Newly Formed Appraiser Coalition Seeks Positive Change for the Industry
A group of Real Estate Appraisal experts committed to the preservation, protection and enhancement of the appraisal industry has formed the Appraiser Prosperity Coalition (www.AppraiserProsperity.com), a merger of industry insiders and government affairs professionals dedicated to fighting for the legislative and regulatory changes needed to rebuild the industry in the wake of damaging legislation.
As you know, in an effort to remove value pressure from Real Estate Appraisers, the Dodd-Frank law affirmed a move made by the Home Valuation Code of Conduct to transfer most real estate appraisal ordering power from the hands of the 250,000+ Loan Officers in this country, to a small handful of national Appraisal Management Companies (AMCs).
The results of this change have been devastating to the real estate appraisal industry for several reasons. First, AMCs are for-profit businesses that currently succeed on the margins between what they charge and what they pay Appraisers. So, the less they pay Real Estate Appraisers, the more money they make. The Dodd-Frank law calls for them to pay “Reasonable and Customary” fees to appraisers, but the law gives no real direction or oversight, and this clause simply has no power and can never be enforced as it is illogical for a free market to reveal pricing and then force pricing on ever-changing markets – it just doesn’t work (something appraisers know all too well). Secondly, the move to incredibly consolidate ordering power gives the national AMCs enormous strength to squeeze Appraiser’s fees down. And… squeeze they have, and will, as long as they are able to.
The industry consolidation is continuing to heat up as well. The stranglehold is getting tighter. Larger AMCs looking to grow are buying up other AMCs so that they can increase their leveraging power and squeeze Appraisers even harder. Many Appraisers are simply opting to leave the business altogether. If nothing is done to correct this problem soon, the appraisal industry may end up being a total wasteland.
In order to solve these overwhelming problems, the Appraiser Prosperity Coalition has put together a set of powerhouse solutions and partnered with a professional advocacy group that has the knowledge, experience, and plan to get this done – but none of this can be mobilized without your help.
Please take a few minutes to visit www.AppraiserProsperity.com and review their real, effective Solutions and Action Plan. By rising up and joining this Coalition, you are fighting for your career and creating hope for a brighter future.