Securities and Exchange Commission Agrees to Meet with American Society of Appraisers on Valuation Requirements for Asset-Backed Securities

The American Society of Appraisers addresses concerns about the Securities and Exchange Commission's proposed rule. End Quote

(1888PressRelease) October 01, 2010 - Herndon, Va - The Securities and Exchange Commission (SEC) has proposed a rulemaking to increase the quality of information available to investors in asset-backed securities. This includes information on the value of property collateralizing loans that comprise the pools of securities. The American Society of Appraisers (ASA) believes the valuation requirements in the proposed rule are deficient and must be strengthened in order to effectively protect investors from inappropriate risk. Therefore, on July 30, 2010, ASA, in conjunction with the American Society of Farm Managers and Rural Appraisers (ASFMRA) and the National Association of Independent Fee Appraisers (NAIFA), filed comments with the SEC to address these concerns.

ASA is urging the SEC to adopt formal valuation standards, which rely upon professional appraisals, when assets are valued in connection with asset-backed securities and other financial reporting purposes. The SEC recently agreed to meet with ASA regarding the concerns and suggestions outlined in the July 30, 2010 letter. The meeting is tentatively schedule for the middle of October 2010. Once the meeting has taken place, ASA will provide an update regarding and respond with a follow-up to the initial letter sent on July 30, 2010 by ASA, ASFMRA, and NAIFA.

About the American Society of Appraisers:
The American Society of Appraisers is an international organization of appraisal professionals and others dedicated to the education, development and growth of the appraisal profession. ASA is the oldest and only major organization representing ALL disciplines of appraisal specialists, originating in 1936 and incorporating in 1952. ASA's headquarters is in the metropolitan Washington, DC area. To find an accredited appraiser near you, visit www.appraisers.org or call (800) 272-8258.

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