In November 2016, representatives of the Appraisal Institute (AI) testified before a subcommittee of the House Financial Services regarding modernizing the US appraisal regulatory structure. The AI believes there are many ways to improve appraisal quality, reduce business costs and address fundamental appraisal issues in an effort to slow the tide of appraisers leaving the profession. To quote, “appraisers are being choked by rules and regulations in nearly every facet of their business.”
Since regulation and licensing of real estate appraisers in the early 1990s, appraisers have ended up paying for the operation and maintenance of the regulatory structure through licensing/renewal fees, increasing course requirements and CE credits and mandates to purchase rules and regulations that are revised every 2 years. The ever-changing license requirements, over regulation by national and state appraisal oversight and increases in license fees and course costs to maintain licensure, have become a disincentive to entering the profession. The profession is quickly becoming unprofitable and overly regulated. The AI cites that active appraisers have decreased 22.7% from 2007 to 2016 and another 20-25% decrease is expected over the next 5-10 years.
The AI is recommending an overhaul and modernization of the real estate licensing and regulatory guidelines. To read more about the “modernization” of the industry recommended by the AI, click on the link below.
