Appraisal Institute Controversy

[ucbruin]

You don't compare different interest rates, compare closing costs, different mortgage len

I'm sure borrowers do their due diligence....
But they're not researching appraisers....
That was my point....

 

[Terrel L. Shields]

It defeats the whole purpose of what we do.

The path of least resistance is a given. And 'doing it right' gets push back. In response, FNMA/Fred, FHA, et al, have tried to establish procedural limits such as the old one-mile limits or bracketing. But that does not work, especially with rural properties or unusual properties. The appraiser's gift is the heuristic ability to make a judgment. Otherwise, a computer can do our job just as well. If quants could fix appraising, it would have been done years ago. It is our knowledge built up over the years, that gives us insights into the reactions of buyers and sellers. And that is why it is tough for a trainee and especially a young trainee without life experience.

Some of us have dealt with our own real estate. Some of us worked in related areas like working for a civil engineer, architect, or a developer. Some sold real estate. Some had parents in real estate. But in the 20 or so years of doing such, we picked up on the nuances of real estate. That's something most 21-year-old college grads lack. And why most new appraisers are middle-aged.

 

[Tiffany Gibbons]

The path of least resistance is a given. And 'doing it right' gets push back. In response, FNMA/Fred, FHA, et al, have tried to establish procedural limits such as the old one-mile limits or bracketing. But that does not work, especially with rural properties or unusual properties. The appraiser's gift is the heuristic ability to make a judgment. Otherwise, a computer can do our job just as well. If quants could fix appraising, it would have been done years ago. It is our knowledge built up over the years, that gives us insights into the reactions of buyers and sellers. And that is why it is tough for a trainee and especially a young trainee without life experience.

Some of us have dealt with our own real estate. Some of us worked in related areas like working for a civil engineer, architect, or a developer. Some sold real estate. Some had parents in real estate. But in the 20 or so years of doing such, we picked up on the nuances of real estate. That's something most 21-year-old college grads lack. And why most new appraisers are middle-aged.

You can tell who has had a good mentor and who has not. That's why PAREA is such a bad idea. For years after I left the appraisal firm for the county, I still ran stuff by him for my hearings. He was a national president of NAIFA in the 2000's and still teaches for ASA. He and his wife are in the Oklahoma Chapter.

 

[Tiffany Gibbons]

I'm sure borrowers do their due diligence....
But they're not researching appraisers....
That was my point....

Got it. I had a discussion yesterday with an owner, who was still researching interest rates because they are up and down. But it's VA, so if she finds a better rate they can just transfer the appraisal over to the new company. But, yes, us appraisers will online stalk to find an appraiser to find out what county our appraiser is coming from, license level, etc. but, I guess the general public doesn't care.

 

[George Hatch]

On Glassdoor.com, there are plenty of negative comments from employees at AI. In particular there plenty of recent negative comments about Cindy Chance.

Here is the most recent:

"CEO Chance has put the Appraisal Institute’s staff through the shredder since she started in September. Change was needed, absolutely, but CEO Chance instituted a culture of fear. She has been absent, distant, and belittling to staff since the day she started. Our annual reviews required us to let her know how much we wanted to be part of her “high performance team.”

She hasnt made effort to connect with staff, while repeatedly telling us that our jobs are at risk and she’s let go of 16 people in less than four months. They said she wouldn’t even make eye contact while she let them go.

Do not apply here while she is still in charge. You will regret it. We all regret it and we’re hoping our Board will step in soon.

Advice to Management

I hope the end of Phase II of CEO Chance’s restructure will return us to a healthy work environment. Her promise to dictate goals that are “monitored throughout the work week” where any failures will be “managed” isn’t promising. I think we should give her a chance as a leader, but we as staff need someone in our corner. We don’t have an advocate anymore. Our managers are too fearful for their own jobs to speak up, or they’re left in the dark altogether."

MY TAKE:

Cindy has a Ph.D. in Philosophy. She may be been maintaining a good political stance with respect to residential appraisers. But that probably was just her playing politics.

What we need is somebody with a Ph.D in Data Mining, Statistics and Computer Science (from a top tier university) - with an MAI and SRA. .... Yea, of course DREAM ON!

Actually, I think we could get by with a BA in Math/Statistics (from a top tier university department), a good skill set in R/Python programming and MAI/SRA designations and all that that entails (i.e. a good base understanding or real estate, appraisal, regulations and standards).

If true, the HR angle seems TO ME to be a much more likely explanation for this outcome than the other narrative being floated about AMC interests controlling the top echelon of the AI. It's also possible that both are true.

 

[Tiffany Gibbons]

Per her Housingwire interview there was “no specific feedback” prior to termination.

In those C suite positions, you serve "at the pleasure of who or whatever" and can be terminated for any reason or for no reason at all. So called right to work states are a joke. So, the board was not "pleasured" by her ethical response to what she saw was happening. There will be no "feedback" because it could be used against them. I think she has a bright future ahead as a speaker and perhaps an expert witness.

 

[RCA]

If true, the HR angle seems TO ME to be a much more likely explanation for this outcome than the other narrative being floated about AMC interests controlling the top echelon of the AI. It's also possible that both are true.

It is also possible that Cindy Chance was essentially a "hired assassin" whose temporary job was to purge certain undesirables from the AI by those who hired her. All you have to do is interview those who were fired to determine what their beliefs and opinions were:

1. Were they just incompetents?
2. Were they in fact employees who whispered among themselves that the residential appraisers were being ignored at the AI, - or some such thing.
3. Were they the types who speak up, speak their opinion and criticize?
4. Or were they followers?

Who is in control at the AI now? What are their intentions?

Those such as Lori and others who think that Cindy Chance was some gift from God, are quite possibly wrong. She just does not fit the bill of what is needed to save the AI, - other than being a hired assassin to fire a certain group of employees.

Look deeper.

 

[Zoe]

I don't see if it being hush/hush on the appraisal institute's part. Why did the board not share what the problem is?

That is the part that smells to me.

It has the insinuation that they are hiding something.

It also hints that she was trying to kill or expose whatever they are trying to hide.

The board hired the woman.

If she fired people, the appraisal institute's board had to agree to that also.

I don't think she could have just fired people without the board being in control.

 

[djd09]

It is also possible that Cindy Chance was essentially a "hired assassin" whose temporary job was to purge certain undesirables from the AI by those who hired her. All you have to do is interview those who were fired to determine what their beliefs and opinions were:

1. Were they just incompetents?
2. Were they in fact employees who whispered among themselves that the residential appraisers were being ignored at the AI, - or some such thing.
3. Were they the types who speak up, speak their opinion and criticize?
4. Or were they followers?

Who is in control at the AI now? What are their intentions?

Those such as Lori and others who think that Cindy Chance was some gift from God, are quite possibly wrong. She just does not fit the bill of what is needed to save the AI, - other than being a hired assassin to fire a certain group of employees.

Look deeper.

'if you understand the mechanisms of the human mind, you can manipulate the masses into doing what you want without them ever knowing...'

 

[Tiffany Gibbons]

It is also possible that Cindy Chance was essentially a "hired assassin" whose temporary job was to purge certain undesirables from the AI by those who hired her. All you have to do is interview those who were fired to determine what their beliefs and opinions were:

1. Were they just incompetents?
2. Were they in fact employees who whispered among themselves that the residential appraisers were being ignored at the AI, - or some such thing.
3. Were they the types who speak up, speak their opinion and criticize?
4. Or were they followers?

Who is in control at the AI now? What are their intentions?

Those such as Lori and others who think that Cindy Chance was some gift from God, are quite possibly wrong. She just does not fit the bill of what is needed to save the AI, - other than being a hired assassin to fire a certain group of employees.

Look deeper.

What are your thoughts on the interim CEO, who seems to be from a mergers and acquisitions, auditor, accounting kind of guy (he's a CPA)? Totally agree about her being hired to be an assassin of people they didn't have the guts to get rid of or were afraid of retaliation. And some of the people in receptionist/secretarial positions at National were rude as hell to me on the phone and emails years ago. They were completely disrespectful to me, while once again, the local Chapter coordinators I registered through were professional and always helpful or would find someone to help.