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!
For those that read the first two parts of “The Right Start”, we are about to enter “uncharted waters”. With the advent of the HVCC (Home Valuation Code of Conduct), once again we are hearing calls for “unionization”, “guilds”, etc. It is not that I think that unions are bad; it is simply that I have never been much of a joiner. I don’t want to be on a picket line or signing up new recruits. I would rather be watching a game and drinking a beer.
Since we already have numerous “professional associations”, do we need another or perhaps just something different? The problem is not the lack of associations, but rather the absence of “one association”, that represents “all residential appraisers”. By different accounts, there are more than 100,000 licensed residential appraisers in the US. When you add the number of trainees, I would expect a 50% or greater increase.
The memberships of the AI, ASA, NAIFA, etc. include residential and commercial (personal property and retired appraisers as well) and likely total less than half the number of active licensed appraisers, leaving the vast majority under-represented or without a voice. This is not about forming a “competing association” for “professional designations”; this is about “organization” to provide an “umbrella” that covers residential appraisers under one banner.
Copy the leader – the Power of One
Nationwide there are millions of real estate agents and the overwhelming majority are members of the National Association of Realtors. NAR members also join other organizations (Chamber of Commerce, Better Business Bureau, etc.) and sub-organizations (local MLS, Women’s Council, etc.). Many have designations (CCIM, GRI, etc.) from different groups, however all are members of “one organization”, NAR and that is the point.
Click here to continue reading . . .
NAR represents members with “one voice” and we need one voice to represent us, something the appraiser-related associations have yet to accomplish. Given the differences in standards, membership, designation requirements, politics, etc., is it likely that we will ever be under one banner?
We need to “re-invent ourselves” for the sole purpose of making a difference in the system as it exists today (and as it may exist after January 2009). I am not proposing that we abandon existing organizations. This is about the same “point, click and shoot” that a la mode made possible with the HVCC response, but this time, specifically addressing residential appraisal issues and conflicts, faced daily by thousands of appraisers and their clients.
This is about transparency, access, fundamentals and issues. It is about change and implementing it in a positive way, to address problems and provide “a single point of reference” as to what is (or should be) the “standard”, “actions of our peers” and “generally accepted appraisal practices”, referred to in USPAP, Fannie and Freddie Guidelines, but cloaked in “appraisal mystery, individual interpretation and lore”.
The HVCC, USPAP and the Appraisal Foundation
We continue working in “fractional groups” to “band-aid” a problem that has “national and global economic impact”. FIRREA, USPAP and the HVCC are examples of “unintended consequences” that result when you focus on the “appraisal symptom” and not the underlying “mortgage disease”. The issue is not one that requires more “appraisal regulation”, but one that requires “standards, regulations and accountability” throughout the mortgage industry.
Transparency limits politics and exposes jockeying for position by one group vs. another. Organization (through association), of all residential appraisers under one banner keeps the issues transparent while providing an open channel for communication, up to and down from “the powers that be”.
A la mode helped us organize a response to the HVCC, demonstrating their ability to lead, organize and their willingness to represent the interests of “residential appraisers”. After all, they have “skin in the game”, something mentioned by Dave Biggers, Chairman of a la mode, Inc.
They stepped up from “software provider” to “organizational provider” (at their own cost) to take the issue to the “powers that be”. They published and distributed The Appraisal Press, removed the veil from the HVCC, making the issues “transparent” and serving notice that while changes are needed, they must consider the “unintended consequences”.
Perhaps the first step should be to address the HVCC from another perspective. One of the many things that bothered me from the beginning was the focus of the agreement, the Home Valuation Code of Conduct. Why should the emphasis be on “valuation” when much of the “problem” is pressure, collusion, mortgage fraud, etc., caused by participants in the mortgage process other than appraisers?
Given the state of the economy (resulting from the “mortgage mess” and all that contributed to it) and the obvious importance of housing to the economy, would the “public’s trust” be restored by changing the focus from “valuation” to “mortgage”? Personally, I think a “Home Mortgage Code of Conduct” would be more appropriate, especially if the rules (and accountability) applied to all the parties involved, not just appraisers. I think the “HMCC” has a nice ring to it. What do you think?
A la mode has shown a willingness to help and they have in-place, the technology and leadership to move us forward. They need to know that we appreciate their efforts and want their help. Dave Biggers is a former appraiser. With our commitment, he will listen and act on our behalf. He already committed to us when he footed the bill for the HVCC response and legal advice.
In the article, “The Power of the “Collective Pen”, I pointed out how 100,000+/- appraisers could speak with 10-million voices. As an association (using this process when needed), we could accomplish many things, starting with standardization and development of a single reference source (for all to use) that better defines “what the actions of our peers should be” and or what are the “generally accepted appraisal procedures”.
Drop a la mode a line. A 5-minute “e-mail investment” could pay “career-long dividends”.
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!
Recent Comments