Falling Out - More Appraisers Quit

[J Grant]

November 7, 2011 - The nation's home appraisal process is behind the times and needs a major, long-term overhaul, according to a white paper prepared by appraiser Joan Trice and members of the Collateral Risk Network

Joan, in the above article, you represent yourself as an appraiser, when you no longer are licensed and have not been for years. Is that your idea of transparent?

Repeating this post, because others keep asking this and are ignored....why do you hold yourself out to be an appraiser to people in the industry and the public, when you are no longer licensed?

And how does this match up with your ethic of transparency?

 

[CANative]

Once an appraiser always an appraiser. Joan just doesn't have the license right now.

 

[J Grant]

George, without analyzing every facet of your posts, it appears you are in favor of a lot of fast click data automated programs, with the appraiser becoming more of a data technician as opposed to being a market expert.

Other than speed, or supposedly freeing up an appraiser to spend more time on analysis (which it won't, since analyzing more data takes more time), other than the efficiency aspec, which is debatable, what about this approach makes it "Better?"

More data does not equate to better data. In fact, sometimes it has the opposite result. The more distance, or further back in time, or broader in scope a data search goes, the less similar to the subject the data becomes, and the less reliable it becomes, and the less relevant to the problem at hand.

Charts and graphs and large regional or time span data searches and statistical outputs look impressive, and can track large trends, beyond that, they are full of innacuracies and can create misleading results . I don't have time to type out all the reasons why, but they are myriad.

I am lost as to why you advocate this approach, unless you want to destroy the validity of appraisers and substitute technical anaylists for them. A tech analyist is faster at data gathering and more computer savvy, so at some point, they would supplant appraisers in your model, with perhaps licensed realtors doing a drive by inspection.

AVM models, with all the tech anaylists working on them for over two decades, and all the data fed into them through multiple sources are still extremely unreliable and so off in value they are only good for extremely low LTV loans or mass portfolio review or the like.

Bradford Technology Comp Cruncher and CVR report has been field and application tested by a number of appraisers on the forum, none of them said it was any better than traditional appraisal model, and not any faster to use. The CVR is an infinite cash cow for the software company though, at a fee for usage of $25 per CVR report upload, each and every time, forever, even after an appraiser has bought the software.

We see a lot of companies pushing these supposed solutions, the "wave of the future programs," which have not proven any more reliable, and are often less reliable or credible as far as actual results. These computer driven programs are money makers though for software companies and enable lenders or AMC's to have more control of the data. Keep in mind that the people pushing these products have a money making and control agenda at stake, and are not introducing these "wave of the future programs" to benefit anyone other than themselves (though their professionally prepared copywriting may convince you otherwise)

 

[J Grant]

Clearbox does have every appraiser in the US in the database. We ping the ASC database on a daily basis. We then reach out to each State and collect disciplinary actions. Then appraisers are able to enter their credentialing layer. Background checks may be ordered by the appraiser.They can view them and then decide to post them. Which party is confusing

The Clearbox site representation is confusing...and misleading) "Clearbox is a database of every licensed appraiser in the USA"

In the interest of true "transparency," the description woud read: "Clearbox is a list of all the licensed appraiser names in the ASC database, and in addition, contains 8000 full appraiser profiles of paid members."

(8000 appraiser profiles is a guess...I have no idea of the real number of full appraiser profiles/paid appraiser participants, nor does anybody else, which is the whole point, isn't it, of this fuzzy less than transparent representation .)

 

[Joe-NC]

George,
And your clients would like to see your analysis and the data you ignored as well as the ones you included. Your scope of work has expanded precisely because they don't trust the appraiser.

Until they recognize themselves as the problem, this will not change. As long as they send work to the lowest bidders, thereby putting their own profit above anything else, this will continue. A "data rich" report won't change that.

There are lies, damn lies, and statistics. - Mark Twain.

The process too easily supports fraud....lack of transparency. Bad things happen in dark places. No it wouldn't be the cure. But it would save the appraiser from having to respond numerous times.

No it wouldn't. If you gave them 20 comps, they'd ask for 20 more. That's the way bureaucracy works.

I agree with DTB. A shortage of appraisers will not slow down the lending industry one bit. They have the power to have the rules changed. They'll rely on computers to make up for lost appraisers. The $550 appraisal will consist of a $25 AVM and a $25 picture inspection. As long as tax payers insure the lending industry, and as long as profits are the primary goal, the risky behavior will continue.

 

[J Grant]

Once an appraiser always an appraiser. Joan just doesn't have the license right now.

That's fine on a personal level or to her friends, but she is representing herself in public venues, on the internet, in professional trade journals, and most likely to legislators as an appraiser, with the inference being that she is an active, licensed appraiser.

I wouldn't even mind that she does that, execpt that her whole mission is about transaprency, and mis representing yourself is the height of non transparency.

A doctor that gave up his license or had it stripped might think of themselves as forever a doctor, and may be one in the eyes of close friends...but if they were writing articles for publication in medical journals and signing off using the title "doctor", and making public speeches and writing perscriptions using a no longer valid MD identity, they would be charged with fraud.

 

[JSmith43]

George, just curious, when was the last time you completed a residential report?

Questioning "The Piper?" The cliff over the ocean, the beautiful music.....

Way to go, grasshopper (just kidding around).

 

[smackodu]

George, just curious, when was the last time you completed a residential report?

Good question. George, I just read your rant and I have to ask. Have you ever completed a UAD report?

 

[J Grant]

I think it's a fair question, as UAD aside, this market we face,, it now takes twice as long to finish a report and identify sales types etc. And to be honest, the speed at which we used to do reports in less complex markets should have been slowed down.

I ask because a number of recent posts from GH, who I respect, are relating to calls for greater speed aka supporting the high volume 10 a week staff model, and now supporting automated data runs, both of which are antithetical to developing supported and credible values in changing markets and complex markets and with greater SOW and liability in play now.

 

[George Hatch]

Good question. George, I just read your rant and I have to ask. Have you ever completed a UAD report?

I'm not involved with GSE appraising and I haven't done any UAD reports. There are enough specialists competing in that market segment that it doesn't make much sense to me to spend my time that way. I usually get pulled into SFR appraisals by referral when those appraisers run into situations they don't feel comfortable dealing with. I refer out more SFR assignments then I take on.

The last residential appraisal report I completed was in October - it was a beachfront residence with some unusual ownership interests that was referred to me by a very proficient CertRes in the area because they thought these other complications were over their head.