• Home
  • Visit cvar.net
  • Classes & Events
  • Member Benefits
  • Contact
  • About

cvar connect

connecting you to what matters

  • Industry News
  • CVAR News
  • Government Affairs
  • Pro Tips

Appraisers React to Decision

April 16, 2018 Leave a Comment

NAR and the Appraiser Qualification Board have reported a “fix” for the appraiser shortage. But veteran appraisers are indicating that it ignores issues with Appraisal Management Companies, that appraisers say are partly to blame for the dwindling supply.

“At a time when the average age of today’s residential appraiser is in the late 50s and growing older, the total number of residential appraisers is falling even as mortgage origination volume grows,” said William Fall in a Housingwire.com piece. The CEO of The William Fall Group, a nationwide appraisal company, warns that, “Unless this trend is stopped, the quality of appraisal values will eventually decline and public trust in the housing economy could once again fall apart.”

Those in the field say that mentoring trainees is a waste of their time, due to the lack of compensation and benefit, along with lender restrictions.

New AQB requirements include reducing college hours for new appraisers from 30 to none (as of May 1), as well as reducing the amount of on-the-job training. A certified residential appraiser previously needed a bachelor’s degree or higher, but now has six options, starting with an associate’s degree in a required field.

“They can dumb it down all they want but nobody wants this job,” said Eric Kennedy responding to a report in Housingwire.com on the new, lower requirements. He blames “the proliferation of Appraisal Management Companies for the longer hours and low wages for appraisers.

“Appraisals are an integral part of the homebuying process, and ensuring there are well-trained, qualified appraisers to supply demand is key to a safe and healthy housing market,” said NAR President Elizabeth Mendenhall, in a letter to the Appraiser Qualifications Board.

More respondents who identified themselves as appraisers commented on the report in Housingwire.com:

“…I have been an Appraiser for 25 years and am working under more stress and longer hours than ever for less money each day due to Dudd-Fwank and the proliferation of Appraisal “Management” Companies. These “Companies” are making $Billions for providing nothing while Appraisers are forced to beat each other up quoting over fees just to lose money doing the work…. Drain the Damn Swamp already.”
—
Eric Kennedy

“The changes will do nothing to bring in new recruits, because it is the sub par fees from the AMC’s that are making it an unattractive field to enter, and few established appraisers will want to train on the residential side as long as AMC’s are paying low fees and demanding high pressure turn time….  Lenders need to pay the AMC a separate fee apart from appraisal fee since the lender benefits form (sic) the AMC service.”
—JoAnne Glantz

“The changes mean nothing if they aren’t adopted by the individual states who are responsible for protecting the public trust.”
—
Debi Palbykin Jones

“…The lending appraisal profession was doomed by Dodd-Frank when they allowed AMC’s to take 35%-50% of the customary and reasonable fee for acting as a firewall between the lender and the appraiser. If I were a young person with an interest in appraising, I would look for another profession. Who would want to jump thru all of hoops to obtain a license to make $35.00/ hour after taxes. Why do you think that all of the GSE’s want to move to Automated Valuation Models? Because they don’t care about appraisals. Their business model has changed to underwriting the borrowers credit and ability to repay the loan. The underlying equity in the property means nothing to them anymore. With the money they save in appraisal fees and administration of the appraisal process they think they can afford to absorb more “bad” loans caused by valuation issues.”
—Gary Crabtree

“When there are +/- 80,000 licensed appraisers in the United States, but per the collateral underwriter (CU) portal only +/- 40,000 unique appraisers have ever sent work through the system, the question becomes not how can we lower the bar to increase supply (appraisers), but why are only +/- 50% of the already approved (licensed) appraisers doing such work (residential)? The powers that be continually ignore the truth (10,000 + signature petition / 10 years ago (?), and input THERE (sic) solutions to OUR problem.” —Bill Johhson

Sources: Housingwire; Realtormag

Share this:

  • Tweet
  • Print

Filed Under: At A Glance, Government Affairs, Industry News, Pro Tips Tagged With: AMC, appraisal, appraiser, Appraiser Management, Appraiser Qualifications Board, Housing, qualifications

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Subscribe to CVAR Connect

Recent Posts

Data Share: CRMLS, High Desert MLS

April 16 – CVAR At A Glance

Appraisers React to Decision

Copyright © 2018 · Citrus Valley Association of REALTORS® · Log in