capacity. Some appraisers will schedule out inspections for a couple of weeks and then take the next few weeks off from accepting new assignments until their pipelines clear. Other appraisers, unfortunately, are over-scheduling themselves, which has led to other kinds of issues, such as the inability to follow through on promised delivery dates or address underwriting requests in a timely manner.” Possible Solutions Dingeman believes that pending federal bills could potentially ease the appraiser shortage. “One that may truly help is HR 3008, the Homebuyer Assistance Act of 2021-2022,” he says, which was introduced by Representative Brad Sherman (D-CA). The proposed changes could open up Federal Housing Administration appraisals to thousands of appraisers across the U.S. “And that would be a good thing for all parties.” Although the bill was passed by the House of Representatives, it has been languishing since May 2021 without being considered in the Senate. “To be honest, it could die on the vine,” Dingeman admits. “But as long as HR 3008 remains viable, I believe it’s a step forward that the industry—and the NRMLA membership—should really help to promote.” Technology may offer another helpful step forward. “Due to the industry’s response to COVID, we’re seeing a push toward a lot more digital inspections and more innovation to help assure that those inspections can be performed in a trustworthy manner without physically inspecting the entire property,” Van Horn says. “It’s going to take a while for digital inspections to scale up and become trusted broadly. But I do think they’ll help us all when it comes to efficiently managing capacity, especially if these types of appraisals can be used in scenarios with lower-risk loans.” Unbiased Appraisals Whether appraisals are conducted online or in person, customers expect that every appraiser will bring the same high level of quality and professionalism to the task. That has not always been the reality, however. LRES (Orange, CA) President Mark Johnson says, “There are arguments emerging that suggest, if you look back over the last decade or two, you will find areas of discrimination within the appraisal process.” To address the situation, the federal government is now assessing past practices for examples of bias and investigating whether discrimination is continuing to occur today. In June 2021, President Joe Biden tasked Department of Housing and Urban Development (HUD) Secretary Marcia Fudge with leading an interagency initiative— known as the Property Appraisal and Valuation Equity (PAVE) task force—to address inequity in home appraisals. Fudge is co-chairing PAVE with Domestic Policy Council (DPC) Director Susan Rice. According to the official directive, “The effort will seek to utilize, quickly, the many levers at the federal government’s disposal, including potential enforcement under fair housing laws, regulatory action and development of standards and guidance in close partnership with industry and state and local governments, to root out discrimination in the appraisal and home buying process.” Along the way, Johnson says, “The task force will probably interview NRMLA members to get our feedback and dig into other industry data to determine whether there is support for signs of racial or other types of discrimination or bias.” The task force is expected to deliver its report in 2022, describing the extent, causes and consequences of undervaluing properties while presenting recommendations for corrective actions. The Challenge of Scheduling The need for fair and unbiased appraisals is only one facet of what it means to deliver a positive experience for appraisal customers, a goal that is increasingly tested as many appraisers see their schedules overflowing. “There are a number of things we all can do to help the consumer have a positive experience within the appraisal process,” Johnson continues. It begins, he believes, with improved communication, starting with the very first phone call. Appraising continued on page 26 Mark Johnson REVERSE MORTGAGE / MARCH-APR I L 2022 25
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