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
Kaufman
Director of Communications
The
Appraisal Foundation
amy@appraisalfoundation.org
direct phone 202.624.3048
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SOURCE The Appraisal Foundation