Checking the Rearview..

[meatsandbounds]

As a younger member, and as someone who will be in this profession till it chews me up and spits me out, I have a two multi-part questions for those who have been an appraiser or in the appraisal industry for 15+ years:

If you could have shaped where the profession was going in your time in it (if given the power), what would you have done to effect a different outcome then where you think things are wrong currently? Are there things that could have been done along the way that would have changed the trajectory of our profession?

What kept you from doing more to affect the change you wanted to see in our line of work? Were there obstacles that stopped you from advocating for the changes you thought were right for the profession?

Genuinely curious about your perspective and thoughtful responses, with hope to learn from it to take forward with wherever appraising continues to evolve. Purposefully trying to get a good faith discussion going, as it’s depressing to see forecasts of doom and gloom on the horizon from many of my elders here.

Looking forward to your responses!

 

[Terrel L. Shields]

Are there things that could have been done along the way that would have changed the trajectory of our profession?

Forbidding the AMCs to even exist would be a start. The second is require the banks to order the appraisal directly and no bidding system be allowed. Third would be forbidding the bank from asking for quotes until after they select the appraiser. Or, at least require the bank to post every fee that they pay and the address on a publicly visible website.

 

[alebrewer]

I'd have changed the appraiser training program. Only appraisers with specific training background/qualification(s) would have been allowed to train new appraisers.

 

[djd09]

get TAF far far away from 15th st...

 

[Mark K]

There's nothing appraisers can do to change the way the GSE's or other lenders do business. No sense looking back and speculating. Tail trying to wag the dog sort of thing.

The only thing you can control is your business plan and if you're not diversifying now, in a few years you'll wish you had. Get out of mortgage work unless you want to beg and fight for scraps.

 

[J Grant]

Should have kept the college degree requirement for residential.
Should have made the compensation to the AMC a cost expense from the AMC's lender customer with no fee split of the appraisal fee.
Should have made round robin panels like the old FHA panel and VA panel for all mortgage work.
The above are several suggestions to counter what went wrong.
Just one in a long line of things that went wrong. Appraisers tried for years to fight the corruption and it all came to nothing. Apraises lack the resources, and were run over by deep-pocket stakeholders.

Diversify into commercial, or get an SRA and become an expert in legal or other, to stand out from the crowd - there will always be a need for some appraisers on the res lending side but the outlook is cloudy- however, if you love the field, stick with it - and best of luck.

 

[George Hatch]

"What could have been done?" is a question which will usually elicit a wish list of what other parties could have given to the appraisers that the appraisers are/were incapable of getting for themselves.

The federal govt could have protected appraisers from ruinous competition
The state govts could have retained the 4yr degree as an economic barrier to entry in order to protect the appraisers from ruinous competition
Lenders could have paid appraisers better and refrained from taking advantage of the ruinous competition
TAF could have just stuck to 10hrs/yr CE requirements instead of increasing to 14hrs/yr; and stuck to 4yr revision cycles
TAF could have brought in PAREA as a QE requirement, not a hack to experience requirements
The GSEs could have revised the 1004 in several ways which the new UAD are only now just remediating

But these are all "passive" wishes that the appraisers had no say in; they're waiting for others to provide to them

As for what the individual can do right now, figuring out how to use AI and other tech, start studying statistics and regression analysis; take more QE level coursework. Some appraisers have what it takes to learn how to do CG work but that won't be everyone. What everyone can do is master the fundamentals - not just the mechanics but also the underlying concepts and principals. Most of the technical and ethical requirements are in place for a reason, not by chance or control.

Instead of selling what you want to sell, try to anticipate and identify more specifically how much and which types of (legitimate) SR1 and SR2 that these clients and users want to buy. There's no point in spinning your wheels on content that your users don't value.

 

[Alsie35]

There's nothing appraisers can do to change the way the GSE's or other lenders do business. No sense looking back and speculating. Tail trying to wag the dog sort of thing.

The only thing you can control is your business plan and if you're not diversifying now, in a few years you'll wish you had. Get out of mortgage work unless you want to beg and fight for scraps.

Or - Just RETIRE.

 

[JTip]

There is and always will be a place for professionals that are experts in the valuation of real estate.

To hold a certification and be successful in the future will required diverse specialization.

 

[Sadie]

I would add some how have a degree program in real estate appraising. Not that its necessary, but I think would elevate the public's perception of appraisers. We are not viewed as professionals by many participants. I don't think that any of us would have thought lenders would be so dumb as to forgo the appraisals like they have been. It goes along with credit score based lending and alt doc/no doc loans.