California appraisal regulator highlights bias reforms, disaster outreach and staffing challenges

The Bureau of Real Estate Appraisers told a joint Assembly and Senate sunset review hearing that it has implemented new requirements aimed at reducing racial and ethnic bias in home valuations, added training requirements for licensees and created alternative pathways to licensure.

The bureau said AB 948 (Holden), the Fair Appraisal Act, required that “after July first of 2022, every real property sale contract include a notice informing the buyer of their right to an unbiased appraisal and how to file a complaint with the bureau,” and that it updated its complaint form and tracking as required by the law. “Federal law requires all states to license and certify real estate appraisers who conduct appraisals for federally related transactions,” Bureau presenter Kimberly Kirchmeyer told the committees.

Why it matters: Appraisals affect sales, mortgage approvals and household wealth. Lawmakers pressed the bureau on how it is addressing longstanding concerns about appraisal fairness, the bureau’s finances and its readiness to handle increased complaint volumes after disasters such as recent California fires.

What the bureau said it has done - Training and standards: Chief Angela Jamont described steps to require at least one hour of cultural competency for new applicants and at least two hours of elimination-of-bias training as continuing education for renewals. Jamont said the bureau produced an educational symposium after AB 948 and conducted a demographic survey of licensees that received about 2,500 responses, roughly a 27% response rate. - Regulatory and national engagement: Jamont noted California’s regulatory changes were highlighted by a federal task force (PAVE) and that she has represented the state in national forums to address valuation equity. “California stood out as the only state directly implementing laws and regulation aimed at eradicating equality in the appraisal industry,” Jamont said. - Entry pathways: The bureau implemented new experience-credit pathways (practicums) in 2024 to reduce reliance on the supervisory model, which had been a barrier to diversifying the profession. - Disaster response: The bureau said it has provided license-fee deferrals under an executive order for appraisers affected by fires, created a consumer guide for homeowners in affected areas and coordinated with the Department of Consumer Affairs’ consumer information center to handle inquiries. - Grants and staffing: The bureau reported receiving a three-year federal grant capped at $120,000 per year; it said it received $76,000 in the first year and that it has strengthened investigative capacity for bias complaints.

Concerns and committee questioning Lawmakers repeatedly pressed the bureau on fund and staffing pressures, the effect of artificial intelligence on the profession and whether California should move from a voluntary to a mandatory licensing regime. Committee members also asked how the bureau will handle anticipated complaint volumes from disaster-affected homeowners and whether appraisal costs could be reduced for those homeowners.

Jamont and bureau staff said they are tracking workforce demographics and noted a graying profession and declines in licensees across categories. They argued the new practicum and educational access via community colleges will help increase entry. On AI, the bureau said many appraisers are adopting hybrid tools and that technology can be an aid rather than a replacement.

What the hearing did not decide The committee did not vote on legislation. Members discussed whether the bureau should be continued in law beyond its January 1, 2026 sunset date; that determination remains pending legislative action.

Looking ahead Lawmakers signaled interest in further oversight of the bureau’s funding model and whether additional statutory changes—such as moving California from a nonmandatory to a mandatory appraisal licensing state—would be appropriate. The bureau said it will continue outreach and implementation of AB 948 requirements and provide additional documentation to members who requested empirical studies on appraisal disparities.

Ending note Committee members praised the bureau’s efforts to implement bias training and expand entry pathways but said they will continue to track fund condition, enforcement capacity and consumer outreach in disaster areas.