AI Dumbing Down Appraiser Licensing
Over the past month, I have been writing about SB-70, a California Law that allows appraisers to get a pass and do evaluations on the cheap and not have to verify anything in their appraisals. After all, what MAI or SRA doesn’t want to do an appraisal on the cheap so they can compete with dog-walkers, pool-cleaners, and TV-repairmen? It is what every residential appraiser wants to do because obviously, they can do it better than a septic tank-cleaner or ditch-digger who does evaluations on the side. Appraisersblogs posted my thoughts on this from an earlier Appraisersville post I wrote and, the comments began to fly.
Passions ran high on the blog after Charles Baker, SRA, AI-RRS, and SCCAI Chapter President 2018 criticized me for essentially being uninformed about the law. Here’s a snippet of the “compliment followed by an insult” observation on his part:
One of the problems with a small select group of these individuals is that they don’t seem to understand that they represent residential appraisers and commercial real estate appraisers. As a trade group they have never shared (at least during Grubbe’s reign as CEO through today) any insights about what drives their policies. Their leadership and those who are on the path to leadership have work within a corporate cult. You need to comply, or you will never be on the inside. And people like Charles, who I am sure is a nice person and good appraiser (he also said so), get so far embedded into the corrosive culture that they believe what they are saying. The rest of us have no idea what they are thinking, and membership has long enjoyed zero input. The problem with this type of management is that it teaches those in the inner circle a certain amount of disdain by the organization to its members – that they are morons who don’t get it and who can be bypassed so all those first class flights with their spouses to far away boondoggles can be continued.
I have a broader theory on the impetus for pushing so irrationally hard for evaluations that causes their leadership to misstate and mislead out of context, and it has nothing to do with residential appraising. It has everything to do with commercial appraising. After this bizarre law in California and the repeated efforts to bypass appraiser boards in many other states like Florida, Montana, Virginia, North Carolina, Texas, North Dakota, Wisconsin and I’m sure many others, this is about generating income for leadership’s appraisal practices. For example in financial reporting, commercial appraisers are losing out to accountants and others in reporting for various reasons for large corporations. I assume that USPAP stops them from doing what they see as lucrative reports. With leadership in a bubble, they have no idea how the masses feel and clearly don’t care. They want that business for themselves.
The logic Charles (in this post), Scott Dibiasio, Bill Garber and others bring to the table has never been agreed to by the masses. Why? Because they really aren’t telling us why. In a one on one conversation, none of these characters have ever been able to convey credible rationale for their efforts, because they aren’t defensible but they scratch their heads and wonder why most appraisers outside their bubble are so damn pissed.
But I digress.
Here are some key points of this SB-70 tragedy that the Appraisal Institute heaped on hard-working appraisers:
AI Leadership in CA hides what they are doing: Charles does a lot of fogging in his responses. Remember that presidents of the California chapters send people to Sacramento to lobby for SB-70 without informing their own membership on what they are lobbying for, so I’ve been told by insiders. Why? That reflects a culture that views membership opinions with disdain. In his response you can see he comes from the perspective of “Well I’m from the Appraisal Institute, that’s why” which is not a reason. The greatest illustration of this, which Charles couldn’t step back and see when he says:
The reason no one showed up, aside from too much salt in the beef stew special, was that the Appraisal Institute is no longer a leader in our industry. They have built a reputation of arrogance in their behavior. I was at TAFAC when we voted to throw them out after wasting everyone’s time with a constant parade of temper tantrums and in the end, they would not agree to the goal of the organization.
What is a level playing field?
This is an absolute abomination of logic and I am aghast at how dumb this is. Why do you want a level playing field? The public trust is served by a licensing mechanism. Just give up your license and do the work you so badly want at all costs and not destroy the public trust for what an appraiser actually is.
As a licensed practicing appraiser, you are likely better at valuation than a TV repairman doing an evaluation. But when you demand to remove your license restraints to do this work, OF COURSE, you will do a better job but it destroys the impression of your worth when you are doing a real valuation. Ironically, the value of an appraiser is already damaged by this because Charles and his colleagues can’t do the branding math.
Here is an example in reverse. In the North Dakota request for a statewide waiver of appraisers because they are too hard to find in rural areas. But so are doctors! How about waiving medical licenses for medical practitioners to serve the public!
There is no enforcement when you do evaluations. So dumbing down appraiser licensing does NOT protect the public trust.
That’s all I have time for today, but my goodness, there is a lot more to talk about with SB-70 in next week’s Housing Notes. Lots.