In last year’s Real Estate Compliance Outlook special report, we made reference to the idea of fairness as a desired expectation both appraisers and the Consumer Financial Protection Bureau (CFPB) hope can be recognized.

One year later, based on comments by the CFPB, that expectation remains.

For example, CFPB Director Rohit Chopra offered a submission to the Appraisal Subcommittee (ASC) regarding oversight of The Appraisal Foundation (TAF). Additionally, he made critical comments about TAF and its position on appraisal bias.

“The Appraisal Foundation is essentially a lawmaking body that is neither accountable to the public nor subject to competitive market forces,” Chopra stated in his March 18 submission posted on the CFPB website. “These issues are deeply troubling as The Appraisal Foundation is one of the most, if not the most, powerful player in America when it comes to appraisals and plays a controlling role in key issues contributing to appraisal bias. As long as The Appraisal Foundation remains an insular body controlled by a small circle, operating behind closed doors, those issues will continue to go unaddressed.”

Chopra spoke of the ASC appraisal bias hearings in his submission.

“Over a year ago, the ASC kicked off a series of hearings focused on appraisal bias,” Chopra wrote. “Over the course of four hearings, we examined the governance framework and integrity of The Appraisal Foundation, given its outsized impact on the appraisal market for residential real estate.

“Throughout those hearings, the witness testimonies point to an insular and contorted governance structure that all but guarantees that the profession and practices remain out of tune with the needs of housing market, and much less likely to address appraisal bias,” the CFPB director added.

Former TAF President David Bunton said at the time he was “disappointed” the conversation turned to “personal attacks” rather than on ways to work together on the “critical” appraisal bias issue.

“The Appraisal Foundation is committed to developing high quality standards and qualifications that uphold public trust in the appraisal profession,” Bunton said. “We have always operated in a way that promotes transparency and an opportunity for all voices to give input on the standards and qualifications that impact appraisers and the public alike.”

The CFPB did address other matters that can positively affect appraisers. To find out more, read this entire story in our free Real Estate Compliance Outlook in-depth report.