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Appraisal Institute Accused of Covering Up Sexual Harassment and Test Flaws

chad hampton said:
The problem is the appraisal Institute reputation is already broken beyond repair in the appraisal community. They’re not getting new members and existing members are dying off or not renewing. I can’t imagine anyone is applying for membership into the appraisal Institute based on what we know today.

And I was in the process of filling my application out last year.

There will always be a core group of MAI’s who will stay involved because their work pays them to do so. And that helps that their work pays for all the dues. That was all part of the deal made decades ago, when someone else is paying you generally just keep doing it.
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My concern is that there is not a large demand for MAI's. I'm in a city of 200,000 and I got my first report this year that could only be done by an MAI. I've been an MAI since 2016 and a Certified General since 2013. It was a $2,000 Appraisal Report. I think it's a nice credential to have when you do court work, but it would be hard to argue I'm getting my premiums to cover my $1,470 annual dues. I'm hoping the Institute moves past this and is better for it. I'd love to see our profession get raised back up to what it used to be.
 
Fighting for Fairness: Appraisers Deserve Better from AMCs and the System That Enables Them
by Paula Konikoff, President of the Appraisal Institute
For too long, residential appraisers have been left to navigate a system stacked against them—pressured by appraisal management companies (AMCs), underpaid for their work, and constrained by a regulatory framework that often puts them last. At the Appraisal Institute, we've been working to change that for many years.

We've stood up for appraisers in their day-to-day interactions with AMCs—calling out low-fee "cramdown" practices, pushing back on unrealistic turn times and advocating for stronger oversight of an industry that operates with far too little accountability. AMCs were created to add independence to the valuation process, but too often they've added inefficiency and inequity instead.

The Appraisal Institute has led the charge to require consumer disclosure of AMC fees. When a borrower pays for an appraisal, they should know how much of that fee goes to the licensed appraiser and how much is taken by an AMC. Hiding that breakdown misleads consumers and devalues the role of the appraiser. We started this cause and carry it forward today. Just last week at our Legislative Day and Leadership Development conference, our members lobbied Capitol Hill on this very issue.

And we are not new to this fight.

As far back as 2009, the Appraisal Institute testified before Congress in support of appraisal reforms included in the Mortgage Reform and Anti-Predatory Lending Act (H.R. 1728). Our testimony outlined the need for registration and oversight of AMCs, clear separation of appraisal and management fees, and strong protections for appraiser independence. We raised alarms about the risks of unregulated broker price opinions and automated valuation models replacing professional appraisals, concerns that are even more relevant today.

That testimony helped lay the foundation for the Dodd-Frank Wall Street Reform and Consumer Protection Act, which followed in 2010. Many of the provisions the Appraisal Institute advocated for—customary and reasonable fees for appraisers, AMC registration, consumer disclosure of AMC fees and protections against conflicts of interest in the use of AVMs—were codified in federal law as a direct result of this groundwork.

That testimony also called out the business model of many AMCs that "cram down" appraiser fees to boost profits at the expense of quality and consumer protection. We warned of regulatory loopholes, weak enforcement and conflicts of interest that put appraisers and consumers at risk. And we called for robust reforms to ensure that appraisers are treated as the highly trained professionals they are rather than an afterthought in the mortgage process.

Even before Dodd-Frank made AMC regulation mandatory, the Appraisal Institute was the only organization to lead the movement for meaningful oversight of AMCs. We developed model legislation that became the basis for most state laws governing AMC registration and conduct years before federal law required states to act. Our leadership filled a regulatory vacuum that had left appraisers and consumers exposed, and the legislative framework we helped create remains the foundation of AMC oversight in the majority of states today.

Today, that same leadership is being applied to a new and growing risk: unregulated property data collection. Once again, the Appraisal Institute is at the forefront of drafting model legislation to ensure proper oversight of property data collectors and the companies that deploy them. Our model law establishes licensing, training, background checks and accountability standards, and it is already serving as the foundation for legislation, which is now under consideration in several states. Just as we did with AMCs more than a decade ago, we are building the regulatory framework needed to protect the public and preserve the integrity of the valuation process.

While appraisal waivers are currently being used in approximately 17 percent of transactions—mostly in low-risk scenarios—the Government Sponsored Enterprises (GSEs) have the ability to dramatically expand that share, as they did during the COVID-19 pandemic when waivers were granted in roughly 50 percent of transactions. We've seen firsthand how quickly the scope of these policies can grow, and we continue to caution against a future where the use of waivers and hybrids becomes the norm rather than the exception. Our position is clear: Credentialed appraisers must remain at the center of the valuation process, not sidelined by automated decisions or fragmented assignments driven by cost and convenience and to the detriment of consumers.

We remain on the front lines engaging with policymakers, testifying before regulatory bodies and working in coalitions to ensure appraisers are treated fairly and professionally. Our commitment is to our members, the integrity of the profession and the end consumer.

It's time to restore balance. AMCs must be held accountable. Appraisers must be compensated fairly. And consumers must be informed. At the Appraisal Institute, that's long been our mission, and we remain committed to it.

Sincerely,

Paula Konikoff

2025 President, Appraisal Institute

PK-2023.jpg
About the Author
Paula K. Konikoff, JD, MAI, AI-GRS of Los Angeles, is the 2025 president of the Appraisal Institute. As president, she serves on AI's Executive Committee and chairs the policy-setting Board of Directors. She was instrumental in the creation of the Women's Initiative Committee. She is also the author of the book, Appraisers in Arbitration.



​
 
The Appraisal Institute should begin by removing Steinley from his position, excluding members affiliated with REVAA from the organization, and revoking the designation of "chief appraiser" employed by AMCs.
 
Mejappz said:

Fighting for Fairness: Appraisers Deserve Better from AMCs and the System That Enables Them
by Paula Konikoff, President of the Appraisal Institute
For too long, residential appraisers have been left to navigate a system stacked against them—pressured by appraisal management companies (AMCs), underpaid for their work, and constrained by a regulatory framework that often puts them last. At the Appraisal Institute, we've been working to change that for many years.

We've stood up for appraisers in their day-to-day interactions with AMCs—calling out low-fee "cramdown" practices, pushing back on unrealistic turn times and advocating for stronger oversight of an industry that operates with far too little accountability. AMCs were created to add independence to the valuation process, but too often they've added inefficiency and inequity instead.

The Appraisal Institute has led the charge to require consumer disclosure of AMC fees. When a borrower pays for an appraisal, they should know how much of that fee goes to the licensed appraiser and how much is taken by an AMC. Hiding that breakdown misleads consumers and devalues the role of the appraiser. We started this cause and carry it forward today. Just last week at our Legislative Day and Leadership Development conference, our members lobbied Capitol Hill on this very issue.

And we are not new to this fight.

As far back as 2009, the Appraisal Institute testified before Congress in support of appraisal reforms included in the Mortgage Reform and Anti-Predatory Lending Act (H.R. 1728). Our testimony outlined the need for registration and oversight of AMCs, clear separation of appraisal and management fees, and strong protections for appraiser independence. We raised alarms about the risks of unregulated broker price opinions and automated valuation models replacing professional appraisals, concerns that are even more relevant today.

That testimony helped lay the foundation for the Dodd-Frank Wall Street Reform and Consumer Protection Act, which followed in 2010. Many of the provisions the Appraisal Institute advocated for—customary and reasonable fees for appraisers, AMC registration, consumer disclosure of AMC fees and protections against conflicts of interest in the use of AVMs—were codified in federal law as a direct result of this groundwork.

That testimony also called out the business model of many AMCs that "cram down" appraiser fees to boost profits at the expense of quality and consumer protection. We warned of regulatory loopholes, weak enforcement and conflicts of interest that put appraisers and consumers at risk. And we called for robust reforms to ensure that appraisers are treated as the highly trained professionals they are rather than an afterthought in the mortgage process.


Even before Dodd-Frank made AMC regulation mandatory, the Appraisal Institute was the only organization to lead the movement for meaningful oversight of AMCs. We developed model legislation that became the basis for most state laws governing AMC registration and conduct years before federal law required states to act. Our leadership filled a regulatory vacuum that had left appraisers and consumers exposed, and the legislative framework we helped create remains the foundation of AMC oversight in the majority of states today.

Today, that same leadership is being applied to a new and growing risk: unregulated property data collection. Once again, the Appraisal Institute is at the forefront of drafting model legislation to ensure proper oversight of property data collectors and the companies that deploy them. Our model law establishes licensing, training, background checks and accountability standards, and it is already serving as the foundation for legislation, which is now under consideration in several states. Just as we did with AMCs more than a decade ago, we are building the regulatory framework needed to protect the public and preserve the integrity of the valuation process.

While appraisal waivers are currently being used in approximately 17 percent of transactions—mostly in low-risk scenarios—the Government Sponsored Enterprises (GSEs) have the ability to dramatically expand that share, as they did during the COVID-19 pandemic when waivers were granted in roughly 50 percent of transactions. We've seen firsthand how quickly the scope of these policies can grow, and we continue to caution against a future where the use of waivers and hybrids becomes the norm rather than the exception. Our position is clear: Credentialed appraisers must remain at the center of the valuation process, not sidelined by automated decisions or fragmented assignments driven by cost and convenience and to the detriment of consumers.

We remain on the front lines engaging with policymakers, testifying before regulatory bodies and working in coalitions to ensure appraisers are treated fairly and professionally. Our commitment is to our members, the integrity of the profession and the end consumer.

It's time to restore balance. AMCs must be held accountable. Appraisers must be compensated fairly. And consumers must be informed. At the Appraisal Institute, that's long been our mission, and we remain committed to it.

Sincerely,

Paula Konikoff

2025 President, Appraisal Institute

PK-2023.jpg
About the Author
Paula K. Konikoff, JD, MAI, AI-GRS of Los Angeles, is the 2025 president of the Appraisal Institute. As president, she serves on AI's Executive Committee and chairs the policy-setting Board of Directors. She was instrumental in the creation of the Women's Initiative Committee. She is also the author of the book, Appraisers in Arbitration.

​
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"It's time to restore balance. AMCs must be held accountable. Appraisers must be compensated fairly. And consumers must be informed. At the Appraisal Institute, that's long been our mission, and we remain committed to it."

I didn't realize the Onion wrote pieces about our industry.
 
Mejappz said:
The Appraisal Institute should begin by removing Steinley from his position, excluding members affiliated with REVAA from the organization, and revoking the designation of "chief appraiser" employed by AMCs.
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Why? Steinley is perfect for their true mission.
 
shrubberyvaluation said:
Good, its kind of like needing to have a title from Harvey Weinstein to get work.
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It's not good. Having demand for someone who pursues the highest level of education in a career is a great thing. Similar to a master electrician over a journeyman. There are doctors that have been charged with sexual harassment too, I'm still looking for an MD when I have surgery.
 
WestMichiganCG said:
It's not good. Having demand for someone who pursues the highest level of education in a career is a great thing. Similar to a master electrician over a journeyman. There are doctors that have been charged with sexual harassment too, I'm still looking for an MD when I have surgery.
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You can get the highest level of education without going through AI or Harvey Weinstein.
 
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