Ernst is going to Washington D.C. as part of the Appraisal Institute's annual Leadership Development Advisory Council (LDAC). This group of practicing appraisers, who are all affiliated with the Appraisal Institute organization, will be discussing legislation currently under consideration and gathering input for Congress to help ensure that meaningful financial reform legislation is crafted. According to Ernst, his team of real estate appraisers, acting as lobbyists on Capitol Hill for the day, will be meeting with Senators Max Baucus, D-Mont, Jon Tester, D-Mont, Amy Klobuchar, D-Minn, Al Frankin, D-Minn, and Representatives Denny Rehberg (R-MT), and Collin Peterson (D-MN).

Ernst, who also sits on the Montana Real Estate Appraisal Board, is taking results from the first Working RE/OREP HVCC Appraiser Talkback Survey with him to share with participants of the Appraisal Institute's meeting. The survey, which has been out for about one year and has just under 5,700 respondents, provides appraiser feedback on the consequences of HVCC.

Some key results are: over half of the appraisers working with AMCs report that they continue to feel pressure to "make a deal work" at least some of the time; most  say appraiser selection by AMCs is based solely on the lowest fee much of the time and a majority report feeling consistent pressure from AMCs for low fees and quick turn around and that this pressure adversely effects appraisal quality (for more, read HVCC Survey Results: Appraisers Still Feel Pressure, WorkingRE.com, Current Issue).

In the new Working RE/OREP HVCC Talkback Survey, HVCC: One Year On, 60 percent say appraisal quality has worsened since HVCC. This new survey, which has been out just a week, already has just over 1,000 participants. You can make your voice heard on HVCC, AMC regulation, customary and reasonable fees and much more by participating (find survey questions and links to both surveys below).

"I want to be clear that I am relating my own personal opinions and do not represent the interests of the Appraisal Institute or the Montana Board of Real Estate Appraisers. I personally believe the HVCC has negatively impacted the quality residential appraisers within this nation," says Ernst. "The GSE's requirement to use non-regulated AMCs to provide 'independence' for appraisers is a failed attempt at positive financial reform. The poorly written HVCC has a potential to cause further damage to the public, who are in support of quality financial reform and quality appraisal services. I will share the survey data with my fellow appraisers as a way of encouraging debate regarding beneficial financial reform legislation."

As reported in Working RE Online News Edition (February 17, 2010), H.R. 4173, which has passed the House, has numerous appraisal provisions including the termination of the HVCC and language in support of appraiser independence and customary and reasonable fees for appraisers. The Senate is taking up its own bill, the Restoring American Financial Stability Act of 2010. However, none of the appraisal provisions from 4173 have made it into the Senate version, according to Bill Garber Director of Government and External Relations, Appraisal Institute. The hope is that the appraisal-related provisions will be added back to the Bill in the House-Senate Conference Committee. This is why it is a critical time for appraisers.

"The HVCC is falling very short of protecting the public's trust in my opinion," said Ernst. "Similar to the legislative reform efforts within Title XI, which mandated regulation without providing funding, it appears the GSEs have followed a strong lobby effort and promoted the use of AMCs and BPOs without providing for their regulation."

If you completed the HVCC Talkback Survey pat yourself on the back for contributing. If you have not, you can make your voice heard by participating in either survey here:
First Survey: HVCC Talkback Survey
New Survey: HVCC - One Year On

About the Author
David Brauner is Editor of Working RE magazine and Senior Broker at OREP, a leading provider of E&O Insurance for appraisers, inspectors and other real estate professionals in 49 states (OREP.org). He has covered the appraisal profession for over 16 years. He can be contacted at dbrauner@orep.org or (888) 347-5273. Calif. Insurance Lic. #0C89873.