Appraisal News and Appraisal Tips For Real Estate Appraisers - Your source for appraisal industry news, appraisers' opinions, and discussions of appraisal issues

Bill Prohibiting Discrimination in Appraisals, BPOs & CMAs 14

Bill Prohibiting Discrimination in Appraisals…

A bill to amend Illinois’ appraiser and real estate licensing acts to address discrimination. With increased public attention on the issue, complaints alleging unlawful discrimination are emerging in the courts and before regulators in relation to appraisals. In Illinois, a bill (HB 5862) has been introduced to amend the Illinois Real Estate Appraiser Licensing Act and the Real Estate License Act to expressly prohibit discrimination in appraisals, broker price opinions (BPOs) and comparative market analyses (CMAs) for residential real estate. The bill would amend each licensing act to state that an appraiser or real estate licensee engages in prohibited discrimination...

How Does the Presence of Sex Offenders Affect Appraised Value? 9

Sex Offenders & Appraised Value

“You know there is a half-way house for sex offenders in the neighborhood, don’t you? It’s about two blocks away from the subject”.. OK. You’re well and truly involved with your research on a job that’s already late. You think you’ve got all your due diligence-bases covered. But you call the broker to confirm on last detail and she asks you, “You know there is a half-way house for sex offenders in the neighborhood, don’t you? It’s about two blocks away from the subject”. Needless to say, you are taken aback! No, you had no clue there was such a facility two blocks away from...

Biden Calls Out Racial Bias Among Appraisers 52

Biden Calls Out Racial Bias Among Appraisers

To counteract low appraisals in minority neighborhoods, Biden says he’ll push for training to address racial bias among appraisers… Appraisers, you might want to “take a gander” at this article in the link below, because it indicates possible/probable changes coming. I especially like the ‘extra training for appraisers’ to avoid discrimination/racial bias. Not. In other words, appraisers are at fault for lower values in certain neighborhoods which are not as highly valued as others, and so we must be indoctrinated to be more sensitive. Buckle up folks, as it’s going to be an interesting ride. Excerpt from Biden Admin and...

I Can See It Now: Standards I – Sponsored By Zillow 3

Standards I – Sponsored By Zillow

Yesterday I received this feedback from TAF/IAC: The voting process was completed for Zillow Group and they were approved as an IAC member with the required affirmative votes (two-thirds of the IAC members). Thank you for taking the time to vote. My appraisal firm is a member of the Industry Advisory Council (IAC) of the Appraisal Foundation (TAF). I’ve presented to IAC in Washington and the people I’ve met at IAC are great. Before I get to Zillow, here are my thoughts about the structure of the TAF councils: IAC = Pay to Play. In order to see how the sausage...

Are Appraisers Being Sued for Errors Relating to the COVID-19 Pandemic? 1

Appraisers Being Sued for COVID-19 Errors?

The alleged errors in appraisals that parties are suing appraisers over during the pandemic are the same types of errors that appraisers usually get sued over… Wow. I did not go into the basement on my last visit. I’ll explain why an appraiser wrote that in a moment. Are appraisers being sued for errors relating to the COVID-19 pandemic? My short answer is “no” – there’s no pattern of that happening. One of the services that I provide to my legal clients is tracking lawsuits and legislation that relate to valuation services. I locate and follow cases of all types...

Radian Ending & Replacing Traditional Appraisals with Artificial Intelligence 10

Radian Ending Traditional Appraisals

In the news release, Radian, an AMC licensed in most US States says they will help their clients ‘transition’ away from traditional appraisals… This news release was circulated yesterday, October 29, 2020, by the Radian Group Inc. Radian Group (NYSE:RDN) will wind down its traditional appraisal business, which offers residential real estate appraisal services through a panel of independent contractor appraisers, to focus on core mortgage and real estate businesses driven by digital products and services. This news is so fresh that their very attractively designed web site and associated pages still glowingly highlight how wonderful their ‘traditional appraisals’ are… at least...

AI Corrupt & Sham Election Process 7

The AI Corrupt & Sham Election Process

Echoes of the Sham Petition Process are alarming – The following sequence seems astoundingly corrupt. This time series has been confirmed by a number of highly credible sources. In 2017, Appraisal Institute CEO Fred Grubbe essentially resigned in the middle of the night without warning. Apparently, people close to Fred were stunned by the lack of advanced warning. In 2018 AI President Jim Murrett appointed Scott Robinson, former AI president, to lead a CEO Search Project and all of his 8 team members. At the Nashville national conference, Murrett said on stage that the Board of Directors selected the team,...

Why is Only One Side of the Racism Claim Appraisal Story Being Told? 193

Why is Only One Side of This Story Being Told?

There are always two sides to every story; however, understanding is a three-edged sword: your side, their side, and the truth in the middle. Recently there has been a wave of news stories about racism in the appraisal profession brought on by a couple in Jacksonville, Florida. That couple, Abena Horton, a black woman, and her husband Alex Horton, a white male, made claims that an appraiser who first appraised their home came in low on the appraisal due to her race. You can read one of the numerous stories here. Before anyone here accuses me of being racist etc.,...

Update on FTC’s Price-Fixing Enforcement Action Against LREAB 6

New Appellate Decision – LREAB v FTC

FTC’s price-fixing enforcement action against LREAB… A federal appellate court – the U.S. Court of Appeals for the 5th Circuit – has issued a decision in the long-standing fight between the Louisiana Real Estate Appraisers Board (LREAB) and the U.S. Federal Trade Commission about “customary and reasonable” appraisal fees. I’m venturing here to provide a short, understandable, unbiased summary of the litigation and what this latest court decision means. What did the Court of Appeals decide? Here’s the very short summary: The Federal Trade Commission (FTC) is pursuing an administrative complaint it filed in 2017 against LREAB, contending that LREAB’s “customary and reasonable”...

Was Fast & Cheap AMC Appraiser Racist? Biggest Snowball of Your Life 14

The Biggest Snow Job of Your Life

Remember the saying “Pick two: fast, cheap or good. You can only have two of them?” Well you see, amcs got impatient and stopped reading after fast and cheap… The concept is simple enough, a fire wall between the loan production staff and the appraiser to avoid any possible pressure, coercion or influence. It sounded like a good idea to many; hence the HVCC legislation passed and was enacted. This was a period of trial and error for so many and before anyone found their way, along came Mr. Dodd and Mr. Frank to give their official stamp of approval...

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