Appraisal Foundation

[Carnivore]

Yes I have I have read it what zoe said Very smart peson I also know the answer to the question I ask. earlier about parea.

the aging appraiser population is a major unspoken reason for PAREA

Now the next major question really is: Will they come? Thats the $64 question?

We have a labor shortage in our coyntry . Lot's of opportunity for young people. Wether they have a degree or not.

The AMC's our our also facing a crisis.,

 

[Francois K. Gregoire]

Yes I have I have read it what zoe said I also know the answer to the question I ask. earlier about parea.

the aging appraiser population is a major unspoken reason for PAREA

Now the next major question really is: Will they come? Thats the b $64 question

Although the age of the appraiser population may be part of the reason, the fact that many aspiring appraisers could not/cannot affiliate with a supervisor to gain experience is another. PAREA is limited to the Appraisal Institute offering right now. There may or may not be additional providers in the future.

I'm not an AI member, but I hear there are over 200 at stome stage of the AI program right now.

Another aspect of the "Real Property Appraisal Experience" problem is many states have overlays which exceed the minimums specified in the AQB Criteria. Some states do not allow or recognized all the experience options outlined in the AQB Criteria. Among those are demonsrations reports (work performed without a traditional client) and practicum. An appraiser informed me of a requirement in a northeastern state that the trainee, appraiser in training had to prepare at least 75% of an appraisal report, and that 50% of their experience must be work where they completed 75% of the report. Why?

That's just one example.

As you know, the AQB has an exposure draft coming soon. Expect there to be some other options.

In the meantime, there is a class of stakeholders pushing very hard for the elimination of ANY experience requirement. Education and examination only will earn a credential.

 

[Trihard]

We're being ripped off by the lenders, AMC's and GSE's.

 

[Carnivore]

There is nothing wrong with ethe parea concept. I think the economics of rres appaising don't add up due to oversupply for now
or perceived over supply which is the AMC's game they play

 

[Tom4value]

That is not the way it is in many cases. The focus with complaints is on the borrower. Sometimes the borrower gets charged $1,500 or whatever for the appraisal and the appraiser gets paid $300. That in essence is what will break the camel's back for bundled and commingling of fees. The AMC and Bank keep the profits from the borrower.

They don't have a monopoly. It is market structure related. They have an oligopsony in some cases with certain lenders and appraisers. The key to antitrust violation is market power on price due to market structure.

The lender and AMC do have market power on price in certain markets due to market structure. Don't look at it from an appraiser standpoint. Look at it from a borrower standpoint.

If fees were separated on truth in lending disclosures, it would clean up the market structure issues. AMCs would operate in one market and compete against each other. Appraisers would operate in different market.

It would be transparent to the borrower on truth in lending disclosures.

Again, this is why I broke away from AMCs. There are a lot of lenders who don’t use AMCs. Getting them is tough. I know. I had to use my sales experience to get them. I used my contacts from my mortgage experience to get most, got some from realtors and did “knocking on doors” with luck of finding clients who said, “glad you came! Our appraiser sucks!”.

We like to think of ourselves as just appraisers. But to grow a business, you have to be a business person.

 

[Carnivore]

So yes we have to look at this f rom a business point of view before you enter the profession So we kind of do that. Like me.
I was a Managing Broker of an RE Firm. I worked a loto0f week ends. So I had an idea what the appraisal business was like. What I liked about the Appraisal business was I could in a way control when I worked or chose to not work.

So yes the below describes an AMC

oligopsony

i.e he Big Five control two-thirds of US book publishing, impacting author advances.

 

[Carnivore]

I am not convinced that Appraisal Fee on truth in lending disclosures is the answer. It won't hurt to have it there.
The borrower for a refi just wants the money. The borrower for a purchase just wants the house.

 

[Zoe]

I am not convinced that Appraisal Fee on truth in lending disclosures is the answer. It won't hurt to have it there.
The borrower for a refi just wants the money. The borrower for a purchase just wants the house.

I am not sure appraisal foundation can help get it done but it can't hurt for them to say separation of fees is right thing to help profession.

I am totally convinced the market structure is different with the largest online lenders that use AMCs and focus on fastest and cheapest and sell the loans to gses.

The AMC. s create an oligopsony market structure with market power on price by focusing on fastest and cheapest. Many many appraisers don't operate in that market structure.

It is also unjust for fees to not be separated on truth in lending disclosures because it would force competition between AMCs and it would impact the way their profit exists.

 

[Zoe]

Okay, take any lender you consider as one of largest lenders online that sells to gses and uses an appraisal management company and I will show you an oligopsony market structure in appraisal business. The lender has market power on appraisal price in that market structure. The lender can post the appraisal fee that is commingled between an AMC and Appraiser and they may be part owner in and get a kickback and that AMC does not compete with other AMCs because their individual fee is not disclosed on truth in lending disclosures.

 

[Carnivore]

So I also think some of you u our broadly making an assumption that all borrowers , sellers our sophisticated enough to understand the Application and the closing docs. So many our and many our not.

my edit

So put it in there. No problem. If any of you think the public will be outraged I s seriously doubt that

Let me give you a visual. The public is not going to take to the streets with pitch Forks and totches to save appraisers from the evil AMC