BY: Francis X (Rich) Finigan
November 2024
The AQB has implemented in their Real Property Appraiser Qualification Criteria, a new requirement; all appraisers must complete a seven-hour “Valuation Bias and Fair Housing Laws and Regulations” course. Every two-year cycle thereafter, they must complete a four-hour course that revisits the same thematic material.
The following information below contains the details:
Effective January 1, 2026, the Real Property Appraiser Qualification Criteria will require all appraisers, irrespective of classification, to engage in continuing education focused on valuation bias and fair housing laws and regulations. This initiative aims to enhance appraisers’ understanding of historical and contemporary issues related to property valuation disparities and to promote adherence to fair housing principles.
Appraisers must complete an AQB approved course that aligns with the “Valuation Bias and Fair Housing Laws and Regulations Outline” every two (calendar) years. The initial completion of this requirement necessitates a seven-hour course for credentialed appraisers, meaning aspiring appraisers must complete a seven-hour course (plus a one-hour exam) as part of their qualifying education. Subsequent renewals related to this mandate, occurring every two years, require the completion of a four-hour course related to the same thematic element.
The course outline encompasses several key areas:
- Understanding Real Estate Bias: This section delves into the historical roles of various stakeholders—including real estate agents, insurance providers, appraisers, lenders, government-sponsored enterprises, and legislative bodies— and their contribution to practices such as redlining and the enforcement of restrictive covenants. It also examines significant court rulings that had a direct economic impact on property value disparities of protected classes, alongside current public discourse and recent developments concerning valuation bias.
- Federal Fair Housing and Antidiscrimination Laws and Regulations: This segment provides an overview of pivotal laws and regulations, including the Civil Rights Act of 1866, the Fair Housing Act, the Equal Credit Opportunity Act (ECOA), the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), and guidelines addressing Unfair and Deceptive Acts and Practices (UDAP) as well as Unfair, Deceptive, or Abusive Acts and Practices (UDAAP). It also elucidates key legal concepts such as disparate treatment and disparate impact.
- Valuation Bias: This portion identifies various forms of bias—explicit, implicit, and structural—and offers strategies for recognizing and mitigating these biases in appraisal practices.
- Case Studies: This section presents current topics that relate to valuation bias and outlines best practices for avoiding such biases effectively in professional appraisal practice.
By integrating these educational components, this criteria aims to equip appraisers with the knowledge and tools necessary to conduct unbiased valuations, thereby fostering equity and compliance with fair housing laws within the appraisal profession and real estate industry.
Course Completion Timeline:
Appraisers must complete a course that aligns with the “Valuation Bias and Fair Housing Laws and Regulations Outline” every two calendar years. The initial completion of this requirement necessitates a seven-hour course. However, if an appraiser has previously completed a seven-hour course (plus a one-hour exam) as part of their qualifying education, this obligation is considered fulfilled. Subsequent renewals of this requirement, occurring every two years, require the completion of a four-hour course.
But, don’t worry; we will have both of these courses available in the near future in a format that will include relevant case studies and ways to avoid liability.
Good luck and do good work,
Rich