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PAREA-Latest Exposure Draft

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
too freakin funny.

out of one side of their mouths they say

a physical inspection is not required

and from the other side they say

we will teach them how to measure

:rof: :rof: :rof:
 

NC Appraising

Senior Member
Joined
Apr 28, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
Well, Brennan must be salivating at the opportunity to get his hands on these form-fillers for Clear Capital. Is there any chance any of the Appraisal Organizations can file a class action lawsuit against TAF? Or are they in on the scam as well?
The states has to adopt it. Time to lobby the states.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I am not clear what the status of the newbie will be - are they a trainee who needs a reg trainee license to participate, or are they a student ? If they are a trainee, who pays them to sit and learn doing virtual simulated inspections/ appraisals?

This program seems like a hybrid between traditional paid apprentice ship (paid to be there, since the apprentice produces actual work for their mentor/sponsor), and a student attending classes. Students don't need a license to attend class, nor are they paid for it. A student pays to go to trade school or college, in the exchange of being qualified to enter profession.

I don't think this program will go as smooth as some believe wrt turning out instant appraisers able to go to work the next day and produce, especially at the speed mortgage work imposes. . Imo a place for virtual learning has some merit, but this program sounds like a mess.
 

Non Sequitur

Thread Starter
Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
That is the only place they will be able to get jobs. The future is check boxes, form fillers and no analysis.
Let's not sugar coat things, and I get why many appraisers refuse to acknowledge this reality, but that isn't the 'future' it's the present for a majority of licensees. The ASC's database isn't full of certified appraisers who specialize in private or general work, like it or not Fannie form work feeds the industry.

If you don't agree here's my position: This profession would look very different without residential form filler work. Think about it for a moment, without form filling would a la mode, Bradford, ACI, Appraise-It, etc. exist? Would their mobile apps exist? Would AppraisalPort, Mercury Network, AppraislScope, etc. exist? And the larger question going forward, "Will they be able to survive a large drop in independent appraiser numbers with a foreseeable shift to staff for residential form filling?"
My private work should be safe.
I guess there's always hope, but it's a bit Pollyannaish to believe the herd won't eventually stumble into your world. ‘Should’ is what some appraisers are hoping, but is it realistic in the long term?

And here's another Unca' Non prediction: With PAREA effective Jan 1, 2021, expect a press release a few months after (Spring time) from TAF and an AMC announcing a partnership to diversify our profession. My guess is it will be partly (or wholly) funded by a grant from TAF and tax incentives on the back end for the AMC. And this ladies and gents will be the impetus to approve the courses and approve the path at the state levels "sooner rather than later."* Before anyone dismisses this line of thought, what state or appraiser org will urge a 'pumping of the brakes' when faced with this push? Not one. Oh, and one more thought, let's tackle the "What lender" would hire a PAREA appraiser who has never stepped a foot in a house. I'll answer with a question: What lender would deny a fully certified appraiser who is the product of a diversity PAREA push an opportunity to complete work?

*John Brennan, see video in post 35 start at 23:30 mark and listen
 
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J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Let's not sugar coat things, and I get why many appraisers refuse to acknowledge this reality, but that isn't the 'future' it's the present for a majority of licensees. The ASC's database isn't full of certified appraisers who specialize in private or general work, like it or not Fannie form work feeds the industry.

If you don't agree here's my position: This profession would look very different without residential form filler work. Think about it for a moment, without form filling would a la mode, Bradford, ACI, Appraise-It, etc. exist? Would their mobile apps exist? Would AppraisalPort, Mercury Network, AppraislScope, etc. exist? And the larger question going forward, "Will they be able to survive a large drop in independent appraiser numbers with a foreseeable shift to staff for residential form filling?"

I guess there's always hope, but it's a bit Pollyannaish to believe the herd won't eventually stumble into your world. ‘Should’ is what some appraisers are hoping, but is it realistic in the long term?

And here's another Unca' Non prediction: With PAREA effective Jan 1, 2021, expect a press release a few months after (Spring time) from TAF and an AMC announcing a partnership to diversify our profession. My guess is it will be partly (or wholly) funded by a grant from TAF and tax incentives on the back end for the AMC. And this ladies and gents will be the impetus to approve the courses and approve the path at the state levels "sooner rather than later."* Before anyone dismisses this line of thought, what state or appraiser org will urge a 'pumping of the brakes' when faced with this push? Not one. Oh, and one more thought, let's tackle the "What lender" would hire a PAREA appraiser who has never stepped a foot in a house. I'll answer with a question: What lender would deny a fully certified appraiser who is the product of a diversity PAREA push an opportunity to complete work?

*John Brennan, see video in post 35 start at 23:30 mark and listen
There is no such thing as "form filler work" - an appraisal reported on a form is still an appraisal. (I know what you meant to convey though )I

The problem arose when AMC's grew a large market share post HVCC. Because of the unique ways AMC's are compensated via bundled fee, appraisers were no longer engaged for sole purpose of providing an appraisal - when an AMC engaged them, the appraiser now had the double role of acting as a cash cow. THE AMC model shifted the appraisal role from a professional provider hired for expertise to a "vendor,"(. in part selected for how much profit they throw back ) The TAF, AQB USPAP, Fannie and Freddie have been shaping their regulations , standards and policies to facilitate.

If in future will depend if clients and investors are satisficed with churn products or if they want analysis and actual appraisal content - if the clients need desktops to replace what used to be BPBO or AVM's, a virtual trained newbie can do them - perhaps profession will split further along skill lines and staff/vs independent -complex/vs simple work -.
 
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Michigander

Senior Member
Joined
Oct 23, 2003
Professional Status
Certified Residential Appraiser
State
Michigan
Let's not sugar coat things, and I get why many appraisers refuse to acknowledge this reality, but that isn't the 'future' it's the present for a majority of licensees. The ASC's database isn't full of certified appraisers who specialize in private or general work, like it or not Fannie form work feeds the industry.

If you don't agree here's my position: This profession would look very different without residential form filler work. Think about it for a moment, without form filling would a la mode, Bradford, ACI, Appraise-It, etc. exist? Would their mobile apps exist? Would AppraisalPort, Mercury Network, AppraislScope, etc. exist? And the larger question going forward, "Will they be able to survive a large drop in independent appraiser numbers with a foreseeable shift to staff for residential form filling?"

I guess there's always hope, but it's a bit Pollyannaish to believe the herd won't eventually stumble into your world. ‘Should’ is what some appraisers are hoping, but is it realistic in the long term?

And here's another Unca' Non prediction: With PAREA effective Jan 1, 2021, expect a press release a few months after (Spring time) from TAF and an AMC announcing a partnership to diversify our profession. My guess is it will be partly (or wholly) funded by a grant from TAF and tax incentives on the back end for the AMC. And this ladies and gents will be the impetus to approve the courses and approve the path at the state levels "sooner rather than later."* Before anyone dismisses this line of thought, what state or appraiser org will urge a 'pumping of the brakes' when faced with this push? Not one. Oh, and one more thought, let's tackle the "What lender" would hire a PAREA appraiser who has never stepped a foot in a house. I'll answer with a question: What lender would deny a fully certified appraiser who is the product of a diversity PAREA push an opportunity to complete work?

*John Brennan, see video in post 35 start at 23:30 mark and listen

I agree the herd will stumble into the private arena. I have said this over and again. At one time I did almost zero lending work. The market slowed, and the mortgage appraisers charged into the private world, undercutting fees and also doing shoddy work, but the clientele largely couldn't tell (regular users can, but people who get one or two appraisals in their life don't have a basis to compare). From around 2002-2004 I was probably 98% private, but I started to lose it to the fee limbo, and went to work for a lender (shock). I went back on my own in 2010 and it took years to rebuild the private work. I suspect that a number of people will still use me because I do good work and get a lot of referrals, but the limbo will start again. It is only a matter of time. Even that CG won't insulate completely.
 

Non Sequitur

Thread Starter
Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
Mellisa Bond let the cat out of the bag when she stated, “maybe we need to **wine and dine** the State Appraisal Boards into going along with the program, i.e., take out our wallets and bribe them into accepting PAREA.
She and Appraiser eLearning think this is an opportunity for them to make money, and believe they’re relevant. Wrong on both counts. I only posted because John Brenan, who recently was The Appraisal Foundation’s Director of Appraisal Issues and is now the Chief appraiser for Clear Capital, was on. Appraisers should pay attention to the names involved in this.
 

Zoe

Junior Member
Joined
Sep 15, 2020
Professional Status
Certified General Appraiser
State
Tennessee
It's messed up but appraisers are not independent.
 
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