Sixteen appraisal organizations have called on the federal bank regulators to hold a public meeting on a proposal to reduce the scope of residential real estate transactions that require an appraisal.
In November, the Federal Reserve, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency proposed raising the threshold on transactions requiring a lender to arrange for an outside appraisal from $250,000 to $400,000. But appraisers have argued that that change could thin their ranks and result in less reliable valuations.
Appraisal industry groups — including the American Society of Appraisers, the Appraisal Institute, and the American Society of Farm Managers and Rural Appraisers — sent a letter Thursday to the bank regulator agencies requesting a hearing to understand the reason behind the proposed increase.
“We feel strongly that a hearing is not only appropriate but necessary for the agencies to have as complete a record as possible upon which to base their decision on regarding this proposal,” Robert Morrison, the international president for the American Society of Appraisers, said in a statement.
Read more in American Banker.