Consumer Financial Protection Bureau Director Rohit Chopra today questioned the suitability of having an independent not-for-profit set house appraisal requirements throughout the nation, recommending regulators might wish to take a better take a look at the plan in the future.
The Appraisal Foundation is a nongovernmental, expert body with a congressional required to set appraisal requirements and minimum realty appraiser credentials, which are embraced by states. During a hearing on appraisal predisposition by the Appraisal Subcommittee, Chopra—a committee member—asked a number of pointed concerns about the structure and its financing structure, which originates from costs paid by member companies and the sale of expert publications to appraisers. The CFPB director stated he had actually spoken with appraisers who think the structure’s costs were extreme. He likewise kept in mind that the subcommittee—which is made up of federal regulators—had little state over the structure or the appraisal requirements it sets.
“I think not many people understand how this Byzantine system works,” Chopra stated. “And I think it is something we really need to think about, whether it is appropriate for this type of fee structure and for there to be payments, including relating to governance. That raises a lot of questions for this subcommittee, for regulators, and I think for future hearings.”