A real proposal to rid our industry of incompetent appraisers

[timd354]

It has become more and more obvious to myself and and many others that the residential appraisal industry is overwhelmed by a large number incompentent appraisers who were licensed and/certified under standards that were set very, very low.

Thus is exactly why it was found necessary to increase appraisal licensing and certification requirements as of Jan. 1, 2008. Assuming that the new requirements are sufficient to prevent most incompetent people from being licensed or certified in the future (and I don't know the answer to this question one way another), the new standards do nothing about all the thousands and thousands of incompetent appraisers who remained in the system as licensed and/or certified appraisers.

After seeing all of the damage caused to our industry, the banking industry, the FHA, GSE's, etc by these people they really need to be weeded out as soon as possible. The only practical solution I see to accomplish this is for the AQB to draft a comprehensive and rigorous test (perhaps the current AQB approved certified residential test meets this standard) that addresses all areas of residential appraising and to make each and every licensed or certified residential appraiser take and pass this test over a period of the next 24 months. If the appraiser cannot pass the test, then his license should be barred from performing any appraisal services that involve any federally related transactions or entities.

I can already hear the complaints of I have been an appraiser for 25 years and should not need to prove my competence.....blah, blah, blah.....
....................well the complete meltdown of our industry has proven beyond a reasonable doubt that we cannot rely on banks, lenders, appraiser licensing and certification, appraisers themselves, state appraisal boards, the federal and state regulators, or anyone else to require the use of competent appraisers...this is the only solution to this problem that will actually work.

I would love to hear the inputs of others on this subject and whether or not anyone has a better solution to the problem..

 

[Em Tee]

I think it's a great idea. Won't ever happen, but it's a great idea. One of the worst skippies I know is a Certified with over 25 yrs appraising.

 

[Hamlet]

I am working towards my certification and have to take the new test anyway. I agree that requiring testing under the new standards would at least get rid of the incompetent.

The other evil to combat is the unethical side of the business.

 

[Randolph Kinney]

The states administer driver's licenses too. Your first time licensed, you have to have driver's training course, pass a written test and a behind the wheel test. Plus, you have to meet minimum liability insurance.

Now just look at all the drivers on the road. It reminds me of appraisers.

I suspect that low appraiser fees and more lawsuits will do more to weed out the really bad appraisers than mandatory testing.

I suspect too that lenders are failing because of their bad practices and supporting Skippy while turning a blind eye.

Be patient and just let it happen. The problems will all be resolved in due time. It is the same as draining the swamp.

 

[Hank Outlaw]

But what is the solution for lack of integrity, character, honesty... even if the skippy makes a 100 on the exam???

Seems to me that those in the profession who do have a backbone, are honest, have integrity, etc. may bear some of the responsibility for turning a blind eye to the incompetence out there by never turning it in to the state board... for whatever good that may do.

A new exam would be a start, but I'm afraid that won't be the solution altogether. I'm still getting those loan broker calls, kinda like a telemarketer (with kids playing in the background while this guy is trying to order an appraisal) - you know, where they are your long lost friend all ready to send you an order... just one more thing... you know that area, what would you say that house might appraise for? (my response)... are you kidding me? You want me to appraise the property before I've appraised the property??? Without leaving the desk??? Surely you jest. Seem like the more things change, the more they stay the same! Time will tell... kinda reminds me of the late '80's / early 90's with certification.

Hank

 

[timd354]

The states administer driver's licenses too. Your first time licensed, you have to have driver's training course, pass a written test and a behind the wheel test. Plus, you have to meet minimum liability insurance.

Now just look at all the drivers on the road. It reminds me of appraisers.

I suspect that low appraiser fees and more lawsuits will do more to weed out the really bad appraisers than mandatory testing.

I suspect too that lenders are failing because of their bad practices and supporting Skippy while turning a blind eye.

Be patient and just let it happen. The problems will all be resolved in due time. It is the same as draining the swamp.

Low fees may drive out more good appraisers than bad ones, since the bad ones can more easily afford to work for such low fees when they do not perform much of the necessary work.

I am not at all patient when it comes to idiocy....why wait for a swamp to slowly drain, when you can bring in huge pumps and pump it dry much more quickly?

 

[Charles Witt]

USPAP 7-hour with test!

You may get part of your wish. It is my understandfing the USPAP 7-hour Update class will soon have a test with it every two years.

 

[timd354]

But what is the solution for lack of integrity, character, honesty... even if the skippy makes a 100 on the exam???

Seems to me that those in the profession who do have a backbone, are honest, have integrity, etc. may bear some of the responsibility for turning a blind eye to the incompetence out there by never turning it in to the state board... for whatever good that may do.

A new exam would be a start, but I'm afraid that won't be the solution altogether. I'm still getting those loan broker calls, kinda like a telemarketer (with kids playing in the background while this guy is trying to order an appraisal) - you know, where they are your long lost friend all ready to send you an order... just one more thing... you know that area, what would you say that house might appraise for? (my response)... are you kidding me? You want me to appraise the property before I've appraised the property??? Without leaving the desk??? Surely you jest. Seem like the more things change, the more they stay the same! Time will tell... kinda reminds me of the late '80's / early 90's with certification.

Hank

Hank,
You are correct that lack of character and integrity is also a huge problem in out industry. That problem is clearly much more difficult to solve and will require a comprehensive and intensive effort which will require new regulations and aggresive enforcement of those regulations....this is certainly a subject that also badly needs to be addressed. That being said, I think that the lack of competence problem can be solved relatively easily, quickly, and inexpensively.

 

[timd354]

You may get part of your wish. It is my understandfing the USPAP 7-hour Update class will soon have a test with it every two years.

That is a small step in the right direction...but I am looking for something much more comprehensive......considering the damage that has been wrought on our profession by incompetence, I don't think it is an unreasonable position to assume that all residential appraisers should be treated as if they are incompentent until they objectively prove otherwise.

 

[Hamlet]

That is a small step in the right direction...but I am looking for something much more comprehensive......considering the damage that has been wrought on our profession by incompetence, I don't think it is an unreasonable position to assume that all residential appraisers should be treated as if they are incompentent until they objectively prove otherwise.

I absolutely agree that we should be able to demonstrate our competency.