Appraisal Institute Last-minute Shakeup

[RCA]

Funny, none of the below was mentioned at the 2026 Annual Conference in Nashville or LDAC. In fact, just the opposite: Nothing to worry about.

Anyway, here's real news from another MAI on LinkedIn:


"Last Friday I went to my local San Diego Appraisal Institute chapter meeting.

I was surprised to meet 10 of you who knew me from Linkedin which was awesome to see.

But the bigger story from the meeting is one most appraisers outside California are not hearing yet.

Our San Diego chapter is being absorbed into the larger Southern California chapter.

The reason is simple math.

Membership at local appraisal chapters is shrinking faster than expenses are dropping.

As older appraisers age out of the industry, fewer young appraisers are stepping in to take their place.

The chapters that organize our continuing education, networking events, and local advocacy are quietly running out of money.

The most surprising part of the meeting came from outside the United States.

Appraisers who drove up from Tijuana shared that their chapter is dealing with the exact same membership drop.

This is not just a California problem.

The aging out of our profession is happening on both sides of the border, and the smaller, older chapters are feeling it first.

Two questions worth sitting with if you are in this industry:

1. Have you looked at your local chapter’s financial position recently?

2. Is your chapter strong enough to support its members another five years from now, or is consolidation the only viable path forward?

The appraisal community is small enough that we all get impacted by these conversations.

Do you think the number of appraisers in our industry will continue to drop? "

When I look at city planning departments, at least in the SF Bay Area, I see that planners' professional qualifications are steadily increasing. The plans are far more aggressive than they were in the past. At least in the SF Peninsula, money is flowing in, development is everywhere, and things are getting fairly complex. I don't see the appraisal profession keeping up - only falling behind. You might as well dump TAF, the State Appraiser Board, and all appraisal organizations. They are kind of keeping up with what is going on but only barely. They are certainly not in any position to be major contributors to progress.

So, I am not at all sure that retiring appraisers is such a bad thing. And to be frank, new appraisers entering the profession need strong degrees that include a solid amount of math, statistics, science, and good old appraisal theory. This "gateway" for new appraisers needs to be overhauled - and there is no one to do the work. So, the best idea is just to put it on hold. BTW, I get the impression that much of the industry simply sees appraisers as suckers to be used to overcome obstacles, with their E&O to cover liabilities. So, appraisers are continually being asked to appraise things that shouldn't be appraised, such as housing developments on eroding coastlines, water wells that shouldn't be permitted due to diminishing underground aquifers, etc. The idea being that after the "mistake" is discovered, it will be too late to do anything but build an expensive seawall or allow the damage to continue, whatever that is.

 

[Zoe]

When I look at city planning departments, at least in the SF Bay Area, I see that planners' professional qualifications are steadily increasing. The plans are far more aggressive than they were in the past. At least in the SF Peninsula, money is flowing in, development is everywhere, and things are getting fairly complex. I don't see the appraisal profession keeping up - only falling behind. You might as well dump TAF, the State Appraiser Board, and all appraisal organizations. They are kind of keeping up with what is going on but only barely. They are certainly not in any position to be major contributors to progress.

So, I am not at all sure that retiring appraisers is such a bad thing. And to be frank, new appraisers entering the profession need strong degrees that include a solid amount of math, statistics, science, and good old appraisal theory. This "gateway" for new appraisers needs to be overhauled - and there is no one to do the work. So, the best idea is just to put it on hold. BTW, I get the impression that much of the industry simply sees appraisers as suckers to be used to overcome obstacles, with their E&O to cover liabilities. So, appraisers are continually being asked to appraise things that shouldn't be appraised, such as housing developments on eroding coastlines, water wells that shouldn't be permitted due to diminishing underground aquifers, etc. The idea being that after the "mistake" is discovered, it will be too late to do anything but build an expensive seawall or allow the damage to continue, whatever that is.

Your a member of Appraisal Institute aren't you?

Your gonna get in trouble.

 

[Non Sequitur]

So, I am not at all sure that retiring appraisers is such a bad thing.

Maybe not. But it isn't the reason the insta-toot is circling the drain. Closed meetings, the lack of financial transparency, back room dealing, favoritism, etc. are the reasons.

 

[RCA]

Maybe not. But it isn't the reason the insta-toot is circling the drain. Closed meetings, the lack of financial transparency, back room dealing, favoritism, etc. are the reasons.

Well, they probably have to discuss all those lawsuits - and potential ones to come. They likely have to be at least partially closed, or they wind up giving useful information to their adversaries. They certainly appear to be sinking in the quicksand. Can they get themselves out?

I wouldn't bet on it.

 

[TerryRohrer]

In my email this morning:

[td]

[/td]



[/td]​

[td]
What is happening with our appraisal organization????​

[/td]​

[td]
A colleague of mine ran the Appraisal Institutes 990s through artificial intelligence, specifically asking about leadership, and this is what it came up with.

This report provides a critical evaluation of the Appraisal Institute’s (AI) health from 2021 to 2024. While the organization maintains a significant asset base, the data reveals a period of profound operational failure, financial hemorrhaging, and ethical crises that directly implicate the leadership of Sandy Adomatis.​

1. Financial Failure: The "Adomatis Deficit"​

Under the direct oversight of the 2023–2024 leadership cycle, the Institute’s financial performance moved from a position of strength to structural instability.​

• Revenue Collapse: Total revenue plummeted from a 2022 high of $23.1M to $18.2M in 2024.
• Operating Losses: After years of surpluses, the Institute recorded a $1.1M loss in 2023 and a massive $2.37M loss in 2024. Projected 2025 loss is $1.9M
• That is $5,370,000 in losses the last 3 years!!!!
• Budgetary Negligence: Internal records reveal that the 2023 budget—approved during Adomatis’s lead-up to the presidency—was built on "fundamentally flawed assumptions." Despite the revenue drop, leadership failed to scale costs, maintaining a $20M+ expense floor that the organization can no longer support.

​

2. Ethical and Legal Crisis: The "Ostrich Effect"​

The most damaging aspect of the 2021–2024 period is not the financial loss, but the culture of litigation and alleged cover-ups that flourished under the current leadership track.​

• Testing Fraud Allegations (Akins v. Appraisal Institute): A 2025 federal lawsuit alleges that AI knowingly misreported appraiser test scores to state regulators from 2020 through 2024. Most critically, the complaint names Sandy Adomatis as one of the leaders who was explicitly informed of the fraud in October 2024 and allegedly instructed the whistleblower to "take no action" and keep the findings confidential.
• Toxic Governance & Harassment: The tenure was marked by the "bombshell" lawsuit from former CEO Cindy Chance, which alleged a culture of sexual harassment and retaliation. The litigation specifically pointed to a "good old boys" network that Adomatis and other officers allegedly failed to dismantle, leading to a multi-million dollar settlement in August 2025.
• Retaliation Culture: Legal filings from multiple former executives (Chance, Akins) paint a picture of a leadership team that prioritized "reputation management" over ethical compliance, using termination as a tool to silence internal critics of the Institute’s operations.

​

3. Leadership Critique: Advocacy vs. Accountability​

Sandy Adomatis’s tenure (VP 2021, President-Elect 2022, President 2023, Past President 2024) is characterized by a "split-screen" reality:​

• The External Facade: Adomatis was highly effective as a public figurehead, appearing before Congress and the PAVE Task Force to defend the profession.
• The Internal Reality: While she was winning "publicity points," the organization’s core business—education and member services—was rotting. Internal audits admitted to "long-term disinvestment" in technology and a "loss of market share" to for-profit rivals.
• Accountability Gap: Adomatis’s messaging often touted "transparency," yet her presidency presided over the firing of a reform-minded CEO (Chance) and the alleged suppression of a massive licensing scandal.

​

Conclusion: A Legacy of Triage​

The Appraisal Institute is currently in a state of organizational triage. While the $34M in assets accumulated over decades provides a buffer, the leadership of the last four years has burned through millions in reserves and decimated the Institute’s reputation through legal scandals.
The "Adomatis era" has left the organization financially smaller, legally vulnerable, and operationally outdated. The primary conclusion is that while the organization will likely survive due to its size, its "health" is at a multi-decade low, requiring a total purge of the governance culture that allowed these failures to manifest.
​

Craig Steinley Federal Lawsuit (2026)​

According to court filings discussed publicly, Craig Steinley filed a federal lawsuit against:​

• The Appraisal Institute.
• Several current or former leaders.
• Individuals associated with the Collateral Risk Network.

Thanks for reading!

I spend my own time and money to keep you informed with the goal that National leadership will start to listen to its members hoping this organization survives and thrives!

[/td]​

 

[Non Sequitur]

In my email this morning:

[td]

[/td]



[/td]​

[td]
What is happening with our appraisal organization????​

[/td]​

[td]
A colleague of mine ran the Appraisal Institutes 990s through artificial intelligence, specifically asking about leadership, and this is what it came up with.

This report provides a critical evaluation of the Appraisal Institute’s (AI) health from 2021 to 2024. While the organization maintains a significant asset base, the data reveals a period of profound operational failure, financial hemorrhaging, and ethical crises that directly implicate the leadership of Sandy Adomatis.​

1. Financial Failure: The "Adomatis Deficit"​

Under the direct oversight of the 2023–2024 leadership cycle, the Institute’s financial performance moved from a position of strength to structural instability.​

• Revenue Collapse: Total revenue plummeted from a 2022 high of $23.1M to $18.2M in 2024.
• Operating Losses: After years of surpluses, the Institute recorded a $1.1M loss in 2023 and a massive $2.37M loss in 2024. Projected 2025 loss is $1.9M
• That is $5,370,000 in losses the last 3 years!!!!
• Budgetary Negligence: Internal records reveal that the 2023 budget—approved during Adomatis’s lead-up to the presidency—was built on "fundamentally flawed assumptions." Despite the revenue drop, leadership failed to scale costs, maintaining a $20M+ expense floor that the organization can no longer support.

​

2. Ethical and Legal Crisis: The "Ostrich Effect"​

The most damaging aspect of the 2021–2024 period is not the financial loss, but the culture of litigation and alleged cover-ups that flourished under the current leadership track.​

• Testing Fraud Allegations (Akins v. Appraisal Institute): A 2025 federal lawsuit alleges that AI knowingly misreported appraiser test scores to state regulators from 2020 through 2024. Most critically, the complaint names Sandy Adomatis as one of the leaders who was explicitly informed of the fraud in October 2024 and allegedly instructed the whistleblower to "take no action" and keep the findings confidential.
• Toxic Governance & Harassment: The tenure was marked by the "bombshell" lawsuit from former CEO Cindy Chance, which alleged a culture of sexual harassment and retaliation. The litigation specifically pointed to a "good old boys" network that Adomatis and other officers allegedly failed to dismantle, leading to a multi-million dollar settlement in August 2025.
• Retaliation Culture: Legal filings from multiple former executives (Chance, Akins) paint a picture of a leadership team that prioritized "reputation management" over ethical compliance, using termination as a tool to silence internal critics of the Institute’s operations.

​

3. Leadership Critique: Advocacy vs. Accountability​

Sandy Adomatis’s tenure (VP 2021, President-Elect 2022, President 2023, Past President 2024) is characterized by a "split-screen" reality:​

• The External Facade: Adomatis was highly effective as a public figurehead, appearing before Congress and the PAVE Task Force to defend the profession.
• The Internal Reality: While she was winning "publicity points," the organization’s core business—education and member services—was rotting. Internal audits admitted to "long-term disinvestment" in technology and a "loss of market share" to for-profit rivals.
• Accountability Gap: Adomatis’s messaging often touted "transparency," yet her presidency presided over the firing of a reform-minded CEO (Chance) and the alleged suppression of a massive licensing scandal.

​

Conclusion: A Legacy of Triage​

The Appraisal Institute is currently in a state of organizational triage. While the $34M in assets accumulated over decades provides a buffer, the leadership of the last four years has burned through millions in reserves and decimated the Institute’s reputation through legal scandals.
The "Adomatis era" has left the organization financially smaller, legally vulnerable, and operationally outdated. The primary conclusion is that while the organization will likely survive due to its size, its "health" is at a multi-decade low, requiring a total purge of the governance culture that allowed these failures to manifest.
​

Craig Steinley Federal Lawsuit (2026)​

According to court filings discussed publicly, Craig Steinley filed a federal lawsuit against:​

• The Appraisal Institute.
• Several current or former leaders.
• Individuals associated with the Collateral Risk Network.

Thanks for reading!

I spend my own time and money to keep you informed with the goal that National leadership will start to listen to its members hoping this organization survives and thrives!

[/td]​

It didn't mention how much national owes state chapters and it should have mentioned that current leadership isn't any better. Sadly, nothing is going to change until national burns through all of its easily liquidated assets, then the blame game begins.

 

[Zoe]

A couple of points. One is fact. One is opinion.

They fired a lady that I liked which was pushing for single family residential appraisers with experience.

IMHO, they forgot single family residential appraiser a long time ago.

I won't swear they didn't have the money to fight City Hall on separation of fees like NAIFA almost went broke doing.

 

[Zoe]

I won't swear what else the lady revealed to management that got her fired. But she knew some ins and outs. She wasn't low on totem pole.

 

[chad hampton]

The appraisal Institute has made their position very clear over the years with regards to advocacy and the residential appraisal profession. I suppose they could change course anytime they wanted, but again, we’re dealing with arrogant narcissistic psychopaths, who are incapable of such things. Whatever they become, isn’t a worse enough punishment in my opinion.

 

[Zoe]

The appraisal Institute has made their position very clear over the years with regards to advocacy and the residential appraisal profession. I suppose they could change course anytime they wanted, but again, we’re dealing with arrogant narcissistic psychopaths, who are incapable of such things. Whatever they become, isn’t a worse enough punishment in my opinion.

I think they were kicked out of appraisal foundation at one time. I have been a member. I had all the credentials to write the narrative for MAI. I worked with two MAIs and they discouraged me from pursuing.

The two MAIs I worked with would have reviewed my work and it would have passed. I enjoyed the ride.