AF New Appraisal Practices Board Appointment

[Mike Kennedy]

We need to address the influence that exist from certain market segments in the context of the TAF, ASB and others. How much input is done by members of TAVMA., First Amer, the big four oligopoly?ARE we are looking for independent appraisers? Or are puppets on a sting more desirable to the special interest groups.

IMHO
KP

https://netforum.avectra.com/eWeb/DynamicPage.aspx?Site=TAF&WebCode=IACMembers

 

[LI-Appr]

https://netforum.avectra.com/eWeb/DynamicPage.aspx?Site=TAF&WebCode=IACMembers

Why am I not shocked?

 

[LI-Appr]

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[Highlander416]

Don, my comments were not directed at you. Sorry for the confusion.

My comments were directed at the "if you can't beat em, join em" statements regarding the use of AVMs and BPOs. Lowering our standards to that of the competition does not improve us. It weakens us. I have repeatedly commented that the user decides what level of service they require. If the user decides that the use of unregulated providers and products satisfies their needs, there isn't much appraisers can do about it.

Appraisers could have contacted their members of Congress in support of re-inserting the appraisals provisions of HR 4173 to the bill, but some appraisers decided they didn't want to do that.

Ken, I think pleanty did. But, Congress does what it wants. I read a while back that people were calling their Congressman at a rate of 1000-1 against the bailouts, health care reform etc. We are talking millions and millions of callers and e-mails. Sometimes, it just doesnt work.

As for BPO's and AVM's, appraiser's can not compete, and if they do, it won't last for long. Who knows what the appraisal field will look like down the road. But, I do know that absolutely no one will enter the field if it goes down like that. Why take on the training and education required to become a Certified Appraiser if a Real Estate sales license, which can be obtained in a couple weeks to do BPO's, will allow you to make a similar amount of money per assignment (if fees are brought down to compete) without any worries about liability or record keeping?

As a big basketball fan, here is a sports example. It would be like the Celtics playing the Lakers. The Celtics (appraisers) must play by the NBA rules in the game. Their players can foul out etc..But, the Lakers (BPO) are not subject to foul calls etc, so they just play it anyway they want. No worries about fouling out. The Celtics might hang in for a while, but eventually, they will get beaten every time in a game like that.

 

[Ken B]

I understand what you are saying, however, the appraisal world is not limited to the appraisal of residential property for mortgage lending clients. It is not hard at all to imagine a future where the use of appraisers and their services in support of residential mortgage lending decisions will become the exception rather than the rule.

 

[GCJim]

............a sports example. It would be like the Celtics playing the Lakers. The Celtics (appraisers) must play by the NBA rules in the game. Their players can foul out etc..But, the Lakers (BPO) are not subject to foul calls etc, so they just play it anyway they want. No worries about fouling out. The Celtics might hang in for a while, but eventually, they will get beaten every time in a game like that.

Nice analogy....
......having to honor USPAP, and NOT having to honor USPAP.

 

[Highlander416]

I understand what you are saying, however, the appraisal world is not limited to the appraisal of residential property for mortgage lending clients. It is not hard at all to imagine a future where the use of appraisers and their services in support of residential mortgage lending decisions will become the exception rather than the rule.

Ken, that is what those in power have to decide. Do they want appraisers, or do they not want appraisers. Yes, their is non lender work out there. However, I would guess that not more than 15-20% of the current # of residential appraisers would be needed to cover that work load. In fact, I would also argue that the Certified Residential level would become obsolete anyway. In a world without residential mortgage lending, Certified General would be the only way to go if one wanted to come into the field. We have a field where the majority of those that use our services dont want our services, and at the same time, the field is becoming one where no one in their right mind would want to enter it. That in itself might indicate the Appraisal field is already terminally ill.

 

[TJSum]

Official US Bank Press Release

U.S. Bank Incorporates New Collateral Valuation Report into Product Pipeline
CVR Identified as a More Credible and Accurate Valuation Compared to BPOs​

Minneapolis, MN— June 2, 2010—U.S. Bank, the nation’s fifth largest bank, announced today that it will start to incorporate a new statistically supported appraisal, the Collateral Valuation Report (CVR™) as part of its ongoing efforts to use best-of-breed valuation products for its lending solutions.
Forsythe Appraisals, LLC, the largest independent provider of residential real estate appraisals in the United States and Valocity, LLC, a leading nationwide valuations provider, have been selected by U.S. Bank to provide the new CVR appraisal report on a nation-wide basis.
The CVR is an innovative, USPAP-compliant appraisal product that incorporates regression analysis performed by the appraiser to support the value conclusion. The valuation report and software was developed by Bradford Technologies, Inc. headquartered in Silicon Valley, as part of their suite of AppraisalWorld Services for appraisers, appraisal management companies and lenders.
Forsythe Appraisals, Valocity and Bradford Technologies have partnered to provide the CVR as a much more reliable alternative to Broker Price Opinions (BPOs) and Automated Valuation Models (AVMs) which typically require little or no appraiser interaction.
Tony Pistilli, U.S. Bank’s Chief Retail Appraiser for Consumer Banking Risk Management noted that the CVR’s attractiveness to U.S. Bank is its accuracy and reliability. “We believe the CVR will provide a more accurate and more reliable valuation with additional analytical features compared to anything else currently in the marketplace. The value of the CVR is seen as a better way to ensure objectivity and to deliver a valuation with a minimum of valuation bias”.
Tim Forsythe, CEO of Forsythe Appraisals, a veteran appraiser was enthusiastic about broadening his firm’s existing relationship with U.S. Bank. “Obviously we’re thrilled to be working with U.S. Bank to provide products and services that meet a broad range of lending needs. We anticipate it being a real help to them and hope that we can provide the CVR solution for other needs in the future. Valuations based on regression analysis performed by appraisers who are the local market valuation experts is the way all appraisals in the future will be performed. We are enthusiastic about leading the industry alongside U.S. Bank.
Mark Linné, EVP of Education and Analytics at Bradford Technologies, echoed Mr. Forsythe’s sentiments saying, “Transparent statistics will be a part of all appraisals in the future. We are adding science to the art of appraising and we are very pleased that U.S. Bank recognizes the value that statistically supported valuations will bring to their risk analysis and decision making process”.
He continued, “We’re making every effort to educate the marketplace on the CVR and the great value it offers. We are making a difference one lender at a time. We are also currently training and certifying hundreds of appraisers on the use of regression analytics to meet the coming demand.”
For more information on the CVR contact Alan Hummel, SRA, Senior Vice President and Chief Appraiser at Forsythe Appraisals (651-765-9512) or Mark Linné, MAI, SRA, CRE, CAE, ASA, FRICS, Executive Vice President, Education and Analytics at Bradford Technologies (303-995-0899)



Hmmm, I wonder what direction the board will take on appraisal issues, er evaluation issues...