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State Boards Claim Lack of Funding to Blame for Inadequate Enforcement

The Association of Appraiser Regulatory Officials has responded strongly to the recent AP article which skewered the appraisal regulatory scheme. AARO’s primary claim is that the state government gloms onto their money and prevents them from adequately doing their job.

They state:

Any observed deficiency in the current “national system” of appraiser regulation stem largely from the lack of adequate funding at the State level. This condition exists because appraiser license fees collected by a regulatory agency typically end up in that State’s general fund with only a portion of those revenues being “returned” back to the appraisal regulatory agency’s budget for the operation of the agency.

Kudos to AARO for explicitly what a lot of people in the industry have been whispering for years, that a major problem with the appraisal profession is a lack of funding at the state level. And that is because in large part, most of the dues that appraisers pay into the system, goes instead to fixing roads and paying for schools, rather than building and creating a strong state regulatory body.

The solution is for the state government to see the appraisal profession as a priority rather than as an institution with which to fill their budget holes.

-Justin Morton

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