Newly Formed Appraiser Coalition Seeks Positive Change for the Industry
A group of Real Estate Appraisal experts committed to the preservation, protection and enhancement of the appraisal industry has formed the Appraiser Prosperity Coalition (www.AppraiserProsperity.com), a merger of industry insiders and government affairs professionals dedicated to fighting for the legislative and regulatory changes needed to rebuild the industry in the wake of damaging legislation.
As you know, in an effort to remove value pressure from Real Estate Appraisers, the Dodd-Frank law affirmed a move made by the Home Valuation Code of Conduct to transfer most real estate appraisal ordering power from the hands of the 250,000+ Loan Officers in this country, to a small handful of national Appraisal Management Companies (AMCs).
The results of this change have been devastating to the real estate appraisal industry for several reasons. First, AMCs are for-profit businesses that currently succeed on the margins between what they charge and what they pay Appraisers. So, the less they pay Real Estate Appraisers, the more money they make. The Dodd-Frank law calls for them to pay “Reasonable and Customary” fees to appraisers, but the law gives no real direction or oversight, and this clause simply has no power and can never be enforced as it is illogical for a free market to reveal pricing and then force pricing on ever-changing markets – it just doesn’t work (something appraisers know all too well). Secondly, the move to incredibly consolidate ordering power gives the national AMCs enormous strength to squeeze Appraiser’s fees down. And… squeeze they have, and will, as long as they are able to.
The industry consolidation is continuing to heat up as well. The stranglehold is getting tighter. Larger AMCs looking to grow are buying up other AMCs so that they can increase their leveraging power and squeeze Appraisers even harder. Many Appraisers are simply opting to leave the business altogether. If nothing is done to correct this problem soon, the appraisal industry may end up being a total wasteland.
In order to solve these overwhelming problems, the Appraiser Prosperity Coalition has put together a set of powerhouse solutions and partnered with a professional advocacy group that has the knowledge, experience, and plan to get this done – but none of this can be mobilized without your help.
Please take a few minutes to visit www.AppraiserProsperity.com and review their real, effective Solutions and Action Plan. By rising up and joining this Coalition, you are fighting for your career and creating hope for a brighter future.
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This is intriguing. Will keep my eye on this one.
Message To Author:
The residential appraisal profession is already a total wasteland. It has been for a number of years.
Message to Retired Appraiser:
The Profession was a total wasteland before 2008. Just because you have been screaming for 5 years (about things not related to Appraisal Independence) does not mean the Profession wasn’t a wasteland. If you would familiarize yourself with the Profession before 2008 (in which you refuse to do) you may have a different outlook. You seem to have a belief that every thing was Kosher before 2008. There was a reason there was changes and, if you did familiarize yourself with the Profession before 2008 you may even have a come to Jesus talk and may even see that you were part of the bigger problem like tens of thousands of Appraisers did. Many Appraisers came to the understanding that they were part of the bigger problem, but more so they were involved in a slave trade and thought it was the normal course of business. Before 2008 the Profession was a wasteland and now, there is a fighting chance to make a real difference. Your overall analysis or observation of the entire picture is wrong, sir.
Message to Author:
I will not be joining up until something changes my mind. I have a better outlook towards “The VOICE” — I know that guy and his affiliates/peers, per se, are indeed Independent and understand what Appraisal Independence is. You could not even add Independent or Independence in your message; this little omission always turns me off. I could say more, but I’ll save ‘this and that.’
Reply To Benji
I’m not saying it was a perfect world prior to 2009; it was far from it but at least it was a survivable landscape.
*Prior to 2009 you could name your fee and have the option of taking or leaving it.
*Prior to 2009 you could collect your fee at the door rather than rolling gambling on whether you would ever be paid.
*Prior to 2009 your liability had not increased ten fold.
*Prior to 2009 your work load per assignment was roughly 50% of what it is today.
Two things have improved since 2009. No more precomp crap. No need to knock on doors asking for work (you simply participate in the reverse auction and submit the lowest bid) <~ Actually this is a joke because it was no improvement.
The only appraisers who see things as being better today than they were in 2008 or 2009 are the new appraisers who could not find a way to break into working on their own. If they do the accounting correctly they should quickly come to the realization that they make considerably less working on their own for AMCs today than they did when they worked as apprentice appraisers.
Appraiser Independence? LMAO You now have the right to go bankrupt working for AMCs. You now have the right to be sued senseless because a mountain of liability hangs over your heads. you have the right to work as a slave for AMCs for the rest of your lives with no benefits being paid to you whatsoever.
If you are a residential appraiser today you truly don't get out much. Self employed careers abound that pay more, have far less liability, and are far less likely to put you six feet under due to stress.
I have read your posts for years Benji and I respect your input but I would only recommend this career path to an individual who killed a close friend of family member of mine.
Yes – you have been reading my posts. I know you never ignored me. I know you had disagreements. I actually agree with much you have to say. We have beliefs that do align. However; your reply was lengthy this time and, I believe this may be the first time you actually replied – if not – replied in length.
Good 🙂
I recently received your reply and I prefer to look it over so I may provide an intelligent reply.
Thank you for responding – in length.
Have a nice evening.
First, we would like to thank all of you for taking the time to comment on this, we truly appreciate that. Beyond that, we want you to know that this effort is entirely about Real Estate Appraisers helping one another. We know that by coupling the right solutions with the right plan… the entire industry can be turned around. We ask each of you to strongly consider the impact that each of our proposed solutions will directly have on you, once achieved. Please also consider the fact that significant change can only come if everyone is willing to do their part to bring it about. Thirty years from now, you can look back and know that you were part of the solution that brought prosperity to you and your family. Never give up on your dreams… make them become a reality. Do not hesitate to contact us and we look forward to working with you soon!