize that a change in market dynamics and subsequent action by Congress has reduced pressure on the demand for appraisal services, and that a public hearing would be useful for all parties to better understand the current rationale for the proposed increase.
The following organizations also were part of the letter:
- American Society of Appraisers
- Appraisal Institute
- American Society of Farm Managers and Rural Appraisers
- MBREA The Association for Valuation Professionals
- American Guild of Appraisers, OPEIU, AFL-CIO
- Appraisers’ Coalition of Washington
- California Coalition of Appraisal Professionals
- Illinois Coalition of Appraisal Professionals
- Louisiana Real Estate Appraiser Coalition
- North Carolina Real Estate Appraiser Association
- Northern Colorado Association of Real Estate Appraisers
- North Dakota Appraiser Association
- Ohio Coalition of Appraisal Professionals
- South Carolina Professional Appraisers Coalition