Appraisal Industry Think Tank: Half Full?

Editor's Note: The current issue of WRE covers issues on the minds of appraisers: appraiser independence, dealing with pressure, AVMs and consumer protection and regulation, blacklisting, the changing market and fraud. Below is what a group of chief appraisers at appraisal management companies (AMCs) are thinking about: appraiser trainees, USPAP-compliant Broker Price Opinions (BPOs), signature fraud and more.  What do you think? Send your comments.

Appraisal Industry Think Tank Resonates with Thought Leaders

Orlando, Florida-Chief Appraisers from some of the leading appraisal management companies (AMCs) in the country gathered together in Orlando, Florida in March to participate in Forsythe Appraisals' Chief Appraiser Think Tank event.  The invitation-only event was Forsythe Appraisals second think tank event, but was the first geared specifically towards addressing the needs and challenges of AMCs.

"We wanted to host an event exclusively for appraisal management companies because we knew they would offer a unique market perspective," stated Alan Hummel, SRA, senior vice president and chief appraiser of Forsythe Appraisals, who also moderated the event.  "As regulators have increased the need for appraisal independence, appraisal management companies are much more in demand, providing a larger role in the industry than ever before."

Hummel explained that the think tank format was designed to create an interactive and informal setting where insights and ideas flowed freely. "We received an exceptional response after our first event and determined that it was something we wanted to continue," he said.

Among industry topics discussed were the use and mentoring of trainees.  According to Tim Forsythe, chief executive officer of Forsythe Appraisals, AMCs are concerned that there are many supervisory appraisers who have not been properly trained themselves. As a result, the trainees have, in turn, received inadequate training.

"We're looking at developing ?Best Practices' for a comprehensive mentoring and training program," said Forsythe, "We'd like to see if lenders would give preferential treatment to firms who have adopted these practices."

The group also proposed developing a USPAP-compliant appraisal product that competes with BPOs that would provide trainees with practical, hands-on experience.

The lack of appraiser independence and the reported increases of appraiser pressure to "hit the number" also resonated with this group as evident by the recent survey conducted by October Research. The survey revealed that 90 % of respondents indicated they felt pressure to adjust values.