The President of the National Association of Realtors®, Charles McMillian, testified today before the House Committee on Financial Services’ Subcommittee. In his remarks, President McMillan spoke in support of Appraisal Independence and in favor of managing Appraisal Management Companies.
According to his written testimony:
The “Mortgage Reform and Anti-Predatory Lending Act of 2007” and the HVCC both work towards a strong and independent appraisal industry yet fail to mention the regulation of appraisal management companies (AMC). In many states these companies operate without oversight from any level of government. In fact, the HVCC was a response to inappropriate activities by an AMC with Fannie Mae and Freddie Mac.
NAR will likely support the regulation of AMCs by the states through the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). This may include requiring AMCs to maintain a licensed or certified appraiser in the state where the AMC is doing business.
According to our lobbyists in DC, McMillan’s testimony focused primarily on appraisers and how to improve the appraisal profession. When the President of the most powerful real-estate association in DC speaks in favor of your issues, that’s a good thing.