GAO Releases Report on Residential Appraisals

In a July 13, 2011 report entitled "Residential Appraisals: Opportunities to Enhance Oversight of an Evolving Industry", the Government Accountability Office (GAO) outlined recent legislative changes affecting the appraisal industry and opportunities for future regulation and policy guidance on Dodd-Frank mandated appraiser rules.  More specifically, the report covered three areas:

• the use of different valuation methods and their advantages and disadvantages;
• policies and other factors that affect consumer appraisal costs and requirements for lenders to disclose appraisal costs and valuation reports to consumers; and 
• conflict-of-interest and appraiser selection policies and views on the impact of these policies on industry stakeholders and appraisal quality

Concerns about appraiser independence and compensation - particularly low appraisal fees and mortgage originator influence on appraisals - motivated appraiser-related provisions of Dodd-Frank.

The full report is available here.

Read more at Consumer Financial Protection Bureau Report by Troutman Sanders LLP. 

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