Appraisal Simulator
The industry is working of an appraisal simulator…
The US House of Representatives Passed S 2155 today!
Section 103 allows for waivers of appraisals by licensed appraisers in certain situations. See the bill here.
Other News:
Last week The National Association of Realtors held their Real Property Valuation Committee meeting. We have 2 VaCAP members on this committee. Here is a brief over view of the meeting from our representative in attendance.
John Brenan with the Appraisal Qualifications Board (AQB) spoke at the meeting and gave an update on the roll back of licensing requirements that went into effect May 1st.
One of the most interesting comments Mr. Brenan made was the "appraisal simulator"! One of the most challenge parts of becoming an appraiser is the experience requirement. The industry is working of an appraisal simulator called Practical Application of Real Estate Appraisals (PAREA). A demonstration will be available at the September meeting of the AQB meeting in Raleigh, NC. PAREA will have a vast amount of simulated appraisal assignments which could count for 75% of the required appraisal experience on needs to obtain a license.
The GSE’s are working on a rewrite of the 1004 form. Rumor has it the rewrite will be 6 pages long rather than the current 3 page form and is unconfirmed.
REALTOR® Property Resource (RPR) is working on a regression analysis program.
The Virginia Real Estate Appraisal Board Meeting was held today. Here is a summary of the meeting from our representative in attendance.
There were 8 attendees at the meeting and 5 disciplinary cases. The board voted and carried the following two items:
- The USPAP definition will be updated to the current USPAP edition. The board voted and carried to rescind guidance document 6220 regarding Evaluations. This means that as of July 1, 2018 appraisers in VA will be able to perform Evaluations and the state board will have no jurisdiction over Evaluations performed by appraisers. Appraisers need to comply with Federal regulations.
- The board adopted the AQB roll back requirements for licensure.
Other notes: Rocky was elected for Chair and Mack was elected Vice Chair. Congratulations to both!
Also Today, VaCAP, along with 26 other state organizations sent a letter Arthur Lindo, Chairman of the Appraisal Subcommittee offering our assistance helping lenders find appraiser. See the letter here or below.
- VaCAP Supports Shane Lanham’s Legal Fight - September 10, 2024
- It’s Just Responsible Journalism! - February 21, 2024
- Limitations for Damages Against Appraisers - January 9, 2024
Oh please
I’m not a bit surprised it passed the House. S2155 was highly supported by the financial sector which needs the most supervision… The clock is ticking!
If you can’t see the writing in the wall by now,. Good luck in the future. Lol.
Remember the simulators in Drivers Ed? They were nothing like actual driving. The same will be true for anything they put out there. A better solution is to pay the appraiser a decent wage to hire a trainee.
Just let the mortgage bankers send the order directly to the appraiser with a phone call and email. The intentional bureaucracy in appraisal distribution is insane. New FNMA forms? Hating in advance. Appraisal simulator? Will it simulate a corrupt assignment system where you get an F grade for A work if you have not advocated on behalf of the middle management assignment client?
Yes the extended times for appraisers is the middle man AMC. If lenders would just send requests directly to appraisers. It would be so much faster and easier. Half my morning sending off a final inspection. Had to send it twice in env format because the first one I sent didn’t have the AMC in the lender field
Just got over the same problem yesterday with PCV Murcor. After 45 min of trying to upload the report I kept getting back an auto response that there were 13 problems. I went through the whole list and checked each of their little boxes that everything was in the report. Still couldn’t upload it so requested an over ride code. 4 hrs later still no code. Sent an email and was told they would send a code. 10:30 PM received the code so the next day I uploaded it and that afternoon @ 4:00 I received a revision request because I neglected to X one of the stable market boxes on the MC form. until a human reads the report how do they know what’s in it ? This added 2 1/2 days.
I’m telling you for the last time…. HA! Paying for ‘plug ins’ is like volunteering for abuse. See this comment for the details… Via; Baggins, May 14, 9:47 am
http://appraisersblogs.com/appraisal-business-fees-lenders-lies/#comment-21244
“Seeing the bigger picture yet?”
The comment I’d like you to review is one of the lowest comments, you’ll recognize it because it will require actual reading and is a long skinny post. I detail how plug ins work, the racket behind marketing them, and imbalanced control features.
The current 1004 form is SIX pages, not three. The required MC form (when Agencies are involved with the loan) adds ONE additional page. That’s a total of SEVEN pages, not including any additional exhibits required by specific lenders or ‘investors.’ Typical residential appraisals run between 20 and 40 pages total.
“Appraisal Simulators” might be a way to shorten ‘some’ of the learning necessary, but nothing beats actually seeing multiple varying properties over a period of time. However, people who only have knowledge of major urban area appraising, with hundreds of similar homes in a concentrated area, don’t understand or appreciate the difficulty appraisers have in small urban, suburban and rural areas. Unfortunately, implementers of new processes generally have blinders on, figuring what works ‘here’ will work ‘there’ just as well. It doesn’t.
I get what your saying Dave, but being a big city urban, or suburban appraiser (primary) comes with unique challenges as compared to small suburban/rural appraising. Sorting through a hundred sales over a 12 month period all being within a mile of the subject sounds easy, until you realize that after you use 3, all other interested parties have 97 other sales to challenge you with (extra time). Good luck with those reconsideration of values and Tidewater proceedings when agents go the bulk MLS route (20, 30, 40+) instead of doing their job. As a large city appraiser, some 40% of my work comes by way of form 1073, while I would assume rural appraisers do very little condo work. There’s nothing like doing an appraisal on a 4, 8, or 15 unit building where nothing has sold for 5 years, and from the seat of your paints you know the outside sales that you are forced to use are $50,000 to a $100,000 off either way (similar to rural appraising with no sales?). Lastly, with big corporation influence, many large city suburban appraisers deal with huge volumes of fix and flip properties. At times, my search results may be influenced by a +/- 80% stock of sold (flipped) homes. Perhaps unusual to see for a rural appraiser, but common for many. We’re on the same side, and I agree, a so called fix in your area, probably won’t fix my area.
Seek the truth.
Same old story, appraisers are screwed again, sorry for being so blunt.
How cool!!!
I think the ‘powers that be’ at AQB should give at least 50% credit for every hour controlled artificial environment ‘simulated experience’ toward real experience! 2000 hours in a simulator=1,000 hours real experience.
Clearly John and the gang over at AQB have solved the manufactured appraisal shortage crisis. Well done!
This will go SO far in preserving the Public Trust.
Can I get that for a pilots license please? I don’t like anyone else behind the wheel, or in this case, the stick, except me. A proper simulator would check on their fee and turn time and provide an immediate fail point of the appraiser actually learned how much the consumer was paying, if realism is the goal.
Absolutely Baggs! BTW a proper simulator is or (would be) still only an educational tool. It is not an end result equal to real world experience. Let’s remember. We are not talking about time to become a licensed (permission to practice) appraiser. We are talking about bypassing and going straight to Certified (State certifies to a certain level of advanced competency) beyond the permitted to practice level.
One day I’ll hopefully pick up a worthy candidate with construction experience. The problem with advocacy, is advocacy. There is nothing quite like hearing your senior appraiser curse down some big shot mortgage guy and put him in his place. That’s why amc’s are preferred for many, they insulate the mortgage banker from taking responsibility for unethical actions and force the appraiser into an employee like position. If someone can go straight to cert appraisal, I want to go straight to managing broker without experience. If the shoe fits, everyone should be able to wear it. And who are these mysterious underwriters anyways? All that is necessary to be an appraiser is to read and retain about 10,000 pages of bureaucratic guidance. Sometime after the fact I realized I knew nothing, at no point during testing was I ever required to answer specific questions about fnma hud or any other policy. Cheating is just so easy these days, it will be a big mistake to remove apprenticeship requirements. The appraisal CE industry needs a shot in the arm. But how could they keep up with the knee jerk policy changes which inevitably run past us at least once a year, if not more.