The New Appraisal Industry

[George Hatch]

[shrugs] It appears they consider greed and self-interest to be as good a reason as any.

Their motivations notwithstanding, when the discussion is "what is an appraisal?" the fact that appraisers have done no-inspection appraisals since before either of us started appraising becomes an inconvenient truth.

 

[J Grant]

[shrugs] It appears they consider greed and self-interest to be as good a reason as any.

Their motivations notwithstanding, when the discussion is "what is an appraisal?" the fact that appraisers have done no-inspection appraisals since before either of us started appraising becomes an inconvenient truth.

People like you who shrug at greed destroying a profession are part of the problem.

The discussion is not about what an appraisal is. The discussion is what the predators are doing to the profession, which will eliminate or neuter the appraiser's ability to function.
We KNOW appraisers have done no inspection appraisals since any of us started. Do you believe that every other appraiser except yourself is a naive fool who is unaware of this and similar facts?

No inspection appraisals had a logistical reason behind them, or were appropriate to a situation - an REO with no access, a low $ amount HELOC using a desktop, a portfolio review, etc.

This is a new frontier of high $ origination loans, where profiteers are inserting a flood of non-appraiser "data collectors" into the process for no reason other than greed. Considering that taxpayers are backing the system and that it is neutering the appraiser's role as the one independent party in the process, some of us are taking a stand against it. You can continue shrugging.

Your shrug, it's just business, does not make you a realist while we are dreamers. It is an attitude that exemplifies everything wrong with the system. It turns a blind eye to the same driving force of greed that drove the loan abuses that caused the previous market crash. The regulations around loans serve to limit how sleazily the terms of lending can be, unless they are repealed for a return of predatory lending. One can hope right? The return of toxic loan packages, !25% loan to value and teaser rates, flips at closing. But for now, those loan regulations stand, so exploiting the valuation end of the process is the next best thing.

 

[George Hatch]

You made an observation. I agreed with your observation. I just don't agree with the idea that 3rd party inspections neuters the objectivity or impartiality of the role of the appraiser.

I've told you 100 times. Take your stand. I support you. Just because I think appraisers are powerless to unilaterally dictate terms to their clients and users doesn't mean I oppose your attempts to engage in those heroic efforts. I'm not your problem. Your clients and users are your problem and they're apparently going to do what they do where I agree with them or not.

 

[J Grant]

I've told you 100 times. Take your stand. I support you. Just because I think appraisers are powerless to unilaterally dictate terms to their clients and users doesn't mean I oppose your attempts to engage in those heroic efforts. I'm not your problem. Your clients and users are your problem and they're apparently going to do what they do where I agree with them or not.

They might do it less if you and people like yourself that are respected in the profession did not agree with them!

If you support me and people who take a similar position as I do, then why do you keep arguing with us in a way that makes the other side's actions appear benign?

The difference is that in the past, desktops/no inspections had a reason behind them. Inspections, when they were part of the assignment, were normally done by the appraiser or a trainee or appraiser partner. This introduces a whole different dynamic on a large scale - an influx of non-appraisers to do a PDR collection when the appraisers are ready, willing, and able to do the inspection.

 

[George Hatch]

First things first: Nobody in the profession besides the people who have participated on this forum knows who I am or cares about my opinions. Nor should they. And I discourage participants here from agreeing with anything I say on the basis of it being me who said it. If it makes sense to them then that's the only valid reason they should consider agreeing with it.

Secondly: Why would I take a position or "make a stand" which is illogical or intellectually inconsistent with the actual facts in play? I make the distinction between the business interests of fee appraisers (which includes me) vs the appraisal profession as a whole. I try not to conflate the two as if they're the same thing because they're not.

I never forgot how to ride a bike, I never forgot how to fill out a 1004 appraisal report, and I never forgot what USPAP and the state/federal rules and regs do and don't say. I am disinclined to gaslight my accrued understanding just in order to validate your feelings or anyone else's. If I think you're right I'll agree on that basis, if I think you're wrong then I'll disagree on that basis; same as I expect everyone else to do when it comes to my own views.

Thirdly, I don't see any "fight " to make with these trends. I mean, appraisers can certainly decline to perform certain assignments or accept certain fees or do business with certain clients and client types, but that isn't going to alter what those clients and users are willing to buy and use. If one appraiser won't do it they'll just go find another appraiser who will. Until they can't, at which point they'll be forced to start drawing back. That's how the markets for goods and services generally work.

My advice is to stop trying to make any of this discussion about me and my character or my loyalty to the appraisal profession. That's a fallacious argument (argument to motive) and it's never going to resonate with me. You should anticipate going forward that I'm going to reiterate that observation every time you or anyone else attempts it.

 

[Terrel L. Shields]

The discussion is what the predators are doing to the profession,

They only "do it" with the permission of the regulators who could stop it in a single letter to all banks.

 

[djd09]

now conservative means lowballing...hip hip hooray modernization

 

[djd09]

no low balling...appraisers have competition now...mb waivers

 

[Fernando]

February 12, 2026

Pressley Underscores Harm of Racial Bias in Home Appraisals, Urges Reform of Appraisal System to Ensure Equity, Accountability​

“Black families who sought homeownership were held back by red tape, limited to redlined neighborhoods and faced blatant racism from banks.”

“And for those who managed to secure a mortgage and buy a home, the value of their homes was grossly diminished by an appraisal system rife with racial bias, and that same appraisal system is around today.”

Pressley Legislation Would Promote Equity, End Bias in Home Valuations

Video (YouTube)

WASHINGTON – During a House Financial Services Committee hearing this week, Congresswoman Ayanna Pressley (MA-07) laid plain the harmful discriminatory nature of the home appraisal process that has disadvantaged many current and aspiring homeowners—especially homeowners of color, across the country and in Boston. Rep. Pressley pushed for essential reform to modernize the appraisal process, strengthen transparency and accountability, and help families challenge bias valuations.

In November 2025, on National Housing Day, Rep. Pressley introduced the Appraisal Modernization Act, legislation to promote equity and combat systemic bias in the home appraisal process. The Senate companion legislation is being led by Senator Raphael Warnock (D-GA). Bill text is available here.

A transcript of Congresswoman Pressley’s remarks is available below, and the video is available here.

https://pressley.house.gov/2026/02/12/pressley-underscores-harm-of-racial-bias-in-home-appraisals-urges-reform-of-appraisal-system-to-ensure-equity-accountability/

we cant go on together...with suspicious minds

I got this email from CA state BREA:

This notice is to clarify that beginning January 1, 2026, all Trainee, Licensed Residential, Certified Residential, and Certified General appraisers submitting a renewal application must demonstrate compliance with the continuing education requirement for completion of the 7-hour Valuation Bias and Fair Housing Laws and Regulations course.

Please note the following:

· The 2-hour California Elimination of Bias course does not satisfy or replace the 7-hour Valuation Bias and Fair Housing Laws and Regulations course requirement.

· Completion of the 7-hour Valuation Bias and Fair Housing Laws and Regulations course will satisfy the 2-hour California Elimination of Bias course requirement.

THAT'S A LOT OF HOURS INSTEAD OF NANDO TAKING OTHER APPRAISAL EDUCATION CREDITS. AND WE KNOW NANDO DOESN'T NEED IT.

 

[Surf Cat]

They only "do it" with the permission of the regulators who could stop it in a single letter to all banks.

They certainly aren't going to stop the gravy train with the single letter to Banks.

Let's preserve the public trust by lobbying!

Appraisal Management Companies (AMCs) themselves are not typically described as lobbying entities in the provided search results. However, industry groups representing AMCs and related financial institutions are actively involved in lobbying efforts.

The Association of Independent Mortgage Experts (AIME), which represents mortgage brokers and has ties to the AMC ecosystem, began lobbying efforts in 2019 and has made significant impacts despite having fewer members than larger groups like the National Association of Realtors (NAR).

The Appraisal Foundation (TAF) and the Appraisal Institute have spent significant funds on lobbying—$1.4 million over four years, according to one report—though their stated purpose is to support the appraisal profession.

Lenders, government housing agencies, and GSEs (Fannie Mae, Freddie Mac) are cited as key players pushing for the adoption of automated valuation models (AVMs) and appraisal waivers, which would reduce reliance on traditional appraisers. This shift is seen by critics as a strategic move to gain more control over home valuations, with AMCs playing a central role in facilitating this transition.

Critics argue that the push for AVMs and appraisal modernization is less about addressing bias and more about increasing profit margins and reducing costs for lenders and AMCs, suggesting that the lobbying and policy influence behind these changes serves corporate and financial interests.

In summary, while AMCs may not lobby directly, the broader industry ecosystem—including trade groups, lenders, and government agencies—actively lobbies to reshape appraisal regulations, often in favor of automated systems and away from independent appraisers.