A U.S. House subcommittee is considering ways to modernize housing appraisal laws. East central Missouri Congressman Blaine Luetkemeyer says the last meaningful update to the appraisal system was in 1989.
“The finance mortgage system has changed and alternative valuation methods are more advanced than ever. Yet when it comes to the regulatory regimes surrounding appraisals, it seems we’re stuck in 1989,” says Luetkemeyer. “Personally, I’d like to see a more state-centric model of regulation. One that cuts some of the federal bureaucracy hovering above appraisers today.”
The Appraisal Institute wants a less complicated approach. It says regulations are overwhelming appraisers and proving to be counter-productive for the profession and for users of appraisal services. The institute suggested that Congress realign the system with those of the real estate and mortgage industries.
“Appraisals are one of the cornerstones of the home buying process. Issues that impact appraisers also impact nearly every American buying or selling a home, in rural and urban areas, in high and low-income neighborhoods,” says Luetkemeyer. “These issues affect lenders, homebuilders, real estate professionals and ultimately the health of the American economy.”
Luetkemeyer, of St. Elizabeth, says the regulations result in consumers suffering from increased turnaround time, delays in loans and higher costs for consumers. The Republican’s district covers 13 Missouri counties.