California appraisal bureau outlines bias reforms, outreach after Fair Appraisal Act

The Bureau of Real Estate Appraisers told a joint Assembly and Senate sunset hearing that it has adopted training, outreach and complaint-tracking measures required by AB 948 (the Fair Appraisal Act) and is preparing to handle additional appraisal complaints tied to recent California wildfires.

The bureau’s work, Bureau and Department of Consumer Affairs officials said, includes a revised complaint form, demographic tracking of appraisal complaints, required courses in cultural competency and elimination of bias for license renewals, and new entry pathways to reduce barriers to the appraisal profession. Kimberly Kirkmire, director at the Department of Consumer Affairs, introduced bureau chief Angela Jamont, who described national and state-level work to identify and reduce racial and ethnic bias in home valuations.

Jamont told the committees she led a statewide educational symposium for appraisal course providers after AB 948 took effect and cited participation by more than 100 attendees from eight states. She described changes to regulations to allow practical experience credits through practicum programs (PREA) and said the bureau signed a memorandum of understanding with the Department of Civil Rights to support bias investigations. The bureau also carried out a June 2023 demographic survey of licensees that drew roughly 2,500 responses — a 27% response rate, Jamont said — to guide outreach and recruitment.

Why it matters: Appraisals affect mortgage approvals and home financing and are linked to household wealth. Lawmakers cited growing evidence that appraisal practice can undervalue properties in communities of color, contributing to long-term inequities that state and federal initiatives are trying to address.

Key details and implementation steps - AB 948 requirements: The Fair Appraisal Act requires that, for sales contracts executed after July 1, 2022, sellers must include a notice to buyers about their right to unbiased appraisal and how to file a complaint with the bureau; it also mandated updated complaint forms and reporting to the Legislature. The bureau reported it submitted the statutorily required report on Nov. 21, 2024. - Training: Beginning Jan. 1, 2023, applicants must complete at least 1 hour of cultural competency instruction, and continuing education renewals must include at least 2 hours of elimination-of-bias training. Jamont said the bureau convened subject-matter experts to prepare those courses. - Entry pathways: Jamont described regulatory changes that added additional entry paths in 2024 to reduce reliance on the traditional supervisory model that disproportionately advantaged people with existing industry connections. - Disaster response: Officials said the bureau has provided fee deferments under an executive order for licensees in fire-impacted ZIP codes and produced a consumer guide and communications link through the Department of Consumer Affairs to assist homeowners and consumers affected by wildfire damage. - Enforcement and workload: The bureau said investigators and consumer information staff will handle incoming calls and complaints; officials expect complaint volume to rise as recovery advances and recommended consumers verify appraiser licenses on the bureau website for federally related transactions.

Funding and grants The bureau said it received a three-year federal grant (first federal grant in its history) capped at $120,000 per year; the bureau reported receiving $76,000 in the initial year. Officials said they will continue to seek federal and other grant funding but did not promise specific fee or statutory changes.

What lawmakers asked and said Legislators pressed the bureau on how it will handle bias complaints and how to prevent predatory buyers and unlicensed appraisal activity in disaster zones. Senator Choi and others asked whether bias in valuations is theoretical; Jamont and witnesses said national studies and media reporting document instances of racial and ethnic disparities in valuations. Committee members also raised workforce and fiscal questions, AI and technology’s role in appraisals, and whether California should move from a non-mandatory to a mandatory licensing state.

Outlook and next steps The bureau is scheduled for statutory sunset review (its statutory authority is set to sunset on Jan. 1, 2026, per testimony) and the committees will consider whether to extend or revise the bureau’s statutory authority, including funding or structural changes. The bureau said it stands ready to provide background studies and data to legislative offices about bias studies and workforce trends if requested.

The hearing moved next to the Department of Real Estate after closing the bureau’s portion of the session.