AQB Second Exposure Draft - Proposed Changes to Real Property Appraiser Qualification Criteria

[Ricky LaFleur]

While most of the forum presently consists of arguing about who dunnit worse (Biden or Trump), the AQB is full steam ahead in debasing the appraisal profession. Please go read the summary on pg11-13. Maybe even leave a comment. It's open until July 27, 2026.

I cannot comprehend the disaster this is headed for. GED PAREA CG appraisers turned loose into the wild. If there were ever an enforcement of or compliance with the Competency Rule, this would all be fine. They could lower the requirements to entry and once the clients/users or state boards determine the unqualified and incompetent, then it will all sort itself out. The CR know that won't happen all too well, as they have been competing against unqualified, poor appraisal mill services for years already. I have rarely met an appraiser who wasn't over qualified in their own mind, and the state boards aren't able to sort it out at this level of new licensees.

While one may argue that the existing CG's are gatekeeping their license, the only way to keep qualified and competent appraisers in any licensure level is commensurate compensation. If/when the supply of CG's is overwhelmed, the more qualified/competent will leave as they are able to find more suitable compensation for their education, experience, etc, albeit with some heartburn over the destruction of their once respected field of expertise.

Not sure which link will be viewable on here, but here's the site:

Discussions and Exposure Drafts

Discussions and Exposure Drafts Share your opinion on the Foundation’s proposed changes to the standards and qualifications. Overview To obtain feedback on proposed changes to the Uniform Standards of Professional Appraisal Practice (USPAP®) and the Real Property Appraiser Qualification Criteria...

appraisalfoundation.org

And here's the specific second exposure draft:

ShareFile

appraisalfoundation.sharefile.com

 

[alebrewer]

I mean... appraisers have been gatekeeping their licenses since licenses were created. One of the most effective ways to keep others from entering a profession is to require the profession hold a mentor/trainee type of training model. This allows the mentors to effectively control entrants to the profession. Of course, there is an innate impetus to limit entry, as mass entry would understandably reduce the volume of work being protected by the already licensed/certified. This system has been broken for decades.

And as there really was no alternative path promoted by appraisers or their so called advocacy groups, outsiders stepped in and assisted. The result: PAREA. It remains to be seen whether or not alternative paths ruin our industry, although I'm pretty certain said ruination is already underway. At best, the alternative paths might speed up the ruin, but I doubt it.

 

[J Grant]

I mean... appraisers have been gatekeeping their licenses since licenses were created. One of the most effective ways to keep others from entering a profession is to require the profession hold a mentor/trainee type of training model. This allows the mentors to effectively control entrants to the profession. Of course, there is an innate impetus to limit entry, as mass entry would understandably reduce the volume of work being protected by the already licensed/certified. This system has been broken for decades.

And as there really was no alternative path promoted by appraisers or their so called advocacy groups, outsiders stepped in and assisted. The result: PAREA. It remains to be seen whether or not alternative paths ruin our industry, although I'm pretty certain said ruination is already underway. At best, the alternative paths might speed up the ruin, but I doubt it.

When mentorship was the only path, there were plenty of people signing up to be trained to be appraisers. That dried up after the HVCC allowed AMC;s a big market share, and appraisers could not earn enough to take on a trainee.

Even with PAREA, the field is attracting a record low number of trainees due to the low fees paid by AMC;s. The fact that now there are fewer appraisers in the loop for lender work does not escape newbies either.

 

[alebrewer]

When mentorship was the only path, there were plenty of people signing up to be trained to be appraisers. That dried up after the HVCC allowed AMC;s a big market share, and appraisers could not earn enough to take on a trainee.

Even with PAREA, the field is attracting a record low number of trainees due to the low fees paid by AMC;s. The fact that now there are fewer appraisers in the loop for lender work does not escape newbies either.

As I said.

 

[Ricky LaFleur]

This system has been broken for decades.

That lie has been promulgated by those outside the profession for too long. Those who were perpetuating the myth of the "great undersupply of RE appraisers" were nearly only those users who loathed the fee or regulation that required the appraisal in the first place. Land surveyors often have even greater qualification requirements at typically 4 years under supervisor. That's even higher, and as such, where's the revolution over that industry?

Even with PAREA, the field is attracting a record low number of trainees due to the low fees paid by AMC;s. The fact that now there are fewer appraisers in the loop for lender work does not escape newbies either.

Unfortunately, there's still room to get those fees down when there's more people willing to compete. AQB and stakeholders know supply and demand better than appraisers.

 

[alebrewer]

That lie has been promulgated by those outside the profession for too long. Those who were perpetuating the myth of the "great undersupply of RE appraisers" were nearly only those users who loathed the fee or regulation that required the appraisal in the first place. Land surveyors often have even greater qualification requirements at typically 4 years under supervisor. That's even higher, and as such, where's the revolution over that industry?

The lie that the system is broken or the lie that we had a shortage of appraisers? Those are two different things. Or maybe the lie that the only way folks had of becoming an appraiser was not only to know an appraiser, but to know one that was/is willing to take on a sac of baggage for little to no return? Oh wait - that's not a lie. That's truth, huh?

That aside, when I said the system has been broken for 4 decades, I wasn't JUST talking about the barrier to entry (which you appear to be ok with), but also the model itself. In what universe has someone that has been credentialed for 3 years now qualified to be in instructor? Wait - I know the answer: our universe.

 

[alebrewer]

Land surveyors often have even greater qualification requirements at typically 4 years under supervisor. That's even higher, and as such, where's the revolution over that industry?

Didn't know there was a revolution in that industry, but if their model is that the only way you can become a land surveyor is by knowing a sap of a land surveyor who is willing to take on a sac of baggage for little to no return, then I'd say their model is broken too.

 

[Elliott]

I was talking to my Realtor today. He use to be an appraiser and got taken out by the 2008 Crisis. He was saying how he thought he was 5-year to retirement because he could see the big corporations taking over the independents and driving down commissions to salesmen. I said that's what AMCs did to appraising in the last 8-years and they now wag the dog, call all the shots from quals to standards. I can't recall the 'industry' but the same one said about another business this morning on Fox Business. With AI, I'm sure it will be easier and easier to expand their acquisition and control.

 

[Ricky LaFleur]

The lie that the system is broken or the lie that we had a shortage of appraisers? Those are two different things.

They are different but closely commingled. The false claim of shortage is made and shortly follows the complaint of a broken system. Usually by those paying the fees and dealing with the regulation, but then again, there's always someone who feels guilty their profession hasn't been overrun with incompetency yet.

That aside, when I said the system has been broken for 4 decades, I wasn't JUST talking about the barrier to entry (which you appear to be ok with), but also the model itself.

Of course, there is an innate impetus to limit entry, as mass entry would understandably reduce the volume of work being protected by the already licensed/certified. This system has been broken for decades.

You said it on the heels of the corrupt protection of the licensed/certified, but whatever, you can change your reasoning. Some people on the internet only get on here to argue. Thankfully that isn't us............ Speaking of, I've got things that need tended to.

 

[alebrewer]

You said it on the heels of the corrupt protection of the licensed/certified, but whatever, you can change your reasoning.

I never said it was corrupt - I said it was broken. Lookit: if I'm an aspiring appraiser, but can't get into the biz cuz I don't personally know any appraisers and can't find any who are willing to suffer through the 2-3 years it would take to get my credential, that's a broken system. And, while I think it somewhat duplicitous to not want PAREA, but not want to train newbies either, I don't think it's corrupt (at least in the legal sense of the word). Again - it's been broken since it's inception in 1990. There should ALWAYS have been a path toward certification that didn't necessitate some kind of nepotistic environment to find a sponsor. Why do you think the industry is 85% white? Is it because we're racists? Of course not. It's because of the model of training we adopted. That, my friend, is a broken system.

Some people on the internet only get on here to argue. Thankfully that isn't us............

touché!