What largely regulates the appraisal profession?

The appraisal profession is largely regulated by FIRREA, which stands for the Financial Institutions Reform, Recovery, and Enforcement Act. This legislation was enacted in 1989 in response to the savings and loan crisis and introduced significant reforms in various areas of the financial sector, including real estate appraisals. FIRREA established a regulatory framework that requires federally regulated lenders to use appraisers who are licensed or certified, promoting a standardized approach to the appraisal process in residential and commercial real estate transactions.

Additionally, FIRREA led to the establishment of the Appraisal Standards Board and the Appraisal Qualifications Board, which set the minimum education, experience, and examination standards for appraisers. This regulation helps ensure quality and uniformity in appraisals, significantly impacting the reliability of property valuations for mortgage lending and real estate transactions. The structured oversight created by FIRREA has become a foundational element in maintaining the integrity of the appraisal profession across the United States.