On March 18, 2024, the CFPB published an article regarding the Appraisal Subcomittee’s’ (ASC) recent hearing on appraisal bias where the committee examined how state and federal regulators can address appraisal bias and increase diversity in the profession. The ASC of the provides federal oversight of state appraisal regulatory programs, and is chaired by CFPB Deputy Director Zixta Martinez.
On February 13, 2024, the ASC assembled a panel of representatives from each of its seven federal financial regulatory member agencies, including CFPB Director Rohit Chopra as representative for the CFPB. During the hearing, this panel asked questions of five witnesses, including the President of The Appraisal Foundation. The Appraisal Foundation is a non-profit organization that establishes requirements for appraisers and rules for appraisals. Recent issues like unclear explanations and weak policies on conflicts of interest have raised concerns about the Foundation's ability to deal with problems like appraisal bias.
The ASC has gathered information about the governance framework and integrity of The Appraisal Foundation over the course of the hearings. Director Chopra then submitted a comment regarding some of the troubling issues highlighted in the hearings and key issues including:
Severe deficiencies in The Appraisal Foundation’s conflict of interest policies raise questions about its regulatory decisions;
The Appraisal Foundation’s insular governance structure favors private interests; and
The Appraisal Foundation’s processes, including the selection of its President, lack transparency.
Read the CFPB’s blog post here.
Read CFPB Director Chopra’s full ASC Hearing Comments can be found here.