CFPB urges States and AGs to Tackle Appraisal Regulatory Capture

[Mejappz]

ARCC research shows how regulatory boards often prioritize industry interests over consumers out of fear of retaliation. For this reason, practices like excessive licensing requirements, opaque disciplinary actions, and price-fixing schemes created environments ripe for appraisal control fraud. Regulatory capture is observed at the state and federal level as shown in the deregulation of licensing by the federal bank agencies and Government Sponsored Enterprises without authority. The experiment raises the Major Questions Doctrine where agencies exceed authority to make major changes that affect the economy without going through proper procedures.

CFPB urges States and AGs to Tackle Appraisal Regulatory Capture

*****FOR IMMEDIATE RELEASE*****

arcc-usa.org

 

[Elliott]

I asked some questions of Perplexity AI and it finally drilled down to this:

"Are there any notable trends in the mergers of Appraisal Management Companies

Answer:
Notable trends in the mergers of Appraisal Management Companies (AMCs) over the past few years include:

1. Private Equity Involvement
• Private equity firms have increasingly invested in AMCs, driving consolidation in the industry. For example, Nationwide Property & Appraisal Services was acquired by Arcapita Group Holdings, and Class Valuation is owned by Gridiron Capital. These firms often aim to streamline operations and expand market reach through acquisitions.
2. Industry Rollups
• The AMC sector has seen a rise in “industry rollups,” where companies acquire multiple smaller firms to create economies of scale. Nationwide Property & Appraisal Services has been particularly active, acquiring five companies since 2016, including First Choice Appraisal Management in 2022.
3. Technology Integration
• Acquisitions are increasingly focused on integrating advanced technologies into appraisal processes. For instance, Class Valuation’s acquisition of Metro-West aligns with its strategy to incorporate automation and 3D measurement tools to address capacity challenges.
4. Market Fragmentation and Consolidation
• The AMC space remains highly fragmented, making it a target for consolidation. Larger players like Nationwide and Class Valuation are actively acquiring smaller firms to expand their geographic footprint and client base.
5. Focus on Staff Development
• Some acquisitions aim to enhance operational capabilities through staff expansion and training programs. Class Valuation, for instance, has emphasized building a nationwide trainee program alongside its acquisitions."

 

[George Hatch]

Deregulation of the business will effectively end the REL of your career. But you know who WILL come out ahead? The bankers.