PAREA: Darn the torpedoes / 3 Sheets to the Wind

[alebrewer]

As I see it, "education" is supposed to occur in the QE/CE. "Experience" isn't education although it does have the added benefit of enabling the individual to expand their competence. That makes the supervisor's technical competency - beyond the basics of the QE - irrelevant.

Again and as I commented before, operating as an appraiser requires more than just the technical competency in appraising. Just as the COMPETENCY RULE only touches on half of the role of the appraiser in our appraisal standards, technical competency only touches on half the skills it takes to operate as an appraiser.

I highly doubt a PAREA program can or will prepare trainees how to effectively deal with the constant assault on their ethical requirements to the similar extent as operating in live assignments.

More speculation. Only time will tell.

 

[shrubberyvaluation]

Perfectly fine to disagree. However, had more trainees been adopted by supervisory appraisers over the years, there would not have been a perceived shortage of appraisers, thus we'd probably not have even seen PAREA developed. Of course that is speculation - just like your assertions...

The other side of the coin is who makes the rules. So for a hybrid appraisal we have some random person inspect the property instead of a trainee that knows what information their supervisor needs. But otherwise trainees cannot inspect alone for most clients. You could put the blame on AMCs and lenders for this.

 

[alebrewer]

The other side of the coin is who makes the rules. So for a hybrid appraisal we have some random person inspect the property instead of a trainee that knows what information their supervisor needs. But otherwise trainees cannot inspect alone for most clients. You could put the blame on AMCs and lenders for this.

I think that blaming AMC's for trainees not being able to inspect would be misplaced. No doubt the lenders deserve blame for this, though.

 

[RCA]

I got an email from the Appraisal Foundation updating PAREA. Digging a little deeper and found a few interesting trends. It seems AI has been selected as the PAREA provider. There will be 'mentors' who can teach a unlimited number of plebes in a class setting, though using advanced technology is encouraged (I'm thinking microchip implant or stem cell implants), but not necessary.


"The below Q&As were added on 4/8/2022

19. In the Criteria, it states the following:

Could our PAREA program be approved if we only require the participant to complete three reports?

Yes, a provider could be approved if only three reports are required. "


"Do Mentors need to be licensed in individual states?

No. There is not a geographical competency requirement within PAREA, so Mentors do not need to be licensed in the states where they are mentoring participants. "

And how many hours in class or over the internet is required?

View attachment 61823

So 200 hours to meet CR requirements, 3 reports, by a mentor who can teach large groups, nationwide. And 31 states have auto-signed up.

ShareFile

appraisalfoundation.sharefile.com

Heck, let's keep it simple. Just require a BA/BS in Mathematics, Physics, Engineering, Chemistry, Computer Science or Accounting from an approved university. Then they are smart enough to figure things out for themselves. ( Most of my mentors were OK to excellent. Only one I can really complain about, - out of 8 or so. ).

 

[Dublin ohio]

Then they should be educated enough to figure things out for themselves

Fixed it. I have never equated having a degree with being "smart". I have known many with degrees that are dumber than a hoe handle.

 

[George Hatch]

The cumulative failure rate (including retests) for the CG licenses in my state are ~50% so apparently, no. The cumulative failure rate for CRs is higher than that.

 

[Mejappz]

AI is so far behind I doubt they will ever get it off of the ground, even with the money TAF gifted them.

As far as the who, I can't say. But I've been approached by a national AMC to be a mentor and they claim their proprietary course is currently being reviewed for approval, possible roll out this summer.

As far as the reason PAREA was slammed down our throats, I flat out disagree with your opinion. The person who almost single handedly developed this thing over the prior 5 or so years left his job with a bag of money right when PAREA was approved by the AQB to become the chief appraiser at one of the oldest/largest AMC's in existence. The old term "cui bono" applies with PAREA. Large AMCs will have their programs spitting out staff long before the AI rolls out their "buy in" to the appraisal profession class, and the names associated with those AMCs were heavily involved. The AI was absent and by the time they roll anything out I doubt if anyone will cough up the sure to be sky high tuition to "buy in" on the residential side.

And again, there is no official mentor criteria or requirement to have one at any point in the PAREA process before or after.

The collision between TAF Johnny B Goode and the IAC partners is impressive. How they can get away with it is a mystery. Carry on about ethics.

 

[RCA]

Fixed it. I have never equated having a degree with being "smart". I have known many with degrees that are dumber than a hoe handle.

That's why I wrote "should". An Ivy League grad who was in a fraternity (where they keep copies of prior tests and test questions, takes drugs, and is extremely determined (studies day and night, when not partying) can get a degree in engineering, even though he is not nearly as smart in practice as his degree would suggest. At least not smart enough to be a productive engineer - but most likely smart enough to be a kind of do-nothing manager in a large company, esp. if he has the right personality.

But, a BA/BS from a recognized university is indeed better than any other gate to keep good-for-nothings out. - No system is perfect.

Mentors largely just pass on bad habits. A successful appraiser, especially in commercial appraisal, is most likely smart enough to figure out things for himself, - except for the mafiaesque reviewers who have nonsense requirements that often defy logic, but ensure that their cohorts in appraisal managment can squash the appraisers below them in the hierarchy, by pointing out their failure to abide by so-called peer practice, with the quips "Nobody does it that way. [Are they idiots or are they mafiaesque, or both? Both. ] "

 

[Mejappz]

Take a look at the sponsors. What else do you need to know? A coordinated attack by TAF and their IAC partners to flood the market with form-fillers.

Appraiser Diversity Initiative

The Appraiser Diversity Initiative is the premier nationwide program designed to attract new entrants to the real estate appraisal field while fostering diversity in the profession.

www.appraisalinstitute.org

 

[djd09]

Take a look at the sponsors. What else do you need to know? A coordinated attack by TAF and their IAC partners to flood the market with form-fillers.

Appraiser Diversity Initiative

The Appraiser Diversity Initiative is the premier nationwide program designed to attract new entrants to the real estate appraisal field while fostering diversity in the profession.

www.appraisalinstitute.org

more foxes watching the hens