I'm sensitive to creating positive impressions and positive thoughts in venues such as this. We as a profession must recognize that growth, development, and change are necessary for our businesses to survive and prosper.
Acorn Appraisal Associates is involved in major change this year, committing our resources to new ventures, new directions. It must be so. Challenging current methods, current procedures, current relationships is essential. New ideas must be considered, and considered openly without bias. It's the only path to the future.
The Appraisal Buzz newsletter published by Joan Trice focuses on the issues of the appraisal profession, and what leaders in the profession are doing and thinking. It's good stuff. You can visit Joan's web site at http://appraisalbuzz.com/. Somewhere in there you can sign up for her newsletter.
The most recent newsletter reported an interview with Alan Hummel and John Forsythe of Forsythe Appraisals...I'm familiar with them only from an Internet friendship with Karen Oberman, one of the key execs of Forsythe. Forsythe organized a conference of AMC Chief Appraisers held recently in Florida. Forsythe is also an organizer of the coming National Appraiser Conference in Washington DC this fall, an invitation only gathering of "industry thought leaders" jointly sponsored by Forsythe, October Research, and Zaio Corp.
I'm supportive of these kind of gatherings. We need them. But I'd like to comment on three of the points made in that Buzz interview. Before I do, recognize that the interview I'm discussing was likely guided to the issues that appraisers would be interested in, since AppraisalBuzz's target market is appraisers. I assume that there were many other topics that were covered at the meeting, and overall I'm sure the gathering was a net positive. More such meetings are scheduled.
By way of clarification, the "Chief Appraiser" title of those who attended is something of a misnomer. These are smart and experienced guys and gals. I have no doubt of that. But the word "appraiser" implies that they are working appraisers. They aren't. They may have been in the past. But the past is not relevant to the subject of the "think tank get-together". I'm guessing that the only current practical experience in appraisal represented in that group was the Forsythe folks, who do in fact run a very good appraisal business.
Click below to read on. . . . .
First, the use of appraiser trainees was a subject of discussion in the conference and was a question in the Buzz interview. It was noted that with lots of certified appraisers out of work...(I didn't know that...have them contact me, we are looking for honest, qualified, experienced and well trained certified appraisers to join Acorn this Spring)... and the AMC group reported that lenders are having a hard time justifying the use of trainees in that environment. The AMC Chief Appraisers suggested a comprehensive appraiser training program, and the development of a USPAP compliant BPO type product which trainees could use to gain experience.
I'm all for positive input to the appraisal profession. But I'd like to see some appraisal firms and appraiser trainee supervisors be included in the discussions that address this particular issue, and in particular to have input to the development and publication of the recommendations. It so happens I agree with the suggestions that were noted in the interview, but I wonder what other suggestions were published and read by other "thought leaders" that are aimed to micromanage my business?
I am and have been a fervent public supporter of AMCs for several years, based on my firm's extensive experience with them. I'm also a fervent and public critic of the haircut many AMCs take of the appraisal fee. It's excessive. I think those excessive haircuts might be a major contributor in the industry to a dumbing down of the appraisal quality they obtain in many instances. I wonder if the "thought leaders" had that issue on their agenda, and what recommendations they published that dealt with the issue?
Second, appraiser pressure was discussed, and nary an appraiser was there to discuss it first hand. The all too famous October Research appraiser survey on appraiser pressure was noted, and to the credit of Forsythe, they at least questioned the results. Well they should! I looked at that survey questionnaire in 2003 and the most recent one. I'm no expert in polling, but I'd like someone who is a polling expert and independent of "pressure" to evaluate the survey/polls that were used in each instance. To me they were a slanted set of questions, designed to elicit the results they got. I refused to participate in the surveys because of that.
I reject the results of those surveys which suggest that appraisal pressure increased 90 percent in a time period when AMCs were substantially increasing their market share of the appraiser / lender interface. My extensive experience with AMCs reveals absolutely no pressure on value conclusions. Absolutely none! That extensive experience causes me to challenge those October Research survey results. They just don't jibe with my experience. Yet those October Research survey results got huge press, and were presented by Industry Groups, including AI I believe, to the darn Congressional Hearings on what should be done to micromanage Ken Verrett's appraisal business!
Third, signature fraud was a topic. Nothing said about any conclusions, but Forsythe is investigating certain technologies that will "virtually eliminate" signature fraud and identity theft. Jeez. Another core appraiser issue. Signature and identity theft occur at the appraiser level, not at the AMC or the lender.....and nary an appraiser there to offer practical experience and advice.
Sadly, I am likely more experienced from a practical, personal perspective in the matter of signature fraud and identity theft than 99.9 percent of the appraisers, appraisal business owners, and AMCs in the universe. I wrote about my personal experiences in AppraisalScoop a few weeks ago, what happened; what I learned; what I've done to bring the illegals to justice; and what I've done to prevent it happening again. I shudder to think what suggestions might come out of such a well intentioned but inexperienced group to further micromanage my business.
I'm all for improving my business. I have no illusions that my business is perfect. I also have no illusions that well intentioned folks (who don't know my business but think they do) can do more harm to me than all the crooked mortgage brokers combined. The crooked mortgage brokers can't hurt me 'cause I won't do business with them. But how can I keep the well intentioned but uninformed directed at what they do know (their own businesses) and away from what they don't know, (trying to manage mine)? And by the way, what does it suggest when the agents for improvement of the common good look to clean other's areas before they look inward at their own?
Forsythe Appraisals has taken a leadership role trying to improve the appraisal profession. I applaud and admire their efforts. I hope they continue to do so. The coming fall conference held jointly with October Research and Zaio Corp. is another example of their leadership. Keep it up Forsythe...the profession needs it, Acorn needs it.
My only suggestion is to limit the topics and especially the publication of conclusions and recommendations to those areas where the participants have current experience and expertise. It's not that I don't want to hear what outsiders think of my business. I do.
I just want the gorillas of the lending industry to recognize their power of influence. I want them to exercise prudence in using that power, restricting it to the areas in which they have experience.
If the Gorillas of the Industry are able to do that this time, we might actually get something done right, something that will benefit all!
The author is the owner of Acorn Appraisal Associates, a 21 year old firm offering a wide range of quality appraisal services to the Financial and Business Communities in the greater Houston SMSA
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