Lee Ann,
I don’t see how any of your comments relate to the AVM issue. Quality is a problem nationally. Fraud is a big part of that. So is a lack of understanding of USPAP, Fannie Mae requirements, or basic appraisal theory, even on the part of appraisers with double digit years of experience. Certainly this isn't every appraiser, but how many field reviews have you done where you've found gross mistakes? How many prior reports have you seen where the value was obviously inflated?
As far as my company is concerned, we have a quality program designed to evaluate every report prior to client delivery, working with each appraiser to provide the client with the best, professionally presented, logical, unbiased report possible. In no cases do we expect the appraiser to “cut corners,” but instead we expect the appraiser to live up to the commitment made at the time of assignment.
My company does a lot to help solve the problem of poor quality appraisals by monitoring the performance and quality reporting of every appraiser who does work for us, screening out problem appraisers, ensuring our clients that only the best work is being provided for them. I also personally have been involved working with the various state licensing boards, helping to isolate problem appraisers, as we do a lot of portfolio anaylsis evaluating broker originated work. I also do my part to bring attention to the national problem that any client working with volume needs outside of a quality driven management structure faces when looking for high quality appraisal reports.
My comments come from more than thirteen years of experience working with a high volume on a national scale. My company certainly would not be competitive if our focus was on hiring “desperate” appraisers (I hope you aren’t including yourself in that category??), and appraisers that do not meet quality and/or service commitments are not kept on our panel. This is reevaluated every 30 days. I believe the appraisers that we use are at the top of the industry in terms of quality and performance, and having worked with many of them for 5-12 years I have seen that their valuations and work history has stood the test of time.
However, ask any national industry professional about the difficulty in finding qualified appraisers outside of an established management system that’s focused on service and quality and they will tell you the same story, one of frustration and disbelief.
I think any appraiser who is seriously upset and confused about the use of AVM’s and other appraisal alternatives in this country should be given the opportunity to spend the time to see what’s realistically involved in recruiting appraisers for volume work in multiple states, and be accountable for the resolution of that work (quality/service, etc.) in a timely fashion. The considerable work that's involved in this process, what any potential client would have to do simply to get appraisals done, (unless using an established management company), is something that more appraisers need to recognize as something that's significantly hurting the industry as a whole, and has not improved, but instead is getting worse over time.
As I've indicated AVM's are a logical symptom of this, and this is an issue that has been largely ignored.
