The Interagency Task Force on Property Appraisal and Valuation Equity (commonly known by the acronym PAVE) was created in June 2021 by President Biden, and consists of representatives of numerous federal government agencies, including the Department of Housing and Urban Development (HUD), Department of Veterans Affairs (VA), Federal Deposit Insurance Corporation (FDIC), Board of Governors of the Federal Reserve System (FRB), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and the Appraisal Subcommittee (ASC).
Co-chaired by current HUD Secretary Marcia Fudge and former U.N. Ambassador Susan Rice, the PAVE task force is intended to “utilize, quickly, the many levers at the federal government’s disposal, including potential enforcement under fair housing laws, regulatory action, and development of standards and guidance in close partnership with industry and state and local governments, to root out discrimination in the appraisal and homebuying process.”
During the last several weeks, the task force has held online “listening sessions” to solicit feedback from appraisers, lenders, and other stakeholders in the residential mortgage lending industry. These sessions were well-attended and featured some spirited discussion; participants included some of the most respected names in the appraisal profession.
The task force itself does not have the authority to pass laws or promulgate regulations. Many of the individual agencies represented on the task force (HUD, VA, FDIC, CFPB, etc.) have regulatory authority; hence it is likely that some of the recommendations of the task force will be adopted by the agencies through the regulatory rule-making process. Also, some of the task force’s recommendations could be introduced as bills in Congress.
According to the White House, the PAVE task force will issue a final action report in early 2022 that “proposes a set of policy recommendations and consumer-facing actions that participants can take to advance racial equity in the appraisal process.” While no one knows exactly what the task force will put forth, many observers believe that their recommendations will result in the most significant changes to the appraisal profession since FIRREA. Stay tuned.
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