New Exposure Draft

[J Grant]

Maybe I misread something, but I did not see eliminating experience hours, I saw a reduction of time needed to achieve experience hours as well as fewer hours.

 

[J Grant]

I added a comment to the working RE article and have already emailed the Appraisal Foundation. I'd encourage everyone to do the same because the more voices heard, the better, if only to go on record for the debacle later.

I actually think this will work against a number of people who enter the profession. As they go on their own in a reduced time frame only to face the scrutiny res reports are subject to and days/weeks of stips, reviews, ROV, Fannie feedback etc. It will make newbies vulnerable to complaints filed against them or put on do not use lists because even with experience it is a challenge to meet all the expectations and requirements of UAD compliance, USPAP compliance, FHA /Fannie regulations , individual client requirements , UW concerns, and then a ROV or having o respond to a review .
The reality of appraising vs passing appraisal coursework contains a large gap. Appraisal on the res side as a field is likely to become less of what it is now, a core of experienced professionals and become a revolving door of easy come/easy go with a high burnout and washout rate.

Why would anyone who spent a brief time training or passed a few courses remain as soon as hey feel the heat of an ROV or see how much time they spent on a report with all the revisions and stips and send backs for not dotting an "I"? The reason people stay in a field is because they are vested , part of which comes from a longer training and education commitment period.

 

[factsandtruth]

I know one thing...the test out exams for education are not easy.

Passing the post 2009 CR exam without real world experience is going to be extremely hard.

 

[J Grant]

Please don't say that!
Soon as they realize the exam is a bit difficult to pass, the stakeholders will lobby to get the exam dumbed down to 10 simple questions. (or 5 if 10 is too daunting) Their goal is to get as many bodies as quickly as possible into the field to create a continiung over supply to use to push fees down. The AQB is bending over to their wishes so re doing the exam is next.

"Upon examining the issue and hearing from stakeholders and appraisers, the AQB has determined that the certification exam creates an unnecessary barrier preventing otherwise qualified and talented individuals from entering the appraisal field. In response, the certification exam will this be shortened to 10 questions of yes or no answers with illustrations in cartoon captions for the reading challenged. If yes or no is beyond the skill set of these otherwise capable individuals, an option to mark an X will be present. All exams marked with X's will equate to a passing score so that the field can continue to present robust opportunities and eliminate unnecessary hurdles to entry."

 

[Elliott]

When the word "stakeholders" is in the first line of a proposal its never a good sign for the profession. Looks like AQB is being wagged by the Big Boys once again when you start to lower standards. Reducing hours by 25% seems silly. Dropping college to CC is a significant step down. The US economy has millions of college grads who can't find jobs, so why are they lowering standards? AMCs have squeezed prices to the point in many markets where there isn't enough incentive to enter the field, or have the "3-5" reports a day appraisers want to take on a new appraiser. Seems like they don't have a plan to attract, develop, train, and keep well educated, ethical, competent appraisers, and now they seem to be going backwards.

I still quote reasonable turn times, but there are some AMCs that I just don't want to work with because it takes 2+ hours just to meet their upload protocols and ridiculous stips. My fees, well that's another story, they have to pay what I want to work for, which seems right to me.

 

[J Grant]

One simple change of Dodd Frank back to original of one presumption, basing C and R on on VA fee/govt surveys, would have ensured attracted top quality individuals into the field and college or at least an *** could have remained the entry qualification. Regarding these changes of dumbing down education, reduced qualifications and speeding up training as it would relate to protecting the public trust is not addressed, for good reason. How would they explain that one? I suppose a professional copy writer could manage something.

Spanieling at Heel applies.

 

[hastalavista]

http://everydaylife.globalpost.com/long-become-journeyman-29535.html

From this article (my bold):
"Tradespeople such as plumbers and electricians typically have an apprentice training system. This means that those who join the profession learn the trade by taking classes and working, usually full-time, as an apprentice at a relatively low wage. After completing an apprenticeship, which typically takes three to five years, and passing an exam, you can become a journeyman. Another three or four years of working as a journeyman gives you enough experience to qualify to take the exam to become a master plumber or electrician."

We like to compare ourselves to attorneys and accountants. I'd argue that in many respects, plumbers and electricians may be a better comparison. The fundamentals of plumbing and electrical installation are more or less static and the theory has been well developed, but their application for a specific project is unique (kinda like real estate). I suppose one may argue that an electrician should be trained for 5-years due to the inherent safety risks of improper wiring, power, etc. (I won't cite the unsavory risks associated with improper plumbing installation). But clearly the oft-cited risk to the financial and real estate markets due to improper collateral valuation poses a similar level, albeit not personally deadly (or distasteful in the case of plumbing), of risk.

 

[sandpiperapp]

Maybe I misread something, but I did not see eliminating experience hours, I saw a reduction of time needed to achieve experience hours as well as fewer hours.

I thought that they proposed a college degree in real estate would eliminate the experience hours requirement . So a graduate who passes the test could be considered a Certified Residential appraiser without completing a real world appraisal.

 

[Michigan CG]

They can lower the requirements to 1,000 hours of training and no education but that does not address the elephant in the room. Until the AMC model changes the profession will not be desirable. AMCs are still broadcasting $200 orders with 24 hour turn times, sending daily e-mails and making daily phone calls.

Until those things change appraisers are not going to take on trainees.

If someone has the flu you don't try to cure them by cutting off their legs.

 

[J Grant]

Denis, based on what you posted, it takes longer and is a more rigorous apprenticeship to become an electrician or plumber than an appraiser.

Imo it is not the best comparison. The chief difference is plumbing and electrical work are mechanical skills vs analytical skills. In addition, they are not in a conflict of interest with their own customers whereas appraisers often have a conflict of interest in results with their clients. The conflict of interest is a weak link in appraising and an area where more education, more training and qualifications make an appraiser better prepared for that aspect of the business.

If stakeholders were interested in due diligence/the public trust, they'd be asking for more education and training, not less.

BTW who pays the salaries of AQB are they salary positions? Are we paying them out of our license fees? (sorry for ignorance on this topic, it's not one I am normally concerned with and could not find answer online)