AQB Second Exposure Draft - Proposed Changes to Real Property Appraiser Qualification Criteria

[George Hatch]

Aside from any specifics, when some people are preferring the idea of "none of the above", that's isn't a realistic hypothetical either.

 

[Mile High Trout]

Why are they loosening the qualifications standards when there isn’t a shortage of appraisers and we are on the precipice of a technological revolution that will make everyone more productive? Meanwhile how is PAREA on the residential side going, have they published any good research on this?

AQB is always like a decade behind the ball.

You've answered your own question without knowing why.

Appraisal management companies.

They want a disposable workforce without the entry barriers so they can reach new levels of consumer exploitation. They run the show now. There is no more independent representation or belief in the integrity of appraisal independence or AIR rules.

These things exist only on paper and are no longer relevant or applicable to real world every day operational and engagement situations.

Missing the IVPI Proposal yet?

https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf

 

[DWiley]

Actually read the document dude.

It's in there. It's not PAREA. The 'multiple pathways.'

It's in there.

I'm getting a CG license and there is nothing anyone can do to stop me.

The only people whom will remain tied to CR is going to be the technically illiterate and the high turnover skeleton crew the middle managers keep on hand for regulatory compliance reasons, they'll all be underpaid menial employees.

Sorry. I have not yet read the exposure draft, so I thought you were just asking a PAREA question. I did not realize it was also a question about the ED.

You may be right about your claim about everyone getting a CG. I had the choice and opted not to go that route. I had all the classes and experience, but I also knew that I didn't like that work nearly as much. So, I chose CR instead.

I don't think "everyone" will be able to pass the courses required for CG. In the classes I took, some really struggled with the math.

 

[George Hatch]

The company line (anonymously, online):

"
This post was brought to my attention. I have asked two AI PAREA graduates to reach out to you. I am the AI PAREA Mentor Manager, and AI PAREA may be an option for you, depending on your state. As noted in another post, we have a 100% state exam pass rate for AI PAREA LR graduates (as of 06/30/2025). That speaks volumes in comparison to the standard supervisor/trainee current pass rate.

There are advantages and disadvantages to both routes. No, the Mentors cannot take you on-site for local measurements, data, etc.; however, AI PAREA provides you with the tools to gain this experience after graduation. Some Appraisal Institute local chapter members are offering assistance to AI PAREA Participants to learn such tools. Several of our graduates have found alternative routes to gain that experience.

Check out our PAREA FAQs page for additional information, especially scholarship opportunities. https://www.appraisalinstitute.org/the-appraisal-profession/parea/parea-faqs

Good luck with your decision! Real Estate Appraisal can be a rewarding career!"

"Teach the test" is another common feature in certain instructional settings. I don't know if they're still available but I know that in the past there were certain courses for both RE agent licenses and appraisal licenses that a person could take that went through the actual test questions and showed the correct answer. They had basically sent a test taker in to copy the test questions and multiple choice selections and were literally teaching those answers to the course participants. People would walk in knowing in advance what the questions and correct answers were. I personally knew several appraisers who passed the test that way. And I also knew several appraisers who had the QE and the experience but who never did pass the test despite multiple attempts.

 

[TerryRohrer]

Yeah, passing the test has been the focus of most entrants in the past couple of decades. Daily, I see plees for which pass the test class or packet has worked for folks. Graduation is then to asking how to fill out the form, or whether or not to call for an inspection or insist on a stair railing. The answers are out there, no need for knowledge or critical thinking.

 

[Ricky LaFleur]

As far as I know, there is no PAREA for CG.

It was in the OP. They are taking comments (as required by law) before they move forward with implementing such. I'm 100% confident that the comments, while largely critical (as seen from previous draft comments), won't change the direction they are heading.

Having said that, when I look at changes in the appraisal landscape, I think the change has to be measured against the current state. The current state has produced a lot of appraisers who come to this forum (or other SM platforms) and ask, "My client has asked me how I got my adjustment rate - what do I tell them?"

It is beyond stunning to me that someone holds a CR and is completing "appraisal reports" but does not know how to support an adjustment - that's like being an NFL quarterback and not knowing how to pass a football.

I said it in the OP, but CR appraisers know all too well that incompetence is not rooted out like USPAP and state board enforcement thereof would have one believe. That isn't acceptable, but PAREA and lowering the qualification requirements won't make this better.

The cumulative failure rate for the licensing test is 50% and the failure rate for the income courses it takes to qualify to take the test is another 50%. I assume the PAREA courses have their own failure rate. The stats for the CR license demonstrate that not everyone has what it takes to navigate the QE and testing.

If they're in process of lowering the barrier to entry, I don't have much reason to believe they won't soon change the exam content/difficulty as well.

 

[Mile High Trout]

When being dictated by the regulators, FNMA, and AMCs, how does the independent appraiser really sound credible asserting they are 'running' a business? They are managing the dictates of those who tell them how to work. Only a few of us actually get to run our companies, write our reports the way we want within the bank laws.

I finished my last report of my career last night. 4 more days and I have no license. And I used a couple of methods valuing it (a mineral right) that probably no one here has ever applied. Hoskold's Premise, a sinking fund method, and value in place a hybrid income and sales approach. Every regulator will not accept an income approach even when demanding a rent survey. Funny about that.

Well, 85.5 more hours, none of it will matter to me.

Keep dreaming. Your family. Your community. You yourself if something unexpected happens and you're in a financial pinch.

The mismanagement of the appraisal industry effects the entire nation.

You can stop appraising, but you should never stop advocating for honest ethical process. Something this industry is sorely lacking.

Very smart and correct statements there. Most appraisers live in an illusion of independence, as they've been trained to play ball over a long period of time. It's subtle for most, creeps in long term, and they adapt to the changing conditions without really understanding how much they are controlled by said dictates.

In this industry, if you're engaging with mortgage lending, you play ball or you ride the bench. An appraiser can form meaningful personal relationships with a perfect working history over decades and be just as susceptible to the pressure of predatory lending as a day one new guy. The scale of predatory lending activity is simply incredible. Citizen consumers of mortgage lending products are on their own. Appraisers presence has been diluted to a merely customary participation, paperwork processing. Every meaningful check and balance has been steadily eroded over decades. The rising demins, the personal inspection requirements, manual underwriting, required field reviews, professional allowances and the human element. Everything made way for central planning.

Post this again I suppose.....






Honestly I don't understand why you guys bother to be regulars on these pages anymore. You're all here out of habit and some comradery which is decent.

Face the facts though; This industry was supposed to exist for the primary mission of providing consumer protection.

That concept, totally eradicated. The appraisal industry is now a tool of the exploitation for most practical considerations.

Appraisal licensing was never an issue for private work, where all the appraisers fled. Licensing was not a necessary requirement for commercial appraisal activity, even if CG became a necessary inclusion in order to create a residential licensing program.

The entire reason for appraisal licensing was to protect the public from predatory lending. This industry is unrecognizable from it's original formation and intention. It's why the appraisal trade groups fail time and time again to attract new people. How stupid would one have to be to believe they have a mission to protect the public, to be honest, accountable, and transparent, become an ethical expert, and then be blind to the realities of the constant exploitation of the appraisal management industry and other nefarious every day status quo activity like lender black listing. You'd have to be a grade a retardo idiot to not see what's right in front of you, that the industry is a lie. That the most unethical people in lending are running the appraisal industry, subservient to the faux loan production separation which is actually direct loan production pressure, otherwise known as the appraisal management industry.

 

[Surf Cat]

Hey, don't laugh! Terrel would be a coveted commodity..... eligible bachelor, owner of a newly fixed up Barn, knows how to drive a tractor and fix things. He'd be the ruler of the roost of those clucking hens!

it's a known fact that women have higher life expectancy, this results in a larger pool of older women to choose from. They'd be competing for his affections.

If he plays his cards right, he could probably become a land baron.... have deeds signed over to him.....

 

[TerryRohrer]

It was in the OP. They are taking comments (as required by law) before they move forward with implementing such. I'm 100% confident that the comments, while largely critical (as seen from previous draft comments), won't change the direction they are heading.

This is a formality. TAF announced last year they were helping develop the CG PAREA with Farm Credit (an Lender/AMC with staff appraisers). That is likely ready for release and this is the paper work.

TAF, Farm Credit System collaborate on rural appraisal model | News | Valuation Review

The Appraisal Foundation recently announced a new joint venture with the Farm Credit System to create a Rural Appraisal Practicum Model.

www.valuationreview.com

 

[George Hatch]

Wow, talking about jumping straight into the deep end. The only property types I can think of that would be more complicated to learn remotely would be what Terrel does.