PAREA: Darn the torpedoes / 3 Sheets to the Wind

[Lindseyw]

Winner-winner chicken dinner!

The big AMCs who are developing courses to mint staff appraisers will move forward. On that side the PAREA noobs won't have to worry about competing/stips/ROVs, etc. since the business is captured on the front end by their employers, they will have scripts for everything and drop down menus, the process will be cradle to grave under their employer's guidance. As far as the AI's attempt, after spending a few million there will be near zero demand for their offering, but I think they are counting on grants to roll in for minority/veteran, etc. programs to help pay for the money spent.

Speaking of big AMCs. Check out this load of garbage presented to our GSEs that just gobbled up the sales pitch.

https://www.fhfa.gov/Videos/Documents/Appraisal-Public-Listening-Session-Presentations_2112021.pdf

AEI.org just came out with a recent report to the GSEs notifying of “lender gaming” right before Wells Fargo made their statement about firing a few of their lending staff.

No one saw that coming LMAO…well not our regulators anyway.

 

[George Hatch]

Winner-winner chicken dinner!

The big AMCs who are developing courses to mint staff appraisers will move forward. On that side the PAREA noobs won't have to worry about competing/stips/ROVs, etc. since the business is captured on the front end by their employers, they will have scripts for everything and drop down menus, the process will be cradle to grave under their employer's guidance. As far as the AI's attempt, after spending a few million there will be near zero demand for their offering, but I think they are counting on grants to roll in for minority/veteran, etc. programs to help pay for the money spent.

I doubt most of the AMCs will have the resources to hire staff appraisers. The fixed costs for employees will continue to accrue regardless of the volumes. It only takes about 2-3 weeks for a reduced volume to trigger mgt considerations of how to cut costs. And a staff appraiser contingent will be the first to go.

Crab bucket competition among fee appraisers for a reduced volume of assignments is going to have a very predictable outcome. If the AMCs are going to be doing any hiring it probably won't be until the beginning of the next RE cycle and even then they'll be able to hire fully qualified appraisers (who will all have been starving) at very competitive rates that it will be a couple years after that before it becomes profitable for them to hire no-experience CRs.

 

[alebrewer]

Ball buster, aren’t you? Lol. Yes, it’s called a fee split. I’m 50/50 with my supervisor and take on 20 to 30 appraisals a month now. I get $300-450 per report I do, he gets the other half. No one’s gonna wanna hire a newly certified appraiser anyway and I make a good living. I’ll be getting my certification this summer but intend to work for him for a couple more years out of courtesy that he was willing to help me.

I’m not saying everyone is like that, but just imagine taking on a trainee and making $3k or more per month to just review an appraisers work?? My sup makes an average of $7,500 per month off me now. I’m pretty sure he goofs off most the time now and he deserves it! I was slow at first, maybe 10-15 appraisals per month but that was less than two years ago.

I’m really not sure why more appraisers don’t do it, besides the obvious liability problem and lenders/AMCs not wanting trainees to complete appraisals. Though, I think this part is on purpose for their grand master plan to try and automate our industry.

All that’s happening now because of appraisers unwilling to train us big business coming in and convincing our regulators to just start using AVMs and downgrade our industry.

Sorry - not intending to be a 'ball buster' (I actually have no idea if you're male or female). Just trying to explore alternatives to PAREA - as there really appear to be ZERO practical alternatives to PAREA at this time, as very few appraisers are willing to take on trainees.

You said your supervisory appraiser is making an 'additional' $7,500 a month off your work. Does your supervisory appraiser attend inspections with you? Does your supervisory appraiser take photos with you? Does your supervisory appraiser review all of your work? If the answers to these questions are yes - I'm struggling to see what economies the supervisory appraiser has gained by adding a trainee?

All that to say, I don't blame appraisers for not taking on trainees - I blame the mortgage lending environment that REQUIRES the supervisory appraiser to - essentially - replicate everything the trainee does. However, that's not going to change, and it appears PAREA is the most viable solution proffered to this point, to provide an avenue for folks to become appraisers...

 

[Jkaldor]

SO similar to socialism, where the middle class is effectively eliminated. All 'typical' appraisers, like what we are mostly used to being for most of our career will be gone soon, unable to compete with the '3 report' brigade, waivers, desktops, hybrids, etc. What will exist in the future are 'specialty' appraisers, mostly CG I imagine, and the skippies who think $100 per report is great until they get sued. And they will. I challenge the future to prove me wrong, but I see the 1004 as being non-existent within 5 years, and most of us being forced to change careers. Trying my best to put away extra $ now, but that's hard with a full family.

So this is depressing, I just finished my schooling and looking for a sponsor, PAREA looked like a possibility but Im afraid I would learn little and with no one willing to take on a trainee the future is not looking bright (at least for me ) in this profession. Sad to see ....suggestions appreciated

 

[Lindseyw]

Sorry - not intending to be a 'ball buster' (I actually have no idea if you're male or female). Just trying to explore alternatives to PAREA - as there really appear to be ZERO practical alternatives to PAREA at this time, as very few appraisers are willing to take on trainees.

You said your supervisory appraiser is making an 'additional' $7,500 a month off your work. Does your supervisory appraiser attend inspections with you? Does your supervisory appraiser take photos with you? Does your supervisory appraiser review all of your work? If the answers to these questions are yes - I'm struggling to see what economies the supervisory appraiser has gained by adding a trainee?

All that to say, I don't blame appraisers for not taking on trainees - I blame the mortgage lending environment that REQUIRES the supervisory appraiser to - essentially - replicate everything the trainee does. However, that's not going to change, and it appears PAREA is the most viable solution proffered to this point, to provide an avenue for folks to become appraisers...

Well with all the appraiser bashing, who would want to get into this industry?! I think big corp is purposely designing a way to remove us and use AVMs and hybrids from AMCs. Plus, no one wants to actually take the necessary steps to becoming an appraiser…people want a good job with the least amount of work it takes. After all, we are living in the gimme generation that just wants handouts and feels entitled that they deserve the best with no work involved.

My supervisor just reviews my work which takes less than an hour, bids the jobs and deals with revision requests. I’m on his schedule, I work from home, I supply all my own software, equipment and appraisal subscriptions. I do everything else in the appraisal. Fl Regs only require a supervisor be with trainee for the first 6 months and/or 1st 150 hours, could be longer if they don’t feel confident the trainee can handle inspections on their own. I’m a super fast learner so it didn’t take me long. My first sup required I take all the trainee classes first and get my trainee license before I started to train. He gave me a few pointers at first. My first six months required a lot of time with my supervisor but I was also learning commercial and residential.

Taking on a trainee helps our industry with stay relevant as a growing number of appraisers are retiring. You can always sign a non compete clause or just hope your training a good person whose not willing to ditch you the minute they get their certification. You do make money off them with split fees. Like I said, he said doesn’t have to work that much anymore because I get most the jobs except the multi million dollar appraisals. So the benefit to a supervisor is eventually more free time with lots more money in your pocket and keeping our industry from dying out.

I ran an appliance repair business with my ex husband and we had to train all our technicians. We asked they stay with us for 5 years before going out on their own and 90% of them followed through. I’ll stay with my sup for awhile because he’s been really good to me and I’m still making killer money with our 50/50 split.

 

[Dublin ohio]

Fl Regs only require a supervisor be with trainee for the first 6 months and/or 1st 150 hours, could be longer if they don’t feel confident the trainee can handle inspections on their own.

You must have the holy grail of clients. There are not many lenders out there that allow trainee only inspections. At least in GSE world

 

[George Hatch]

The only people in the appraisal business who are worried about our numbers getting too low due to a mass extinction event among the veterans are the trainees and the AMCs.

 

[alebrewer]

My supervisor just reviews my work which takes less than an hour, bids the jobs and deals with revision requests. I’m on his schedule, I work from home, I supply all my own software, equipment and appraisal subscriptions. I do everything else in the appraisal. Fl Regs only require a supervisor be with trainee for the first 6 months and/or 1st 150 hours, could be longer if they don’t feel confident the trainee can handle inspections on their own. I’m a super fast learner so it didn’t take me long. My first sup required I take all the trainee classes first and get my trainee license before I started to train. He gave me a few pointers at first. My first six months required a lot of time with my supervisor but I was also learning commercial and residential.

So you guys aren't in the origination space, then? I'm on the bank/port side, where trainees are allowed to inspect without supervision. That's not the case in the origination/FHA world - which is why there are no economies to be gained by having a trainee. In the origination world, most lenders require the supervisory appraiser to sign as 'having inspected'... kudos to you and your supervisor, though. Seems like you have a truly mutually beneficial arrangement.

 

[Lindseyw]

You must have the holy grail of clients. There are not many lenders out there that allow trainee only inspections. At least in GSE world

The GSEs have so much conflicting rules, their websites state trainees are allowed and even unlicensed people can assist in the appraisal. It’s the lenders putting all those stipulations in the engagement letters and there’s very few that say no trainees allowed now. No, we don’t work for the crappy AMCs that state no trainees. Escambia and Santa Rosa county are booming, there’s plenty of work

 

[alebrewer]

No, we don’t work for the crappy AMCs that state no trainees.

It's not the AMC's that don't allow trainees to inspect unsupervised. It's their clients...