NCRC to Testify Before Congress on Need to Reform Appraisal Process
Washington, DC – Today, David Berenbaum, Chief Program Officer of the National Community Reinvestment Coalition (NCRC), will testify in a hearing before the Congressional Subcommittee on Insurance, Housing, and Community Opportunity. In the hearing, entitled Appraisal Oversight: The Regulatory Impact on Consumers and Businesses, NCRC will call upon Congress to enact a series of reforms designed to improve the appraisal process for all Americans, and particularly for low to moderate income communities and communities of color. NCRC will be the sole consumer organization represented at the hearing.
“Inflated and inaccurate appraisals contributed to the foreclosure crisis,” said John Taylor, NCRC President and CEO. “Americans deserve to have an independent and accurate appraisal process where the industry is not inappropriately influenced by lenders, and where buyers, renters, lenders and sellers receive sound information. While the use of Automated Valuation Models in the appraisal process has grown, appraisals that are automated do not serve the American public except in rare instances. We call upon Congress to take action to make this process more unbiased and effective.”
“The time has come for members of Congress, the prudential regulators, the Appraisal Subcommittee and the Consumer Financial Protection Bureau to work collaboratively to implement the ten recommendations that we testified to today to ensure that consumers and all the industry stakeholders involved in the home buying and refinance process will benefit from a system of regulation that helps ensure the independence and integrity of the appraisal process,” said David Berenbaum, NCRC’s Chief Program Officer.
In 2005, NCRC released a report entitled “Predatory Appraisals – $tealing the American Dream,” which exposed appraisal overvaluation as both a significant consumer protection and safety and soundness issue.
The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America’s working families. To find out more, visit http://ncrc.org