I worked at Navy Federal Credit Union back when share-draft (checking) was first being explored (1974-80). Banks were up in arms over the encroachment into their business arena and the matter was adjudicated not just through NCUA – but through the courts as well. It was also during this period that MANY credit Unions across America were failing because of too rapid and unstable growth efforts. Alaska Federal (paying nearly a full point more interest than any other CUs) had phenomenal growth-built on an unsustainable house of cards. Mayport Federal, MarCorps West FCU and many others had to be absorbed by the bigger guys. Most often NFCU, or Pentagon FCU.

It disappoints but does not surprise me that they ventured into commercial and business loans. Membership & asset growth has always been the bottom line for credit unions. At some point service to members becomes a business concept rather than a personal relationship. I seriously question whether the broadened scope of services has ever resulted in higher share dividends for members savings accounts.

Hopefully, it is a service sufficient in demand by members to justify the increased risk to other members savings.

I wish credit unions well. Unlike banks, they typically remain not for profit organizations – with the ‘benefits’ of what would otherwise be profit being returned to their membership. Sadly, their practices often mirror the business practices of the banks that they chose to compete with.

Many CUs* have never held appraisers in high regard. NFCU is such a one – due largely to the preconceived biases of one of the heads of the department that ordered appraisals and processed RE loans. He truly believed all we did was glorified comp checks. Fortunately, until she retired the Director of the Mortgage Services Division was a conscientious long-time employee that understood collateral risk. Her leadership more than offset the other Branch Heads appraisal contempt. But they are gone now. And NFCU seems primarily oriented toward growth – even expanding the field of membership greatly to facilitate this.

That is their business. As appraisers, we can do little about the line of thinking (obsession with automated processing) that is destroying our profession. Worse, we don’t seem to want to do anything about it.

More than half a year ago I started citing the publicly visible increasing influence of MISMO policies & objectives directing policies that undermine us. Later I pointed out the PUBLISHED MISMO talking points specifically citing the objectives of eventual (near in time) elimination of not only all residential appraisals but commercial appraisals as well. Specifically through automation. Over the past year+ the Feds have become increasingly visible in their advocacy of automated systems and their belief in the irrefutable accuracy of Big Data (especially as supplied by CoreLogic-despite their egregious record for inaccuracy in the kind of data being supplied).

Apparently not enough appraisers have ever read the Fable about the Emperor’s New Clothes. Just like our regulators.

AI, ASA, IFA and all the other professional associations; State Coalitions, and The Guild cannot change or substantially affect the automation trend separately. Indeed, some of ‘us’ keep trying to carve out exceptions that promote bad automation shortcuts and hybrids, at the expense of our profession.

Appraisers CAN effect changes if they want to, but not by staying on the sidelines and forecasting doom and gloom & bemoaning our fate without trying to do anything about it.

Those who are already members of an organization need to urge them to get actively involved in opposing ALL bad policies that harm the appraisal profession. Those that are not members of professional associations or coalitions or The Guild need to join and start getting involved.

To those that already have joined an organization, or who have asked how to get MORE involved with the Guild, a sincere thank you, from one appraiser to another.

To all the rest, what are you waiting or? We need your help NOW.

*One notable exception in my experience was the old Rockwell FCU which later became Kinnecta I believe. For years they had a strong in house appraisal base.

We will go away from about 2025-2030, but they will be begging us back

If you ask me? It’s good and bad… LOL

Big Data and Artificial Intelligence are taking no prisoners.

Predictive Analytics of Consumer behavior is going to dominate our industry in the next 5 years.