No College Degree for Cert Generals or Residential Appraisers

[George Hatch]

You're not complaining about appraisers literally not knowing how to appraise typical SFR properties regardless of how many years they do it. You're complaining about the state of the fee appraisal business. Even though the appraisal profession also includes appraisers who aren't working as fee appraisers.

It's a valid issue for fee appraisers to complain about, but it's not a licensing issue as such.

 

[NC Appraising]

It is not the function of licensing to act as a barrier to entry to protect the economic interests of incumbents. They might function as a barrier but that isn't their intended purpose. The function of licensing is to demonstrate the qualifications it takes to competently perform the role.

Licensing isn't used to arbitrarily limit the number of lawyers or engineers or medical professionals, either. But to ensure the baseline it takes to work effectively in those occupations. If we want more specific instruction on how to SR1 appraise and SR2 report then perhaps we should be increasing the number of QE hours where such instruction actually occurs.

It is not the function of licensing to act as a barrier to entry to protect the economic interests of incumbents

Tell that to the powers that be that wants to reduce the barrier to entry....sure... no economic interests there. Lol.

It's not a money thing for me. It is a money thing for them.

For me, and for others that review reports, its about increasing the quality of appraisals.

Explain to me how passing a test or meeting a watered down criteria will improve the quality of appraisals?

 

[Fernando]

The fees to renew license from state and the 50+CE units are costly and is cost to do business and a barrier to continue as a licensed appraiser.
Compared to a real estate license, cost is much lower and the Realtors do support its members.

 

[George Hatch]

It is not the function of licensing to act as a barrier to entry to protect the economic interests of incumbents

Tell that to the powers that be that wants to reduce the barrier to entry....sure... no economic interests there. Lol.

It's not a money thing for me. It is a money thing for them.

For me, and for others that review reports, its about increasing the quality of appraisals.

Explain to me how passing a test or meeting a watered down criteria will improve the quality of appraisals?

The first question to ask is "IF".
Is the quality of appraisals substandard now? And if so, can you correlate that level of quality with the academic criteria of licensing in isolation to other factors? As opposed to the current QE criteria, for example.

We've had this discussion over and over again. There's a distinction to be made between someone literally being too uneducated to write an appraisal report vs an individual who isn't working to their already-demonstrated proficiency. Lazy doesn't prove stupid. And you know as well as I do that lazy is way more common in those reports than too-uneducated is. If you have a problem appraiser it's because they're cutting too many corners or telling lies. Not because they don't know how to write a sentence or add up their adjustments.

It should be apparent that most of the USERS don't think it takes a 4yr degree in RE to become a competent appraiser. If they did they would more heavily patronize the SRAs and/or pay the college grads extra. The economic incentive would exist to prompt more of the have-nots to upgrade their academic credentials.

If the market required more than the licensing criteria then the market's higher requirements would establish the effective benchmark and would render licensing irrelevant. "Yeah, you have a license but so what? We also require a 4yr degree in Accounting or Real Estate and an SRA". (and there are a few that actually do require that) Instead, the complaint is that these lenders are considering all licensees as being equal as their primary filter so that enables them to proceed to shop by fee as the secondary filter.

 

[glenn walker]

There is no defined definition of what a quality appraisal is and therefore it's a broken system until someone lays it out and the truth is your doing reviews only because the lenders have to show the regulators X Percentage of reports are reviewed.

In our case it was our investor's who purchased our loans and most required 5% to be desk reviews and the rest just tech reviews. In stressed markets the % changed.

 

[cashcatz]

For the true libertarian, there should be no barrier to entry.

This is not true, libertarian thought is against government licensing but not professional accreditation and private barriers of entry that industries decide to standardize on.

 

[glenn walker]

This is not true, libertarian thought is against government licensing but not professional accreditation and private barriers of entry that industries decide to standardize on.

Find 2 libertarians that agree on anything at least ones who belong to the party.

 

[Fernando]

I don't know about other colleges but at Berkeley, the academic and competitiveness are tough.
After getting the degree, working is so easy. My children can attest to it. College forces student to do what is necessary to get a good grade and good preparation to go over obstacles after graduating.

 

[NC Appraising]

The mortgage profession is screwed up. That's the simple answer.

Lenders only wanted a appraisal that hit the value and met secondary market requirements.

Is a degree required for that? No.

Now that the easy ones are going away, how are these passing a test appraisers going to do these?

I blame appraisers too. As I said, to many appraisers left there mentors right after becoming certified. To many got in the biz just for the money.

Then we had to many skippy mentors....blind leading the blind.

We need better mentors. OK, get rid of the degree and replace it with a longer mentorship? (I still believe some education should be required).

We need lenders and AMCs that want the best and most qualified.



Until lenders require higher standards nothing will change. This is changing now because the GSEs are requiring higher standards.

Ps....im in the field of not everyone needs college....but, companies are not offering mentorships. Even the tradesman field relies on trade schools or the community college.

 

[djd09]

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