How Appraisal Regulation Failed

[chad hampton]

I’m just glad in not responsible for the current state of the profession. Not sure who’s on Facebook, but there’s a hell if a lot more anger on those boards than there is here. And while there’s only a few dozen people here, those groups have several thousand.

 

[RCA]

The Board of Trustees doesn't write the Standards.

Cindy sees things at a near-superficial level - because it really should be obvious to anybody with intelligence. But, she is lacking in appraisal experience and analytical skills. I question the substance of her opinions. But, I will admit, I could be wrong. Dan Wiley responsibly points this out here -> She does not have a firm grasp of the subject matter. You need to be cautious with her, ....

 

[Terrel L. Shields]

What TAF actually did: ensure that professional education did not evolve in any meaningful way

I wonder who can challenge the statement I will make. When did CE ever improve us? Is USPAP compliance higher after nigh 30 years of bi-annual changes, changes that were apparently made just to be called a change? How does bias classes improve our report when we all know Fair Housing laws have been around since 1970s. If you ignore them then do you think 7 hours instructor will change you? So, when is the last class you took actually teaching you anything new? And will compensation in this industry justify the expense of traveling 1,000 miles to take such classes.

Next, what about a college degree? How many universities offer a BA or BS in appraising? Who really cares? Lenders? Borrower? Our peers? See, no one cares. As long as we have no degree and specs for graduating, why do we think a degree in underwater basket weaving is valuable for a career in appraising.

 

[George Hatch]

"No improvements" compared to what? Most occupations have check-the-box CE requirements that don't really advance the level of play at the day-to-day level.

The first time I took USPAP I literally didn't understand certain aspects of the material. How some of those elements related to day-to-day practice or why they were (are) significant or how they came into existence as such in the first place. The AIREA designated instructors simply read out of the book without any real discussion or illustration. As I look back on the way they delivered it I later came to the conclusion that they didn't understand certain aspects either. Same with some aspects of the state/federal laws course. It took me a couple passes through the materials and the changes they were making for me to get a better grasp on it, due in part to the instructors understanding it better as a result of their own repeated passes through it.

IMO "no improvement" is a gross overstatement. I think most appraisers understand most aspects of they type of appraising they engage in to a greater extent than prevailed when the instruction was limited to handing a noob a copy of Harrison's Guide to the URAR. And then telling them to pay attention to what the boss was doing because regardless of what the book says THIS is how we really appraise.

 

[Zoe]

With these lawsuits going in different States, I have a feeling separation of AMC and APPRAISAL fees may happen eventually. Lobbyist may lose the battle on commingling of fees.

It was originally intended for fees to be separated on truth in lending disclosures and lobbyist got it changed. Ask Joan how it got changed?

Joan was pushing cost/plus, but we argued over that. That won't work to benefit appraisers. Separation of fees on truth in lending disclosures would work.

I give Joan credit. She thinks commingling of fees is wrong.

 

[Zoe]

To the best of my knowledge, the reason the law got changed on separation of fees truth in lending disclosures is because it would be too confusing to borrowers. That just burns my azz.

It makes no sense at all. Tells me some money got changed in congress from lobbyist. There is no other logical explanation.

The only other explanation is you are calling all borrowers dumb and can't read a truth in lending disclosure and good faith estimate. It would be too confusing to them.

 

[Zoe]

Whatever you do, don't talk bad about my girlfriend Joan Trice. She gained my trust when she was against commingling of fees. I can only imagine the power struggle stretching her.

I do miss her on the forum.

 

[Sadie]

Maybe have the lender be responsible for the AMC fee and the borrower the appraisal fee? Still is within the bounds of FIREEA, but it puts the onus on the lender, who face it, has a little more pull than us appraisers. It would serve the purpose of separating out the fees and exposing the grift within the AMC model. And hopefully correcting this cr*ppy business model.

 

[RCA]

"No improvements" compared to what? Most occupations have check-the-box CE requirements that don't really advance the level of play at the day-to-day level.

The first time I took USPAP I literally didn't understand certain aspects of the material. How some of those elements related to day-to-day practice or why they were (are) significant or how they came into existence as such in the first place. The AIREA designated instructors simply read out of the book without any real discussion or illustration. As I look back on the way they delivered it I later came to the conclusion that they didn't understand certain aspects either. Same with some aspects of the state/federal laws course. It took me a couple passes through the materials and the changes they were making for me to get a better grasp on it, due in part to the instructors understanding it better as a result of their own repeated passes through it.

IMO "no improvement" is a gross overstatement. I think most appraisers understand most aspects of they type of appraising they engage in to a greater extent than prevailed when the instruction was limited to handing a noob a copy of Harrison's Guide to the URAR. And then telling them to pay attention to what the boss was doing because regardless of what the book says THIS is how we really appraise.

That's funny but true. Appraisal is so much larger than residential, and there are all kinds of niches that take time to develop data, and skill in: Agriculture, farming with far more complex cost systems such as CamoAg, government, timber, hospital, airplanes and other equipment, right of way, and on and on. ... Commecial/Industrial seems endless in all of its variations. And not to forget Business Valuation....

You may disagree, but I think we need a ton of protocols to specify agreed-upon standards of doing about everything, with enough flexibility for appraisers to explore new tools (within constraints). So much work needs to be done. And the current standards have really just stagnated over the past several decades and, in fact, have become encumbered with DEI/Bias garbage that wouldn't be needed if they had done their job in the first place.

 

[Dublin ohio]

I give Joan credit. She thinks commingling of fees is wrong.

She has probably figured out a way to monetize it