States that fail to regulate property appraisers will now face federal penalties

The federal government is tightening its oversight of state agencies that regulate property appraisers and appraisal management companies. States that do not effectively oversee these programs will now face enforcement actions and penalties.

For years, the federal government has had the power to review state appraisal programs but lacked clear authority to enforce changes when programs were ineffective. This proposed rule gives the Appraisal Subcommittee the teeth it needs to force states to improve their oversight. This means more consistent appraisal standards across states, which could reduce fraud and ensure fairer property valuations.