I haven’t taken $500 for years. What planet are you on? You’re part of the problem. No problem AI will take this over in a few years

Appraisers whom did not work with amc’s in the first place usually never dealt with below market rate compensation. This idea that appraisers will ever have leverage with amc’s. As long as appraisers answer for the amc’s, the amc’s will remain in charge. For whatever gains an appraiser makes here and there, the amc’s recover this on the margin with other less fortunate appraisers from the majority pool. Accepting work for amc’s means the appraisers working for them willingly embrace their business model.

Disproportionate engagements to appraisers whom discount the most. Constant fee sharing. Paying out of your own fee, for your own ‘management’. Covering what should otherwise be a lender side expense. Agreeing to the play ball strategy, understanding you could get your entire work load cut off at any time.

The appraisers whom make it big in the amc world are some of the least ethical business persons in this country. They are in constant violation of the management rule; providing a thing of value to the client in order to get assignments. That amc discount is actually bribe money. Hence the disproportionate assignment trends. Lately the appraisers whom learned how to game the amc system are now applying this same strategy of undercutting to non amc companies too. The latest example appears to be the case with the UWM company moving to bidding, starving out long term appraisers, as an even greater disproportionate work flow is now sent to large appraisal firms whom farm out orders like amc’s themselves. They’re greasing the wheels and trading favors for disproportionate assignment.

The appraisal industry has come full circle. The exact same problems as before are present in even greater quantities with far more risks. Because regulation did not answer customary and reasonable fees or rotational assignment mandates, preferential assignment is once again the status quo rather than the exception. Amc’s have driven under tens of thousands of small businesses and prevented untold quantities of them from ever forming in the first place. The separation from loan production rule has in the end resulted in more abuse than was ever possible, more valuation pressure than has ever been seen before, due to lack of balanced two way accountability between licensed persons. It’s the primary reason amc companies are not required to hire only licensed appraisers. Central planning never works.

Missing the IVPI proposal yet?
https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf

Whether we “unite” or not, that will be my plan . . . trying $500 unless that proves way too LOW!!

Best to all,
DJB

It’s not going the way of the dinosaurs just yet, maybe not even for a long time. From the middle of 2022 onward, when Interest rates went from the 3’s, even 4’s all the way up the the 6’s into the 7’s and are at those % now,…work fell off of the cliff, particularly Refinances, which were the backbone of Independent Fee based Residential Appraisers. While the majority of Appraisers, whom are in their 50’s and above will continue to retire relatively rapidly, there will Always be a need by the GSE’s and other large R.E. entities and Lenders, other smaller players for a Full, Interior Appraisal for otherwise – Complex Assignments, ie. non-cookie-cutter either in lot size, Large GLA, vey poor or brand new/other Conditions. Other SOW’s including Rights of way, partial Property Valuations, Land Sales, HBU, Insurance Values, etc… will almost have to have an IRL Experienced Appraiser – IMHO.

Baggs, you are 100% right.

However, the feds are NOT going to wise up. Everything that has happened or been encouraged to happen since FIRREA 1989 was formally passed into law tells us this. The GSE’s and their regulators never accepted the premise that unsound lending policies had to be reined in.

I no longer do GSE/FRT work. There are just too many alternative clients out there that still require “REAL” appraisals. Not that phony ‘guideline’ manipulated, constrained language FNMA and Freddie garbage that passes as real collateral analysis.

No offense to those who still work for GSEs. I get that you are bound by irrational GSE policies. Starting with the QC ratings, to the type of neighborhood “analyses” that take place now (or for the past 20+ years).

Policies have been established by limited experience ‘yes men’ (& women) that still don’t understand that real estate appraisal is BOTH an art and a series of science-based techniques to attempt to explain or mimic the actions of typical or most probable buyers in an imperfect marketplace.

Our “leaders” have thrown the baby out with the bath water. In our efforts to encourage greater documented ‘support’ for our conclusions, we have allowed the powers that be to ignore the art part of appraising in favor of the science-driven part.

The end result is that we don’t see the benefit of either. They go hand in hand.

While we are objective in our analyses, we ultimately conclude based on our subjective opinions of how our data should be interpreted in specific markets.

We are further prohibited from even using 144 of 143 perfectly ordinary, and broadly socially acceptable words (plus one that IS unacceptable) due to sneaky behind-the-scenes collusion between former Administration bureaucrats and agenda-driven DEI advocates; and irrelevant advcates from Stanford University that find English to be offensive.

Doubling down on this, the GSEs issued edicts that “Bias, vague or subjective” language must not be used. As if the three things are even the same! Note that the prohibition itself is vague and subjective. Some argue it is also evidence of bias.

In any case, I find numerous real appraisal jobs exist working for attorneys (family law; divorce, easements, partition, eminent domain, and so on), as well as appraisals for tax purposes, estate planning, portfolio management, private investor lending, partnership dissolutions outside of litigation, disaster related claims and proposals for hypothetical property divisions or proposals. They command higher fees and generally accepted sound appraisal practivces as opposed to state regulators purely SUBJECTIVE interpretations of USPAP as defined by NON APPRISER investigators answerabele to NO KNOWN STANDARDS except the ability to argue prosecutorial positions rather than wha appraiser peers consider to be work acceptability.

Notice any time line correlations to these dramatic up shifts in fraud and affordability issues having to do with changing appraisal industry policy?

The time frames run alongside policy changes which took full service appraisers out of the picture or diminished our presence, expansion of hybrid appraisals, use of third party property data collectors, appraisal waivers program expansion, going all the way back to multiple rounds of rising demins which set ever higher thresh holds where full service appraisers were no longer needed to generate loans, among others.

At every important moment where appraisers positions were further diminished, one or more of the various measurement metrics which indicate housing instability, rapidly increasing pricing, increases in fraud. Right on the money, to the date. Someone should put together an overlap chart of the changing appraisal policies via Federal Reserve policy changes and put that over this data. They match up.

Can’t make it up, because it’s all true. The removal of the independent appraiser is the crux which allowed these things to happen. Article author said; master class in how to destroy a profession. Indeed, these trends appear to be why. These are the ‘stake holder interests’ which appraisal trade groups and GSE managers have capitulated to all along.

https://www.zerohedge.com/personal-finance/how-housing-bubble-2-bursts

https://www.housingwire.com/articles/bill-pulte-fhfa-gse-fannie-mae-freddie-mac-updated-list-of-actions-2025/
FHFA activity summary until the month of June. That’s a long list!

https://thehill.com/business/5359735-fannie-mae-freddie-mac-fhfa-pulte-federal-reserve-powell-trump-interest-rates/
They just don’t get what’s happening with appraisal, avm’s, waivers, reperforming loan mods, the failure of the CU system to mitigate risk, monumental shifts in vendor servicing structure relating to amc’s, how the underlying protection mechanisms from previous regulation are now subverted. Lowering mortgage rates will just make things worse, price will spike again, there will be increased pressure to paper everyone over, regardless if they’re stable, instable, over leveraged, or predating on others.

https://www.banking.senate.gov/imo/media/doc/Warren%20Letter%20to%20FHFA%20on%20GSEs.pdf
Dems wrote Pulte a letter. They caused half of what they’re complaining about by purposefully subverting the appraisal industry with PAVE task force initiatives, the respective participators, related policy changes which basically removed independent appraisers from any meaningful role in gse lending.
______________________________________________

For all their sophisticated language, talking points, connections, education, on both sides. They don’t seem to grasp the most fundamental simple concepts relating to independent checks and balances.

It’s not a coincidence that whenever the appraisal safeguard is removed, some new problem in housing emerges that everyone finds impossible to reconcile. Then the new problem and all the people that are harmed are papered over with ineffective solutions, again and again.

The solution; use appraisers less. Then as anticipated, the markets get even more rocky, new problems with housing and lending emerge, harm and instability expands. All they ever needed to do was protect a robust independent check and balance system by expanding the scope of the independent appraisers position in the lending markets. To break apart the amc monopoly that drove the best appraisers out. Break apart the ‘stake holder interest’ strangle hold on appraisal trade groups. There should have been over 200,000 appraisers in the market by now, and most of these issues would not even have materialized in the first place. Appraisal modernization, appraisal trade group capitulation to stake holder interests, simply means higher prices for everyone, a permanently roiled instable housing market, absence of accountability.

Now we’ll have military contractors using artificial intelligence trying to figure out what went wrong, identify fraud in lending (Palantir). The fraud is baked in, the system won’t correct anything even if it does identify an occasional Ne’er do well. There will be novel innovative ways around the central oversight. Not similarly effective as requiring people to deal with locally licensed full service human being independent appraisers whom shows up on site and in person, not part of whatever charade may be occurring, not answering to others interests. A dynamic array of many many independent honest workers whom are not intimidated into being compliant and rubber stamping anything.

Central planning efforts are not working. The ‘housing crisis’ talked about on both sides, a direct result of lack of independent checks and balances, trying to use central planning methods, automating the independents out, allowing monopolization and excess consolidation of the various industries that revolve around housing, associated lending for real property, consumer protection. Expanded groups of predatory businesses now given even more power and more trust, surely they will be trust worthy and more responsible this next time around if they are subjected to less independent oversight.

The political talking point; If only that damned mortgage rate was lower, and there was more ‘modernized’ technological efficiencies in play, we would not be having all these problems in housing… Post this again I suppose.

Step up or pay up!

Support something that supports YOU

AGA or ARCC

Thanks Mike

Thanks Mike!!

Have YOU joined AGA? or any of the other organizations that formed specifically to fight for appraisers AS A GROUP? ARCC?

At AGA in 2015, we managed to get an already passed, & signed law killed by burying it in the appropriations committee of my state through our parent union, until it expired. There’s a limit as to how much our parent union is willing to do for the good of the profession’s non-members.

I, and many others like me have been fighting for many years & creating new organizations; state coalitions, things like ARCC [by Josh Tucker, with Cindy Chance], organized campaigns to block State Based, appraiser shortage waivers, bifurcated hybrids (read about them right here in AB), bad software alternatives and bad player AMCs. Some of those invisible people were the force behind Dodd-Frank Appraisal independence requirements.

You know what REALLY encourages us? To constantly hear the refrain “Why isn’t there anyone to speak for appraisers?”

ANYONE else willing to volunteer your services for free, & initially, pay for the privilege of doing so (first year anyway)? Annual union dues are $375. One under-priced appraisal equivalent.

https://www.appraisersguild.org

Peter, I’ve been listening to “IF WE ONLY HAD SOMEONE (else)” to do things for us since 2014.

Old timers who helped me when I started fighting back have been doing so for decades longer than I have. Pat Turner out of Richmond; MANY others (including the Editor & lifeblood of this blog), SKapinetz in Georgia, Palacios in Texas, along with Brian Girard (TX & GA), Lori Noble (WV?), Mike Small (VaCAP) its a very long list with more people than even I know. People who tried ten years before me, and who never got the support they needed.

AGA has a hardship program for those who simply cannot comfortably afford full annual dues. We have to pay OUR upline union $72/year per member. None of the executive board members, or officers receive a salary.

Immediate needs are for a website editor (NOT a creator), just an editor. State representatives/organizers are always in demand.

In recent years, we were so focused on assisting falsely accused members with state and federal agencies that our political efforts took a back seat. Hundreds have been assisted well more than 400).

So, unless appraisers want to lose this organization too (like coalitions and other groups) they (you all) need to start getting involved!

American Guild of Appraisers, #44, OPEIU, AFL-CIO. Though I may be the only Republican Union Organizer in the country (willing to admit it anyway), we are actually largely non-partisan. Many members belong to opposing parties. We try to focus on the issues, though as a practical matter, when a partisan policy or practice like DEI undermines our profession, or we have a racist HUD Secretary who implemented programs so lucrative for NGOs that she resigned and went to go work for those same lobbyists and NGOs, a certain amount of partisanship creeps into MY statements and positions.

We operate in the political environments beyond our own creation. Sometimes its left. Sometimes its right.

Now we have the issue or concern about whether PAREA classes were part of the (alleged) test result falsifications AI is accused of engaging in.

The whole idea of PAREA was bad to begin with. IF test results are unreliable, then the whole program fails. Very unfair to those who spent money and thought they were being properly educated.

Thank you.

Sue, maybe someone should give them the ASC website. Vermont is showing 2,249; NH 2,755 & Mass 3,112. I misread and included Maine as well 2,565. Now, not all are active, and it includes out of state reciprocals but the numbers suggest the AMCs really mean they haven’t bothered to look very hard.

When it comes to claims of specific state shortages, AMCs and lenders have been notorious liars, trying to get on the waiver-train. Any waiver granted for any license level also applies to ALL OTHER license levels too on a statewide basis.

I’m betting none of those claiming a shortage offer $1,000 for a non-complex sfr, right? $650? Unlikely.

FNMA has zero credibility for integrity or competency. Their operation appears to be little more than one large, ongoing fraud and deception. It starts with their failed Collateral Underwriter. (I’ve written about it here numerous times).

A system that they originally claimed would screen out high-risk collateral upon upload. One that WOULD’T be used to review or rate appraisers.

TWO GIANT LIES out of the gate.

The quality of their database hasn’t improved since January 2015.

Brain drain. Institutional memory. The appraisal industry apparently has dealt with severe conflicts of interest, incompetent leadership, and co opted legislative structuring for decades. ‘Stake holders’ set everyone up to fail with their racketeering and restriction of trade policies. Their applied appraisal data via intellectual property theft and vain reliance on avm’s has already led to some pretty substantial market imbalances and artificial highs. Permanently over priced real property, for everyone, for ever. Avm’s will never successfully replace individual licensed appraisers. Not but a few years into the full speed avm program the thing is falling apart already.

The beatings will continue until morale improves.

Have not kept up with all the details, but many of the appraiser CE outlets were consolidated, and I think there is many amc tie ins to ownership and networked representatives now. Amc’s continue to decimate the appraisal industry and stifle growth in multiple ways.

We’re all waiting to see if FHFA provides necessary industry corrections, revitalizes the requirements for lenders to use full service appraisers more rather than less. And the CFPB should have been gone already, they are alive on a federal injunction lifeline, as the new administration ordered the shuttering of the institution. Meaning the DF Reg Z rule on mandatory Customary and Reasonable market rate fees ‘as if no amc is involved’ paid to appraisers may finally be in full effect soon.

Keep posting, read all the details, help us network. We’re all hanging on to see what happens next. Thanks.

Some have heard AMCs are not good but most haven’t.. so much for education with their realtor boards.

Many failures in everything. The quality of appraiser education in the pits. Education in general is in the pits.

The question is why. I love the FNMA comments.. saving the consumer money… seriously? Where…. a few hundred dollars??

Well, Just venting. I’m wondering whose going to do these appraisals. We’ve had a number of appraisers quit/ retire

Amen to all of the above. I also left end of last year due to many of these issues after more than 30 years. Most impactful thing you said was that all of our experience will not pass onto the next generation! Let that sink in all you who think mentorship is not the way to go. Just put them through PAREA class and let them get Certified and out on their own without valuable on the job training! It will be a disaster. As you say only the complex horrible orders will make their way to Appraisers, but with all the experienced Appraisers gone good luck with that! I wish you well in your future next steps or retirement. I sure don’t miss it at all.

“And worse yet, we have literally no one who has an ounce of power to advocate for us or our profession.”

Until that happens, nothing will change.

I had that mindshift. Then, I decided AMC or not, I’m giving them MY FEE and MY TIMELINES. Did it work? More often than not. Those who sent over $275 for 1004 fees, I declined, berated them and let them know they were on a probationary status. Those who continued were dropped. I get the fees I ask for. I work less and create the appraisal reports I always want to- with time to include additional information found. And I am SWAMPED. BUT, I pick and choose and am doing a good job of managing stress. With the orders coming across my desk, there isn’t a lack of business. We must show them how to treat us. Push back, command YOUR fee needed and give a great output.

Good luck and great vibes.