real estate appraisal - Appraisers Blogs

ARCC Discussion Exposes GSEs Agenda to Reduce Appraisal “Friction”

AppraisersBlogs — Fri, 22 Nov 2024 13:30:11 +0000

Mark Calabria’s discussion with ARCC revealed the GSEs’ agenda to reduce “appraisal friction” by eliminating the role of professional appraisers and the appraisal process altogether. The recent discussion hosted by the Appraisal Regulation Compliance Council (ARCC) with Mark Calabria, the former Director of the Federal Housing Finance Agency (FHFA), offered a rare and illuminating glimpse into the inner workings and mindset of the nation’s housing finance regulators. During the engaging conversation led by ARCC Chair Josh Tucker, Dr. Calabria shared his expert perspective on FHFA’s controversial decision to significantly increase the use of appraisal waivers, which allow mortgage lenders to...

The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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The Great Debate on Appraisal Fees

Isaac Peck — Mon, 28 Oct 2024 12:30:09 +0000

She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee paid by the borrower, which prompted her to stop working with AMCs because of the lack of transparency. The appraisal industry is abuzz with a discussion about appraisal fees. The Consumer Financial Protection Bureau (CFPB) recently issued a Request for Information Regarding Fees Imposed in Residential Mortgage Transactions [Docket No. CFPB-2024-0021] in which it solicited feedback from the public and industry stakeholders on the fees charged to consumers by mortgage providers and related settlement services. The CFPB framed it as...

AMCs Billing Scheme, Hidden Profits & Deceptive Practices Appraisers who do not agree to their hidden billing methods are excluded from the majority of the GSE lending marketplace…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…
Appraisal Regulation Compliance Council Exposes… The Appraisal Regulation Compliance Council published a detailed breakdown to the CFPB, which showed the median average AMC fee being…

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AI to Counter Flawed Appraiser Bias Narrative

AppraisersBlogs — Mon, 15 Apr 2024 12:30:07 +0000

In reality, appraisers have a great story to tell, but we have a long way to go to refocus the terribly flawed “appraiser bias” narrative onto facts and science. Last week’s email from Cindy Chance, the CEO of the Appraisal Institute, marks an important and long overdue shift in the organization’s approach to addressing accusations of bias in the appraisal profession. For too long, appraisers have faced sweeping claims that their valuations are biased against certain groups, despite appraisers’ ethical standards, rigorous training, and lack of financial stake in transactions. As Chance acknowledges, the Institute should have done more to...

Appraisal Bias Mantra is Largely False Reporting Just How Commonplace Is Appraisal Bias? Folks, about the only entity examining in depth the details behind all the allegations…
TEAPOTS Exposed: The PAVE Initiative’s Illusion of Justice The PAVE Initiative's lack of TEAPOTS case entries reveals a fraudulent scheme that betrayed homeowners, vilified appraisers, and hid the…
False Claims of Racism Against Appraiser ...my career, business, and health at risk due to false claims made by a homeowner. As a professional real estate…

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Should Property Data Collectors Be Licensed?

Peter Christensen — Thu, 29 Feb 2024 13:30:02 +0000

Should “property data collectors” who inspect properties and provide information to real estate appraisers be licensed by state appraiser boards? In Mississippi, a bill has been introduced this week to require exactly that. The legislator behind the bill happens to be an appraiser. HB1663 would establish a license category for property data collectors under the jurisdiction of the Mississippi Real Estate Appraisal Board. A property data collector would be defined as an individual or company, who is not a licensed appraiser and “who collects, either physically, virtually, or digitally, any information on real property, and produces such information to a...

AMC Hires a Convicted Felon as Property Data Collector The recent case of Paschal Uchendu, a convicted felon awaiting sentencing for orchestrating a $1.2 million armed robbery of a…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
West Virginia Appraisal Board Scheme The Doomed Quest to Reform a corrupt West Virginia Licensing Board “Board members earn money working for a law firm…

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Recap of the 4th ASC Appraisal Bias Hearing

AppraisersBlogs — Wed, 28 Feb 2024 13:30:47 +0000

On February 13th, 2024, the fourth ASC appraisal bias hearing took place. For those who were unable to attend, the video of the hearing has been included below. The hearing was a crucial event for the appraisal industry, and it is important for all appraisers to be aware of the discussions and topics addressed. The panel of witnesses included: David Bunton, President, The Appraisal Foundation E.C. Neelly IV, Executive Director, Mississippi Real Estate Appraisal Board Maureen Sweeney, Principal, Maureen Sweeney, Real Estate Appraiser Ltd. Melissa Tran, Director, Texas Appraiser Licensing and Certification Board Jillian White, Chief Executive Officer, Appraisal Insights...

AMCs Billing Scheme, Hidden Profits & Deceptive Practices Appraisers who do not agree to their hidden billing methods are excluded from the majority of the GSE lending marketplace…
AMCs Violating TILA and C&R Fee Clauses Fellow Appraisers, the appraisal industry has been facing a major issue with AMCs violating the Truth in Lending Act (TILA)…
Two Cheers for an 'Evolved' Beltway Entrepreneur...… We come not to bury David Bunton, the public figure, but to praise David Bunton, the evolved Beltway organism. Who…

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It’s Just Responsible Journalism!

VaCAP Board — Wed, 21 Feb 2024 13:30:14 +0000

Not reporting complete and accurate information is nothing more than irresponsible journalism! The local television station WWBT, NBC 12 in the Richmond market is airing a story on Thursday February 22 during the 6 pm News Broadcast, about racial bias in real estate appraisals. We know this is not a new topic and previous stories that have aired have been extremely one sided and not from the appraiser’s perspective. VaCAP was not contacted for information, nor were any appraisers that we know. We have seen the negative impact this type of story has on our profession and we need your...

Why is Only One Side of This Story Being Told? There are always two sides to every story; however, understanding is a three-edged sword: your side, their side, and the…
The Other Side, Racism in Appraisals ...the other side of things, the appraiser profession side since no other news media and organizations are willing to do…
Bias and Discrimination in Reports, Yes or No? Appraisers, should we include discussion of B&D in our reports? Wait, What?? Bondage and Discipline? No, not that. Bias and Discrimination.…

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Damned If You Do and Damned If You Don’t

Guest Author — Fri, 26 Jan 2024 13:30:53 +0000

Damned if you do, damned if you don’t has become the new normal in the real estate appraisal profession. The government and those that write the rules have made it illegal (a punishable violation) to refuse an appraisal assignment in an area which consists primarily of non-whites. The government and those that write the rules also state the purpose of an appraisal is to determine the value of the home/property in its market setting, so an underwriter can make a lending decision. Back in the day, this protected the lender from lending more than the home/property is worth. It also...

False Claims of Racism Against Appraiser ...my career, business, and health at risk due to false claims made by a homeowner. As a professional real estate…
The New Appraisal Profession – Why bother! As long as the new normal is reporting the appraiser when you don’t like the value continues, why bother? In…
Seller Filed a Racial Bias Complaint Against Me So what’s caused the sudden loss of income? Could it be because of the racial bias complaint filed against me…

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McKissock Ditches PAREA

AppraisersBlogs — Fri, 12 Jan 2024 13:30:56 +0000

On January 1, 2024, McKissock announced that they were pulling the plug on their PAREA project. The primary factor contributing to this cancellation was the substantial resource cost, which exceeded initial estimates and resulted in a higher-end price for customers. This decision was made with the recognition that a higher cost would create a new barrier to entry into the appraisal profession, potentially hindering individuals from pursuing a career due to financial constraints. Happy New Year to you and yours. We hope this letter finds you well. With a strong commitment to responsibility and transparency, we want to inform you...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

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Reality of Today’s Appraisal Environment

Dave Towne — Fri, 27 Oct 2023 12:30:27 +0000

Proving discriminatory activity is hard, which is probably one reason HUD is dragging their collective feet in resolving the filed complaints. The real scourge of what’s been happening to appraisers for the past 5 years (yes, it started prior to the last election) has been revealed by Mr. Isaac Peck, in this article. You really need to read it, perhaps again, if you saw it come through your email on Wednesday October 25. Isaac has allowed me to “re-broadcast” his article. Yes, it’s a ‘sales promotion’ but it contains critical information appraisers need to know about. The first paragraph, contained...

HUD's Private Inquisitors Will Chill Protected… HUD awarded $54 million to 182 nonprofits to serve as posses in a a Spanish Inquisition-style drive. The deep pockets…
Racial Bias in Real Estate: Is it the Appraisers’ Fault? In the past year, the appraisal industry has been under attack from various academics who claim “racial bias” on the…
Appraisers Pressured to Inflate Values Based on Race The real estate appraisal industry has long been subject to pressure from various sources, such as lenders, borrowers, and agents.…

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Appraisal Bias – A Counterpoint

Guest Author — Wed, 09 Aug 2023 12:30:01 +0000

It is a fact that 85% of appraisers are white with the majority of them being middle-age white men, although that is rapidly changing. The bias argument presupposes they are inherently more biased than women, Hispanic, African American, Asian, Pacific-islander, etc. We simply don’t have enough data to verify whether this is true or not. Therefore, as the argument goes, white appraisers must be biased. Just as there are more black NFL players in professional football it follows that the majority of touchdowns will be scored and fumbles made by a black player. We can, and should, encourage more diversity...

The Scam of Racial Discrimination by Appraisers More and more appraisers are retiring every day. Aside from that more and more are changing to lower liability careers.…
Why is Only One Side of This Story Being Told? There are always two sides to every story; however, understanding is a three-edged sword: your side, their side, and the…
Freddie's Study, NPR Story Recall Notable Academic Hoax NPR topped the online edition of its article with the headline, “Black and Latino Homeowners are About Twice as Likely…

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PAREA Program & Its Negative Impact on Diversity

Guest Author — Thu, 03 Aug 2023 12:30:04 +0000

The study also found that the PAREA program is not as effective in providing a more accessible pathway to licensure as the traditional apprenticeship model. Practical Applications of Real Estate Appraisal (PAREA) is a program that aims to revolutionize the real estate industry by increasing the number of appraisers. However, after listening to the Appraisal Institute speaker at yesterdays board meeting it quickly became evident that this initiative is a complete failure. You cannot start PAREA until you have received all your real estate appraisal education. 94 hours = $1,700 per McKissock Appraisal Institute speaker said that most AMC’s/banks won’t...

Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
The PAREA Program: Costly Promises, Empty Support The PAREA program markets itself as a shiny, mentor-free express lane to becoming a real estate appraiser, but its steep…
Recap of the 4th ASC Appraisal Bias Hearing On February 13th, 2024, the fourth ASC appraisal bias hearing took place. For those who were unable to attend, the…

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‘Pesky’ Words. Keeping Appraisers out of Language Purgatory

Dave Towne — Wed, 26 Jul 2023 12:30:29 +0000

Appraisers, on July 17, 2023, a document from Freddie Mac was circulated to numerous appraisers around the US which identified certain words and other info that can be considered to be ‘BIASED’ in appraisal reports. Here is the Link to the Bulletin. We need to step back for a moment and carefully analyze and consider why that was done, and what it means to appraisers. In many ways, appraisers forget the purpose of the appraisal assignment – which is to value real estate. In other words, the physical structures tied to the land. But too often, elements of personal or...

What's Wrong With this Sentence? AMC says sentence was unacceptable based on one word in that sentence Beware appraisers, big brother is watching what you…
Desirable, Rite or Rong? Desirable, banned or permitted? I was caught up in a minor ‘dispute’ last week when a review appraiser wacked my…
Objective Terminology Appraisers should avoid using words that lend themselves to bias judgments. Instead, the appraisal report should document objective facts.…

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And Why Is the Second Appraisal Always the “Correct Value?”

Jonathan Miller — Fri, 09 Jun 2023 12:30:06 +0000

On Friday morning, May 19, I was one of five expert witnesses (and the only as an appraiser) to testify on the topic of appraisal bias in front of the Appraisal Subcommittee (ASC). During the first hour of testimony, our fourth grandchild was born. My wife was in the audience and stepped out of the hearing (the nerve!) to take the call from my oldest son on the news of our new granddaughter. The Appraisal Subcommittee (ASC) held a second hearing on challenges facing the appraisal industry, including barriers to entering the profession and racial bias in home appraisals. The...

Lowballed... It Is Open Season On Appraisers ABC TV Documentary: Our America: Lowballed Because this issue was ignored by the appraisal industry, it is open season on…
The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…
AMC Fee Impact on Appraisal Fee While the borrower was charged $695 for the appraisal, the appraiser was only paid $301. The AMC fee was $394. …

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The New & Improved Fannie Mae “FRAUDULATOR 2.0”

Michael Ford — Mon, 15 May 2023 12:30:53 +0000

Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie Mae is increasingly being referred to by some, if not many American Appraisers as The Fraudulator / Underwriter 2.0 (FU-2). To be clear it is not limited to the Collateral Underwriter (CU & CU-2) software. The new Fraudulator (FU-2) combines the CU products with their numerous improper uses. The end result of which includes OUTRIGHT FRAUD being perpetrated against banks via the repurchase letters Fannie Mae now issues on a quota based system rather than because of legitimate appraisal defects....

How U.S. Home Valuations Are Being Subverted At the crossroads of it all is a campaign to weaken or eliminate valuations... The nonprofit is now exploring ways…
Dear Representative, FNMA Has Gone Rogue! Dear representative, waiving/eliminating property appraisal for lending purposes is wanton recklessness. Fannie Mae’s decision to waive/eliminate property appraisal for lending…
AVMs... Garbage In, Garbage Out Garbage data in means garbage results out every time! It's no secret that AVMs have been a thorn in the…

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FNMA Property Data Collectors Program Violates WV Law

AppraisersBlogs — Wed, 19 Apr 2023 12:30:14 +0000

The Fannie Mae Property Data Collectors program seems to have run afoul of West Virginia law. This program allows for the collection of data related to real estate appraisals by unlicensed third-party data collectors, which is in direct violation of article 38 of the state’s Real Estate Appraiser Licensing and Certification Act. The act specifically states that only a casual or drive-by inspection can be performed when it comes to consumer loans secured by real estate, and no opinion can be rendered as to its value nor any fee charged for such an inspection. ARTICLE 38. THE REAL ESTATE APPRAISER...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
Dear Representative, FNMA Has Gone Rogue! Dear representative, waiving/eliminating property appraisal for lending purposes is wanton recklessness. Fannie Mae’s decision to waive/eliminate property appraisal for lending…

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How U.S. Home Valuations Are Being Subverted

Jeremy Bagott — Wed, 22 Mar 2023 12:30:16 +0000

At the crossroads of it all is a campaign to weaken or eliminate valuations… The nonprofit is now exploring ways it can set standards for automated valuations… Expect greater distortions from Freddie and Fannie’s plodding and committee-driven foray into automated valuations. Sometimes when the hair on the back of your neck stands up, there’s a reason for it. The nation’s $11 trillion mortgage market has been nationalized. This coup occurred in broad daylight and gradually. With Freddie and Fannie now in their second decade in federal conservatorship, the prospect that they will ever again be subjected to the watchful eye...

Speed Regardless of Accuracy Under the Banner of… Appraisers, something - comparing and contrasting - dawned on me last week, after reading another news release titled "Dean Kelker:…
No Appraisals Required. The End of Appraisers? No appraisal may be required in the future! Fannie Mae took a direct shot at appraisers with the announcement of…
AVMs... Garbage In, Garbage Out Garbage data in means garbage results out every time! It's no secret that AVMs have been a thorn in the…

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Commercial Appraisal Reports: How Much Do They Cost?

Guest Author — Thu, 13 Oct 2022 12:30:25 +0000

Every business that owns a commercial property will require an appraisal. Commercial real estate transactions are the most common. Commercial real estate appraisals are necessary when acquiring or selling a commercial building. As with home appraisals, commercial property appraisals offer unbiased, third-party insight into their value. In contrast to residential properties such as single-family houses or condominiums, commercial appraisals estimate the value of stores, offices, hotels, apartment buildings, and the like. When you build, insure, tax, mortgage, or sell real estate, an appraisal is required. Besides helping secure a loan or ensure that you have enough insurance, it may also...

Tax Appeal Work & Appraisers Taxing the System - Tax Appeal The Department receives a number of appraisal complaints related to property tax assessment appeals…
Commercial Fees Taking a Hit, Revision Requests & C&R Fees Fee for commercial appraisals cut in half Metro West is an AMC entering the Virginia Commercial world. They are coming…
Commercial Appraisers Livelihood Threatened Commercial appraisers may want to open this link, and read it. Your livelihood is possibly threatened by the National Credit…

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Appraisers Should Closely Watch Probe of Departed Brookings Boss

Jeremy Bagott — Thu, 14 Jul 2022 12:30:16 +0000

The chief of the Brookings Institution, a retired four-star general, resigned last month under investigation of lobbying on behalf of a foreign government and then covering it up. If the allegations are true, it means the think tank, under the general’s watch, was secretly taking illicit cash from at least one outside interest group at a time it was engaged in research that irreparably damaged the reputation of the nation’s real estate appraisers. Astute appraisers wondered whether Brookings might have also been influenced by any well-placed donations from other groups, such as the powerful lobbies of the Realtors, home builders,...

Racial Bias Claims Without Proof or Logic The Appraisal Institute just sent a letter to The Appraisal Foundation to address things that have been floating out in…
Racial Bias in Real Estate: Is it the Appraisers’ Fault? In the past year, the appraisal industry has been under attack from various academics who claim “racial bias” on the…
Federal Agency in Charge of Appraisers Having a federal agency in charge of appraisers will be a NIGHTMARE. Leave it to the states as it is…

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Being Liberal with Values Hurts Homeowners

Dustin Harris — Mon, 28 Jun 2021 12:30:25 +0000

Why can’t it just be accurate instead of “conservative” or “liberal?” Just be precise in the way you do your job… Some people might say a public forum isn’t the place to air this dirty laundry, but this is not really a public forum. Of my thousands of readers, very few of them are not in real estate appraisal. Right now, I’m talking to the bad apples. Maybe you’re in a situation where you want a lot of volume and want to be the go-to person for the local mortgage company or local bank, and you want to keep them...

First the Borrower Fee. Now the Appraiser… Two lawsuits place Class Valuation’s fee transparency and staff-appraiser compensation practices under federal scrutiny. Most appraisal disputes examine only one…
Eminent Domain Attorney Review How Does an Eminent Domain Attorney Critique and Review An Appraisal Upon Which His Client’s Just Compensation Is Based? Attorneys…
The Illogical Reality of Mortgage Appraisal Reviews Reforming the appraisal review process is essential to maintaining the integrity of the real estate market and protecting consumers and…

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Why Are Appraisers Banned?

Dustin Harris — Thu, 15 Apr 2021 12:30:33 +0000

I just got out of an interesting conversation I had with my CPA. Eventually, our conversation veered onto the topic of work. I was curious about what it takes to get into his field (not that I’m interested in getting into it at all). We talked about our respective professions and about changes occurring in the real estate appraisal field. We got into talking about what it means to be a CPA, which is different than being an accountant. A CPA is an accountant, but an accountant isn’t always a CPA. He said anyone can hang up a shingle and...

Appraisers Should Never Do Evaluations ...users of evaluations knew & accepted that if they obtained evaluations in lieu of real appraisals that they were getting…
Alternative Evaluations... Good or Bad All of these "alternative evaluations" are an attempt to reduce the fee of the appraiser... All this talk about alternatives…
Bringing Evaluations Under USPAP's Umbrella Evaluations: Concept Paper, Webinar, Public Meeting In early August, The Appraisal Foundation announced that the The Appraisal Standards Board would…

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real estate appraisal - Appraisers Blogs

ARCC Discussion Exposes GSEs Agenda to Reduce Appraisal “Friction”

Related Posts:

The Great Debate on Appraisal Fees

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AI to Counter Flawed Appraiser Bias Narrative

Related Posts:

Should Property Data Collectors Be Licensed?

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Recap of the 4th ASC Appraisal Bias Hearing

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It’s Just Responsible Journalism!

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Damned If You Do and Damned If You Don’t

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McKissock Ditches PAREA

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Reality of Today’s Appraisal Environment

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Appraisal Bias – A Counterpoint

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PAREA Program & Its Negative Impact on Diversity

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‘Pesky’ Words. Keeping Appraisers out of Language Purgatory

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And Why Is the Second Appraisal Always the “Correct Value?”

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The New & Improved Fannie Mae “FRAUDULATOR 2.0”

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FNMA Property Data Collectors Program Violates WV Law

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How U.S. Home Valuations Are Being Subverted

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Commercial Appraisal Reports: How Much Do They Cost?

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Appraisers Should Closely Watch Probe of Departed Brookings Boss

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Being Liberal with Values Hurts Homeowners

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Why Are Appraisers Banned?

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