Death Grip on Trainees Loosening
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Allowing associated trainee appraisers to complete unsupervised inspections…
Appraisers, and others,
A ‘significantly large’ nationwide AMC has notified it’s vendor appraisers that certain lenders contracted with this AMC will now accept appraisal reports signed by properly trained (and presumed properly approved by the State) Trainees as the ‘Appraiser.’
This follows the Jan. 31, 2017 FNMA announcement that they will accept reports signed by Trainees.
So far, I have not seen any similar announcement from FrMAC, FHA, VA, or USDA, or any other specific lender.
The AMC’s message to their appraiser panel is below.
NOTE: This memo says the Trainee is the “only inspecting party.” That may not be factually correct in all cases, because the Supervisor appraiser has to indicate on the signature block if the Supervisor did or did not inspect the property. You should carefully read your state laws to be sure if the Supervisor appraiser is ‘required’ to also sign appraisal reports prior to submittal to the lender.
- By agreeing to this Addendum, we are waiving the stipulations of our primary engagement contract and Service Level Agreement (SLA) which require that an eligible supervisory appraiser inspect the subject properties with any associated trainee appraisers for all assignments involving a trainee.
- To remain eligible for this program, you agree to:
- Follow all state licensing statutes and rules requirements related to the supervision of trainees.
- Accept full responsibility for the resulting appraisal report by signing as the “Supervisory Appraiser”.
- Only allow associated trainee appraisers to complete unsupervised inspections for conventional product (non-FHA or USDA) assignments initiated by the specific approved clients listed below.
- Ensure that associated trainees have sufficient training and knowledge to perform all inspection tasks competently.
- Ensure that trainees have sufficient training and knowledge to interact with the client’s customer or other transaction participants in a professional manner including but not limited to following industry best practices, such as:
- Employ a friendly and professional demeanor and appearance during inspections.
- Tactfully avoid inappropriate or confidential discussion topics as noted in your network agreement and competently answer common appropriate appraisal and inspection related questions.
- Ensure that the trainee signs the appraisal report as the “Appraiser”, since they are the only inspecting party.
As noted above, FNMA and others presume the Trainee is properly trained by their Supervisor for the property type report they are signing as the Appraiser.
These policy changes are important for ‘us’ going forward, because doing appraisal work as we know it is unsustainable unless ‘we’ can attract and employ Trainees in ways that make economic sense for everyone involved. More lenders and others need to implement similar policies.
These changes are beginning to loosen the grip which has prevented Trainee Appraisers from getting the experience necessary to replace older-aged appraisers in the future as they retire or end involvement with appraising.