Appraisal Institute suspended from The Appraisal Foundation

[Lost Cause]

Do you feel safer if your doctor was not licensed?

...it is better than no license at all.

I can't say I feel any safer that my doctor is licensed, no. They have even less effective enforcement than we appraisers do.

Better than no license at all? Not really...

**********************************

As far as the prostitution thing goes, I don't feel particularly qualified for that.

 

[Restrain]

They licensed contractors here in Texas. Licensing actually made contractors less liable to the buyer of their homes. It's being revoked.

Prior to Appraisal Licensing, I was licensed as a Real Estate Broker as appraisers were governed by the Texas Real Estate Commission. Licensing didn't make any difference in regards to the quality of appraisals, just created another suck on my billfold. I've seen some of the biggest Skippies skip right out of the ethics hearings with a $500 fine and an ethics course. The prime reason for licensing is to generate income for the state, not to maintain good appraisal practice.

 

[Pittsburgh Pete]

They licensed contractors here in Texas. Licensing actually made contractors less liable to the buyer of their homes. It's being revoked.

Prior to Appraisal Licensing, I was licensed as a Real Estate Broker as appraisers were governed by the Texas Real Estate Commission. Licensing didn't make any difference in regards to the quality of appraisals, just created another suck on my billfold. I've seen some of the biggest Skippies skip right out of the ethics hearings with a $500 fine and an ethics course. The prime reason for licensing is to generate income for the state, not to maintain good appraisal practice.

Rather cynical take on the issue!

I too had to become a broker in PA in order to appraise in the '80's. It was a long and torturous process as points toward the broker license were based on listings and sales--appraisers received one point per month for full-time appraising. It took 4-5 years to accrue the points necessary to sit for the broker's exam.

Same agency in PA that regulates real estate sales people also regulate barbers, nurses, etc. With certification we at least got our own board addressing appraisers. They haven't done much but slap people on the wrist for transgressions and their funding prevents them from doing the work they should be doing (sounds familiar, don't ya think).

It has been my experience that, at least in the commercial field, the market has done the majority of the requisite policing. Have had numerous new clients surface as they were tired of the poor quality of the appraisals they were receiving--we once worked for them but they went to someone who was faster and cheaper. They ultimately found out that cheap and fast often didn't translate to quality. I've assumed that the self-policing aspect of the market is because of the limited volume of transactions and the need for a thorough, credible appraisal to support a significant investment on the part of the lenders. On the residential side that clearly is not the case. The massive volume of transactions has pushed qualilty to the back burner and cost/time to the front. It's the market's fault--how that will change is unknown to me but I would assume that increased regulation is the only alternative. Everyone hates regulation but the alternatives are few, if any. That, I assume, is behind the across-the-board oppobrium for the recently passed legislation.

 

[Pittsburgh Pete]

I can't say I feel any safer that my doctor is licensed, no. They have even less effective enforcement than we appraisers do.

Better than no license at all? Not really...

**********************************

As far as the prostitution thing goes, I don't feel particularly qualified for that.

don't think so. Ask any plaintiff's attorney. Much of the clamor for tort reform harkens to the large awards in malpractice suits. The courts have become the de facto enforcement arm for the medical profession.

 

[Lost Cause]

There are plenty of large cash awards made, but I don't see too many doctors losing licenses. That's not what I call effective enforcement, and we're talking about potential life and death consequences.

 

[George Hatch]

In reference to the doctors I wouldn't call that effective enforcement, either. In California the state suspends or revokes a lot more appraisal licenses than medical licenses even though there are something like 4 times as many doctors.

At any rate, at least now we're moving beyond the idea that simply meeting a group's qualifications is an indicator to their ethical performance. The whole point to having uniform minimum requirements has nothing to do with lowering the expectations of the users and everything with raising the bar for the donkeys in our business. It might be possible to have standards without any kind of enforcement but it isn't possible to have that enforcement without a common standard.


As for the idea that it couldn't possibly be any worse that's pretty laughable if you think about it. I mean, if you really want to run with that idea then I suggest you give some consideration to this little factoid: the lenders have flocked to using appraisals prepared by appraisers who are not licensed and who have never worked under the supervision of a more experienced appraiser and who have about the same amount of exposure to appraisal methodology that 70% of appraisers had prior to licensing.

We call them BPOs.

 

[Catxmd]

Actual Number of Appraisers

The ASC number of appraisers (114,150) as of June 30, 2010 is somewhat misleading as it is actually a tally of licenses and certifications and it does not remove duplications for appraisers with licenses/certifications in more than one state. Once you wash the data for these duplications the net number of actual appraisers is closer to 94,000. The bottom line is that the supply of licensed appraisers has remained relatively flat from 2006 through June of this year. The 94,000 figure is fairly close to the US Bureau of Labor Statistics count for appraisers and assessors.

 

[Austin]

If you look back in the achieves of this forum from about 6 or so years ago, I made a prediction. The focus of my concern is/was that continuing education is the latest version of a gigantic Ponzi scheme. I stated that the entire CE scheme is nothing but a racketeering operation that would eventually corrupt the appraisal regulatory system and explode as the housing bubble exploded.
Consider the numbers based on above post and you will see what I mean. Someone posted that there are 115,000 appraisers. For CE requirements on average of 14 hours or two courses were year at say $300 average for the two that comes to an annual potential gross income of $34,500,000. I am an affiliate of the AI and not a day goes by that I don’t get an e-mail from some level from chapter to Chicago about some new CE offering covering every off the wall subject you can imagine.
In the latest letter we received from the AI it mentioned concerning this controversy that the Appraisal Foundation engaging in CE classes was a conflict of interest. Listen to this saga and see if you nose a conflict of interest within the AI: Last October 2009, I completed my 28 hours of CE to renew my license for 2 more years in Virginia. I turned 65 in March 2010 and said to myself; “self, no more CE for you old boy. The jig is up cause that last course was my last round up.” CE was taken on line from the AI. Two days after I completed the CE and turned it in to the state I received an e-mail from AI stating that to renew my affiliation for 2010 they have a new rule requiring that I take their Business Practices and Ethics class once every 5 years. So I had to take that one too. Then I received a notice that the AI has another a new rule just enacted FEb 2010 (I have had all required MAI classes and passed all exams plus many in addition dating back to 1990) to the tune that some of those old classes are dated and that I have 5 years to take them over or something like that, in other words forcing more CE down my throat.
That is the essence of the dispute between the AI and the Appraisal Foundation. As they say;”follow the dollar.” This CE racket has corrupted the system from the local chapter to the state boards to the appraisal associations on all levels. Each group trying to rent seek and conquer their turf for the sole purpose of racking in the money from CE.

 

[Calvin the Airedale]

Austin makes some good points.

The AQB sets the qualification standards of which CE requirements are part. In theory, CE credits indicate growth or maintenance of professional skills and knowledge.

The AQB could legitimately broaden the list of such indicators to include: professional society affiliation and participation; two, four, and post graduate degrees from accredited colleges; pro bono work for local, state governments and nfp ngo's; and et cetera. They could still maintain some level of CE requirement while allowing credit for such other activities.

But this will never happen. Why? Because the AF doesn't have their fingers in those other pies. To allow such alternatives would potentially diminish their income and that of its a member organizations and IAC members.

 

[incognito]

According to the very lengthy email I received yesterday from the Institute (sorry, it is super secret, and for "members eyes only" ) this issue has nothing to do with the Foundations offerings of CE. It has to do with the AI being able to speak it's mind on political issues without first getting the "permission" of the Foundation. (This is the AI's take on this. I am certain the Foundation views it somewhat differently). Interestingly, the letter comes from the AI board, not President Sellers. I think he has gotten his foot caught in his mouth a little to often, and the board is now doing the speaking for the AI, not the President. This is probably very good.