The appraisal industry plays a big part when it comes to buying a home. The Interagency Task Force for Property Appraisal and Valuation Equity (PAVE), part of HUD, developed an action plan to hold the appraisal industry more accountable and help homeowners and homebuyers with the appraisal process. Thirteen federal agencies, including the U.S. Department of Housing and Urban Development, have pledged to keep this action plan going.
The PAVE action plan will help hold the appraisal industry more accountable. They have put a plan into the works that will “enhance oversight and accountability of the appraisal industry.” For years the industry has run under self-regulated processes which are ineffective in the long run.
The plan will give homebuyers the necessary tools and information in order to be successful in the appraisal process. PAVE will help homeowners with negative reports by not only explaining the problem but also suggesting a course of action to resolve it.
The industry itself also needs to be reevaluated. It is one of the least diverse professions in the country. According to the Department of Labor’s Bureau of Labor Statistics, the appraiser/assessor profession is roughly 97% white, making it one of the least diverse professions in the country. PAVE has come up with a solution that will remove some of the unnecessary educational and experience requirements that make it harder to get these positions. PAVE wants the underrepresented groups to join the industry and help those currently in the profession with anti-bias, fair housing, and fair lending training.
