A New Federal Utopia, Well Maybe Not?

GUEST AUTHOR: Micheal W. Armentrout, VP AM Appraisals, Inc.  Mike has been involved in full time real estate valuation since early 1992 and has experience in numerous Central Ohio markets.

Morning routines can be very ritualistic. Mine typically starts at the office by checking email and then making a few stops on my favorite appraisal news sites. Some are informative, some are frightening and some are downrght maddening but rarely is anything light hearted.

I think it’s about time to change that. Maybe a tongue-in-cheek look at our problems might do us some good. Who knows? Maybe it might reduce someone’s blood pressure for the day.

With all the talk about nationalizing healthcare, banking, and the automotive industry, is it time for appraisers to get in line? Some could make the case that our industry is too important and is “too big to fail” so that got me thinking. Then it hit me. How about a total nationalization of the real estate appraisal industry?

Just visualize it; the Federal Appraisal Request Council (FARCe) could be a federal behemoth that would be any regulators delight. It would centralize ordering and delivery of all mortgage related appraisals. No more complicated panels, committees, or QC departments. Just one 800 number, one website and a fleet of customer care representatives to assist mortgage originators.   

First things first; it would need a catchy logo and mission statement. Perhaps an eagle perched on a clipboard emblazoned with the phrase “Independently Valuing America”.

Then we would need a fearless leader. Someone like New York Attorney General Andrew Cuomo might be considered because as most appraisers know, he really believes in the appraiser’s creed and yet has the experience to relegate mortgage originators to their proper place. Former Alaska Governor Sarah Palin could even be Director of Operations if that Presidential run doesn’t pan out.

Now we’re rolling. The expansion would involve regional valuation centers across the country where appraisers scurry to and fro like busy bees. Of course, the latest in technology would be available for communication and transmittal of reports as well as a nice cubicle for each field appraiser and windowed offices for region supervisors. Coverage areas (or zones, for you former Zaio owners) would be mapped and assigned to teams of appraisers to ensure geographic competence and efficient turn-times.

Settling for cut-throat fees would be a thing of the past now that we are all salaried federal employees with union caliber benefits and retirement. Just imagine an appraiser with dental and vision coverage. No more old broken glasses just to read an address while taking comp photos. Rest assured, fees will also be collected on a strict 21 day cycle or a simple inter-agency call to the IRS could trigger a tax audit of those who find themselves behind in payments.

An appraiser can’t get anywhere without a reliable mode of transportation so a car will be provided at taxpayer expense. A green-friendly hybrid from Government Motors (GM) could save the planet and get us to appointments in style. Don’t forget a GPS unit to aid in locating properties and so that the central office can track our progress each day. Clerical staff will then have access to give clients our exact coordinates and an ETA for the report.

Having a legal question about USPAP or any other appraisal related issue will no longer be a problem. An internal legal department will now dispense advice to all appraisers since the agency now carries all liability for reports. Sorry E&O providers.

Does this sound too good to be true? This dream could be realized with a little persuasion of our friends in Washington. It could be sold as a self supporting endeavor to protect the American consumer. Just imagine the jobs that will be created across the country. Of course appraisal report fees will now rise to $2,500 but that’s alright; there will be an offsetting tax credit for those who acquire any mortgages that require appraisals.   

AUTHOR: Micheal W. Armentrout, VP AM Appraisals, Inc.  Mike has been involved in full time real estate valuation since early 1992 and has experience in numerous Central Ohio markets. He served as a staff appraiser at several local firms before forming AM Appraisals, Inc. with business partner J.M. Massey. 

e-mail:marmentrout@amappraisals.com web address: www.amappraisals.com