Author: Jonathan Miller

AI Efforts Focused on Debasing the Appraisal Professionals 8

Restricted Appraisal Reports Consumer Alert

The Appraisal Institute-pushed SB-70 law I talked about a while back has been in effect since January 1, 2019 and expires December 31, 2019. I just checked back in since it went into effect and was shocked to see this warning on the California’s Bureau of Real Estate Appraisers web site say this: The real estate appraisal process concludes with the appraiser’s opinion of value. Development of an appraisal includes the gathering of facts and evidence, using recognized methods and techniques of analysis, and applying reasoning and judgement. An Appraisal Report is a summary communication of this process and includes the data, relevant evidence,...

Smedley Dingledorf Takes the Job for $275...No Quality or Expertise 73

Smedley Dingledorf Takes the Job for $275

One of my lifetime best friends is Bart Simpson, who is an actual person. We grew up together from elementary school through high school but went our separate geographic ways to college. My other best friend during that era of my life was Harry Benson, who was also the key character in Michael Creighton‘s early best seller, “The Terminal Man” but that’s another story. Bart taught me how to ski and how to make plexiglass cookbook holders (hey it was the 70s). We spent our weekends riding bicycles everywhere, especially into D.C. on weekends to meticulously go through each of the...

USPAP is Unconstitutional & We Don't Have to Follow It, per 2 Appraisers 85

USPAP is Unconstitutional?

Gerald McNamara and Colleen Kudrick were admonished by the board in a five-count takedown. There is a lot of nuances here but the sanctions seemed to be based on the fact that one of the appraisers wasn’t licensed at the time and could not explain how she valued the property. The other who was certified said he did not assist in the preparation but did inspect the property. The client made a complaint and the board investigated. Seemingly doubling down on damaging their reputations, they filed a lawsuit against the appraisal board and seem to be saying that USPAP is...

12-24 Hour Valuations: How Are We Worth So Little? 9

How Are We Worth So Little?

An appraiser sent me the following email. It has become clear to me that the valuation industry that engages appraisers now places more value on the physical inspection than it does the actual valuation itself. Why? They can’t replicate the interior inspection so the valuation portion is where the fee shaving occurs and believe they can come up with the value themselves or find people that will work for wages that won’t attract people who are competent, but rather, people that are desperate. [Bold for emphasis] Hello, You are receiving this email because you have expressed interest in completing desktop...

The Last Line of Defense... Get Busy Living or Get Busy Dying 12

The Last Line of Defense

As I wrote recently, we learned a lot about both our industry and ourselves in 2018. We do provide an invaluable service to the lending community even though most of the mortgage industrial complex doesn’t appreciate or want it, largely because of the moral hazard generated by the taxpayer bailouts of 2008. Our expertise will be shifting to the consumer in the near term with some snapback to mortgage work after this all ends badly in the not so distant future. We just can’t sit around and wait for it. As was said in the movie “The Shawshank Redemption” we...

An Extraordinary Year for Appraisers 4

An Extraordinary Year for Appraisers

Some thoughts about what we learned from 2018 to apply to 2019: We have always been our own worst enemy as evidenced by the behavior of AI National who kept thinking up initiatives for its members without asking for membership feedback – remember this when their “taking” initiative is attempted in 2019. Through Appraiserfest and a vibrant appraisal coalition network, we are learning to fend for ourselves and find we all actually like each other. State level political action was the battleground as AI National’s Scott DeBiasio continued to work hard for AI National to further devalue our profession with...

Eliminating the Appraiser? Remember Liar Loans of a Decade Ago? 21

Attack on Appraisers

Remember liar loans of a decade ago? Those same people want to do away with appraisers. My friend and appraisal colleague Ryan Lundquist and I authored a petition on change.org to point out the growing reckless behavior that is enveloping the mortgage process. There’s a proposal from the FDIC, Federal Reserve, and Treasury Department not to require appraisals for some mortgages under $400,000. As we say in the petition, this change can impact several groups in particular: consumers, the taxpayers, the housing market and appraisers. One group not explicitly mentioned in the petition but impacted down the road are real estate agents and brokers....

Valuation Expertise Viewed as a Commodity - Appraisers Blogs 41

Valuation Expertise Viewed as a Commodity

Here’s the math: An appraiser shared an email survey concerning hybrid appraisals. The survey reveals the fees they are thinking of charging. These fees aren’t that different from what I’ve heard elsewhere. It’s actually quite telling on how the AMC/Mortgage Lending industry sees the appraiser’s role in providing a reasonable benchmark on their collateral to make more informed lending decisions. Here’s the scenario – take the $78 national desktop report fee and divide it by the $500 average appraisal fee as quoted by Realtor Magazine. Now think in terms of the inspection versus valuation. valuation expertise is viewed as a...

Appraiserfest Has Your Back 14

Appraiserfest Has Your Back

Appraiserfest movement has your back (and teeth). After an amazing Appraiserfest conference in San Antonio, I had to have an emergency root canal. So for protection, I wore my Appraiserfest t-shirt and all went well. Proof positive that the Appraiserfest movement has your back (and teeth).   What The Appraiserfest 2018 Conference Happening Meant I can’t speak for each attendee at the San Antonio happening but I can say what it meant to me: A big thanks to Phil Crawford, Mark Skapinetz and Lori Noble for making the dream happen! There was LOVE everywhere – I can’t tell you how...

AI Appraiser Shortage Narrative is at Best Propaganda & at Worst, a Lie 29

Appraiser Shortage Lie & Propaganda

AI research piece is at best propaganda and at worst, a lie. The following CSBS article essentially written by the Appraisal Institute which is being distributed by lenders – continues to misrepresent the idea that the number of appraisers is falling and no new appraisers are coming into the profession. Notice how CSBS tracks the number of appraisers from the peak of the housing bubble? If this organization’s or the Appraisal Institute’s intentions were honest, they would show the trend before the housing bubble as well. In this piece, they show that credentialed appraisers have fallen 21% in 10 years which is...

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