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AI Comments on Geographic Competency Issue

Jim Amorin, President of the Appraisal Institute, commented on appraisers who may be violating the Uniform Standards of Professional Appraisal Practice (USPAP) or other professional and ethical standards of appraisers. Mr. Amorin’s comments focused on geographic competency – an issue that has become prominent since the May 1st implementation of the Home Valuation Code of Conduct (HVCC).

According to the RISMEDIA article, Mr. Amorin said the “Appraisal Institute expects and demands its members to strictly adhere to its Code of Professional Ethics. We will take disciplinary action against any member who violates our organization’s geographic competency ethics requirement. Non-member appraisers should strive to achieve the same level of ethical behavior.

The USPAP Competency Rule: “Prior to accepting an assignment or entering into an agreement to perform any assignment, an appraiser must properly identify the problem to be addressed and have the knowledge and experience to complete the assignment competently.”

Comments
  1. David

    Dear Appraisal Institute
    Take a hint. Appraisers aren’t traveling 150 miles to do appraisals because “they just love to drive that car”. They’re doing it because they were forced to give up clients that they worked with for up 40 years. They’re doing it because they orders they are receiving in the hometown pay $125-$150.
    I really dont understand why the the Appraisal Institute (which pretends to be the best and the brightest) either refuses to acknowledge the damage done by HVCC or they are too stupid to do their own research.
    If they’re that lazy all they need to do is lookup the hvccpetition online and read the comments posted by over 87,000+ real estate professionals in less than 3 months.
    Perhaps they’ve lost so many members they can’t afford to do research.

  2. Bill Abalos

    I agree with David. The AI really does not get it nor do they really care about all appraisers. They don’t care that non member appraisers have the same basic needs as everyone else. We like to eat, pay our bills and sleep at night. Oh, and we also take additional education instruction every 2 years. I guess since they also offer continuing education they would rather we pay them instead of some other school. It all comes down to money. They are no better that the Wamu’s of this world.

  3. That being said, geographic competency is a must. However, we all know (unless we have our head in the sand) that there are Appraisers that could live across the street from the property and still not have a clue as to how to do the job correctly.
    A good Appraiser following USPAP will do a good job no matter where the property is. I have no doubt that a good Appraiser could get off the plain from LA in do just as good a job in Chicago or NY as any Appraiser from that area. The obvious difference is that the Appraiser from out of the area, must make obvious steps to comply with competency and will take perhaps signficantly more time to do the job the right way.
    No amount of forms or rules will ever change that. I have an adage that I’d like to pass on… Good forms do NOT make good Appraisals, GOOD APPRAISERS DO! Remember USPAP does not dictate the form or format of an Appraisal.
    You are right – this issue has absolutely nothing to do with what group the Appraiser is a member of or not. AI, like NAIFA, like the Appraisal Section of NAR and any other group or those not in a group has absolutely nothing to do with the competency provision. The 32 years I’ve been in the Appraisal business, among many other things have taught me, too choose a person based on their own abilities and competencies. Professionalism and integrity come from within the individual and have nothing to do with the alphabet soup after their name. Not a bad idea to have them certainly, we should all strive for the alphabet soup, but we should also know not to be misled into thinking that has anything to do with the word honesty or integrity. I’ve known people of every designation and those without and have observed many with and without that I would trust and many that I wouldn’t trust to take the garbage out.

  4. John

    Having had the SRA after my name for 10 years, I opted out back in 1996. Why? The Appraisal Institute policies left me no choice- AI ready software, I warned them, would lead to data mining. AI fought to open the VA to qualified appraisers on their panel. I also turned in an SRA appraiser to the state board (a homeowner gave me a copy of his appraisal), who failed to mention anywhere in his report that the single family detached home (suburban location) sat next to a train station. It is an organization who promotes itself along with their dishonest appraisers.
    Regarding more on the HVCC, Fox News is running a number of features: http://www.foxbusiness.com/search-results/m/26176863/new-code-of-conduct-for-appraisers.htm

  5. Appraiser Rob

    The AI represents General and Commercial appraisers. Residential appraisers, predominantly, don’t meet the education requirements necessary to be an AI member. And most residential appraisers dont earn enough to allow the time (because they work every single day) to take the courses necessary to become a member of AI. As such, the AI is out of touch with residential appraisers, and their voice is sometimes damaging to residential appraisers.

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