McKissock dumps PAREA

[gregb]

Everything is now almost in place and just needs a push.

So you are now channeling Zoe, with a twist!

 

[glenn walker]

So you are now channeling Zoe, with a twist!

No Zoe thinks the Feds are going to become a Big VA Type of Appraisal type of management company using rotation systems and all appraisers Federally Licensed.

I believe just the opposite as Govt does not want to manage appraisers and they are content to allow AMCs and Lenders do that. BUT In order to make it faster, cheaper and get free of State Boards and USPAP, you have to not call the new ones appraisers, but a simple name change to " Evaluators" Value Technicians" and the list goes on and on makes it now longer an appraisal by definition.

A Change in Certifications, Names and less Education requirements and Bingo-
You get a value without the burden of appraiser regulations and all the BS that comes with it. The Deminimus Levels can be raised to area market $$ averages and that in itself eliminated 80% of all require license

The remaining majority of old appraisers active now at say 75K to 80K in number will by age attrition alone go down to about 20,000 Nationwide in 7 to 8 years. Those remaining will do Rural-Complex and Non-Lender but the majority left will be "Evaluations-Waivers" and Products at cheaper prices and not called appraisals.

Think About It ? I know of no other Profession you can change just by changing the Name or what you call that person. Your not A Engineer on Monday and a Technician on Tuesday yet doing the same exact job

 

[chad hampton]

Can’t expect the people who caused the problem to be the ones to fix the problem. But that a very “corporate” way of thinking.

 

[George Hatch]

The number of appraisers in my state doubled between 2001-2008. That happened because of market demand. There was enough 1004 business to support that many appraisers. On that basis I disagree with the idea that there's even a shortage right now to begin with, much less an unmet demand in the market that justifies changing the experience requirements.

If everyone was busy and SFR fees started at $600 and lenders were so desperate they'd all accept a "did not inspect" countersignature from a supervising appraiser then the floodgates would open. But that literally cannot happen in a still-oversupplied market for appraisal services.

 

[glenn walker]

It's always about the money and unfortunately appraisers are not part of a Profit Center so they will have no real say in what happens.

 

[George Hatch]

It should go without saying that just because McKissock has put their program on hold doesn't mean PAREA is done for.

 

[Tawfik Ahdab]

That may be true George, but Occam’s razor dictates that we consider the probability of low market demand for McKissock’s PAREA program. It appears that they’ve accepted defeat, and cut their losses before piling further resources into PAREA.

That to me suggests broader weakness. At least that’s my suspicion.

 

[Tiffany Gibbons]

Did they get a big grant from the appraisers who donated their money to TAF? Do we get any of our money back?

I’m shocked they can’t find people to come into this profession when AMCs are advertising $10 an hour work on LinkedIn.

When will the people that push this and other sorts of garbage in this profession just admit they ****ed up?

What about Michelle Bradley being a member of TAF and her husband being a senior instructor at Mckissock? That never looked right and now they are changing the way members of TAF are :appointed". Now "partners" is the new term. I remember the first "bias hearing", I remember that was mentioned, if I am recalling correctly.

 

[Terrel L. Shields]

a simple name change to " Evaluators" Value Technicians" and the list goes on and on makes it now longer an appraisal by definition.

In Britain appraisers are called "Chartered Surveyors" just as here boat appraisers are called Marine Surveyors.

 

[J Grant]

That may be true George, but Occam’s razor dictates that we consider the probability of low market demand for McKissock’s PAREA program. It appears that they’ve accepted defeat, and cut their losses before piling further resources into PAREA.

That to me suggests broader weakness. At least that’s my suspicion.

PAREA will survive somewhere but PAREA was never the problem (IMO) and the natural state of the market will keep it to a limited role because very few are going to want to enter the residential end of appraising or stay in it once they do, with the bleak financial and professional rewards offered now in the profession. And providers with low turnout won't want to keep a program like that operational. It was likely an economic decision for McKiossock, and who can blame them? It does indicate how wrong-headed the ill-thought the policies are and how damaging the AMC fee skimming was- their affect on the industry has now reached critical mass and this is what it looks like.

Experienced appraisers did not refuse to take on a trainee out of bias; they stopped doing it because AMC fee skimming did not leave enough money in order to pay a trainee. Now the retraction of work has doubled down on that. Even with less field work, mentorship, and shortened PAREA time, what person in their right mind would train to enter such a beleaguered profession? This leaves naive who fail to reach the field, minorities lured by false promises, or a few determined to be appraisers and hopefully go on for the CG license because the residential license is no longer a viable way to earn a full-time income ( in general, there are always exceptions ).