Appraisal License not required?

[Fred]

The location answers the question of required by whom. The GAO study lists Ohio as a "voluntary" state. So unless there has been some change in the last five years or the GAO is wrong, a license is only "required" (by the federal banking agencies) for an FRT.

 

[Hamlet]

Ohio is a voluntary state. However, all residential mortgage transactions require a licensed appraiser since last January. It use to be anything under $250K didn't require a license. That is a small improvement.

 

[Marcia Langley]

Lee,

I agree. But employers have been known to use a paid ad for a job offering to cover more than one job description.

Also, I don't blame them for remaining anonomous. They can cut off the responses to the ad at any time once they have selected candidates. Can you imagine the volume?

And speaking of volume, I can't see a small appraiser shop using an ad like that. It must be an institution. Qualified appraisers are not that hard to find.

 

[Karl]

WHY NOT? Send it to your AG & get the legal reading on it??

 

[Mike Phillips]

Jill - (or anyone)

What makes anyone think the requirements for appraisal licensing are going to stop anyone from entering the valuation business and profiting from it? You don't need an appraisal license to run an appraisal business - you need chumps to sign off on appraisals.

If I were running a residential sweatshop I'd hire office staff to do the front end appraisal research, send a Licensed or Certified appraiser into the field to inspect the subject property and comparable sales (5 subjects per day), have the appraisers upload the data to the office staff, set guidelines for the office staff to complete the report write-up, including the valuation portions, have a staff review appraiser tighten up the reports, and then wait for the field appraisers to return from the field to "final review" the reports and sign off. Meet typical guidelines and you have no problems.

Far fetched? I don't think so. In another forum an appraiser is already talking about doing desktops for $30/$50 +/-, arguing that these frequently turn into full appraisals. The appraiser is talking about office staff doing the desktop and remarked their costs run $20 per hour (full costs USA) and that the offshore cost in roughly 20% of that. Anyone can find the discussion at the Buzz if you like. Who cares - the appraisal has a licensed appraiser's signature attached. And who is going to stop that - the under funded state boards?

It just burns my *** that so many people can't see or don't want to see what it going on. You have an ASB that has no conviction and/or backbone. Their view of maintaining the public trust is to water down appraisal standards to accommodate the mortgage industry and the large appraisal firms. The residential side of appraising is a write-off to them and of no consequence. They take no responsibility for the current mess - some of the ASB's followers (ASB wannabees) even suggest that the current mess has little to do with bad appraisals. Right? First of all the current problem IS residential in nature and nearly every bad deal made involved an appraisal so how does that argument wash?

The ASB has screwed around with SOW for so long that even the USPAP gurus are asking questions. They have ignored most of the real problems in the industry; one wonders if they will ever do anything meaningful. God knows whatever they do they will find a reason to reverse themselves in a few years and cite "technology" as the reason for the change.

Someone will argue what a concept like "sole personal control" means and they will roll over like chumps. And they expect the rest of us to buy that argument. When someone asks why someone doesn't just pick up a dictionary the next argument is that the ASB has no business defining the term signature to begin with. And/or "we are involved in a new project now."

The ASB is not on anyone's timetable; they appear to feel they are free to pontificate endlessly over useless details (like advocacy) while they write their "grand document." There is no accountability whatsoever for them to fix problems in the near term. They are so detached and unresponsive to the industry it is pathetic.

 

[Jill Kinnaird]

I recently attended a fraud conference here. One of the discussion topics concerned our new law making it 'illegal' for anyone to pressure or coerce an appraiser. Two of the panel members had differing 'opinions' about who this 'anyone' could be. One stated it meant 'anyone' the other stated they had to be associated with a federally regulated institution. Most attendees agreed that as soon as one of us 'raised the red flag' regarding pressure or coercion business from that entity, and many others, 'goes away' thereby hurting the bottom line. When I asked the panel where's the incentive for the appraisers to speak up when they know of such pressure I was told, "BECAUSE IT'S THE RIGHT THING TO DO". The comment, '...just hold on awhile...it'll get better' was also made.

If the powers that be could be relied upon to "do the right thing" this discussion would not be occuring. If each and every single appraiser in the country suddenly became an ethical, morally upstanding individual we could discontinue this conversation.

 

[CURT VAN HOOSER]

Just to be generous, maybe they hope to get licensed appraisers but might be willing to take on trainees.

Exactly what I was thinking.

 

[Karl]

Mike P: WHY spend money on having a Certified go out Just have his/her signature, Have the Certified stop in the shop once a week, pick up his/her 50% & send out Trainees @ 20%-30% MUCH cheaper. The Owner picks up 20%-30% on every Appraisal. That is how its done here in one area of AZ. 10 Trainees (two) 2 Certifieds Do the Math. YES we have the 2 Trainee Rule!!

 

[Mike Phillips]

Mike P: WHY spend money on having a Certified go out Just have his/her signature, Have the Certified stop in the shop once a week, pick up his/her 50% & send out Trainees @ 20%-30% MUCH cheaper. The Owner picks up 20%-30% on every Appraisal. That is how its done here in one area of AZ. 10 Trainees (two) 2 Certifieds Do the Math. YES we have the 2 Trainee Rule!!

Whatever. Bottom line is you need a licensed appraiser (trainees OK) to inspect the property and a Licensed (big L) appraiser to sign the report. Beyond that, whatever appraisal magic one wants to work to reach the goal is just fine.

 

[Lee Lansford]

Jill, "identifies value to be estimated by studying appraisal request" means just that: What is the definition (i.e., market value? other value definition?)of value being sought? The appraiser's awareness of the definition of value being sought is important, yes? "Identifies value..." does not indicate to me that the person is, at that time, OFFERING an opinion of value.

Based upon what I read in your initial posting as to what the person's responsibilities would be, I can take a guess that this company is not seeking a trainee-type person but more likely someone who would have the qualifications of a "CG-type" with diverse experience in many property types and definitions of value.

Lee