From time to time I hear appraisers talk about the fact that they feel undervalued, and that the business they’re in is becoming increasingly difficult. Some feel it’s a downright hostile environment for appraisers today. I want to address some of those concerns, as well as some of the comments on my most recent blog regarding appraisal-related fraud (
There’s no doubt that the life of an appraiser has become a lot more challenging in the last several years. Between the Dodd-Frank Wall Street Reform Bill, the Appraiser Independence Requirements, the newer GSE guidelines and various state and local requirements, appraisers have been overwhelmed with new rules and licensing requirements. Some appraisers have even left the business altogether.
As one person pointed out in response to my last blog, appraisers have also been hit with steep costs in becoming educated, licensed and certified. I agree, appraisers do indeed face some heavy expenses in order to remain in business. I believe it is worth it, however. We encourage and support our panel appraisers non-financially in becoming certified, in addition to meeting the standard licensing requirements.
Experienced appraisers are invaluable and much needed in the mortgage business today. I, along with everyone at InHouse, wholeheartedly support and respect good appraisers. In fact, we’re fortunate to partner with some of the best in the industry.
Referring to AMCs, another person wrote, “….the AMC model currently in force sends email blasts to all appraisers on a list and the appraiser who gets the assignment is the one who hits the accept button the fastest. Appraisers cannot take the time to check the property out to see if they have the expertise for the valuation. If they do, they miss the order.”
I have to respectfully disagree with the above comment. While the AMC model described by this person may be the prevailing one in the appraisal management community, all AMCs do not operate in this manner. Those advantaged with cloud-based technology and modern algorithms do not use email blasts or go exclusively with the earliest responders. They are able to selectively solicit acceptances based on scorecards, geographic considerations, licenses/certifications and other criteria. I know this to be true because our company is one such AMC.
I agree, however, with another point raised by the person concerning the problems appraisers have with misrepresented market data. As I stated in my original blog on appraisal-related fraud, “...most often the appraisers are manipulated by the perpetrators.” False market information is indeed a problem that appraisers must contend with and additional research to root out spurious market data is time consuming.
One way to address that is to continue providing the support and technology appraisers and the industry need to uncover fraudulent information and provide the best possible reports. Having appraisers spend less time worrying about dealing with their AMCs and more time doing what they do best is an important step in the right direction.
All in all, the key thing to keep in mind is that the majority in the appraisal industry work hard to do the best job possible, often under difficult circumstances, and should be recognized for the good work they do.
