AUTHOR: Patrick Egger is a Certified General Appraiser located in Las Vegas, NV. He teaches continuing education classes on the housing market, appraisal issues for real estate agents and appraisers. Click on Outside The Boxes for a collection of Patrick's articles on Appraisal Scoop!
"If its going to be ... its up to me" ... uttered by the immortal Dale Carnegie. We talk about the "Skippy's", enforcement, low fees, AMC's, pressure, etc. and many of us have the attitude that (like the weather), nothing can be done about it. Let's not forget that somewhere along the line, we (as a profession) trained (or failed to train correctly) the "Skippy's", accepted low fees and bowed to pressure. Appraisers lament about a lot of water under the bridge that we really can't do anything about, or can we?
There was an article the other day (based on 40,000+/- comments of which, 31,000 came via Alamode in a two-day period) that OFHEO is considering changes to the HVCC. It would seem that the power of leadership and organization provided by Alamode (and Dave Biggers footing a large printing and postage bill) made an impact.
At the Alamode Convention in Chicago, Dave asked the attendees to meet with their Congressional representatives and voice their concerns with the HVCC. While I agree with that process in concept, I do not think it is practical. As a profession, we are not organized and proactive, we are individuals, reactive and disorganized to say the least, concerned with what's on our personal tables now.
That said, I do think we have the ability to make a statement that will have an impact. I talked briefly to several of the team members from Alamode and suggested that Alamode provide the "talking points" in the form of a petition that appraisers could download and use to gather signatures registered voters.
Alamode was able to assemble the voices of 31,000 appraisers (against the HVCC in its present form) in several days. Think about it. Could each of those 31,000 appraisers download a copy of the talking points and collect the the signatures of 100 friends, family and business associates in a short period?
Do the math. If 31,000 appraisers collected 100 signatures each, that's 3-million "voter voices" that could be delivered (via Dave's lobbyists in Washington, a bill he's also footing on our behalf) to members of Congress and the Senate Finance Committee. Would 3-million voices speak loud enough to gain the attention of "the powers that be"?
The concept is simple. I don't have faith that the same 31,000 appraisers that did a "quick point and click" to generate the original "forest of paper" delivered to the OFHEO, Fannie, Freddie and the NYAG will make the calls to congressional leaders, gain appointments and "talk the talk".
Even if some of us managed to sit across the table from our elected leaders, could we make a strong enough case to get them to act and change the course of the HVCC? Would they listen to a few voices in the wilderness and shift the direction of the HVCC to a real solution, one that provides far more than the illusion that the HVCC (in its present form) will correct the problems plaguing the mortgage industry and the valuation profession?
President Theodore Roosevelt had sound counsel for such dilemmas, "speak softly and carry a big stick". In the scheme of things, 31,000 appraisers crying foul is a "soft voice" (less than 1,000 per state) however, 3-million signatures is a "big stick".
It's time to stop talking about the weather, we can't change that, nor can we address water under the bridge. USPAP, FIRREA, Fannie and Freddie Appraisal Guidelines have failed, not because of their intent, but rather due to their application to the appraisal profession only with no effect on the other participants in the lending process.
The solution is simple, change the HVCC to require all participants (loan officers, underwriters, mortgage brokers, appraisers, etc.) are responsible (financially and personally) for the original intent of the HVCC (independent valuation opinions, that are credible and without pressure). Appraisers already sign a certification to that effect and are liable for the opinions and content of the URAR. The others should do so as well.
Having a similar certification form (included with each loan package) signed by the loan officer, underwriter, processor, broker, etc. (and as originally suggested by Charles Baker of Pasadena, CA) would resolve many of the issues without the costs or need of creating a new "umbrella organization" to further regulate appraisers only.
Holding "all participants" liable (personally and financially, as appraisers now are) would eliminate the need for dramatic changes to the current lending process (not to mention the savings in shifting to the "oversights" and systems proposed in the HVCC).
This is a solution that we can get "placed on the table" if we "walk the walk" and "talk the talk" by gathering the signatures. We can change the profession and have the independence and credibility envisioned by USPAP and FIRREA. We can restore the public trust in the valuation process by removing the loopholes and replacing them with accountability.
All it would take is 31,000 of us gathering the signatures on a petition to get the process started. Let Alamode know that you are willing to follow their lead and get moving. They provided us with the lobbyist and the initial means to get it done and I'm sure they will help us again.
This is something that can be accomplished, collectively ... one appraiser at a time.
AUTHOR: Patrick Egger is a Certified General Appraiser located in Las Vegas, NV. He teaches continuing education classes on the housing market, appraisal issues for real estate agents and appraisers. He can be reached at [email protected] Look for the new Outside The Boxes category for a collection of Patrick's articles on Appraisal Scoop!
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