On June 28, 2012, Frank Gregoire testified before the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity on behalf of the National Association of REALTORS® (NAR). Mr. Gregoire is an appraiser member of NAR and two-time Chair of the Appraisal Committee (now the Real Property Valuation Committee). The hearing was focused on appraisal oversight and the regulatory impact on consumers and businesses. The Appraisal Subcommittee, the Association of Appraisal Regulatory Officials (AARO), and the US Government Accountability Office (GAO) testified on the first panel. The second panel was made up of appraisal industry trade associations including NAR, the Real Estate Valuation Advocacy Association (REVAA), the Appraisal Institute (AI), the National Community Reinvestment Coalition (NCRC), the Appraisal Foundation (TAF). You can find all witness testimonies here.
NAR testified on concerns with the appraisal profession, particularly the role being played by appraisal management companies (AMCs). Other issues include the credible valuation of real property, including appraiser competency and local market knowledge and challenges in accurately estimating market value in stabilizing markets. Developing and reporting property values more accurately is critical to improving market performance, reducing risk and strengthening the housing finance system. Mr. Gregoire said “REALTORS® know that an accurate appraisal is an important part of the home buying process and that a strong and independent appraisal industry is critical to restoring faith in the mortgage origination process.”
NAR has long been proactive in ensuring credible valuation of real property for our industry and embrace an all-encompassing approach. Appraisals are the gold standard for mortgage origination but there is an important role for broker price opinions (BPOs), comparative market analyses (CMAs) and automated valuation models (AVMs). Through our subsidiary, REALTORS® Property Resource (RPR), and our Valuation Committee, NAR is able to provide comprehensive sets of data and tools for determining credible home values.