Large Bank Supervision Forum 2023

PAVE & PAREA – A CRE Valuation Risk to Monitor – PAREA vs USPAP?

On June 1, 2021—the 100th anniversary of the Tulsa Race Massacre—President Biden announced he was launching an interagency initiative to combat bias in home appraisals. This initiative became the Interagency Task Force on ,,, Property Appraisal and Valuation Equity (PAVE). PAVE is a first-of-its-kind interagency task force dedicated to ending discrimination in home valuations. The task force includes 13 federal agencies and is chaired by Director of the Domestic Policy Council Ambassador Susan E. Rice and the U.S. Housing & Urban Development Secretary Marcia Fudge. Why isn’t PAVE focused on LENDERS and GSEs as they hire, review, and accept the appraisals. Where was bank appraisal review process on appraisal bias & discrimination?

Practical Applications of Real Estate Appraisal (PAREA) PAREA provides another pathway for aspiring appraisers to fulfill their experience requirements . The Appraiser Qualifications Board created the program as an alternative to the traditional supervisor/trainee model for gaining appraisal experience. What is PAREA? The Criteria and Guide Note for PAREA was adopted by the AQB on October 16, 2020 and became effective January 1, 2021. You can read the exposure draft which led to the adoption of PAREA and the revised Criteria .

https://pave.hud.gov/about

https://www.appraisalfoundation.org/

https://mn.gov/commerce-stat/pdfs/parea-overview.pdf

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Appraisal Shortage & Lack of DEI: The Options ignore COMPETENCY!

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