McKissock dumps PAREA

[Non Sequitur]

That may be true George, but Occam’s razor dictates that we consider the probability of low market demand for McKissock’s PAREA program. It appears that they’ve accepted defeat, and cut their losses before piling further resources into PAREA.

That to me suggests broader weakness. At least that’s my suspicion.

Yep, 100%.

And IMO what's happening now is very similar to the push years ago for bachelor's degrees. Remember the thousands of highly educated individuals who were just waiting for the field to become a profession with required degrees? Turns out they never really existed. And now my guess is McKissock bought into the fictional appraiser shortage narrative and thought they could make a buck off of the hopes and dreams of the fictional thousands who can't find supervisors. It's very likely McKissock is learning from the failure of the first to market provider and may jump back in when they have other partners to share the cost or when there's an actual demand. But I'll give them some credit, admitting defeat as opposed to charging ahead into the roar of Russian guns is a sign of leadership at the top, something AI should take note of.

What about Michelle Bradley being a member of TAF and her husband being a senior instructor at Mckissock?

And to a lesser extent, I'm sure having insider info into the real numbers and actual demand helped move along the decision to pump the brakes and stop throwing good money after bad.

 

[Non Sequitur]

One other thing I forgot to mention, I've always believed the real demand for PAREA would be on the corporate side and at the moment demand for staff appraisers is in the bucket. When that turns around we may see McKissock (since they are partners with Class Valuation) dust off PAREA to train staff clones for Class.

 

[Surf Cat]

Agree 100% BUT you forgot how many appraisers were 100% all behind HVCC and all out to kill off their mortgage brokers as clients. Many were NOT bright enough to realize that they unknowingly were helping
the AMCs take over the Mortgage Brokers role for the final control of their business.

I don't recall appraisers being 100% behind the HVCC. I "do" recall that appraisers were sick and tired of comp checks. I also heard that some appraisers were sick of being pressured to make the deal work.....which to me, was so stupid as MB's were a dime a dozen. I was pressured all the time....I just conveyed to MB "why" it wasn't going to happen. Some let me go because I stood firm. Then hired me back as their number hitters were black listed Lol.

The HVCC however, decimated fee shops and independent appraisers with trainees as the AMC's only interest (with the lender's blessing especially those that had ownership in them) was fee skimming. That's when the stories of appraisers coming in from a hundred miles out and "geographical compantancy" became the big buzz term.

After the complete failure of the HVCC, Dodd-Frank was supposed to be our saving grace with "customary & reasonable" fees...we all know how that turned out.

I will agree with you in that some appraisers loved the AMC model, especially AL's as the mentors and signers all but dried up....the AMC was the only avenue for work....that is until the Great Recession...

PAREA is destined to fail as it's like a civil rights movement. A civil rights movement needs leadership...the problem is it's being shoved into an industry that is independent with no leadership.....we're Lone Wolves....

No one ever said minorities and people of color couldn't become appraisers. They just have to go through the same process we all did. And why would they in an already crowded field? Someone already said it in this thread...you could give out free licenses... but they're worthless.

The problem once again circles back around to compensation. With AMC's being the main provider of GSE work...they're the main problem.

 

[J Grant]

The stakeholders were screaming about an appraiser shortage during the boom. The only reason for the "shortage" was that the supply of appraisers remains constant, whereas demand comes and goes. I doubt we will ever see that high volume of demand again for a prolonged period of time on the residential side.

And even if we get busy and it impacts turn times and fees, the lenders make so much money they can deal with it. I bet every starving loan officer out there now would trade today's fast appraisal turn time for the aggravation caused by delays during the boom, offset by the tremendous income they pulled in.

Add the FF policy of waiver/value acceptance and hybrids, both of both create a surplus of people doing part of the appraisal work which effectively increases supply .

 

[J Grant]

I don't recall appraisers being 100% behind the HVCC. I "do" recall that appraisers were sick and tired of comp checks. I also heard that some appraisers were sick of being pressured to make the deal work.....which to me, was so stupid as MB's were a dime a dozen. I was pressured all the time....I just conveyed to MB "why" it wasn't going to happen. Some let me go because I stood firm. Then hired me back as their number hitters were black listed Lol.

The HVCC however, decimated fee shops and independent appraisers with trainees as the AMC's only interest (with the lender's blessing especially those that had ownership in them) was fee skimming. That's when the stories of appraisers coming in from a hundred miles out and "geographical compantancy" became the big buzz term.

After the complete failure of the HVCC, Dodd-Frank was supposed to be our saving grace with "customary & reasonable" fees...we all know how that turned out.

I will agree with you in that some appraisers loved the AMC model, especially AL's as the mentors and signers all but dried up....the AMC was the only avenue for work....that is until the Great Recession...

PAREA is destined to fail as it's like a civil rights movement. A civil rights movement needs leadership...the problem is it's being shoved into an industry that is independent with no leadership.....we're Lone Wolves....

No one ever said minorities and people of color couldn't become appraisers. They just have to go through the same process we all did. And why would they in an already crowded field? Someone already said it in this thread...you could give out free licenses... but they're worthless.

The problem once again circles back around to compensation. With AMC's being the main provider of GSE work...they're the main problem.

I agree - though PAREA is color blind and was never noted to be only for minorities and it is open to everyone. It was exploited for part of the anti bias trend as a PC move.

 

[George Hatch]

WRT a staff member from McKissock being on the ASB, I don't think that's much of an issue. One of the qualifications for even taking the AQB USPAP Instructor Qual course was the individual had to have experience teaching appraisal courses.

I had been teaching courses for years before the certification program came along; that's how I qualified to take the course. I never ran my own school but probably most of the other instructors were running their own programs.

Unless the idea here is to keep applicants off the ASB who had demonstrated competency both with the material itself AND teaching CE/QE courses then I don't see who else would be more qualified to sit on the ASB. Just because the Company logo said McKissock doesn't make it any more of a conflict of interest than if it was a different school. They're not the only course provider for USPAP - not by a long shot. The only difference between McKissock and the other vendors is their nationwide footprint and the increased experience of their instructors (because they teach these courses far more often than even the AI instructors).

Full disclosure, McKissock approached me to teach for them at one point but I declined because I didn't think my style would fit their program and I didn't want to travel.

 

[djd09]

What about Michelle Bradley being a member of TAF and her husband being a senior instructor at Mckissock? That never looked right and now they are changing the way members of TAF are :appointed". Now "partners" is the new term. I remember the first "bias hearing", I remember that was mentioned, if I am recalling correctly.

yeah the image of her wearing sheets of visqueen for an appraisal inspection during the china flu is impossible to forget...

 

[djd09]

I don't recall appraisers being 100% behind the HVCC. I "do" recall that appraisers were sick and tired of comp checks. I also heard that some appraisers were sick of being pressured to make the deal work.....which to me, was so stupid as MB's were a dime a dozen. I was pressured all the time....I just conveyed to MB "why" it wasn't going to happen. Some let me go because I stood firm. Then hired me back as their number hitters were black listed Lol.

The HVCC however, decimated fee shops and independent appraisers with trainees as the AMC's only interest (with the lender's blessing especially those that had ownership in them) was fee skimming. That's when the stories of appraisers coming in from a hundred miles out and "geographical compantancy" became the big buzz term.

After the complete failure of the HVCC, Dodd-Frank was supposed to be our saving grace with "customary & reasonable" fees...we all know how that turned out.

I will agree with you in that some appraisers loved the AMC model, especially AL's as the mentors and signers all but dried up....the AMC was the only avenue for work....that is until the Great Recession...

PAREA is destined to fail as it's like a civil rights movement. A civil rights movement needs leadership...the problem is it's being shoved into an industry that is independent with no leadership.....we're Lone Wolves....

No one ever said minorities and people of color couldn't become appraisers. They just have to go through the same process we all did. And why would they in an already crowded field? Someone already said it in this thread...you could give out free licenses... but they're worthless.

The problem once again circles back around to compensation. With AMC's being the main provider of GSE work...they're the main problem.

it's better now...the scum bag mortgage broker estimates value via waiver...no appraiser needed

 

[George Hatch]

..... And now my guess is McKissock bought into the fictional appraiser shortage narrative and thought they could make a buck off of the hopes and dreams of the fictional thousands who can't find supervisors. It's very likely McKissock is learning from the failure of the first to market provider and may jump back in when they have other partners to share the cost or when there's an actual demand......

As an outsider to their business, my perception of the company is that they're all about the business of what they do, not about advancing the profession or the economic interests of appraisers as such.

I might be 180* off base on it, but think their decision to get in was partially motivated by the politics and their positioning in the education provider market. If I'm running a education company with a national footprint and I want to curry favor with the politicians who are selling the flavor of the month then I would be highly motivated to at least go through the motions regardless of my personal opinions. For one, my initial impressions might be wrong and maybe it does generate a profit margin. And for another, I'd be fearful about losing market share if my competitors followed through and positioned themselves ahead of my company. Whomever sells these noobs their experience hack can expect to see some customer loyalty and return business.

Looking forward......
Sooner or later the demand for appraisal services will improve, enough of the geezers will retire and there will be enough demand in the market to entice some people to pay the costs of entry. Then we probably will see at least a couple of these programs pumping out shake-n-bakes faster than any of the 2005 sweatshop operators.

 

[Terrel L. Shields]

the only reason for the "shortage" was that the supply of appraisers remains constant, whereas demand comes and goes.

AND the increasing number of appraisers who did not want to work for AMCs at all...and didn't. They cultivated their community bank connections and non-lender clients.