research shows disproportionately impact people in communities of color.” PAVE is a “blueprint for how all Americans can benefit fairly from the equity built through homeownership,” says the report, which was co-chaired by HUD Secretary Marcia L. Fudge and White House Domestic Policy Adviser Susan Rice. After the task force started work last summer, the members sought comments from more than 150 stakeholders, including nonprofits, academics, housing industry professionals and appraisal experts. “As an appraisal management company [AMC], this is our world,” says Cristy Conolly, executive vice president of valuation modernization at Class Valuation, which operates nationwide. “Modernization will be really great for the industry.” Even if some AMCs have concerns, Conolly adds, the thoughtful effort should improve public perceptions of the appraisal industry. “It is long overdue to modernize the appraisal profession,” Conolly says, adding that Class Valuation had been implementing new processes and making changes before the report was released. “This is a great opportunity for all of those who have been working to progress it.” Being Proactive The task force’s various recommendations include enhancing fair housing and fair lending enforcement and accountability, building a well-trained and diverse appraiser workforce, empowering consumers to take action if they suspect bias and giving researchers and enforcement agencies better data to study the trends. The mere fact that 13 federal agencies are working together on the massive initiative shows the importance of the project, says Mark Johnson, president of LRES, a California-based national AMC. All companies involved in the mortgage industry, including lenders, should be aware of what is going on and ensure that employees and all vendors are doing what they can to eliminate any hint of bias or discrimination, Johnson suggests. “You can’t be in the industry and not see its importance and not start putting things into action,” Johnson says. Companies are continually analyzing their practices to see what can be done better. “We have to challenge ourselves, and things are happening prior to any specifics of the new requirements coming down.” For example, he and others say, companies are scanning appraisal documents and data points to ensure that biased language does not exist. Members of the PAVE task force have been proactive, too, with the report noting that some actions, such as improving data sharing and coordination among federal agencies, were implemented soon after they convened last summer. And rules on desktop appraisals were updated in March so they could be implemented nationwide. Yet many recommendations will need to be studied further before clearer guidance is issued. Observers say the agencies probably will release guidance as they are ready, rather than all at once, with more rules coming out through 2022 and next year. “At this stage, the full extent of how PAVE will impact the industry is unclear,” says Joshua Van Horn, senior vice president and chief appraiser at Mortgage Information Services, an Ohiobased AMC that provides title, settlement, valuation and other mortgage-related services. “I am optimistic that the discussions taking place and steps being taken will result in meaningful results for the appraisal industry and the public trust of appraiser professionals.” While no one knows when all the changes will go into effect, Conolly says, AMCs and others are not waiting. “The industry is being proactive by making some changes now—we are seeing what is needed and what is coming and what the concerns are,” Conolly says. “This is something we are taking very seriously.” PAVEing the Way continued on page 30 Joshua Van Horn Cristy Conolly REVERSE MORTGAGE / JULY-AUGUST 2022 29
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