Appraisal Bias

[glenn walker]

We can only know what we know.

I think this task force has taken a lot on and will find itself floundering soon. It is one thing for them to do studies and make certain conclusions and recommendations. Now they have to see results. How are they going to recruit minorities into appraisal ? What person of any race or gender in their right mind would go into res appraisal now? A dead end field being decimated by low fees and under threat from Waivers ? Okay, assume they might find some minority takers for the PAREA scholarships. Then what? They finally graduate and maybe get some low rung AMC staff appraiser job? Then what? As if that would change anything...and how long would they last, it is not a glamour field or a well paid field or a reward for its own sake field...what is in it for them?

Then this task force wants to review AVM's for racial bias in data. Good look with that, considering the huge volume of AVM's being done from a myriad of sources. Then they want to watch for it in appraisals. How are they going to do that? Imo they will respond to a handful of lawsuits a year and keep making studies about data with no solution in sight, because what they hope to happen goes against all sound valuation methods whether appraisal or AVM

My prediction is they wont' be able to do much of their lofty goals, because AVM;s are not a formula divorced from the SCA , they use an SCA and the same data appraisals use. I suspect PAVE will try to find minority applicants for the PAREA scholarships and naively believe PAREA will somehow increase the minority rolls of appraisers/. IF it increases minority participation, then well done. If not, they can keep studying the "problem". And lenders and investors do not want to be on the hook for over valued properties, so a solution will not be tweaking an AVM to see it happen.

Idk what will happen, but the task force will soon find our first hand that property valuation wither by appraisal or AVM is not as simple as it looks , and being involved in it is always some kind of quicksand depending on the market cycle one is in.

You really cant see the end game can you -this time they were honest enough to tell us and yet I guess for the 97% they just can't admit they are the target

 

[Fernando]

No Diversity: 96.5% Of U.S. Appraisers Are White​

by Jonathan Miller The housing industry we know today was built on a foundation of racism by the federal government

So I looked at U.S. labor force data from the U.S. Bureau of Labor Statistics [BLS], which ranked the top 400 occupations by sex, race, and Hispanic or Latino ethnicity. I’ve been an appraiser for 35 years and it’s been very clear that there is nominal diversity in my profession. For users of the industry’s services who have constantly complained about “appraisal shortages” (translated: a shortage of appraisers willing to work for 50% to 75% below the market rate) – here is your opportunity for action to expand our ranks.

The appraisal industry is aging out because it is hard to bring in youth. It is one of the only professions that require new entrants to have a mentor for their first two years and often without making a living, financially. One of the key reasons for this is because most financial institutions won’t accept a “trainee” until they are licensed or certified with two years of experience. A “trainee” is a derogatory term applied to an appraiser that is not licensed yet. While the GSEs like Fannie and Freddie are fine with “trainees” signing reports prior to their two-year experience threshold, most banks are not. Existing appraisers are all for the difficult entry because supply and demand are in their favor. Few other professions have this two-year mentorship period before an entrant can make a living.

Accountants don’t require a two year mentorship program before they can make a living. Free market conditions should let those with more experience make more money, but not zero.
As a result, entry into the appraiser profession via a mentor system essentially requires appraisers to have relatives that will hire and train them. Given the beginnings of the housing industry as explained next, you can see the problem with this approach.

So we agree the appraisal business is set up to keep White majority for Appraisers. Nonwhites have higher hurdle to get mentor to train them. I know of appraisers who got into profession from family and social contacts. I knew it was an unfair system both for entry and income fees. Best for young people to go to other more promising careers.

 

[glenn walker]

And the GSE making it impossible for trainees to inspect properties was not done unintentional
it had to be a planned and timed event knowing the 97% would end by death, retirement and attrition. AND timeed for the move into Waivers, hybrids and PAREA . YET the 97% were busy focused on battling AMC and separation of fees while the Big Dogs in the Cage were moving the troops in for the final coup.

 

[J Grant]

You really cant see the end game can you -this time they were honest enough to tell us and yet I guess for the 97% they just can't admit they are the target

That is unfounded speculation. But it feeds your anti-woke agenda which is all that matters!

A small time federal agency can not and will not get rid of the 97% of appraisers. Despite your bleak unfounded prediction. But Fannie;s waiver program, which you have long supported has a good chance of doing it, at least in part!

 

[Fernando]

Each time as appraisers get more "control" and income, lenders and GSEs change the rules in keeping our fees down. That's what has been happening for decades. Now with these waivers, hybrids, and PAREA, they're a continuation of keeping appraisers down. Can't help to think that last few years of recent appraisal boom could be our last hey days in higher appraisal fees.

 

[J Grant]

And the GSE making it impossible for trainees to inspect properties was not done unintentional
it had to be a planned and timed event knowing the 97% would end by death, retirement and attrition. AND timeed for the move into Waivers, hybrids and PAREA . YET the 97% were busy focused on battling AMC and separation of fees while the Big Dogs in the Cage were moving the troops in for the final coup.

You did nothing than support waivers and make cynical snarky comments so it is odd that you feel entitled to dump on what you say the 97% were focused on, and share your grand idea how if they had focused on Waivers it would have stopped it ?

There is still a place for and need for appraisers despite your endless onslaught of gloom and doom which you seem to enjoy for its own sake. And experienced appraisers are in demand and will always be so. Yes, a portion of us are at some point going to retire or part retire and leave this mortal coil. That is always the case in any profession.

The WAIVER program was the big disruption and imo the hybrids and desktops may not reach the disruption levels they forecast. They introduced those alternatives at the worst possible time it turns out. Will know events as they unfold.

 

[glenn walker]

That is unfounded speculation. But it feeds your anti-woke agenda which is all that matters!

A small time federal agency can not and will not get rid of the 97% of appraisers. Despite your bleak unfounded prediction. But Fannie;s waiver program, which you have long supported has a good chance of doing it, at least in part!HUD is America biggest iggest

HUD is Americas biggest and most powerful housing agencie and the Task Force in charge is Marcia Fudge at HUD who is working with administraion and VP Harris . Those 97% will not be fired or get closed down but they will be starved out economically and be gone due to age and attrition. This is in the model and it is ingenuous way as who though it would be race and gender that broke teh back of appraisers.

 

[J Grant]

And the GSE making it impossible for trainees to inspect properties was not done unintentional
it had to be a planned and timed event knowing the 97% would end by death, retirement and attrition. AND timeed for the move into Waivers, hybrids and PAREA . YET the 97% were busy focused on battling AMC and separation of fees while the Big Dogs in the Cage were moving the troops in for the final coup.

And what did you do? Nothing that I can see, other than then posting repeatedly about how great waivers were on a continual basis.

Take a break from undermining everybody. It is getting old.

 

[J Grant]

HUD is Americas biggest and most powerful housing agencie and the Task Force in charge is Marcia Fudge at HUD who is working with administraion and VP Harris . Those 97% will not be fired or get closed down but they will be starved out economically and be gone due to age and attrition. This is in the model and it is ingenuous way as who though it would be race and gender that broke teh back of appraisers.

I thought it was Waivers that did that.

I did not see this task force and VP Harris eliminating appraisals from the mix.

 

[glenn walker]

You did nothing than support waivers and make cynical snarky comments so it is odd that you feel entitled to dump on what you say the 97% were focused on, and share your grand idea how if they had focused on Waivers it would have stopped it ?

There is still a place for and need for appraisers despite your endless onslaught of gloom and doom which you seem to enjoy for its own sake. And experienced appraisers are in demand and will always be so. Yes, a portion of us are at some point going to retire or part retire and leave this mortal coil. That is always the case in any profession.

The WAIVER program was the big disruption and imo the hybrids and desktops may not reach the disruption levels they forecast. They introduced those alternatives at the worst possible time it turns out. Will know events as they unfold.

There will always be appraisers just like there will always be black smiths and local bakery's. But it will not be a viable business model for 85% of those 97% white males and females.