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Bill to create appraisal 'reconsideration of value' process divides lenders, appraisers and civil-rights advocates
Summary
Delegate Kim Taylor presented HB1299 to establish a formal reconsideration-of-value process for residential appraisals after concerns about appraisal bias; community advocates urged the measure while appraisers, lenders, and appraisal-management companies warned it could conflict with federal appraisal-independence rules and urged alignment with federal ROV procedures.
Delegate Kim Taylor presented House Bill 1299 as part of a suite of measures addressing appraisal and valuation equity. The sponsor said HB1299 would create a structured reconsideration-of-value (ROV) process allowing sellers or homeowners to submit additional market data or comparable sales when an appraisal appears inconsistent with market conditions.
"House Bill 1299 builds on last year's work by creating a clear and structured reconsideration of value process that allows parties to provide additional market data and comps when an appraisal appears inconsistent with market conditions," Taylor said, emphasizing that the bill "does not override the independence of the appraiser" but provides a formalized, timely process during the transaction.
Community and consumer advocates described concrete harms from appraisal bias. Zach Alberts of the Center for Urban Families detailed how undervaluation compounds long-term wealth disparities and can lock in neighborhood value erosion. He and other witnesses said the process would create a faster, transaction-era remedy rather than a slow post-closing complaint.
Lenders, appraisers and appraisal-management companies raised operational and legal concerns. Robert Anon (Maryland Bankers Association) and Mark Schiffman (Real Estate Valuation Advocacy Association) urged alignment with federal ROV procedures (Fannie Mae, Freddie Mac) to avoid making loans ineligible for resale; Lisa May (Maryland Realtors) and the Appraisal Institute warned that inserting transaction participants into the appraisal development process risks undue influence on independent appraisers.
Committee members pressed the sponsor on safeguards to prevent coercion and to preserve appraiser independence; the sponsor said the bill copies language from existing reconsideration processes (including some VA and federal examples) and retains prohibitions on pressuring appraisers. Industry groups asked for subcommittee work to align state rules with pending federal legislation and existing agency guidance.
No formal committee vote was recorded in the transcript; multiple stakeholders asked the committee to pursue additional drafting and subcommittee review to resolve operational conflicts before final action.
