Appraisal Institute Controversy Part 2

[RCA]

Drop USPAP, adopt the ISVC - which is very well written. Drop the AI and go to RICS!!

Not perfect. A bit expensive. But what we have now is REALLY a DEAD DUCK!

 

[RCA]

US Appraisers are currently in a process of “grokking” to use Heinlein’s neologism.

 

[Mejappz]

Drop USPAP, adopt the ISVC - which is very well written. Drop the AI and go to RICS!!

Not perfect. A bit expensive. But what we have now is REALLY a DEAD DUCK!

We need to move past USPAP and take some notes from the European valuation model. They’ve figured out how to prioritize flexibility and creativity instead of locking appraisers into rigid, standardized processes. In Spain last summer, I met with a few valuers who laughed at our system—especially the USPAP rules, those Fannie Mae forms, and the whole AMC setup.

In Europe, most valuers are RICS-accredited or part of national organizations that follow EVS, giving them broader international credibility. They don’t just slap every assignment into a cookie-cutter form; they use narrative and bespoke reporting styles tailored to the client and the purpose of the valuation. Plus, they don’t have appraisal management companies (AMCs) taking 50% or more of the fee. It’s a much more thoughtful and fair process. Imagine how much better the appraisal profession could be here if we embraced that kind of flexibility and moved away from the “one-size-fits-all” mentality—and let appraisers keep what they earn!

 

[Trihard]

We need to move past USPAP and take some notes from the European valuation model. They’ve figured out how to prioritize flexibility and creativity instead of locking appraisers into rigid, standardized processes. In Spain last summer, I met with a few valuers who laughed at our system—especially the USPAP rules, those Fannie Mae forms, and the whole AMC setup.

In Europe, most valuers are RICS-accredited or part of national organizations that follow EVS, giving them broader international credibility. They don’t just slap every assignment into a cookie-cutter form; they use narrative and bespoke reporting styles tailored to the client and the purpose of the valuation. Plus, they don’t have appraisal management companies (AMCs) taking 50% or more of the fee. It’s a much more thoughtful and fair process. Imagine how much better the appraisal profession could be here if we embraced that kind of flexibility and moved away from the “one-size-fits-all” mentality—and let appraisers keep what they earn!

The reason that they will never do that here is because they need to steal appraisers data to feed the AVM's, hence the standardized form. The new form makes it completely easier for them to take the data and feed it directly into the AVM when compared to the 1004. Its never about helping the appraiser, its about eliminating them, so valuations can be centralized and controlled.

 

[Mejappz]

The reason that they will never do that here is because they need to steal appraisers data to feed the AVM's, hence the standardized form. The new form makes it completely easier for them to take the data and feed it directly into the AVM when compared to the 1004. Its never about helping the appraiser, its about eliminating them, so valuations can be centralized and controlled.

Of course.

 

[Mejappz]

Another big difference is how valuers are perceived in Europe versus the U.S. In Europe, valuers are treated as true professionals. Being part of organizations like RICS or TEGoVA carries significant prestige and is a mark of expertise. In contrast, here in the U.S., appraisers are often seen as service providers or just "number hitters" for lenders, which really limits broader professional recognition. And honestly, you can thank TAF and the overly rigid regulatory system for the commoditization of our work. Instead of being valued for our expertise, we're boxed into systems that treat appraisals like assembly-line products.

 

[Non Sequitur]

According to the AI Director of Membership, today:

Numbers as of 11/1/24
15,784 Total AI Professionals
11,026 (70%) Designated Members
763 (5%) Candidates for Designation
3,243 (21%) Practicing Affiliates
748 (5%) Affiliates & Student Affiliates

Among the designated members are somewhere around 2,500 who are retired and may or may not exist any longer. Those will be converted to paying minimal dues by the end of the year, or will be dropped from the membership rolls.

I am not aware of an AI Directory that shows all members? The only one I can find online will show up to 600 members at once. The Find an Appraiser function on the website reveals about 9,900 members, but each member can choose to opt out of that database.

Let's cut to the chase. The only numbers anyone cares about are the designated members, and that's "around" 8,500 per your source. And as far as the source, it's flat out ridiculous to have 2,500 members who may not even be alive still counted as designated members. In the real world heads would roll with that lack of record keeping. AI national is a dumpster fire, we'll soon see if anyone cares enough to step up and pull the fire alarm.

 

[George Hatch]

We need to move past USPAP and take some notes from the European valuation model. They’ve figured out how to prioritize flexibility and creativity instead of locking appraisers into rigid, standardized processes. In Spain last summer, I met with a few valuers who laughed at our system—especially the USPAP rules, those Fannie Mae forms, and the whole AMC setup.

In Europe, most valuers are RICS-accredited or part of national organizations that follow EVS, giving them broader international credibility. They don’t just slap every assignment into a cookie-cutter form; they use narrative and bespoke reporting styles tailored to the client and the purpose of the valuation. Plus, they don’t have appraisal management companies (AMCs) taking 50% or more of the fee. It’s a much more thoughtful and fair process. Imagine how much better the appraisal profession could be here if we embraced that kind of flexibility and moved away from the “one-size-fits-all” mentality—and let appraisers keep what they earn!

I greatly appreciate your confirmation of my perceptions of your true motivations. Which is exactly why I never joined the AI in the first place.

 

[Mejappz]

This is what the Appraisal Institute is focused on—basically a word salad with a side of TAF dressing