What major legislation was designed to improve transparency in the appraisal process?

The Dodd-Frank Act is a significant piece of legislation enacted in response to the financial crisis of 2008, aimed primarily at reducing risks in the U.S. financial system. Among its various provisions, it specifically addresses improvements in the appraisal process by enhancing transparency and protecting consumers. The Act established the requirement for independent appraisals to ensure that valuations are free from undue influence, especially in situations relating to mortgages and lending practices.

This legislation introduced guidelines that mandate appraisers operate with greater independence and integrity, ultimately promoting more accurate property valuations and consumer trust in the appraisal process. The Dodd-Frank Act emphasizes the importance of well-conducted appraisals as a crucial component of the home buying and lending process, aligning the valuation of properties more closely with actual market conditions.

In contrast, the other options listed address different areas within the housing and financial sectors. For instance, the Fair Housing Act focuses primarily on preventing discrimination in housing, while the Community Reinvestment Act aims to encourage banks to meet the credit needs of their local communities. The Real Estate Valuation Act, while relevant to appraisal, does not have the same breadth or recognition in terms of promoting transparency specifically in the appraisal process as the Dodd-Frank Act does.