Appraisal Institute Last-minute Shakeup

[Mile High Trout]

They lost my respect by not fighting for separation of fees when NAIFA was going broke fighting for separation of fees on truth in lending disclosures.

I understand why they didn't fight for separation of fees in back of my mind. They had high ranking members involved in appraisal management companies.

If they would have fought hard for separation of fees, it would have hurt some of their members.

Where the real downfall begins, and ends in this one sentence set.

They had high ranking members involved in appraisal management companies.

If they would have fought hard for separation of fees, it would have hurt some of their members.

That's it, end of story. They threw the entire residential mortgage lending focused side of the industry away. So they could capture the market share using automation and franchise models instead. This goes against the very reason there is appraisal licensing in the first place. To protect the public trust. As a result of predatory lending activity in mortgage lending. Appraisal licensing was not focused around commercial or designated appraiser type process.

The next market crash is right now ramping up.

Where consumers go for answers and information on the appraisal industry these days is on reddit and the larger internet spheres of influence. X. Video sites. Youtube, etc. More people whom will think and feel like you do will read your commentary if posted in more locations. Consumers need this information and fast.

The appraisal community has lost it's way. This was never about our individual small businesses or success stories. The entire show was about safeguarding the nation from run away predatory lending interests. They're doing it again right now with less resistance and more institutional support than ever. Institutional investors whom set up these systems have already captured a fifth of all American housing as a corporate holding.

The GSE's drive the markets. Extreme market distress is building again in real time right now. Failure of the appraisal trade groups and other regulatory authorities to have unbiased impartial interests and fair business dealings. Regulation which was set in place primarily to protect consumers interests have been incrementally chipped away and diluted without resistance but rather support from the appraisal trade groups and same regulatory authorities over many years.

There are conflicts of interest, RICO and Anti Trust. much that used to be specifically prohibited for gse engagement is now fostered as included process. Policy for sale.

There is no valid check and balance system here in service to consumers or consumer protection principals anymore. There is no more 'independence' or safeguard thereto.

Everyone in this country is already paying the price. Whether they understand this industry or have never even heard of it, they pay the price none the less. The independent residential appraiser with full appraisal service is one of the most important safeguards to protect housing stability. There should have been a growing figure of over 200,000 individual appraiser licensees by now if not far more. The industry should have expanded rather than contracted. Where is the small business administration? The FCC? The SEC? Comptroller? Congress? Down to state side concerns? This charade will not last forever. Accountability will come due. The American people will demand it.

The fraud of appraisal regulation; 2004.

Financial Sense: Realty Reality Guest Editorial "The Fraud of Appraisal Regulation" by L.S. Levy 07.02.2004

 

[Mile High Trout]

Also, another good example is the Railroad industry. Conductors have been walking away from jobs since about 2015, and labor cutbacks - when the industry is making record profits.

Except appraisers do not produce anything, rather we serve as a safeguard for the American public. Not a very applicable analogy.

 

[RCA]

One particularly concerning aspect is the substantial body of essential work in the appraisal profession that remains unaddressed. Regrettably, the Appraisal Institute has not demonstrated meaningful leadership or initiative in advancing these critical areas.

Key priorities that warrant immediate attention include:

1. Data Infrastructure Improvements: Comprehensive enhancements to data resources are required across the industry. This includes developing updated mapping systems and revised neighborhood definitions, many of which have remained outdated for decades.
2. Advancement of Statistical Methods and Valuation Techniques: The profession is long overdue for modernized statistical approaches and valuation methodologies—advances largely absent for over thirty years. Despite the clear applicability of advanced analytics and artificial intelligence, progress in developing robust protocols and methods has been minimal. Publications from the Appraisal Institute on real estate appraisal statistics have often been criticized for their limited technical depth, with some materials falling well below the standards expected of a professional organization.
3. Support for a Sustainable and Competitive Profession: Greater effort is needed to ensure that competent appraisers can maintain secure, financially viable careers capable of competing with alternative employment opportunities in more technically oriented fields.

At its core, appraisal is an inherently mathematical discipline. To elevate standards and provide effective guidance, the profession would benefit significantly from the involvement of high-caliber mathematicians and quantitative analysts. The current absence of such expertise is both notable and detrimental to long-term advancement.

....

 

[RCA]

The Appraisal Institute has previously attempted to encourage its MAIs to collaborate on data collection initiatives, but these efforts did not succeed. In my experience working at several firms, individual MAIs and appraisal companies have also tried to develop their own commercial real estate databases, yet the results were consistently of limited quality and utility.

The core challenge lies in the difficulty of attracting and retaining skilled SQL developers and data analysts at the compensation levels real estate and appraisal firms have been willing to offer. Beyond compensation, the sector often struggles to appeal to top technical talent due to its perceived operational culture. Real estate management tends to prioritize short-term results and transactional activity, which can contrast with the disciplined, long-term approach required for robust data infrastructure. This mismatch has repeatedly hindered the development of high-quality, well-maintained databases.

Consequently, the industry has come to rely heavily on CoStar, which provides a professional and comprehensive solution—at a significant cost. However, CoStar’s business model understandably prioritizes its own interests and views direct competition as detrimental, limiting its incentive to invest in broader industry-wide infrastructure improvements. Similar self-interest characterizes most other private players in the space.

This situation highlights a gap that professional organizations are uniquely positioned to address. Unfortunately, neither The Appraisal Foundation (TAF), the Appraisal Institute, nor any other prominent body has successfully filled this role. Government intervention is unlikely, given competing priorities.

In this context, one might reasonably conclude—as Elon Musk has observed in relation to certain complex systemic issues—that these challenges may not be readily “fixable” under current structures and incentives.

 

[Mile High Trout]

One particularly concerning aspect is the substantial body of essential work in the appraisal profession that remains unaddressed. Regrettably, the Appraisal Institute has not demonstrated meaningful leadership or initiative in advancing these critical areas.

Key priorities that warrant immediate attention include:

1. Data Infrastructure Improvements: Comprehensive enhancements to data resources are required across the industry. This includes developing updated mapping systems and revised neighborhood definitions, many of which have remained outdated for decades.
2. Advancement of Statistical Methods and Valuation Techniques: The profession is long overdue for modernized statistical approaches and valuation methodologies—advances largely absent for over thirty years. Despite the clear applicability of advanced analytics and artificial intelligence, progress in developing robust protocols and methods has been minimal. Publications from the Appraisal Institute on real estate appraisal statistics have often been criticized for their limited technical depth, with some materials falling well below the standards expected of a professional organization.
3. Support for a Sustainable and Competitive Profession: Greater effort is needed to ensure that competent appraisers can maintain secure, financially viable careers capable of competing with alternative employment opportunities in more technically oriented fields.

At its core, appraisal is an inherently mathematical discipline. To elevate standards and provide effective guidance, the profession would benefit significantly from the involvement of high-caliber mathematicians and quantitative analysts. The current absence of such expertise is both notable and detrimental to long-term advancement.

....

Logical contradictions here.

Appraisal value analysis in residential markets does not require such advanced mathematics on the micro per individual transaction scale.

Because appraisers anlayze the actions and end results of individual parties and individual agents, of which there is no more mathematical genius or advanced application then is present in the normal populace base. So it's a minimal percentage.

Appraisers need to understand the mechanisms of sales process, insurability adherence, which also comes alongside understanding fundamental principals of basic engineering and home construction both materials and methods.

A regular construction guy whom knows hardware and labor costs up and down makes a better real estate appraiser than a math genius. Those math guys maintain a better functional presence in macro analysis for situations like commercial, and government county type work.

 

[Mile High Trout]

The Appraisal Institute has previously attempted to encourage its MAIs to collaborate on data collection initiatives, but these efforts did not succeed. In my experience working at several firms, individual MAIs and appraisal companies have also tried to develop their own commercial real estate databases, yet the results were consistently of limited quality and utility.

The core challenge lies in the difficulty of attracting and retaining skilled SQL developers and data analysts at the compensation levels real estate and appraisal firms have been willing to offer. Beyond compensation, the sector often struggles to appeal to top technical talent due to its perceived operational culture. Real estate management tends to prioritize short-term results and transactional activity, which can contrast with the disciplined, long-term approach required for robust data infrastructure. This mismatch has repeatedly hindered the development of high-quality, well-maintained databases.

Consequently, the industry has come to rely heavily on CoStar, which provides a professional and comprehensive solution—at a significant cost. However, CoStar’s business model understandably prioritizes its own interests and views direct competition as detrimental, limiting its incentive to invest in broader industry-wide infrastructure improvements. Similar self-interest characterizes most other private players in the space.

This situation highlights a gap that professional organizations are uniquely positioned to address. Unfortunately, neither The Appraisal Foundation (TAF), the Appraisal Institute, nor any other prominent body has successfully filled this role. Government intervention is unlikely, given competing priorities.

In this context, one might reasonably conclude—as Elon Musk has observed in relation to certain complex systemic issues—that these challenges may not be readily “fixable” under current structures and incentives.

O.k., I see you are talking about commercial. This is the problem with trade group talk these days. They only focus on commercial and don't give two cents about consumer protection or sound transparent honest process for the majority of people in this country; Every day individual home owners. The residential and commercial licenses being combined under one regulatory umbrella was obviously a major structural error in terms of long term functionality of appraisal licensing and small business viability. The differences between commercial and residential appraisal practice are night and day. There should be individual licensing and distinctly different trade group representation for either side and they should not cross over to each other.

 

[glenn walker]

Ford CEO Jim Farley received $27.5 million in total compensation for 2025, marking a career-high and an 11% increase from the previous year. This payout occurred despite the company reporting an $8.2 billion net loss and facing record recall numbers.

Who needs that kind of money "per year"? Yet, the mechanics keeping the Ford vehicles on the road can't afford a modest house. Gluttony at its finest. Corporate greed is everywhere.

I have a 2014 Ford Fusion Hybrid. I like the car, it is really touchy though and sensitive in comparison to my former Toyota Camry hybrid. I sold the Toyota with 130k on the ODO, the piston rings had a problem on my year.... requiring frequent top offs.....the reason I got rid of it. Other than that it was really solid.

I would have increased viscosity
on synthetic oil and topped off that Mofer for another 200,000 miles. Ive done that on quite a few that burned oil every 1,000 miles but didn't smoke and ran great.

 

[RCA]

Logical contradictions here.

First, I note that your response references logical contradictions in my prior analysis; however, no specific contradictions were identified. A logical contradiction would require demonstrating that two or more assertions cannot coexist under the same conditions. If you can provide concrete examples, I would be pleased to address them directly.

Appraisal value analysis in residential markets does not require such advanced mathematics on the micro per individual transaction scale.

Regarding the role of mathematics in residential appraisal: market value, as defined by the Uniform Standards of Professional Appraisal Practice (USPAP) and standard valuation principles, represents the most probable price a property would bring in a competitive and open market on the effective date of the appraisal. This is inherently a statistical concept derived from the analysis of multiple relevant, recent, and comparable transactions, rather than isolated single-transaction modeling. While individual sales are examined, the determination of value relies on a systematic review of market data consistent with the assigned scope of work (SOW).

Because appraisers anlayze the actions and end results of individual parties and individual agents, of which there is no more mathematical genius or advanced application then is present in the normal populace base. So it's a minimal percentage.

The SOW for this engagement is established by the client and governing guidelines (including GSE requirements), not by the individual appraiser. Appraisers are expected to adhere to these parameters while applying appropriate methodology. Assertions that deviate from this framework warrant careful substantiation.

Appraisers need to understand the mechanisms of sales process, insurability adherence, which also comes alongside understanding fundamental principals of basic engineering and home construction both materials and methods.

Additionally, effective residential appraisal requires a sound understanding of the sales process, property condition, insurability considerations, and fundamental principles of construction—including materials and methods. Practical knowledge in these areas often proves particularly valuable at the residential level, complementing rather than replacing market data analysis. Macro-level quantitative expertise is more commonly applied in commercial, institutional, or large-scale portfolio valuations.

A regular construction guy whom knows hardware and labor costs up and down makes a better real estate appraiser than a math genius. Those math guys maintain a better functional presence in macro analysis for situations like commercial, and government county type work.

My intent is not to question your qualifications for the work you perform, but to ensure the analysis aligns with established valuation standards and the specific requirements of this assignment. Professional discourse benefits all parties when it remains focused on methodology, data, and standards.

 

[Zoe]

I thought USPAP states appraiser performing the appraisal is responsible for competence, SOW, and independence among other things.

 

[Non Sequitur]

Stalking me on LinkeIn. Still no calls but I did receive a snarky email reminding me that I will be suspended June 1, or I can resign......