AQB Update On Proposed Changes To Appraiser Qualifications

[Meandering]

"Acceptability Ethics are governed by professional and legal guidelines within a particular time and place Morality transcends cultural norms"

From the above. A set of professional ethics can be learned. A person can be an amoral SOB in their personal life, but if they follow the USAP code of ethics, they have not violated it. And vice versa. A moral person otherwise, who makes a material
USPAP violation can violate the ethics code. Thus you can teach ethics ( as they do in USPAP ) and applied reasoning can help solve an ethical dilemma in a professional situation.

Tell it to Joan and her background checking company.

Better yet, tell that to you clients when they want you to be background checked.

USPAP says you learned professional ethics.

 

[Meandering]

Hey J,

While you're looking at the USPAP,

look up that definition of confidentiality.

See that federal law referenced in the USPAP definition?

Then use your professional ethics to write a letter to Housing Liar and call them on their "client owns the workfile" koolaid.

.

 

[djd09]

Ken, why do you always deflect questions about what your profession is?

hahahahaha. Are you a lawyer?

 

[Mike Kennedy]

incorrect.
https://www.quora.com/Which-is-correct-reread-or-re-read

reread
https://www.merriam-webster.com/thesaurus/read

 

[TRESinc]

You refuse to acknowledge the fact that despite a segment of appraisers lacking degrees who are way smarter /better, there are many without degrees that may be stupider or lack reasoning skills, who bring the field down to their level of pay and public/client perception rather than the other way around.

really? wow. in this thread too...

If all a college degree req accomplishes is protecting the profession going forward against an over supply of trainees and offers some leverage regarding fees and dealing with client pressures, that is enough. The reality is that the on the res license side, the appraisal profession lacking a degree requirement has fared horribly.

so you want the degree requirement to stay so you don't have to deal with competition in the future. why not just state that as your point instead of hiding behind arguments?

 

[Deleted member 130081]

I disagree on this point. An inadvertent violation of ethics is not the same as a intentional violation of ethics.

IMHO, the issue pertaining to this matter is reading comprehension. When reading certain documents, such as USPAP, state regulations, etc. a fairly high level of reading comprehension is necessary. To really understand what they mean, one needs to read them like an attorney. The level of comprehension might not be necessary for the average simple residential appraisal, but it will likely be needed for more complex assignments, where documents will need to be reviewed.

I think a high level of comprehension is needed for a residential too. I think the context is sometimes more complex than the value development to understand, but you have to have the first before the second. I am pretty good at reading that stuff (but it took a while), but I can see how plenty would struggle with it (and do). I wont go so far as to say a 4-year would cure this, but it certainly might help (and I think some specialized appraisal classes on the subject would work too). However, I don't think our origination lender clients generally understand the context either!!! So...the efforts may be moot.

 

[George Hatch]

You know, we can test for proficiencies at reading, writing, math and other academic topics.

 

[J Grant]

You know, we can test for proficiencies at reading, writing, math and other academic topics.

Why to to such lengths when a college degree already did that? And who is the "we" that are going to test for it?

An issue for the res lending side of the field is, if it stays AMC dominated with low fees is, who will it attract? It's a chicken and egg thing-a degree requirement for multiple reasons has a better chance of restoring fees and regard to the profession. A better paid, respected profession will attract quality people. A low pay, low regard profession will attract marginal people, or cynical pump out volume folks. What happens in the profession with fees does mesh with the interests of public trust .

The fact that AMCs and the worst big box lenders who use them are in favor of dropping education requirement and speeding up training is a clue to where it will lead should it happen.

 

[Meandering]

An issue for the res lending side of the field is, if it stays AMC dominated with low fees is, who will it attract? .

I seem to remember several posts of yours over the years, that you work/worked, for several AMCs.

Chicken meet egg.

Apparently your degree did not save you from low fee AMC work.

Because you are living proof that a college degree did not prevent any of the horrors you want to claim.

Problem is that there may be too many kool aid sucking lemmings with degrees that need to feel good about themselves.

This isn't the way to do that.

.

 

[Deleted member 130081]

For the most part, what we have today are not market value appraisals. They are fannie mae guideline appraisals.

It is not supposed to be like that. You do the appraisal first and then anything outside of the fannie mae guidelines should be discussed or explained. But what most are doing today is appraising to the guidelines.

Bull's-eye. Its circular. We sign a cert/report that says a) we had ample data to develop the sales comparison approach b) we used the most physically, locationally (not a word), and functionally the most similar sales possible and c) the definition of market value as stated was used - that's it. All the garbage about adjustment percentages, sales within a mile, sales within a year, support of adjustments - all of it - comes from the underwriter trying to clear the appraisal. FNMA says to the originator to go get an independent appraisal - that's it. So the lender does. Then FNMA says the ORIGINATING LENDER must test the appraisal to make sure it meets certain standards, so that FNMA can be reasonably sure the assets are appropriately valued. The underwriter asks how they are supposed to test an appraisal when they are underwriters, not appraisers. So FNMA presents the UNDERWRITER with a list of ways the underwriter can test the appraisal such as but not limited to, were the comps less than one year old, were the comps located within a mile, did the adjustments exceed 15/25% (that ones retired), etc. The underwriters turned around and handed that list to appraisers and have said, give me an appraisal that meets all of these. This is a form of appraiser pressure folks that should not be there. We all know what happens if we use a comp over a year old - was it the most physically, functionally and locationally the most similar? Doesn't matter. The underwriter's demand all the other stuff so they can push the thing through as easily as possible - they could care less if the thing is a good appraisal or not - they want a compliance document. If this were not the case, we would use dated sales on a regular basis and simply adjust for time, instead of using bad comps and adjusting for everything else. Funny thing is that time adjustments are some of the easiest to extract and support with market data. I would say the majority of "bad" appraisals are due to this (the ones where the comps are nuts).