Grants to Help Train Appraisers
Folks, this article appeared in American Banker on September 7, 2022. In my view, after reading it, the article appears to present a balanced perspective about what appraisers have been experiencing since the FIRREA law was mandated back in 1989. It also exposes problems with getting new people into the appraisal profession.
If you have been paying attention to appraisal related activities over the years, you will recognize the names of people quoted in this American Banker article.
One thing that has not been promoted well by anyone in this profession is how supervisor appraisers can be encouraged to take on trainees so that we can replenish our stock of appraisers. Presently, due to the way the system works, the enablement of training is discouraging to the majority of Certified appraisers due to the financial disincentive built into the training process.
It costs supervisors a great deal of money and the supervisor’s personal production time to train a new appraiser.
AMCs don’t make it any easier, when AMCs basically demand the lowest fee to award assignments, even though borrowers are STILL paying ‘normal’ appraisal fees to the mortgage lender when they apply.
So since no one else has offered any suggestions about assisting the training process, here’s mine.
The Appraisal Foundation is sitting on a boat load of cash, millions they have siphoned off of appraisers and others since USPAP was incorporated into Federal, State and Territory laws. This is due to TAF’s insistence (in the past) on “changing the rule book” frequently, meaning a new ‘book’ had to be purchased from TAF when changes were made.
TAF is a ‘non-profit organization’ by law; that means there is no reason for them to hoard so much cash.
Therefore, TAF should immediately utilize the majority of retained funds to establish grants directly to supervisor appraisers to help cover the training costs for each Trainee the Certified appraiser is supervising. This will help make up the lost income the Supervisor appraiser experiences.
I’ll just leave it at that for now; the actual grant amount and application process can be left for appropriate administrative oversight upon consideration of input from actual appraisers who do, or who want to, supervise Trainees.