PAREA Update

[djd09]

it is the year 2022, right? so if they divide the appraiser from the inspection, in hope to reduce their imagination of bias, couldn't the appraiser just google the owner or address to figure out what the borrower looks like. test fail

 

[alebrewer]

I wouldn’t go so far as to say it’s corruption. It’s just par for the course in our system, where larger groups have outsized influence. Those with the most to gain financially work hard to make sure their interests are represented, meanwhile working stiffs don’t have the time or resources to represent themselves.

Unless you know of some specific examples of corruption, in which case I’d love to hear about it and my DMs are open.

I know of no specific examples for this particular situation - just know that, in general, where there are $ to be grabbed - there will be corruption. I have a fairly pessimistic outlook WRT politicians...

 

[alebrewer]

I will say over the years I have been blown away with some of what i will call Property biases stated by some posters. They didnt like the floor plan, or the color of the house or so many mundane personal feelings which I have no doubt effected their final values.

There was even a recent thread here where folks were opposed to the institution of marriage being extended to same sex couples. If there is a moral qualm about the relationship a couple has - and that appraiser is appraising that couples' home - how can they keep from allowing unintentional bias...

 

[TerryRohrer]

I stated that the data shows that when appraisers base the condition rating on information provided by a third party the rating is more in line with the actual C1-C6 definitions than the ratings that are applied based on an appraiser's personal inspection. Both GSEs have said that they have this kind of data, and third parties involved in the hybrid testing have observed the same thing. There are already several pages here on the topic.

I am out. I hope everyone is able to enjoy time with folks you love over the next few days

Assuming I agreed with the notion that "more in line with definitions" actually meant anything objective, that does not lead directly to a supported conclusion that the opinion of value is biased or unsupported.

But just like an appraiser has to make subjective decisions on the fly, the committees making up ways to hang appraisers and direct the pilot study results to support the use of hybrid appraisals and other products have to make up subjective ratings for such concrete, specific, accurately measurable terms found in the C1-C6 definitions like:

"very recently"
"little or no physical depreciation"
"virtually all"
"recently repaired or rehabilitated"
"outdated"
"components that meet current standards"
"almost new"
"recently completely renovated"
"well-maintained"
"limited physical depreciation" (how do you measure the difference between "little or no" and "limited"?)
"some, but not every, may be"
"some deferred maintenance" (how do you measure the difference between "little or no" and "some")
"some need updating"
"overall livability"
"somewhat diminished"
"useable"
"substantial"
"deficiencies"
"severe enough"
"in need of"

The fact is, every measure that is being made up to make the determination as to whether or not appraisers' condition ratings are "in-line" with the definitions is every bit as subjective as any appraiser's opinion. What this boils down to is there is a committee within the GSEs who are asserting that their subjective opinions are superior to the subjective opinions of appraisers who are seeing the properties. And anyone who has ever seen a few properties knows without any shadow of a doubt that their impression of the property is different when seen in person than it is when seen from photographs (even when they took them themselves) or from someone else's notes. But, you folks have the microphone, so I expect you will keep claiming the subjective opinions of the committee are data.

 

[djd09]

National $53 million Fannie Mae settlement to benefit Indy neighborhoods​

Indianapolis' communities of color hit hard by the foreclosure crisis may soon be able to benefit from $755,000 in relief as part of a $53 million settlement by Fannie Mae, the federal mortgage association, announced Monday.

The Fair Housing Center of Central Indiana, along with the National Fair Housing Alliance and 19 other local fair housing organizations throughout the country, reached a landmark agreement with Fannie Mae to resolve a housing racial discrimination case filed in 2015 and 2016 alleging that Fannie Mae treated foreclosed homes in communities of color unfavorably.

“Far too many of Indianapolis’ Black neighborhoods are still suffering from the foreclosure crisis and the subsequent loss of owner-occupied housing units,” said Amy Nelson, executive director of the Fair Housing Center of Central Indiana, in a press release.

https://www.indystar.com/story/news/real-estate/2022/02/07/indianapolis-foreclosures-fannie-mae-settles-discrimination-suit/6692945001/

secret hybrid pilots

 

[TerryRohrer]

National $53 million Fannie Mae settlement to benefit Indy neighborhoods​

Indianapolis' communities of color hit hard by the foreclosure crisis may soon be able to benefit from $755,000 in relief as part of a $53 million settlement by Fannie Mae, the federal mortgage association, announced Monday.

The Fair Housing Center of Central Indiana, along with the National Fair Housing Alliance and 19 other local fair housing organizations throughout the country, reached a landmark agreement with Fannie Mae to resolve a housing racial discrimination case filed in 2015 and 2016 alleging that Fannie Mae treated foreclosed homes in communities of color unfavorably.

“Far too many of Indianapolis’ Black neighborhoods are still suffering from the foreclosure crisis and the subsequent loss of owner-occupied housing units,” said Amy Nelson, executive director of the Fair Housing Center of Central Indiana, in a press release.

https://www.indystar.com/story/news/real-estate/2022/02/07/indianapolis-foreclosures-fannie-mae-settles-discrimination-suit/6692945001/

secret hybrid pilots

The Obaman administration was biased? Or buying votes for HRC?

 

[djd09]

McKissock Learning Will Launch Practical Applications of Real Estate Appraisal (PAREA) Experience Program​

An Alternative to the Traditional Supervisor/Trainee Model, PAREA Will Help Eliminate Barriers to the Appraisal Profession

ST. LOUIS, November 21, 2022--(BUSINESS WIRE)--McKissock Learning, the leading national provider of online education for real estate appraisers, today announced its commitment to launch a Practical Applications of Real Estate Appraiser (PAREA) Experience Program to support the diversification and growth of the appraisal profession.

"As a leading appraisal education provider, we know firsthand how difficult it can be for aspiring appraisers to find a supervisor and realize their dream," said Kevin Hecht, Appraisal Training and Development Manager at McKissock Learning. "We believe this is a great opportunity to demonstrate our dedication to the profession with a critical initiative to ultimately contribute to a more diverse and expanded appraiser community."

Slated to launch in the fall of 2023, the McKissock PAREA Experience Program combines technology-based training with real-world field experience and will allow participants to qualify for up to 100 percent of the experience hours required to sit for an appraisal exam in participating states.*

"McKissock’s PAREA Experience Program is made intentionally for people who complete the required education only to find they cannot move forward in their goal of becoming licensed appraisers because they can’t find a supervisor," said Alan Hummel, Principal at The Hummel Group and certified appraiser for 35 years. "It is a powerful instrument to diversify and expand the profession."

Consistent with The Appraiser Qualifications Board (AQB) policies, McKissock’s PAREA program will allow participants to apply appraisal concepts and general principles to real-life situations, problems, and activities. Participants can access training modules, simulations, and assignments through McKissock’s dynamic learning platform, allowing for mentor-led and self-study activities.

In addition to simulated learning experiences, McKissock will also require students to complete real-life personal experience activities in their local markets, such as inspecting properties in their area and verifying information with local stakeholders such as realtors, contractors, and lenders. Participants will be expected to author and produce appraisal reports on various property types, each of which must pass a mentor’s review and be fully compliant with USPAP standards.

"Our mission at McKissock Learning is to support the advancement, diversification, and growth of the real estate appraisal profession. We are committed to providing PAREA participants with quality training and practical experiences to enable them to become licensed and successful appraisers," said Renee Altier, President of Valuation and Property Services, Colibri Group, the parent company of McKissock Learning.

McKissock Learning Will Launch Practical Applications of Real Estate Appraisal (PAREA) Experience Program

ST. LOUIS, November 21, 2022--McKissock Learning announced its commitment to launch a Practical Applications of Real Estate Appraiser (PAREA) Experience Program.

finance.yahoo.com

 

[chad hampton]

I’d be so embarrassed if my name was associated with any of the “modernization “ ideas the self appointed wizards of appraising have put forth these last 5-10 years. Every idea is worse than the one before. Become a certified appraiser and never step foot in classroom, go visit an actual property, or work under a real mentor. How embarrassing.

 

[djd09]

some of these companies that employ the "mentors" are my competition. seems very vertical

 

[George Hatch]

It's not too soon for appraisers to take sides in this ballgame. Appraisers vs the PAREA vendors. We are under no obligation to financially subsidize the shortcut. Or our competition.