PAREA Update

[Bob Ipock]

Slated to launch in the fall of 2023, the McKissock PAREA Experience Program combines technology-based training with real-world field experience and will allow participants to qualify for up to 100 percent of the experience hours required to sit for an appraisal exam in participating states.*

I quit teaching pre-licensing classes in December of 2007. I knew there would be very few jobs with what was coming and most of the students did not have 2 years of college. I was (still am) a USPAP instructor and when the powers that put it online killed that income. I am not taking anything from McKissock.

 

[Bob Ipock]

Fees are declining in at least some areas. IMO any education provider that's offering PAREA courses right now is directly contributing to the current oversupply. To the detriment of their own (appraiser) customers.


You guys do what you want, but I will not patronize McKissock or any other CE/QE provider while they are engaged in contributing to the oversupply of appraisers via selling experience credits.

I agree. So many appraisal organizations and state boards continue to say there is an "appraisal shortage". That ship started sinking in July and in now under the water.

 

[George Hatch]

I used to teach live courses, too. McKissock himself extended an offer to me to teach for them at one point, but I didn't think I'd fit in with their program so I just dropped teaching altogether. I have no quarrel with their business, but I do object to PAREA just on principle. If the AQB had simply added PAREA as an additional supplement (not substitute) to the existing IRL experience requirements then that could have been a good thing. But that's not what they did.

Now if an AMC wants to run an affirmative action staff in order to improve their social credit score that's fine by me. But anyone who thinks PAREA is going to result in a more diverse workforce of appraisers is being optimistic. They'll still be getting a lot of non-POCs and all we'll end up with is more appraisers in an already-oversupplied market.

The return of the $200 URAR is nigh upon us and ANY appraiser who who has been trafficking in desperate trainees has contributed to that oversupply. I got no use for any of them, and that's been my unwavering sentiment on it for the last 20 years.

 

[CGinMN]

Half the states have already adopted PAREA even though the course material hasn't been published for review, with another 10 or so in the works. Meanwhile smaller providers with worthwhile content can't get approvals. Something isn't right.

 

[alebrewer]

Half the states have already adopted PAREA even though the course material hasn't been published for review, with another 10 or so in the works. Meanwhile smaller providers with worthwhile content can't get approvals. Something isn't right.

Now this - I can get on board with. I have absolutely no doubt there is corruption at the highest levels. Not to preclude minorities and women from access to our industry, but to preclude smaller organizations from having a seat at the table.

 

[alebrewer]

I disagree that we will return to a $200 URAR. I've no doubt fees will be dynamic over the next couple of years (or longer) - and not dynamic in a way that benefits appraisers. The URAR, however, is going the way of the Dodo bird. Hybrid appraisals (at least in the residential secondary market space) will be the norm - probably by 2024. Of course, that's a hypothesis from someone on the outside looking in...

My point was - and is - that from the public's perspective - if they (whoever they is) become aware that a bunch of old white guys are opposed to a program that specifically tries to address the demographic issue by targeting minorities and women - could be seen as an attempt to undermine public trust. More especially in light of the (mostly false) accusations of racial bias we're dealing with right now.

 

[George Hatch]

I understood the point you were making the first time you made it.

Up until just a couple years ago a lot of lenders only accepted appraisals from CRs even in states that issue the SLs. Some had minimum experience of 5yrs. They exercised those options because they could, not because they had to. The market was sufficiently oversupplied that they could exercise that discretion for free. The same thing will happen with the shake-n-bakes; when the market is slow their only options for their first 3 years will be working on staff for an AMC for whatever wages the market will bear.

I believe in supply/demand. It's up to the supply side of the market to self-regulate on the supply. As for the friends and family argument it's been a long time since I've seen any new licensees who came in as a legacy. When the number of appraisers doubled in 5 years that wasn't the result of the friends and family program. What I've been seeing are people who have hustled to get in, just has predominantly been the case all along.

I believe that when the fees stabilize and the incumbent appraisers find themselves overloaded and the lenders more commonly accept "did not inspect" countersignatures enough appraisers will take on trainees to keep the ball rolling.

 

[chad hampton]

Why would hybrids become the norm? They are awful products.

Online CE is horrendous.

 

[alebrewer]

Why would hybrids become the norm? They are awful products.

Online CE is horrendous.

I think it probably has more to do with the new 'triage' approach the GSE's are taking WRT the collateral piece of the loan - although again - I'm on the outside looking in. The hybrid product fits better with the waiver/PDC model than does the traditional 1004.

 

[DWiley]

Why would hybrids become the norm?

Online CE is horrendous.

Hybrids will become the norm if they meet the testing criteria, things like:
Do they provide risk management that equals or exceeds that of the traditional appraisal process?
Do they provide more accurate, more consistent and/or more transparent results?
Do they help mitigate potential bias?
Do they increase the efficiency of the mortgage process?

When the decision is made, it will be based on actual data and results, not feelings.