[Pamela Crowley (Florida)]

Do you feel that industry associations are doing enough to fix these problems?

Why or why not?


Please keep your replies directed to this question.

Keep in mind that there are (or might be) more specific questions regarding this issue in other questions. You might want to read through each thread question before starting your answers.

[Tim Hicks (Texas)]

No, I think the mortgage lending problem is a run away train with nobody to slow it down.

The Texas Appraiser Licensing and Certification Board is under funded and does its best to sanction appraisers. However, the investigating that does get done is not enough and the sanctions are not severe enough. A $1,500 fine and a USPAP class does not strike fear into any appraiser that is operating with no ethics.

Fannie and Freddie are more proactive and are trying to improve the situation, but the job is overwhelming to say the least.

[Edd Gillespie]

No. They are too impressed with themselves and too busy pointing at other less esteemed (in their opinion) causes. They are also very busy trying to have the last word and protect their turf. The AI is offering some pretty good education though.

[Scott Kibler]

No. The appraisal industry is highly fractured with most residential appraisers working alone with little or no contact with their peers. The industry groups, The Appraisal Institute, etc, are perceived as ineffective and uninterested the concerns of individual residential appraisers. Meanwhile the mortgage and banking industry groups are very well funded and politically active.

As a sideline, pay special attention to this year's Super Bowl halftime sponser, note their political contributions and check out recent consumer related complaints against them. They have also been discussed at length in this forum. Watch for the coming enevitable Enron-esque implosion.

[Joker]

If memory serves me correctly, it was members of the Appraisal Institute (the self proclaimed leader of appraisal association, designated with the "prestigious" MAI that were co-conspirators of the S&L crisis.

Industry organizations are concerned with one thing: their own survival. With appraisal organizations competing for members, they are more focused on their own self preservation than on the betterment of the industry as a whole.

[Restrain]

The various trade associations are impotent. The members of the Appraisal Foundation only count as one vote, so they are regularly outnumbered by the members of the very industry that promotes appraisal fraud.

I believe that a merging of organizations is a necessity. However, I explicitely exclud the AI. The AI has regularly supported AVMs and stood against the interests of the general practice appraiser, so it is not longer a viable force for change in the industry. In fact, they have often sided with the lending industry against the rest of the appraisal organizations.

There is a primary organization of doctors, lawyers, CPAs, etc. There should be one for appraisers as well. It may not be much more effective, but it will be more effective than 9 or 10 organizations.

[Caterina Platt]

Originally posted by RStrahan@Jan 28 2005, 03:28 PM
The various trade associations are impotent. The members of the Appraisal Foundation only count as one vote, so they are regularly outnumbered by the members of the very industry that promotes appraisal fraud.

I believe that a merging of organizations is a necessity. However, I explicitely exclud the AI. The AI has regularly supported AVMs and stood against the interests of the general practice appraiser, so it is not longer a viable force for change in the industry. In fact, they have often sided with the lending industry against the rest of the appraisal organizations.

There is a primary organization of doctors, lawyers, CPAs, etc. There should be one for appraisers as well. It may not be much more effective, but it will be more effective than 9 or 10 organizations.

Again, Roger hits it on the nose. An organzation that is purported to be in existance for the appraiser. Today, likely 99% of all residential appraisals are communicated to the lender and/or clients via email or the internet. We most commonly transmit these in .pdf format since Adobe Acrobat Reader is readily available to all at no cost. Several lenders want appraisals delivered in what is called AI (Appraisal Institute) ready format. This data format completely rearranges the data structure of the report. The data is thought to be disseminated into their AVM database. No one but the insiders can prove this, however this format also does something else which is very disturbing. The appraiser's digital signature is removed from the report itself and transmitted as a separate .jpg file. This comprimises the security of the report allowing the possibility of data to be changed. It is a violation of USPAP for an appraiser to knowingly comprimise the security of their digital signatures/reports.

Who would have thought? To comply with the Appraisal Institute brand of appraisal delivery, one has to violate USPAP.

[USPAP Compliant]

I think the AI is and would be a great and wonderful organization for commercial appraisers. I know and have great respect for several MAI appraisers. Sadly, the AI is not supportive of residential appraisers to any significant degree. Appraisers who do NOT work in the field of residential lending have very little knowledge or empathy for the issues discussed on this forum daily.

I attended a few AI meetings and joined as an "associate member " for 1 year. I have a four year degree, tons of course work, am a certified USPAP instructor, have 15 + years experience and could have attained the SRA in a fairly short time. However it quickly became apparent to me that the sole purpose of the SRA and associate members were to pay the bills and then go sit quietly at the childrens table and watch the MAI's conduct their business. I also saw that numerous "associate members" would NEVER be able to meet the requiresments for an SRA and were simply using the AI for some type of credibility. It looked like an even swap. The AI gets tons of money from these associates and the associates get to claim membership (albeit associate membership) in the AI.

The issues for residential and commercial appraisers are just too different. Just wait, someday the AMC's will get into the commercial end and the AI will suddenly become interested in the plight of the residential appraiser.

[Curtis D. Harris, CGREA,]

Originally Posted by Caterina Platt

Again, Roger hits it on the nose. An organzation that is purported to be in existance for the appraiser. Today, likely 99% of all residential appraisals are communicated to the lender and/or clients via email or the internet. We most commonly transmit these in .pdf format since Adobe Acrobat Reader is readily available to all at no cost. Several lenders want appraisals delivered in what is called AI (Appraisal Institute) ready format. This data format completely rearranges the data structure of the report. The data is thought to be disseminated into their AVM database. No one but the insiders can prove this, however this format also does something else which is very disturbing. The appraiser's digital signature is removed from the report itself and transmitted as a separate .jpg file. This comprimises the security of the report allowing the possibility of data to be changed. It is a violation of USPAP for an appraiser to knowingly comprimise the security of their digital signatures/reports.

Who would have thought? To comply with the Appraisal Institute brand of appraisal delivery, one has to violate USPAP.

The appraisal institure is all about institute members. Please visit our site http://www.harriscompanyrec.com

[Curtis D. Harris, CGREA,]

We Make a Simple Pledge to:
Communicate, in a timely fashion, each appraisal, analysis, and opinion without bias or
partiality
Abstain from behavior that is deleterious to our clients, the appraisal profession, and the public
Hold paramount the confidential nature of the appraiser/consultant - client relationship
and
Comply with the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics of the National Society of Real Estate Appraisers (Insert Your Organization)


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