AQB's latest dumbing down by 'Stakeholders' Dropping the College Degree Requirement

[Elliott]

All this talk about 'over valuation' made me hungry. Take FNMA. What exactly is the risky thing they do? Look at their senior management and the salaries they take down. And what is a $1.6 Billion cap company with stock at a buck forty two really worth? DCF analysis says its negative -249,687% (that's right, percent). While using the Peter Lynch valuation model says its valuation is +11,458%. I'm thinking DCF is more reliable for the next 20-years of receivership.

 

[Dublin ohio]

So what percentage of their loans had "appraisal related significant defects?"

I am wondering how many of the appraisals with significant defects actually resulted in loan funding. After all a CU score of 4.6 is not exactly reasonable risk IMO

 

[Mark K]

If someone with a college degree cannot figure out how to export MLS data or use a spreadsheet. WTF did they learn in college.

Engineering... plus Fortran and Basic. Also learned to NOT drop a stack of punch cards.

 

[Dublin ohio]

Engineering... plus Fortran and Basic. Also learned to NOT drop a stack of punch cards.

I will go out on a limb and assume you know how to export data and use a spreadsheet

 

[djd09]

who are they lobbying and what for...and don't forget 500 k for relman and 500 k for that other lawyer group...oh and most lobbyist are lawyers

 

[TerryRohrer]

I am wondering how many of the appraisals with significant defects actually resulted in loan funding. After all a CU score of 4.6 is not exactly reasonable risk IMO

I am sure there is far more information regarding the GSEs that we don't know than the little they reveal. There is no other way to keep mining the public treasury with abandon.

 

[andrew81]

It is not the function of licensing to act as brake on the supply of appraisers. I complain about PAREA flooding the market, but the reason includes the point that the program cannot emulate some of the critical functions of the experience of acting in the role of appraiser in real world appraisal practice such as dealing with the ethical challenges or being compelled to work their way through an off-script and new-to-them problem without the benefit of being provided with all 4 possible answers in the multiple choice exam.

I've seen MANY appraisal reports that were completely acceptable and which were performed by appraisers who never went to college, or who only went 2 years. We've had plenty of our own regulars who didn't ever get their 4yr degree prior to entering the profession. As just one example most regulars will remember, Dennis DeSaix was a fully formed and capable appraiser the day he joined this forum, years before he earned a college degree and his MAI. As well as others on this forum. NOBODY here is going to tell me these people were inadequately educated to perform. That they didn't know how to think or how to analyze or how to write.

Now I agree that the average HS grad in the 2000s might come up a bit short when compared to grads from the 1980s or into the 1990s. But some of them are just as capable.

Besides, nobody is getting in who can't pass the QE courses and the licensing exam (which to this day don't have a 50% pass rate); so if someone is sufficiently competent at the QE to get that far then we aren't talking about some illiterate who just got promoted to the next grade in school for showing up 61% of the time.

In my view the intermediate requirements back in 2008 were sufficient to purpose. AA degree or completion of 5 or 7 (can't remember the exact number TBH) specific and accredited college courses.

Which BTW, any aspiring appraiser can complete online for cheap while working on their experience hours. Or for almost free via CLEP (College Level Exam Program) testing.

Speaking of Dennis DeSaix. When I have a question about appraisal theory I reference his posts I have saved from this forum and his published works more than I do other content. Especially, highest and best use. He wrote a great article for Appraisal Today in 2014.

 

[djd09]

Standards I – Sponsored By Zillow​

BY JONATHAN MILLER · PUBLISHED NOVEMBER 9, 2020 · UPDATED JU

My appraisal firm is a member of the Industry Advisory Council (IAC) of the Appraisal Foundation (TAF). I’ve presented to IAC in Washington and the people I’ve met at IAC are great. Before I get to Zillow, here are my thoughts about the structure of the TAF councils:

IAC = Pay to Play. In order to see how the sausage is made, members pay $2,500 per year to buy access to TAF executives, board chairs, and various staff. Members pay their way to the IAC meetings across the county, probably spending $10k to $15K annually. I only attended the meetings when they were in DC but each of those trips cost me about $1,500 round trip. I am not making the argument here that these companies shouldn’t have access to TAF, but it shouldn’t be on a pay to play basis. It is corporate elitism at its worst.

TAFAC = free. The other council is for private organizations, trade groups, individuals, and government agencies. There is no fee for these members, just travel costs. More importantly, TAFAC has wasted more than a decade with the bitter feud between Dave Bunton and the Appraisal Institute. But now, as Kelly Davids has said, AI and TAF are going to make beautiful music together?

I have mixed feelings about the set up of these two councils. How can a publicly accountable organization like TAF, require a fee from the private sector? Is ‘pay to play’ really appropriate for a non-profit that has government oversight?

In addition, the IAC is comprised of many AMCs, National mortgage companies because they can afford the costs. My firm’s membership appears to be an outlier in that regard.

Let’s Look At Zillow as a new IAC member

Here are some additional thoughts on Zillow’s IAC membership:

• Zillow seems to be using TAF to build credibility as a valuation source when its valuation reputation is poor. TAF just wants the money.
• Zillow seems to be the only IAC member that is NOT an appraiser or appraisal provider. TAF just wants the money.

And the most important consideration for IAC’s mistake in judgment is that because Dave Bunton is steering TAF away from accepting ASC grant money as Congress intended, they will become much more dependent on funds from other sources such as IAC members and Corporate sponsorships, continuing to shift away from their mission.

The Zillow decision and TAF’s actions are completely inappropriate for an organization that is supposed to protect the public trust.

I Can See It Now: “Standards I – Sponsored By Zillow”

Yesterday I received this feedback from TAF/IAC: The voting process was completed for Zillow Group and they were approved as an IAC member with the

appraisersblogs.com

hey Frank...pay to play

 

[George Hatch]

So uhhh, how much influence on TAF would Mr Miller say his patronage has purchased in furtherance of his business interests? My guess is that all the money he spent over however many years he's been spending it have bought him zero advantages via changes to appraisal standards or appraiser qualifications criteria. That is, unless perhaps a couple of you are holding him partly responsible for PAREA. After all, he did engage with TAF via what you are alleging amounts to their "pay for play" program.

And sure, the above is 100% snark because I'm sure he had other *very legitimate* reasons for joining and participating in that council. But having personally participated in that process he has the inside line on whatever TAF did or didn't do with the input of those participants insofar as making changes to appraisal standards or appraiser qualifications. If he wants to allege actual misconduct that he has personally witnessed then I'm sure we would all like to see those allegations spelled out in detail.

 

[Mejappz]

Standards I – Sponsored By Zillow​

BY JONATHAN MILLER · PUBLISHED NOVEMBER 9, 2020 · UPDATED JU

My appraisal firm is a member of the Industry Advisory Council (IAC) of the Appraisal Foundation (TAF). I’ve presented to IAC in Washington and the people I’ve met at IAC are great. Before I get to Zillow, here are my thoughts about the structure of the TAF councils:

IAC = Pay to Play. In order to see how the sausage is made, members pay $2,500 per year to buy access to TAF executives, board chairs, and various staff. Members pay their way to the IAC meetings across the county, probably spending $10k to $15K annually. I only attended the meetings when they were in DC but each of those trips cost me about $1,500 round trip. I am not making the argument here that these companies shouldn’t have access to TAF, but it shouldn’t be on a pay to play basis. It is corporate elitism at its worst.

TAFAC = free. The other council is for private organizations, trade groups, individuals, and government agencies. There is no fee for these members, just travel costs. More importantly, TAFAC has wasted more than a decade with the bitter feud between Dave Bunton and the Appraisal Institute. But now, as Kelly Davids has said, AI and TAF are going to make beautiful music together?

I have mixed feelings about the set up of these two councils. How can a publicly accountable organization like TAF, require a fee from the private sector? Is ‘pay to play’ really appropriate for a non-profit that has government oversight?

In addition, the IAC is comprised of many AMCs, National mortgage companies because they can afford the costs. My firm’s membership appears to be an outlier in that regard.

Let’s Look At Zillow as a new IAC member

Here are some additional thoughts on Zillow’s IAC membership:

• Zillow seems to be using TAF to build credibility as a valuation source when its valuation reputation is poor. TAF just wants the money.
• Zillow seems to be the only IAC member that is NOT an appraiser or appraisal provider. TAF just wants the money.

And the most important consideration for IAC’s mistake in judgment is that because Dave Bunton is steering TAF away from accepting ASC grant money as Congress intended, they will become much more dependent on funds from other sources such as IAC members and Corporate sponsorships, continuing to shift away from their mission.

The Zillow decision and TAF’s actions are completely inappropriate for an organization that is supposed to protect the public trust.

I Can See It Now: “Standards I – Sponsored By Zillow”

Yesterday I received this feedback from TAF/IAC: The voting process was completed for Zillow Group and they were approved as an IAC member with the

appraisersblogs.com

hey Frank...pay to play

Of course, TAF wants the money. I don't know about Standard 1 but the cash did help Zillow get on the IAC AVM task force as vice chairman. The problem is that what they are proposing is already obsolete.