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: