Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
Banks and appraisal groups urge careful fixes as committee considers reconsideration-of-value process
Loading...
Summary
SB 8-17 would create a reconsideration-of-value process allowing sellers or agents to submit additional comparables when an appraisal is expected to fall below contract price; banks and valuation groups urged amendments to protect appraiser independence and align with federal standards.
Senate Bill 8-17, presented by Senator Antonio Hayes, would add a reconsideration-of-value (ROV) step to Maryland’s appraisal process modeled in part on federal and VA reconciliation procedures, allowing sellers or their agent to submit additional comparable-sales data when an appraiser preliminarily flags a possible low valuation.
“Under the bill… the appraiser must notify the designated point of contact and interested parties before completing the report,” Senator Hayes said, describing a process to submit additional market data that supporters say will reduce appraisal-related transaction failures in communities of color.
Robert Enton for the Maryland Bankers Association and Mark Shifman of the Real Estate Valuation Advocacy Association supported the policy in concept but raised concerns about conflicts with federal appraisal rules and the risk of undermining appraiser independence. Enton noted the process is heavily regulated and urged a carefully drafted approach. Lisa May (Maryland Realtors) asked for clarity on practicable timelines and how a homeowner or unrepresented party could reasonably compile a comparable-grid within the bill’s proposed window.
Next steps: Witnesses said they were willing to work on amendments; the committee closed testimony and will consider changes to protect independence and ensure procedural clarity.
