Problems that builders are experiencing with the appraisal system were the topic of the day on Jan. 6, when NAHB Chairman Sandy Dunn, accompanied by leaders from the Appraisal Institute, met with credit and appraisal staff at Fannie Mae and later with senior staff of the Federal Housing Finance Agency (FHFA).

Sandy relayed reports of instances where properties are significantly undervalued due to inappropriate use of foreclosure and distressed property sales as comps. She joined the Appraisal Institute in expressing concern that some appraisers do not have sufficient experience and training to undertake the more complex appraisals that are required to establish values in volatile markets. 

Fannie Mae and FHFA agreed to consider steps to address these problems and asked NAHB to provide some specific examples of the problems that builders have encountered. A similar meeting is planned with Freddie Mac. In the meantime, per Fannie Mae's request, NAHB is asking our builder members who have had problems with appraisals to please e-mail us your story at: appraisals@nahb.com.

For more information, e-mail Bill Renner, or call him at 800-368-5242 x8597. [Return to top]