RICS, along with 15 additional organizations, sent a letter to the Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency requesting that the agencies hold a public meeting as part of the process to determine whether to increase the residential appraisal threshold from $250,000 to $400,000.
"In an environment that is rife with uncertainty, transparency is crucial," said Michael Zuriff, Head of Regulation at RICS. "Appraisals that are completed to a common standard help in providing that transparency – and a public hearing on the matter will only serve to strengthen trust in the policy decisions that have the potential for real impact on consumers' lives."
In the letter, the organizations point to the recently concluded Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) process's findings that no increase in the threshold was merited, driven in part by broad stakeholder opposition to such an increase. In addition, the organizations emphasize that a change in market dynamics and subsequent action by Congress has only reduced pressure on the demand for appraisal services, and that a public hearing would be useful for all parties to better understand the current rationale for the proposed increase.
The following organizations were also signatories to the letter:
Valuations are done on all assets from a single-family home, to the balance sheet of a publicly-traded company, to a Picasso or a maritime vessel. Increasingly, the global nature of transactions emphasizes the need for consistency – across all asset types.
RICS has been an enthusiastic supporter of international standards and the convergence of local standards. We work with partner organizations to build international standards for an increasingly international market. In all cases, we're committed to increasing transparency, strengthening public confidence and ensuring consistent delivery.