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Assessment team takes on regulators, hires new leadership from within


The appraisal industry is about to change top rule body –, just not the kind regulators or critics want.

Assessment Foundation, whose theme is Washington steps up scrutiny A new president was named this week due to his ability to deal with bias-related issues in the home appraisal field. Current senior vice president Kelly Davids will be promoted to the organization’s top job.

Kelly Davids, deputy to the president of the Assessment Foundation, has been appointed to take over as head of the panel.

Davids, who has served as the foundation’s second-in-command since 2013, will succeed current president Dave Bunton, who has led the nonprofit for more than 30 years. SheDavids will officially take the helm on March 31, and Bunton will move into what the organization says is a senior advisory role.

The Appraisal Foundation is a private organization created under regulatory reform programs in the 1980s and is tasked with developing standards used by appraisers nationwide. These appraisals evaluate the value of a home’s collateral, which is a key factor that banks and other mortgage originators must consider when making loans.

At Monday’s foundation board meeting, Dayton Nordin, chairman of the organization’s presidential search committee, said Davis is uniquely qualified to lead the foundation.

“We know it’s difficult for external candidates to bring a level of knowledge to the table, but Kelly was able to bring that to the table and we think that’s really important, especially in this time of huge change in the profession and the amount of scrutiny that needs to be done in the profession. ,” Nordin said at the meeting.

Davis’ appointment as director of the Consumer Financial Protection Bureau comes a week after Rohit Chopra criticizes evaluation foundation In a written report, the foundation was described as “an isolated institution controlled by a small circle and operating behind closed doors.” Regulators also raised questions about the foundation’s search for a chairman, which began in earnest last year.

In an interview with American Banker, Nordin said the committee was well aware that the decision to recruit from within would draw criticism, but ultimately chose to ignore those voices and pursue what it believed was best for the organization.

“we decide [the optics] “It can’t be the only criterion in the sole decision. It carries a lot of weight, but it’s one of many factors that we have to consider,” Nordin said. “We realize that those who are going to be the naysayers, we’re going to have a hard time with this. Being negative about the process, we’re going to be negative about it no matter what.”

In a written report released last week, Chopra accused the foundation of ignoring calls from the federal Financial Institutions Examination Committee. The Federal Financial Institutions Examination Board is an interagency supervisory agency composed of the CFPB, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and national banks. Credit Union Administration – Expands search to include external candidates.

“The assessment foundation failed to fully disclose essential details or meaningfully address [FFIEC’s Appraisal Subcommittee] There is no reason to have confidence in the leadership selection process,” Chopra wrote.

These comments are not the first questions Chopra has raised with the Assessment Foundation.Last year, during four hearings on bias in the assessment industry, the head of the CFPB denounced the organization “Byzantine” structure This shields it from liability.

Nordin said the foundation is accountable to a number of “stakeholders,” including entities inside and outside the assessment industry, as well as the Assessment Subcommittee, also known as the ASC. He said the executive search committee and its external consultant, executive search firm Associate Strategies, were in regular contact with the ASC throughout much of the process.

Nordin said regulators’ dissatisfaction with the foundation stems from the foundation’s reluctance to cede control of the recruitment process to the government.

“We were reluctant to cede control of the process to the ASC, it was completely inappropriate, and they made demands at times,” Nordin said. “But we were very open and reached out many times.” Asked for their input and Ask them what they think about everything. “

Yes, some appraisal professionals want greater change within their organizations, but they are disappointed with the decision to hire from within.

New York appraiser Jonathan Miller said the foundation’s move showed the group’s foundations were not swayed by the many calls for reform in Washington and elsewhere in the country.

“The fact that the search committee made no effort to expand the process beyond the organization suggests that they intended from the outset to designate Kelly Davis as Dave Bunton’s successor,” Miller said. “This only furthers this.” Deteriorating public trust in organizations and professions.”





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