Freddie Mac vs Appraiser Bias

[ucbruin]

"Both have used the issue to cement in PAREA on the back of diversifying residential appraisers (still not a peep about the CG side)."

How is PAREA alone going to be able to diversify the appraisal industry....

I doubt it will....

 

[alebrewer]

"Both have used the issue to cement in PAREA on the back of diversifying residential appraisers (still not a peep about the CG side)."

How is PAREA alone going to be able to diversify the appraisal industry....

I doubt it will....

This is only speculation, but.... IF the majority of appraisers in the industry now are there because of a family member or friend, and IF the majority of said family members or friends (those who were already appraisers) are predominantly older white males, it seems to me that introducing alternate paths to credential may be a means of enhancing diverse representation... no? If so, PAREA would certainly qualify as one of those alternative paths to credential.

 

[J Grant]

This is only speculation, but.... IF the majority of appraisers in the industry now are there because of a family member or friend, and IF the majority of said family members or friends (those who were already appraisers) are predominantly older white males, it seems to me that introducing alternate paths to credential may be a means of enhancing diverse representation... no? If so, PAREA would certainly qualify as one of those alternative paths to credential.

What career is left for diverse people to even want to enter?
On the res lending side it is a shadow of its former self with going forward, more limited earning potential due to replacing appraisals with either Waivers or cheaper valuation products, with entrenched AMC;s taking a cut of reduced profits.

I would not recommend res license end of appraising to ANYONE now, and especially not to a minority person looking to get ahead. PAREA shortens the learning period and eliminates need for a supervisor, (I believe ). But PAREA does nothing to make appraisal a viable field anyone would be advised to plan a future around. There are always a few exceptions and specialty niches or areas where one can do better, but overall the outlook is poor on the res lending side unless regulatory /business changes are made from client end.

Commercial CG license still offers more options for earnings but does not seem PAREA is taking any sizeable role there.

 

[djd09]

maybe he got all the correct property data, who knows, but here is third party partner. pedos? what pedos?

 

[alebrewer]

What career is left for diverse people to even want to enter?
On the res lending side it is a shadow of its former self with going forward, more limited earning potential due to replacing appraisals with either Waivers or cheaper valuation products, with entrenched AMC;s taking a cut of reduced profits.

I would not recommend res license end of appraising to ANYONE now, and especially not to a minority person looking to get ahead. PAREA shortens the learning period and eliminates need for a supervisor, (I believe ). But PAREA does nothing to make appraisal a viable field anyone would be advised to plan a future around. There are always a few exceptions and specialty niches or areas where one can do better, but overall the outlook is poor on the res lending side unless regulatory /business changes are made from client end.

Commercial CG license still offers more options for earnings but does not seem PAREA is taking any sizeable role there.

I don't think the question was related to whether it would be a good choice or not - only as to whether PAREA might enhance diversity efforts...

 

[Sadie]

This is a word salad which has no meaning I can figure out -the first assumption was inane about bias and and a property inspection having a link.

Having reviewed many appraisals, mischaracterization of the subject was not the issue 98% of the time. The issue was lousy, often cherry picked comp selection and bad adjustments/other issues with the appraisal itself. The field inspection /other data usually did not reveal anything markedly different.

A few cases were memorable such as where an appraiser failed to mention an office building next door to subject/impact on value.

If appraisers are out there mis characterizing a subject on a regular basis, then those appraisers should be ferreted out and dropped form the agency or client use lists. A rotten apple appraiser will do that one way or another whether or not a third party inspected.

The problem is if there are too many rotten apple appraisers working ( which I can not know ). If there are, it is a symptom of a corrupt engagement system, which can not be fixed by having a third party do the inspection.

Reviewed one that missed a 500 SF permitted addition. That was a first.

 

[J Grant]

I don't think the question was related to whether it would be a good choice or not - only as to whether PAREA might enhance diversity efforts...

I added my own commentary that coming up with PAREA to enhance diversity efforts is cynical and disgusting, since they are performing an outreach to minorities traying to get ahead, to get them to invest time and effort in a field on res lending is in the decline stage with a poor earnings outlook (overall ) for future.

The last thing more vulnerable minorities need is being drawn into a field with declining income potential and opportunities.

 

[alebrewer]

I added my own commentary that coming up with PAREA to enhance diversity efforts is cynical and disgusting, since they are performing an outreach to minorities traying to get ahead, to get them to invest time and effort in a field on res lending is in the decline stage with a poor earnings outlook (overall ) for future.

They can change that of course with a different AMC tubet ahsareaddiaaht

Again - the question was whether PAREA would enhance diversity efforts - and based on my analysis, I believe it will. As to whether or not it's a good choice, or whether you think folks are intentionally trying to sabotage minorities by inviting them into a dying field - I have no opinion on that part.

 

[ucbruin]

This is only speculation, but.... IF the majority of appraisers in the industry now are there because of a family member or friend, and IF the majority of said family members or friends (those who were already appraisers) are predominantly older white males, it seems to me that introducing alternate paths to credential may be a means of enhancing diverse representation... no? If so, PAREA would certainly qualify as one of those alternative paths to credential.

How are people who aren't aware of the existence of appraisal industry going to all of sudden become aware....

 

[J Grant]

Again - the question was whether PAREA would enhance diversity efforts - and based on my analysis, I believe it will. As to whether or not it's a good choice, or whether you think folks are intentionally trying to sabotage minorities by inviting them into a dying field - I have no opinion on that part.

Interesting to have no opinion when you must be aware that the combo of waivers, hybrids, and AMC gouging make res lending appraisal a stinker for a serious career choice. It used to be at one time , and might still be for a few but overall I would only recommend it to someone I want to see suffer.

PAREA might marginally enhance diversity efforts, but imo it is doing minorities a huge dis service to develop a program to draw them into a declining field. If they want to help minorities ( and others ) thinking of entering the appraisal biz on res side is clean up the payment and client order issues. But they won't, so all one can hope is the social media savvy younger folks can easily find out what the real scope is in appraising to make a smart decision.