WASHINGTON, June 7, 2018 /PRNewswire/ -- The Appraisal Foundation today convened the largest national gathering of organizations with an interest in valuation to provide a forum on emerging appraisal issues. Representatives from the Foundation's two advisory councils, representing approximately 100 companies, non-profit organizations, and government agencies, were in attendance to hear presentations and exchange thoughts on two high profile topics in today's marketplace: appraisal waivers and hybrid appraisals.
The morning panel featured representatives from Fannie Mae and Freddie Mac, both of which now accept certain loans without a traditional appraisal, instead relying on automated valuation models or other valuation tools. Panelists discussed the circumstances under which appraisal waivers are allowed and the processes used to evaluate the risk associated with the underlying collateral. In addressing audience concerns about the rapid increase in appraisal waivers, panelists noted the purposeful guidelines and parameters that surround these products. Panelists also encouraged continued collaboration and input among stakeholders as the profession moves forward with modernization efforts.
The luncheon panel featured representatives from LIA Administrators & Insurance Services and Moody's Investors Service, who focused on the impact of hybrid appraisal assignments. As appraisers are increasingly being asked to provide an opinion of value based on an inspection provided by another party, the panelists discussed the level of risk associated with these types of assignments, the lack of information available regarding those who complete the inspections, and the potential degradation of the resulting analyses. Responding to this increased risk, panelists suggested diligence on the part of appraisers and investors in monitoring any increased usage of hybrid appraisals, which are a new arrival to the market.
President of The Appraisal Foundation David S. Bunton stated, "We were extremely pleased to provide this forum as part of our mission to preserve public trust in the valuation profession. We believe this unique opportunity to hear from key stakeholders about these new developments was warmly received by the attendees."
About The Appraisal Foundation
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.
Contact: Paula Douglas Seidel
SOURCE The Appraisal Foundation