April 23, 2018
Appraisal Waiver Request Denied by
Good news - As
per Bill Garber, Director of Government and External Relations for the
Appraisal Institute, the Appraisal Subcommittee (ASC) rejected TriStar
Bank's temporary appraisal waiver request on April 23, 2018.
As per Mr.
Garber, at least two ASC board members spoke to the point that the
turnaround time saved as a result of granting the request was too small to
justify it. In addition, a sizeable group of Tennessee appraisers called
into question some of the data provided to justify the waiver. The same
Tennessee appraisers expressed a willingness to work with TriStar to
improve turnaround time.
Society was among a group of Appraisal Organizations who also voiced
opposition to the request.
April 1, 2018
TriStar Bank Requests ASC to Consider Appraisal Waivers in Rural
A lot has been happening since our last
In November 2017 Tristar Bank requested that the Appraisal
Subcommittee (ASC) consider exempting their bank from
existing appraisals requirements under Section 103 of S.2155
due to a shortage of appraisers in rural areas.
In December, 2017 Fannie Mae implemented its Property Inspection Waiver (PIW),
offered through its Desktop Underwriter program, for certain
refinance loans. The PIW offer, issued through Fannie Mae’s
Collateral Underwriter (CU) on loans that are found to have
a qualifying risk score, will give lenders more freedom from
representations and warranties, according to Fannie Mae.
On March 12, 2018
a Coalition of Appraiser Groups (including Columbia Society)
sent a letter to the Committee on Banking, Housing and Urban
Affairs opposing the Appraisal Waiver bill.
On March 14, 2018 the Senate passed the Appraisal Waiver bill.
It now sits in the House for further review.
On March 16, 2018
The Appraisal Foundation sent a letter similar to the one
sent by the Coalition to the ASC.
Click on the links below to read the letters.
Letter from Coalition of
Appraiser Groups to Committee on Banking, Housing and Urban Affairs
Letter from The Appraisal Foundation to ASC
Call to Action
- Speak out about Fannie Mae/Freddie Mac Initiative to Waive Appraisal
Freddie Mac & Fannie Mae have embarked on programs that waive appraisal
requirements in first purchase and refinance transactions, using propriety
models and generally unreliable data from MLSs and public records for
collateral risk decision making. According to Fannie & Freddie, this is
being done to lower costs and shorten closing time for consumers. While
Fannie Mae has indicated the appraisal waivers will represent only 5 percent
of their loan portfolio, Freddie Mac has thus far being unwilling to provide
estimates, indicating that as much as one-third of their portfolio may be
offered appraisal waivers. These programs will create unnecessary and
unacceptable risks for taxpayers and homeowners, and they come at a time
when markets are at all-time highs and when risk mitigation should be
Let Congress hear from you if you are against the Freddie Mac and Fannie Mae
Contact Your Congressional Representatives
September 6, 2017
Industry Groups Attempt
to Halt Fannie Mae and Freddie Mac from Implementing Appraisal Waivers
Today 35 industry groups, including the Columbia Society of Real Estate
Appraisers, sent a letter to the Senate Committee on Banking, Housing and
Urban Affairs, and to the House Committee on Financial Services, attempting to
prevent the new appraisal waiver programs being implemented by Fannie
Mae and Freddie Mac. The waivers are being allowed for loans where
Fannie and Freddie feel there are sufficient loan-to-value ratios and enough
in-house data to warrant Automated Valuation Models (AVMs) instead of
The industry groups disagree. They
feel that full appraisals are needed to safeguard taxpayers and homeowners
in the home-buying process.
Read the Letter
December 21, 2016
William Green Spearheads Effort to Stop Appraisal De Minimis
Columbia Society National President William H. Green III,
on behalf of the Columbia Society of Real Estate Appraisers and ten
other appraiser groups who are Sponsors of The Appraisal Foundation,
sent a letter to Janet Yellen, Chair of the Board of Governors of the
Federal Reserve, in response to a recent statement from Chair Yellen
addressing a possible change to appraisal requirements, specifically
raising the de minimis from $250,000 to $500,000. The groups
requested a meeting with Chair Yellen to discuss the detrimental
effects of such an increase and are awaiting feedback from her group.
July 15, 2015
William Green Heads Up Appraiser
Regulatory Reform Group - Industry Leaders Endorse White Paper
Over the past year, a select group of professional
appraisal organizations including Columbia Society have met to
discuss what are jointly viewed as major problems facing our
appraisal profession. The effort was headed up by Columbia
Society's National President William H. Green III. The results of these discussions are outlined
in an industry paper entitled Regulatory Issues Affecting the
Real Estate Appraisal Profession, originally released April 30,
2015. The paper, along with a summary document and a
letter to federal legislators, are linked below.
Full White Paper