Appraiser Active has linked to the TAVMA Blog previously. It prompted a few comments and an interesting discussion about Appraisal Management Companies and the effect on them as a result of efforts by states to bring them under the regulatory umbrella.
This post, interests me. Here's an excerpt:
And, although I've not written an article on the topic, I'd say that the HVCC has to some extent forced some good appraisers – and bad and in-between appraisers too to be fair – out of the market. My theory about where HVCC may play a role involves appraisers who built their marketing strategy around direct-orders from mortgage brokers and Realtors. Banning broker- and Realtor-ordered appraisals abruptly severed these appraisers’ direct marketing ties to some long-time clients. Some were able to acquire new clients and join one or several AMC fee panels. However, it is likely that others lost their traditional client base (i.e. brokers) without an immediate alternative or perhaps the business development acumen to sustain the business.
Yet if demand for appraisers has dropped by half over the past 6 years as measured by mortgage originations, and the number of certified and licensed appraisers has trended upward during that time frame, wouldn't it make sense that there'd be shakeout in the ranks of appraisers?
FWIW, there has been a shakeout in the ranks of appraisers, but at least here in Florida, the dramatic drop has been in the number of TRAINEE Appraisers. during the last renewal cycle (November 30, 2008), over 4,000 Trainees failed to renew their license. Here is the current licensee count. It will be interesting to follow the renewal statistics in states AFTER the HVCC implementation. Talk on the street is the Appraisal Subcommittee is worried about their budget for the coming year because of dismal appraiser renewal numbers.
I've had some interesting back and forths with Jeff. This seems like it will start another one. What do you think?
Jeff was supposed to be on the AARO Panel with me next weekend. It's too bad the cast of characters has changed.
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4 comments:
Yes it was inevitable that there would be less demand for appraisers but the market, not lender owned amcs, that should have determined who was in and who was out.(the market should determine fees as well).
Although I've not pushed for a moratorium of HVCC as some have, I get annoyed when I hear TAVMA and AMC execs trying to justify the out and out bullying of appraiser and the decimation of thousands of appraisers' careers. No good will come of it. Rita B.
I believe the ongoing survey done by Work RE is telling us something. The early number showed that 47% of appraisers look to leave the business. More recent number state the number is 51%. An amazing figure to be sure; even more of an amazing number when you consider the fact that the Appraisal Institute refuses to acknowledge that a problem exists. Perhaps they will market a new course in the future entitled How To Become A Residential Appraiser In 2 Weeks. Considering the fact that most remaining mentors will possess 1-2 years experience it should do wonders for the appraisal industry.
I think many appraisers, myself included, are preparing to leave this business behind. However, it is very difficult the leave a job, any job, when unemployment is at historic highs. When the employment market gets better, many are going to move on to bigger and better things.
As to the license renewal, we won't know how that will shake out for a couple years. For example, many who may have recently left the field and have a renewal coming up will probably pay the fee to "stay alive" for one more cycle. Once folks in this position feel the move out of appraising is solid, they will let their license expire. It is tough to get the license, so many will want to be 100% sure before letting it go.
I cannot believe that the AARO is having a speaker from eAppraiseIT participate on a panel in DC.
FirstAm's eAppraiseIT, a member of TAVMA and one of those investigated by Cuomo that lead to the HVCC and yet to be establisned IVPI.
AMCs are not going away. It is time to regulate them. They should be subject to the USPAP and banking regulations associated with mortgage lending.
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