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Appraisal Institute Last-minute Shakeup

I was under the impression that MAGA....
Considered Chicago to be full of low IQers....
Quite the opposite. Home of the Chicago Economic school of conservative economists. Hayek et al, aka Austrian school, if you will. Home of much of commodity trading. And home of my old friend, a retired pilot. Some very good appraisers there too...the late Stephen Vertin comes to mind. I was shocked at his sudden death. Hatch and others know his contribution on this forum well. And I have a lot of respect for appraisers like Chris Posey who works out of Chicago as well.

However, their politicians are morons. The gun laws of Chicago, rather than protecting anyone, has made the place more dangerous and crime there is far worse than it should be. That's poor governance on the part of the city and state government who would rather virtue signal than deal with crime.
 
Another point of view on LinkedIn:

For the fourth time in five years, The Appraisal Institute has had problems electing a Vice President to serve on its four-member Executive Committee. The Board of Directors failed to ratify the National Nominating Committee’s recommendation, unprecedented in the history of the organization. Two of the four Executive Committee slots are now up for grabs in a process yet to be determined. Our election process does not work.

For the past year, The AI has been run by the former CFO who was promoted to acting CEO after the BOD fired the former CEO without cause. The current Acting CEO/former CFO replaced a different prior CFO who also had been removed from the job. The fired CEO, the fired CFO, and at least one other former employee have sued the organization. (Are you keeping it all straight?) We have management problems.

Last week, the current President announced that the organization expects to run a six figure deficit for the current fiscal year. There are issues with both revenues and expenses. We have financial problems.

Membership continues to plummet. People are losing faith in us, but worse, we are losing faith in ourselves.

I’ve purposely described the situation without going into specific details. The actual details are not as important as the sheer number and breadth of problems. What I hope I’ve done is describe an organization in complete chaos. It has financial problems, organizational problems, and corporate governance problems.

Last week, when the current President announced the projected losses and election problems, she also addressed the new CEO search. A YEAR after a committee was formed, no executive recruiters have been hired. There is no active search. She believes the organization doesn’t need a CEO. She thinks “no qualified candidate would want the job anyway”. She suggested abolishing the CEO role entirely and replacing it with a different title. (I couldn’t help but wonder if she’s getting ready to hire or promote someone within the organization who doesn’t meet the requirements of a bona fide CEO). As for the rest of the problems currently on the table, the President cheerfully said that because of legal reasons, she could not discuss anything. And she meant ANYTHING.

All I could think when I heard her say these things is that she was like my friend who has six DUIs and told me she doesn’t have a drinking problem.

I am not calling for the resignation of the Board, the Executive Committee, or any of the C-suite employees. But I am going to not so gently suggest that it is time to get outside help. It’s time for an intervention. The Appraisal Institute cannot be fixed through internal measures. It requires real management consultants. Not your nephew’s cousin’s uncle who took some online management classes: a real consultancy like McKinsey or Bain, who have experience with nonprofits or turnarounds. Maybe even a consultant who can suggest a 12-step program to recovery.
 
Another point of view on LinkedIn:

For the fourth time in five years, The Appraisal Institute has had problems electing a Vice President to serve on its four-member Executive Committee. The Board of Directors failed to ratify the National Nominating Committee’s recommendation, unprecedented in the history of the organization. Two of the four Executive Committee slots are now up for grabs in a process yet to be determined. Our election process does not work.

For the past year, The AI has been run by the former CFO who was promoted to acting CEO after the BOD fired the former CEO without cause. The current Acting CEO/former CFO replaced a different prior CFO who also had been removed from the job. The fired CEO, the fired CFO, and at least one other former employee have sued the organization. (Are you keeping it all straight?) We have management problems.

Last week, the current President announced that the organization expects to run a six figure deficit for the current fiscal year. There are issues with both revenues and expenses. We have financial problems.

Membership continues to plummet. People are losing faith in us, but worse, we are losing faith in ourselves.

I’ve purposely described the situation without going into specific details. The actual details are not as important as the sheer number and breadth of problems. What I hope I’ve done is describe an organization in complete chaos. It has financial problems, organizational problems, and corporate governance problems.

Last week, when the current President announced the projected losses and election problems, she also addressed the new CEO search. A YEAR after a committee was formed, no executive recruiters have been hired. There is no active search. She believes the organization doesn’t need a CEO. She thinks “no qualified candidate would want the job anyway”. She suggested abolishing the CEO role entirely and replacing it with a different title. (I couldn’t help but wonder if she’s getting ready to hire or promote someone within the organization who doesn’t meet the requirements of a bona fide CEO). As for the rest of the problems currently on the table, the President cheerfully said that because of legal reasons, she could not discuss anything. And she meant ANYTHING.

All I could think when I heard her say these things is that she was like my friend who has six DUIs and told me she doesn’t have a drinking problem.

I am not calling for the resignation of the Board, the Executive Committee, or any of the C-suite employees. But I am going to not so gently suggest that it is time to get outside help. It’s time for an intervention. The Appraisal Institute cannot be fixed through internal measures. It requires real management consultants. Not your nephew’s cousin’s uncle who took some online management classes: a real consultancy like McKinsey or Bain, who have experience with nonprofits or turnarounds. Maybe even a consultant who can suggest a 12-step program to recovery.

McKinsey or Bain would be a potshot. What are your chances of encountering an accountant who knows appraisal inside out? And has a math background. Even at McKinsey or Bain, the chances are not that good. But who knows - they have connections and could explore further. They might find someone who partially fits the bill. But that someone would probably lack motivation and be damned expensive.

Anybody smart enough to fix the problem is smart enough to know they would be wasting their time, or rather putting it to likely inefficient use.

You need a new elite of appraisers, schooled in non-parametric statistics, data mining, neural networks, and smart enough to know that the task that lies ahead is one of creating a new set of pragmatic protocols that are strict enough to ensure quality appraisals but not so strict as to cause problems. Intelligent protocols. And protocols that impose mathematical constraints that limit over- and under-valuation as much as possible.

On top of that, and this is the most challenging problem, you need to discuss these issues with high-level officers of banks and lending institutions, who have a depth of understanding that surpasses that of most such officers, whose focus is more often than not on short-term profits. In fact, you have to find some responsible politicians who can look at the long haul, the bigger picture. So, you would have to aim for very high-level discussions. What are the chances you could pull that off? .... Yeah, possible is not probably any time soon. If you had the connections and the pull, you might get somewhere, someday.

So, the CEO is right. Please save your money, i.e., don't waste it on paying some fat pig $500K/year to put his hands up some skirt. They will scrap along for another decade, perhaps. At some point, the most efficient course of action will be to start a new organization(s) from scratch, with completely new characters.
 
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Quite the opposite. Home of the Chicago Economic school of conservative economists. Hayek et al, aka Austrian school, if you will. Home of much of commodity trading. And home of my old friend, a retired pilot. Some very good appraisers there too...the late Stephen Vertin comes to mind. I was shocked at his sudden death. Hatch and others know his contribution on this forum well. And I have a lot of respect for appraisers like Chris Posey who works out of Chicago as well.

However, their politicians are morons. The gun laws of Chicago, rather than protecting anyone, has made the place more dangerous and crime there is far worse than it should be. That's poor governance on the part of the city and state government who would rather virtue signal than deal with crime.

Yes, there are conservatives in Chicago, but they are busy bees and not that politically focused or capable. There is also a history of communist activism in Chicago and on its tail, leftism that expresses itself in political activism and unionism. It is the politics in Chicago that exudes critical control of the infrastructure. The politics is largely liberal, one might say radically liberal. And its sister city is New York, less liberal, - but with a communist activist (aka "Democrat Socialist" currently in lead for mayor.

Grok Analysis:

New York and Chicago are both major urban centers with predominantly Democratic governance, shaped by historical immigration waves, economic challenges, and social issues such as crime, housing, and inequality. The following table summarizes core parallels:

AspectDescription
Party DominanceBoth cities are Democratic strongholds, with limited Republican representation in local government. Chicago has not elected a Republican mayor since 1931, while New York has occasionally done so (e.g., Rudy Giuliani from 1994 to 2001 and Michael Bloomberg from 2002 to 2013).
Progressive TrendsRecent mayoral elections reflect shifts toward progressive candidates backed by grassroots movements. Chicago elected Brandon Johnson in 2023, emphasizing equity and reform; New York followed with Zohran Mamdani's primary win in 2025, focusing on similar issues like affordability and public services.
Policy ChallengesBoth grapple with crime, migrant influxes, and housing shortages. For instance, public safety reforms and economic equity initiatives have been central, often leading to debates over policing and resource allocation.
Historical ContextsIn the Gilded Age and Progressive Era, both cities experienced sociopolitical crises involving labor strikes, policing, and regime changes, fostering machine-style politics focused on local constituencies.

Differences in Political Dynamics​

Despite overlaps, distinct structural and cultural factors set the cities apart:

AspectNew YorkChicago
Ideological SpectrumMore ideologically diverse, with conservative pockets (e.g., Staten Island) and consistent Republican presence on the City Council (typically 4+ members).More uniformly left-leaning, with 0-1 Republicans on the City Council and a stronger history of Democratic machine politics.
Governance OutcomesHas demonstrated effective crime reduction under certain administrations (e.g., a 19.4% drop in murders in 2016 under Bill de Blasio through precision policing).Faces persistent challenges with violence, exemplified by a 40% murder increase in 2016 under Rahm Emanuel, often linked to governance shortfalls.
State-Level InfluencePolicies often require coordination with Albany, where progressive agendas can face resistance, but the city's size grants significant leverage.Relies on Springfield for support, where mayors like Johnson have struggled due to limited alliances, contributing to policy failures (e.g., rejected homelessness funding initiatives).
Corruption and CultureHistorical machine politics (e.g., Tammany Hall) with periodic reforms.Notorious for "Chicago-style politics," involving entrenched corruption and patronage, which has endured longer than in New York.

Chicago's recent trajectory under Mayor Brandon Johnson (elected 2023) has been cited as a predictive model or warning for New York, particularly following Zohran Mamdani's 2025 nomination. Johnson's progressive policies—such as rent stabilization, police reforms, and public safety alternatives—have encountered significant setbacks, including low approval ratings (as low as 14%), failed initiatives, and persistent crime issues. These challenges are presented as potential pitfalls for New York if it pursues analogous reforms, with analysts urging New Yorkers to heed Chicago's "cautionary tale" in areas like housing and policing.

Historically, both cities have evolved in parallel rather than sequentially, influenced by shared national trends like urbanization and civil rights movements, without one consistently leading the other. If the query intends a different interpretation of "preshadow" (e.g., resemblance or overshadowing), the cities exhibit notable similarities but also clear distinctions, with neither dominating the other's narrative.
 
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Even if all the parts are fixed, the problem now is not the mechanics of the organization, rather it is the reputational risk. It's no longer looked at as a premiere organization for appraisers but as a broken clock that is only right twice a day.
 
Even if all the parts are fixed, the problem now is not the mechanics of the organization, rather it is the reputational risk. It's no longer looked at as a premiere organization for appraisers but as a broken clock that is only right twice a day.
How long before the designations take on a tarnished aura as well? Unfortunate, and most definitely not deserved by the designees, but nonetheless.
 
AI is almost as corrupt as the banksters...what is the purpose of fixing tests scores...i cant believe appraisers are still paying into it
 
How long before the designations take on a tarnished aura as well? Unfortunate, and most definitely not deserved by the designees, but nonetheless.
On the commercial side in lending, MAIs hire MAIs. That's a fact I have seen up close. Those connections will last even after the insta-toot collapses. They will form something else and leave the residential side behind. As far as the residential side REVAA and the AMC-Staff hybrids own to many votes to see anything constructive rising from the ashes. It's sad but I'm not sure anyone has a decent argument that the SRA designation will outlive the insta-toot.
 
Even if all the parts are fixed, the problem now is not the mechanics of the organization, rather it is the reputational risk. It's no longer looked at as a premiere organization for appraisers but as a broken clock that is only right twice a day.

Things are seldom what they seem,
Skim milk masquerades as cream;
...
Gilbert & Sullivan

 
AI is just another useless corrupt bureaucratic tangled ball of fishing line monkey wrench.
 
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