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How Appraisal Regulation Failed

Non Sequitur

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Feb 14, 2002
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Certified Residential Appraiser
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Louisiana
Another spot-on analysis by Dr. Cindy Chance.

How Regulation and Calcified Appraisal Education Failed Banks, Consumers, and Real Property Valuation​


"I spent one painful year as CEO of the Appraisal Institute calling out this bizarre spectacle from the inside. What I saw was a profession that was not just stagnant, but actively harming professionals as it defended against change, led by insiders who benefited from the status quo."

"TAF’s own description of its mission: “advancing the valuation profession by setting standards of excellence, promoting education, and upholding the public trust” is totally at odds with its conduct.

What TAF actually did: ensure that professional education did not evolve in any meaningful way as our tools, knowledge, and capabilities exploded. As theoretical opportunities to advance professional practice grew, professional practice did not."

"As the CFPB noted in a formal comment letter to the Appraisal Subcommittee: TAF’s governance structure “featured a pay-to-play mechanism whereby paying ‘Sponsors’ selected around half the members of the Board of Trustees” — meaning industry players paid for the right to write the standards that governed them. The CFPB further identified “severe deficiencies in The Appraisal Foundation’s conflict of interest policies,” noting that board members worked for vendors regulated by the very body on which they sat. This is the architecture of a closed system, not a professional regulator serving the public."

 
Another spot-on analysis by Dr. Cindy Chance...


"As the CFPB noted in a formal comment letter to the Appraisal Subcommittee: TAF’s governance structure “featured a pay-to-play mechanism whereby paying ‘Sponsors’ selected around half the members of the Board of Trustees” — meaning industry players paid for the right to write the standards that governed them. ..."
The Board of Trustees doesn't write the Standards.
 
The Board of Trustees doesn't write the Standards.
Then your beef is with the CFPB who wrote that, not Dr. Chance.

I appreciate your position on this, but pointing out an inconsistency does not (IMO) diminish the overall message of the blog: The appraisal regulatory system is captured by insiders and has failed in its mission spelled out in FIRREA.
 
The Board of Trustees doesn't write the Standards.
They likely have no influence on who sits on the Standards Board, either! Really, a distinction without a difference.
 
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Then your beef is with the CFPB who wrote that, not Dr. Chance.

I appreciate your position on this, but pointing out an inconsistency does not (IMO) diminish the overall message of the blog: The appraisal regulatory system is captured by insiders and has failed in its mission spelled out in FIRREA.
Beef? I was just pointing out a factual error in the CFPB quote cited by Dr. Chance. It was not intended as an attack (or a defense).

I have been involved with TAF directly and I don't need to rely on others' views to shape any opinions I might have on TAF.

I interacted with Dr. Chance quite a bit during her tenure as AI CEO, and any views/impressions/opinions I have are based on those first hand experiences.

I feel no need to share any views I have on either in this setting, as doing so accomplishes nothing.
 
what do these bots do... :unsure: :rof:
 
She wouldn't have quoted that part of the comment if she didn't agree with it, so that becomes an issue with her understanding of TAFs structure and how it operates.

If she's alleging corruption then the next step would be to cite an example of what qualifications standards or appraisal standards have changed in favor of those interests. Which, so far, nobody has even attempted to make that effort.

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I'm not a member of the AI so the internal politics of that org involving her employment are none of my business. But I will say that there's a distinction to be made between establishing and promulgating an enforceable standard (which is TAFs fundamental role) vs advancing the level of play in QE/CE topics and instruction. Whatever other failings TAF has, they don't have the reach to present an upper limit to the Appraisal Institute's progress toward excellence.
 
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is relman a bot... :unsure: :rof:
My perception is that Relman was extortion, promulgated by the Biden Administration and the political left. Not by a conspiracy among the industry "partners". The BDA for Relman's effort on USPAP was zero. All they accomplished was some elaboration on the existing prohibitions.
 
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