PAREA Update

[Overimprovement]

There was even a recent thread here where folks were opposed to the institution of marriage being extended to same sex couples. If there is a moral qualm about the relationship a couple has - and that appraiser is appraising that couples' home - how can they keep from allowing unintentional bias...

I will take that to a higher level that in my neck of the woods is MUCH more prevalent.

Sports teams. How many houses have we appraised that is decked out ceiling to floor in some sports team.

Now if we happen to LIKE that team...maybe a positive unintended bias?
What if we strongly dislike that team?

And let's be honest--this example is MUCH easier to come across. I am sure I have appraised many homes where the race, nationality, and various orientations are completely unknown to me. But almost never their favorite sports team.

And before anyone poo poos this notion--in Ohio, you are almost accursed if you so much as mention the state of Michigan by name. In Georgia, the Bulldog/Tech game is literally called 'good old fashioned hate'. It's real folks.

 

[alebrewer]

Unfortunately, I'm sure you're right. And while we (should be) make(ing) every effort possible to mitigate that unintentional bias through objective analysis, do we subconsciously pick 'comparables' that fit our preferential narrative? Do we adjust more lightly or strongly than we might otherwise? We are human after all.

 

[Mark K]

Unfortunately, I'm sure you're right. And while we (should be) make(ing) every effort possible to mitigate that unintentional bias through objective analysis, do we subconsciously pick 'comparables' that fit our preferential narrative? Do we adjust more lightly or strongly than we might otherwise? We are human after all.

I doubt that many appraisers choose adjustments based on the occupants or their sports teams. The house speaks for itself. I usually have enough of a tough time finding good comps and I sure wouldn't make adjustments based on the owners, even if the morons happen to have a HRC shrine that they worship to.

However, I wouldn't doubt that some woke, bleeding-heart libs would make excessive negative adjustments if they saw a MAGA hat and were 'triggered' into a SJW fit.

Yes, I am biased but my reports are not. You can't blame a house for the stupidity of its owner.

 

[djd09]

Testimony of Dean Kelker
Senior Vice President- Chief Risk Officer
SingleSource Property Solutions
On Behalf of the
Real Estate Valuation Advocacy Association (REVAA)
Before the
House Committee on Financial Services
Hearing on
“Devalued, Denied, and Disrespected: How Home Appraisal Bias and
Discrimination Are Hurting Homeowners and Communities of Color.”
Tuesday, March 29, 2022

Alternatives for an Aging Appraiser Workforce / Trainees – REVAA supports a vibrant and diverse
appraiser industry. The future of appraisal needs to retain a human component, which is why we support the
recruitment of new appraisers to help revitalize the professional for the next generation. The reliance on
appraisers and appraisal products creates an important need to help ensure the sustainability of the profession,
and the safety and soundness of financial institutions. Consumers, residential mortgage lenders, secondary
markets and AMCs rely on a plentiful supply of qualified appraisers to meet anticipated demand.
However, demographic data indicates there is a lack of appraisers to meet the future demand for traditional
appraisals. According to the Bureau of Labor Statistics the median age of an appraiser in 2020 was 52. Further,
96.5% of appraisers are Caucasian and 70% are male.
Furthermore, the current experience and educational requirements of becoming an appraiser are overly
burdensome, creating a roadblock for the recruitment and training of new appraisers. There is a shortage of
young adults, graduates and those in career transition seeking to become appraisers. Supervisory appraisers
are hesitant to take on the responsibility or economic burden of training. And, because trainees are not on the
National Registry, many lender risk-management policies and procedures restrict, limit or prohibit the use of
trainees.
REVAA supports immediately removing barriers in the recruitment and training of new appraisers. Modernization
should incorporate innovative technologies and learning techniques to recruit and train future appraisers, just
as they are used for other industries. This includes the nationwide adoption of innovative initiatives such as the
Practical Applications of Real Estate Appraisal (PAREA) or other alternatives that are created to make it easier to
recruit, train and retain a diverse future generation of appraisers at scale.

In addition, many REVAA members also create innovative technologies and provide other important lender
valuation services such as Evaluations, Broker Price Opinions (BPO) and Automated Valuation Models (AVM).


Accurate Group
Amrock
Applied Valuation Services
Appraiservendor.com
Axis AMC
Class Valuation
Clear Capital
Core Logic
Equity Solutions
First American
Frisco Lender Services
LRES
MountainSeed
Nations Valuation
Nationwide
Opteon
PCV Murcor
Pro Teck
Service 1st
ServiceLink
SingleSource
SWBC Lender Services
Valuation Connect
Valutrust
Voxtur Valuation
Wells Fargo REVS

https://financialservices.house.gov/uploadedfiles/hhrg-117-ba00-wstate-kelkerd-20220329.pdf

 

[BRCJR]

I would help train but, since I am just a Licensed Appraiser I can’t do so.
It is akin to one day I was competent to complete an appraisal for FHA insurance and the next I wasn’t.

I am what I am (Licensed) and I ain’t what I ain’t (Certified).

 

[djd09]

do you know don kelly

 

[Overimprovement]

I doubt that many appraisers choose adjustments based on the occupants or their sports teams. The house speaks for itself. I usually have enough of a tough time finding good comps and I sure wouldn't make adjustments based on the owners, even if the morons happen to have a HRC shrine that they worship to.

However, I wouldn't doubt that some woke, bleeding-heart libs would make excessive negative adjustments if they saw a MAGA hat and were 'triggered' into a SJW fit.

Yes, I am biased but my reports are not. You can't blame a house for the stupidity of its owner.

I actually believe this is 99.5% true as well. In every profession you will have some idiots/bigots/etc. Do I think its enough of a problem to warrant investigating? Emphatically no!

 

[George Hatch]

In my opinion we should at least aspire to the zero-defect outcome on this issue. Even if the actual misconduct is limited to a relative few examples, that few is too many.

But by the same token, the liars who are producing the gross overvaluations that are being used to smear us also deserve to face the consequences for their misconduct, too. Submitting to client pressure to grossly overvalue a property as a matter of expediency in a cancel-culture world is just as evil as undervaluing a property out of racial or other personal bias.

The primary attributes we sell are our assertions of competency and impartiality. The outcomes are the result thereof, not some freestanding attribute of their own which stands in isolation from the role we are asserting.

 

[Overimprovement]

In my opinion we should at least aspire to the zero-defect outcome on this issue. Even if the actual misconduct is limited to a relative few examples, that few is too many.

I get the sentiment, but at what cost? I think like you say, the ones doing the damage should be getting the punishment. Appraising is becoming like car insurance, where all those without insurance causing damage and taking lives raises the cost of insurance for all of us.

I mean we could eliminate all bank robberies by having 5 armed guards at every bank location. But the costs outweigh the benefits.

 

[George Hatch]

I get the sentiment, but at what cost? I think like you say, the ones doing the damage should be getting the punishment. Appraising is becoming like car insurance, where all those without insurance causing damage and taking lives raises the cost of insurance for all of us.

I mean we could eliminate all bank robberies by having 5 armed guards at every bank location. But the costs outweigh the benefits.

On the one hand I agree, but on the other hand there's an exigent circumstance in play.

Ideally we would want to quantify the extent of the problem really is so as to enable a well-targeted solution to the problem. But nobody knows what that number really is. All we have are anecdotes and the truly masterful conclusion from the activists that their big data analyses has revealed the stunning truth that some locations sell in the market between buyers and sellers at different prices than others.

So in lieu of a fully quantified problem all that remains is the emergency situation where we must do something now under the assumption that reiterating the basics of the ETHICS RULE for the many non-offenders will also touch upon the few offenders. Chemotherapy works by killing the bad cells faster than it's killing the good cells.

They can't prove we're mostly guilty and we can't prove we're mostly innocent because nobody has yet quantified the extent of the problem.