Is It Time To Revoke The Appraisal Foundation's Authority

[Deleted member 128537]

I'm wondering, Has all this licensing requirements, etc. actually made any difference in protecting the mortgage industry? Are appraisals more accurate now than before the increased scope of work, etc.? I mean I see a lot of really crappy appraisals by licensed people all the way to Certified General. When our family recently sold farm land the Certified General appraisal was just BS. I told my family the estimate was $1,000 per acre under valued. I mean I could look at the comparables, and I'm a residential appraiser that does some vacant land work. Sure enough we got $1,100 more per acre more at auction. They were off by 15%. And we paid thousands of dollars for the report. I was a bit miffed.

A friend of mine bought an Inn 2005 for 920,000. When I heard what he paid for it, I couldn't believe it and told him there was no way it was worth that much. All I had to do is look at the numbers. Well due to severe physical problems it had to go back to the bank. The new owner paid 250,000 after my friend had done a ton of work on it. Now I know the market went down since 2005, but NOT THAT MUCH! Yet the guy that did the appraisal was a Certified General, and my friend paid $3,000 for the appraisal.

I'm not saying training isn't important. All I'm asking is, "Is this whole process of lending, etc. any better than before licensing?" Just asking.

 

[TD Morgan]

Dissolution or diminishing TAFs "authority" would be like the public demanding/asking/petitioning NSA or TSA be relieved of their duties and/or responsibilities.

There have been cases at airports across the country where public outcry has caused the TSA to be replaced with private security. (I won't touch the NSA issue. I remember when "they" denied they even existed.)

Our esteemed elected officials do listen to their constituents. They may be slow in acting, but I think that they would be amenable to direct oversight, rather than the approach that was initially put into place under FIRREA.

 

[CANative]

???? ...........or does it have to do with your tagline?

I get tired of the crackpots in here.

TAF sets MINIMUM standards for the industry. Why is that too much for some people?

 

[TD Morgan]

I get tired of the crackpots in here.

TAF sets MINIMUM standards for the industry. Why is that too much for some people?

What are you referring to about "minimum standards" as it pertains to THIS thread?

And, do you enjoy calling others "crackpots"? Does it make you feel big and powerful?

 

[CANative]

The one time in 25 years that I needed their involvement, they were not responsive.

Are you worried about them competing with other education providers or are you just po'd about them not helping you out of a jam?

 

[TD Morgan]

Are you worried about them competing with other education providers or are you just po'd about them not helping you out of a jam?

It wasn't a jam that I asked them about, if you mean that I was in trouble. I have never had any complaint or other disciplinary issues whatsoever with my board, if that is what you are attempting to imply.

Why are you deflecting now? To defend your immature attempt to call others names?

 

[George Hatch]

I think there's a legitimate argument to be made that it's unethical for TAF to directly compete in the education business with any of its sponsors. With that said, developing standardized instruction for USPAP is entirely consistent with their role in promulgating it.

TAF didn't establish an instructor qualification program OR the standardized CE course content for USPAP until many years after licensees had been required to take those courses. And while there's clearly some revenue involved, the instructor qualifications program has never been a big money maker for them. So the other explanation - they wanted more consistency in USPAP instruction - remains the more logical explanation. Not to mention reasonable.

FTR, as far as licensing goes TAF doesn't oversee anything the states are doing in their licensing programs.

 

[TD Morgan]

I think there's a legitimate argument to be made that it's unethical for TAF to directly compete in the education business with any of its sponsors. With that said, developing standardized instruction for USPAP is entirely consistent with their role in promulgating it.

TAF didn't establish an instructor qualification program OR the standardized CE course content for USPAP until many years after licensees had been required to take those courses. And while there's clearly some revenue involved, the instructor qualifications program has never been a big money maker for them. So the other explanation - they wanted more consistency in USPAP instruction - remains the more logical explanation. Not to mention reasonable.

FTR, as far as licensing goes TAF doesn't oversee anything the states are doing in their licensing programs.

If I understand, TAF doesn't control university instruction, just private companies that are providing courses. Therefore, TAF realizes that they don't have absolute authority.

But I still wonder where they were given the authority over the content of instruction in the first place. Establishing basic standards for states to adhere to is different than attempting to control private market forces (education.) Unless I am shown where they were given the authority, I will continue to think they have overreached their authority.

If they want to require a USPAP test for renewal, then that may be there prerogative. And while many appraisers may need to be spoon-fed education, many of us don't.

 

[TD Morgan]

FTR, as far as licensing goes TAF doesn't oversee anything the states are doing in their licensing programs.

While TAF does not have direct oversight of the states, each state has an obligation to follow the rules it promulgates, including the Criteria it has established for education.

 

[CANative]

I wasn't implying anything except a general ennui over AI and TAF bashing. I understood your point right off (conflict of interest.) Why fret over that. Should they develop courses for income capitalization or how to get adjustments through the GSE underwriting process? No. But how about advanced courses on USPAP for all appraisers so they have a better understanding and don't unnecessarily limit their opportunities. Reading this forum since before I was an appraiser and participating in Facebook appraiser groups has convinced me that most appraisers don't have a clue about USPAP and it causes them angst and limits what they can do.

I can't think of any better than TAF to develop this type of education.