TAF and HUD make a deal...PAREA providers win

[Surf Cat]

If the current administration stays in, my guess is we’ll see all experience requirements dropped inside of 36 months. PAREA isn’t going to move the needle enough to change the profession’s demographics, and considering the supposed deal AI made to stop the dropping of experience requirements PAREA is a failure. The AI will never ramp up PAREA to a point that thousands of minorities will not only enter the profession but stick around past their first renewal. PAREA is a total bust, last I heard only two have completed the courses since the Sept 23 launch. The only way in our lifetimes to get to the numbers those in DC want is to drop experience requirements.

I wonder if the Appraisal Institute gets to keep the government PAVE cash that was for the PAREA program.....I mean....that's if they were allotted some...

 

[Non Sequitur]

I wonder if the Appraisal Institute gets to keep the government PAVE cash that was for the PAREA program.....I mean....that's if they were allotted some...

The only cash I'm aware of is the $500k TAF grant that was awarded to the AI.

Money issues aside, it's simple math. If they expect to move the needle with PAREA, they have to ramp up from two grads a year to thousands a year (factoring in fallout) to have an impact in the next decade. Trying to accomplish that while the residential profession is declining in both volume and revenue is the definition of a pipe dream.

 

[shrubberyvaluation]

What will the demand be? It depends how much work goes through Class and other big AMCs that love newbies and fraudsters that with assist them will pushingg fraudulent products. With no skin in the game enough will be willing to put their license on the line to assist.

 

[George Hatch]

If it's a settlement with what amounts to a fine then what was the alleged offense TAF committed?

Never mind - I found it. HUD initiated the complaint with an allegation that the experience requirement itself is racist. Not by demonstrating it (number of rejections/applicants by race) but by assuming it as a result of the demographics of the profession. Fortunately, HUD isn't performing an appraisal where they would be required to support their conclusions about who-did-what WRT appraisers considering applicants for trainees.

The complaint states that one of the reasons for the lack of diversity in the appraiser workforce is TAF’s experience requirement. This requirement allegedly causes aspiring appraisers to rely heavily on identifying a friend or family member who is already a licensed appraiser and willing to supervise on-the-job experience hours for licensure, thus perpetuating the homogeneity of the profession. PAVE identified this experience requirement as a significant barrier to entry for underrepresented and disadvantaged groups, including Black people and other people of color. The agreement provides, among other items, for increased funding for an alternative, more inclusive path for fulfilling the experience requirement. These new requirements bring us closer to correcting historic discriminatory patterns in the appraisal industry.​

I didn't get in via the friends and family route. I know for a fact that none of my friends got in that way, either. I've seen it happen among appraisers, of course; but to my knowledge most people who get in have done so by cold approaching people they didn't know and agreeing to work under the terms their prospective supervisors were offering.

A very few appraisers got in by agreeing to pay for their experience hours - kinda like the way PAREA has been designed to work.

 

[djd09]

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buy the book...take the class...old white male snake oil salesmen

 

[Surf Cat]

All's an aspiring PAREA appraiser has to do is a Google search. They'd most likely come across appraisers talking about it on various forums.

Even though the hours of training have been substantially cut down to become licensed, savvy searchers would definitely find out what's going on and quickly ascertain it's not worth the trouble.

When I finally got my bearings and started collecting fees, the fee was never the issue. If the client wanted it rushed...extra fee, no problem. Complex assignment in some hillside community in L.A.? How much is your fee? Oh, okay, here's the check. Single mom with a couple of kids wanting a refi for extra groceries....I'd give her a break. It was appreciated.

I truly felt the autonomy of being an independent appraiser after going through the low fee cut of being trained.

The only promised land for a PAREA appraiser in regards to GSE work is half fee assignments from AMCs and trying to win the email blasted gig for as low as you can go.

The perspective PAREA appraiser will quickly ascertain that they'd make more money stocking shelves at a grocery store. Plus, they'd garner health, vision, and dental insurance.

 

[George Hatch]

20 years ago there were plenty of aspiring appraisers who would have jumped at the opportunity to sidestep the experience qualifications. And who would have paid the full retail cost of a PAREA course without giving it a 2nd thought. Many of them might also have pledged their undying loyalty to the Appraisal Institute for providing them with that shortcut.

William Rose and Dezra with the "neptism" complaint come to mind. Among many others.

I think the program may still prove to be quite successful for the AI and for other education providers. When the markets turn and there's more work.

 

[Surf Cat]

Which member of the Appraisers Forum coined this phrase?

"The more you get to know about appraising, the more you realize you don't know."

So true.....

 

[shrubberyvaluation]

20 years ago there were plenty of aspiring appraisers who would have jumped at the opportunity to sidestep the experience qualifications. And who would have paid the full retail cost of a PAREA course without giving it a 2nd thought. Many of them might also have pledged their undying loyalty to the Appraisal Institute for providing them with that shortcut.

William Rose and Dezra with the "neptism" complaint come to mind. Among many others.

I think the program may still prove to be quite successful for the AI and for other education providers. When the markets turn and there's more work.

Depends how much alternative products are used.

 

[chad hampton]

The perceived hurdles they have to jump through play no factor in why people aren’t getting into this profession. They aren’t getting into this profession because they don’t want to work for bottom barrel fees from a manipulated market that is controlled by a handful of AMC‘s for mortgage lending. They are plenty of other ways to start a more rewarding career. They don’t want to churn out 30 garbage appraisals a month for class or CC for 4K and some junk benefits.

These clowns will do everything except for address the root cause of the problem.

Maybe Bunton will give back some of his money to help them get that 1.2M