PAREA: Darn the torpedoes / 3 Sheets to the Wind

[Mejappz]

IMO if there weren't so many fingers in the pie (thanks to AG Cuomo) we would be at Fee's commensurate to current market conditions. Bid wars, only emerged via the AMC platform and handcuffed the Supervisory ability to generate an Income stream worthy to offer a Trainee the ability to afford to eat & house oneself. Clearly or maybe not so clearly a dent in the Affordable Housing Act.


Lenders did not & still won't allow Trainees to sign off, PAREA gets to pass go, no problem, no experience, limited training....pfffft

Exactly. No one is going to take on a trainee when the AMC takes 30-50 % of the fee. Not to mention the additional risk involved supervising a trainee.

 

[djd09]

Q7. Does Fannie Mae accept appraisals when an unlicensed or uncertified appraiser or appraiser trainee completed
the property inspection?

Yes. An unlicensed or uncertified appraiser or appraiser trainee may perform a significant amount of the appraisal
including the property inspection and sign the left side of the appraiser certification as the Appraiser if:
 he or she is working under the supervision of a state-licensed or state-certified appraiser as an
employee or sub-contractor,
 the right side of the appraiser certification is signed by that supervisory appraiser, and
 it is acceptable under state law.

However, unlicensed or uncertified appraisers and appraiser trainees are not allowed to do only the inspection,
as Fannie Mae’s appraisal report forms identify the Appraiser as the individual who:
 personally inspect the property being appraised,
 inspected the exterior of the comparables,
 performed the analysis, and
 prepared and signed the appraisal report as the appraiser.

Additionally, while the supervisory appraiser takes full responsibility for the appraisal report when signing the
right side of the appraiser certification, he/she is not required to also physically inspect the subject property or
comparables.

See Selling Guide section B4-1.1-3, Appraiser Selection Criteria (01/31/2017) for additional requirements

 

[cheustis]

the problem is that the license holder takes all the risk with limited benefits if any

Exactly. So what other options do states and TAF have towards getting new appraisers certified? Rhetorical question of course. And this is exactly the reason for the need for something like PAREA in the first place. The traditional path towards certification of supervisor / trainee relationship is a busted process. I can't speak for any one else but I have zero intention of working towards my certification only to produce trash work. I've been offered coaching and counciling from several certified appraisers when needed to help me become proficient but no one willing to take on a formal supervisor role for the exact reason you mentioned. I'm not going to get into specifics but I have a VERY good understanding as to how much work is available for a good certified fee appraiser. Feels like a lot of these comments are just doom & gloom from older appraisers worried about being replaced by young hungry trainees that are looking for a way into the business. People want to complain about PAREA but won't take on a trainee.

 

[cheustis]

Exactly. No one is going to take on a trainee when the AMC takes 30-50 % of the fee. Not to mention the additional risk involved supervising a trainee.

So why take work from an AMC? Why not just take work directly from a lender/client? Honestly asking. Is this a requirement based on state processes/laws? Seems to be lots of work available in Florida directly from lenders for a good fee appraiser.

 

[cheustis]

There's no demand for additional appraisers in the market and everyone knows it.

Not what I'm hearing in Florida and I know several CAs very well. The reason I keep hearing as to why they can't/won't take on a trainee isn't for lack of available work. It's because CAs have to invest thousands of hours of their time and money training someone with no assurance that their trainee isn't going to walk out the door once they're proficient and certified. It's a busted process. So what other options do people like myself have? Can't speak for everyone but this program offers me some hope that I'll learn enough to start taking on some assignments. Couple that with some coaching here and there from good friends who are certified and... at least it's a path towards getting certified. I get it though. I'm in a unique situation and fortunate to have several friends who are certified and willing to guide as needed.

 

[Mejappz]

So why take work from an AMC?

Because AMC's control 60% + of the appraisal volume.

 

[Non Sequitur]

Not what I'm hearing in Florida and I know several CAs very well. The reason I keep hearing as to why they can't/won't take on a trainee isn't for lack of available work. It's because CAs have to invest thousands of hours of their time and money training someone with no assurance that their trainee isn't going to walk out the door once they're proficient and certified. It's a busted process. So what other options do people like myself have? Can't speak for everyone but this program offers me some hope that I'll learn enough to start taking on some assignments. Couple that with some coaching here and there from good friends who are certified and... at least it's a path towards getting certified. I get it though. I'm in a unique situation and fortunate to have several friends who are certified and willing to guide as needed.

I agree, the training process has been busted for a long time. But look beyond the recent record breaking volume in the residential business, overall it really does boil down to the lack of consistent demand and fees for our services. If it weren’t about consistent volume and fees your good friends would welcome your help. Do a little research and look at the what happened after the last bust, residential appraiser numbers plummeted faster than real estate values in FL, and only one of those recovered.

 

[djd09]

and of course a snake oil salesman cannot sell you a cure without a problem. question for you, why doesn't the TAF and the states create incentives for an appraiser to train? maybe they are using the available money to fly off to sunny san diego or vegas to discuss the new definition of misleading

 

[Mejappz]

and of course a snake oil salesman cannot sell you a cure without a problem. question for you, why doesn't the TAF and the states create incentives for an appraiser to train? maybe they are using the available money to fly off to sunny san diego or vegas to discuss the new definition of misleading

 

[George Hatch]

Exactly. So what other options do states and TAF have towards getting new appraisers certified? Rhetorical question of course. And this is exactly the reason for the need for something like PAREA in the first place. The traditional path towards certification of supervisor / trainee relationship is a busted process. I can't speak for any one else but I have zero intention of working towards my certification only to produce trash work. I've been offered coaching and counciling from several certified appraisers when needed to help me become proficient but no one willing to take on a formal supervisor role for the exact reason you mentioned. I'm not going to get into specifics but I have a VERY good understanding as to how much work is available for a good certified fee appraiser. Feels like a lot of these comments are just doom & gloom from older appraisers worried about being replaced by young hungry trainees that are looking for a way into the business. People want to complain about PAREA but won't take on a trainee.

The only people who think the appraisal profession needs more appraisers are the desperate trainees who want in and the bankers who want to make sure they can maintain in perpetuity the surplus productivity and the low fees that go along with an oversupplied market for services. TAF might be playing lip service to the situation for political purposes but I strongly doubt any of the board members are taking on trainees in their own appraisal practices.

And no, you have no clue about what the long term demand is for certified appraisers. You haven't experienced the two previous RE cycles since licensing came online wherein 1/3 to 1/2 of all fully certified appraisers got starved out of the business for lack of work. You literally don't know what you're talking about because you weren't there and you didn't see. So please don't presume to lecture the veterans as to what the market for services is actually like.