Industry News

Appraisal Institute gives failing grades to industry regulation

Industry group hands its unfavorable appraisal to Congress

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During Congressional testimony Thursday, a representative for the Appraisal Institute handed down a very unfavorable appraisal of industry regulation. Alan Eugene Hummel, immediate past president of the Appraisal Institute, told members of the Senate Committee on Banking, Housing and Urban Affairs that the industry lacks regulatory direction, disclosure and discipline. The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), which was supposed to improve the regulation of the industry, is itself in a sorry state of disrepair, Hummel reported to committee members. In a survey conducted by the Appraisal Institute, an international membership association of professional real estate appraisers with more than 18,000 members and 99 chapters in the U.S., Canada and abroad, about half of the respondents said appraisal quality has declined since the passage of FIRREA, while 28 percent said they saw improvement since the act. While the act was intended to guard agai...