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M R EP O RT | 19 FEATURE M Report had the opportu- nity to chat with Fannie Mae's Williamson and Appraisal Institute President Craig Steinley, MAI, SRA, AI-GRS, AI-RRS, about the topic of appraisal bias, the state of the appraisal industry, and what lies ahead in 2023. In his role with Fannie Mae, Williamson is responsible for over- sight and manage- ment of all end-to-end collateral capabilities. These duties include front-end collateral policy design, loan quality control activities for both credit and collateral, property valuations and valuation modernization, real estate liqui- dation options and Single-Family operational risk oversight. He is also responsible servicing strategy alignment and for performance management of the real estate agents, appraisers, and vendors. As 2023 President of the Appraisal Institute, Steinley serves on the Institute's Executive Committee and chairs the policy-setting Board of Directors. His previous national service includes six years on the Appraisal Institute Board of Directors as a representative from Region II, both as its Vice Chair and Chair. He served on the Audit Committee, including roles as Chair and Vice Chair; on the Strategic Planning Committee; on the Professional Liability Insurance Program Committee; as Region II Third Director; on the Governance Structure Project Team; and on the Professional Standards and Guidance Committee. He also served as President of the Wyoming and Western South Dakota Chapter in 2012 and 2013. Steinley is the Principal of Steinley Real Estate Appraisals and Consulting in Rapid City, South Dakota. He has also been active in the appraiser regulatory arena since the mid- 1990s, including service as the 2018 President of the Association of Appraiser Regulatory Officials. What is the current state of the appraisal marketplace as we head into 2023? Williamson: Building on the les- sons we've learned through test- ing different valuation approaches, we'll continue to introduce updated valuation modernization options this year. In addition, Fannie Mae and Freddie Mac are working jointly on the Uniform Appraisal Dataset redesign, which will establish a more flexible, dynamic structure for appraisal reporting as well as create greater consistency in data collection and standards. Lastly, we expect to see the in- dustry momentum continue with trainee days at industry events and continued outreach to draw new participants into the apprais- al profession through ADI. Steinley: The Appraisal Institute is excited about what this year has in store for appraisers. We are working to modernize our educa- tion delivery systems, revamp our website, and launch an all-new training module in the Appraisal Institute Practical Applications of Real Estate Appraisal (AI PAREA) program. Along with continuing to address unconscious bias in appraisal and working with legislators and regulators at the federal and state levels on issues such as appraisal regulation, the key challenge we currently face is the aging of the profession. I believe that the Appraiser Diversity Initiative will continue to be a major step forward, as AI, Fannie Mae, Freddie Mac, and the National Urban League collaborate to attract new entrants into the profession. I'm excited and optimistic about the future of appraisal, and AI must continue to serve as the valuation profession's thought leader. Working as an apprais- er provides so many amazing opportunities, including flexibility, a variety of assignments, and good earning potential. I believe that this is a terrific profession, both for recent college graduates, younger professionals, and those who are looking for a mid-career change. The Appraisal Institute website (AppraisalInstitute.org) is a great place to learn more about the profession and the great things that will be happening in the coming year. As the spotlight shines increasingly on appraisal bias, have instances of such bias dropped off, or do they remain the same? Williamson: I am excited about the steps the industry and Fannie Mae are taking to reduce the instances of appraisal bias. For us, one key component is leveraging our database of appraisals to an- alyze and track factors that could indicate instances of bias, includ- ing random and targeted quality control reviews of appraisals on loans we acquire. Through our established Appraiser Quality Monitoring (AQM) process, we're able to identify individual ap- praisers whose appraisal reports exhibit a pattern of inconsisten- cies, inaccuracies, or data anom- alies, which we share with the appraisers as an opportunity for them to improve their work. In addition to our routine AQM process, which focuses very heavily on misvaluation issues, in 2021, we scanned 14 mil- lion appraisals from 2019–2020 to determine the extent of appraisers using unacceptable words and language specifically prohibited in Fannie Mae's Selling Guide,