AQB Moving Like a Turtle
Appraiser Qualification Board moving like a turtle in solving how to get more people into the appraisal profession.
I recently returned from a trip to Maui, Hawaii. While there, we saw two beaches where the ‘famous’ green sea turtles were lounging around during the day. Kinda reminded me of how slowly the Appraiser Qualification Criteria (AQB) is reacting to the near shut-off in getting new and younger people into our business.
AQB didn’t take real constructive action at their Nov. 18, 2016 public meeting, but they did provide this riveting synopsis of what they did do during the meeting:
On November 18, 2016, the Appraiser Qualifications Board (AQB) held a public meeting in St. Louis, MO. The meeting provided the AQB with an opportunity to hear public comment in response to the Second Exposure Draft of Proposed Changes to the 2015 Real Property Appraiser Qualification Criteria (Criteria). In addition, the Board provided an update on the following AQB programs:
- National Uniform Licensing and Certification Examinations
- Course Approval Program
- Graduate/Undergraduate Degree in Real Estate Review Program
Second Exposure Draft of Proposed Changes to the Real Property Appraiser Qualification Criteria
The AQB received over 170 written comments in response to the Exposure Draft issued on September 15, 2016. The comment deadline was November 4, 2016. If you would like to review the Exposure Draft and comments, please click here.
The AQB did not adopt any of the proposed changes in the Second Exposure Draft, and plans to issue a Third Exposure Draft in March 2017, which will further refine the proposals made thus far. The Third Exposure Draft will focus on experience requirements as well as a possible alternative track for experienced Licensed Residential appraisers who lack a 4-year degree, but may want to move to the Certified Residential level.
The Board is assembling a panel of experts to develop revised requirements for “practicum courses,” which are now referred to as “practical applications.” The Board looks forward to exploring additional paths for individuals seeking an appraiser credential to obtain experience without a traditional client.
My comment above is NOT related to the current fictional account of ‘shortage of appraisers.’ There are plenty of CURRENT appraisers. What concerns many of us ancient folk – who will be leaving for other pastures in the not too distant future – is the entry process for new appraisers is extremely difficult, almost to the point of absurdity.
I’ve taken 4 phone calls from interested people in the last 3 months, wanting to become an appraiser. These folks are located in areas where doing the required apprenticeship is extraordinarily difficult due to geography, and because there is no real incentive for Certified appraisers to train new people, meaning most won’t do that.
I don’t have the answers to this dilemma. But it’s something that needs to be solved, “sometime this century”, or there definitely will become a real ‘shortage of appraisers.’
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Government always moves slow. IMHO, nothing needs to be done now anyway, as the effects of the last round of changes really haven’t taken affect. The obvious consequences of the last round of changes is notable fee increases and continued pressure on AMCs, all of which IMHO is needed.
Maybe finding a better way to stream-line the appraisers time. The URAR is due for a revamp? Maybe shorten the form or at least take a look at some of the unnecessary items in it. Its all about time and money isnt?
If everybody took lessons from the Appraiser Coach and instead of as an industry one appraisal was completed per person per day, we could ALL complete 3 to 8 as he has publicly stated. If under his guidance we could all average 4 appraisals per day, than our industry could lose 75% of its workforce and not lose a step. It appears the secret is to have the appraiser do the inspection only, while non-licensed office staff does most everything else. Problem solved. Seek the truth.
I was at a class recently and out of about 12 appraisers there 2 had a trainee that were related to them. The other said they had none for sometime. Had one stated they would take on someone if that person paid them an upfront fee ($10-$15,000) plus a 50-50 cut of the appraisal fee. Gonna be a tough few years til retirement.
An excellent example of precisely WHOM is entering the “profession” these days…relatives of existing appraisers. I’ve heard of extreme hatred but those guys must really hate their relatives!
On a more serious note the appraisers who are hiring their relatives are far more concerned about their legacy (that their company lives on) than they are about the people the children they are dragging what is obviously an industry facing extinction.
step one to solving this issue will be to delete the AMC business model. It’s not working and we ALL know it. Its forcing existing appraisers to look else where, for appraisal work. Plus, the AMC model is preventing new entries because the $ rewards are insufficient. Of course, to delete the AMC business model, that was designed for and by lenders and lender interest groups, will be difficult and probably unlikely. But miracles happen but not often enough.
Leaving the AQB requirements intact goes a long way toward solving the problem. It can be inferred from various polls that were taken that a disproportionate share of appraisers without college degrees are working for AMCs. That’s because a four-year degree is marketable, not only in the profession, but outside the profession.
Outside the profession is correct. What sane person is going to college at $40-$60K and saying let me start at a job paying less than $25k a year if that, 2 yrs+ for 2,000 hrs on the job training at a 60-40 split while paying for all the little goodie fees the leaches tag on. Love what I’m doing, but couldn’t do that to my children.
You’ll have to excuse me for not being able to form a good sentence on prev post. Just have work on the brain, in my dreams, etc! Not that I’m complaining.
For the sake of those “new green fools” I hope and pray that the AQB doesn’t find a solution to the current “shortage”.
My greatest pleasure since fleeing this “profession” has been in steering scores of men and women away from this flea bitten industry. My final words to each is always, “Do as you please but don’t say that you were not warned in advance.” I then recommend that they call at least ten other appraisers to gain insight from them as well. I then follow up with each on a yearly basis as a way of testing their intelligence. Thankfully, NONE have chosen to blow their hard earned money in an attempt to gain entry into this DEAD END JOB.
As I have previously stated before, the numbers kept by the powers that be (via the collateral underwriter), indicate that only 50% or so of all licensed appraisers do work that is tracked by their system. The issue is not to increase the number of licensed people/appraisers, but address those concerns of the 50% not participating within the system (residential lending). To answer those concerns is to address the problems of the industry (fees, due dates, scope creep, liability, payment, AMC’s, delivery fees, USPAP, etc.), and that will never happen.
bill, i think they really know the answer but they don’t want to face reality. The reality is that they have create a “professional slavery” out of the appraiser, that insures them “cheap and fast appraisal service”. They don’t want to do anything that may risk their profits, their control of the appraisal process and those that work in the amc business model. The AMC business model is not friend of the appraisers.
The AMC business model will eventually blow up in their faces. Its happening now. We get calls all the time, “We just cant find an appraiser who will work for use for OUR fees.” We ask them “what is really the problem than….. ?”
Allow instant reciprocity nationally so we can all chase the volume if we so choose? Had a few realty persons want to train recently, although I was just another in a long line of solicitation attempts they made. $30k up front and no pay, 3 year commitment. Be prepared to work 14 hour days both weekends and be ready when I need you weekday, sorry no outsourced, you must be here. Of course, that’s the go away quote. I can’t train anyone. I need to do that in lean regular times when there is time. By the time volume ramped up, training was already off the menu. If you think of how quickly all these amc’s grew, that is why there is attrition of appraisers. There may be more vendor managers than vendors by now. Environmental inspector quoted me 450 for 2 day turn on running out here, grabbing handful of rock wool, sending to asbestos test and returning report. Dang, in the wrong business again! LOL.
I can confidently speak for Los Angeles, where there is a HUGHE oversupply of appraisers that allows AMC’s to keep appraisal fees down and request appraisers to do all types of “extra” things, including violations of USPAP. There is truly a “pay to play attitude” among these AMC’s. I have recently been informed that if one AMC cannot find anyone to take the assignment at their price point, they pass it on to another AMC who pays the same fees.
The calls I’ve gotten from people looking to get experience hours have been told that they can make $400.00 per appraisal which takes three hours to complete and receive all the work they can handle. Three out of the last five were lead to the appraiser profession by their mortgage representative relative, two were told this by a vocational school.
It is pretty obvious that the banks / AMC’s are set on maintaining this oversupply and finding/hiring only people who are willing to work as employees, under their rules, with no employee benefits and have the appraiser be fully and solely liable for everything. They want you to work for what they think you’re worth not what you are worth. If I’m working on an $600,000 dollar property that bundle of risk, work, time and knowledge is worth far more than $300.00.
On a national per volume average with large cities (including San Diego / 1,000 licensed appraisers) often using AMC’s and thus offering below C&R fees (say $300), the powers that be will not bring up this fact, but will instead refer to very low volume rural areas that have higher fees / lower supply and perhaps longer turn times. This is like ignoring the average weight of 100 various people in a room (say 175 pounds) and saying the only issue is the 500 pound woman.
Seek the truth.