Appraiser licensing came to pass because appraisers received a significant share of the blame for:

• A. The Tech Bubble
• B. The Savings and Loan Crisis
• C. The 2008 Housing Crash caused by lenders
• D. Local zoning disputes

Answer: (B)

The important idea here is that licensing of appraisers was prompted by failures in appraisal practices tied to a major financial crisis. During the Savings and Loan crisis, lax appraisal standards and weak oversight contributed to risky real estate lending and inflated or inaccurate valuations. In response, Congress passed reforms (FIRREA) that created a national framework for appraiser qualifications, licensing or certification, and ongoing oversight through state regulators and the Appraisal Subcommittee. This established a uniform, credible standard for appraisals to prevent similar problems in the future. The other events—such as the Tech Bubble or the 2008 housing crash caused by lenders—are not the primary catalyst for establishing licensing, and local zoning disputes are unrelated to appraisal regulation.