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You nailed it ! The appraisal business is tricky ! Tight lender guidelines, demanding home owners, potential legal action if you make a mistate or upset a client, lower fees, quick turn times, E & O insurance, no benefits, lots of driving, inspections in bad neighborhoods, thoughtful / quality / “matched pair” adjustments, annual CE education / license renewal, annual fees, etc………..
Why train an apprentice how to succeed when once licenced they could become your competion working for some start up AMC.
I hope the GSE’s go away and let the lenders start lending.
If you really want to screw up a profession, get the government involved. Then create a document that changes constantly that is written ambiguousely. Mandate the States license and certifiy people and enforce federal law unfunded. Finally change the law so that AMC are used by most lending institutions. I have been in this profession for over twenty years. The pay is the same today as it was when I started. As far as the farce known as Dodd Frank, NOTHING HAS CHANGED. The same people who were in charge of OFFIO are thick in FHFA. All they did was change acronyms.
Most people that ask me about appraisal – I tell them consider getting you experience hours via a tax assessor or any other area that is not part of the mortgage lending industry. Most appraisers that do lender work wont give you the time of day. most but NOT all there are always exceptions to the rule, very few too.
Good question and the answer is most likely “YES”. It would be way more profitable for lenders to use automated valuations while charging borrowers premium fees than having to deal with those pesky appraisers who are always whining about making minimum wage. Could it be possible to “insource” some workers from India who would be more than happy to work 70 hrs a week for $750 take home pay at the end. Sure, most of the TBTF lenders are outsourcing mortgage processing work overseas now. Some appraisers use overseas appraisal “form fillers” to try and make the margins work after the AMC’s have taken a huge bite out of the check the consumer/borrower wrote for “valuation services”, leaving crumbs for the independent appraiser.
Perhaps the writing is on the wall and the appraisal profession is now obsolete. Yes, we have regulations and laws at the state and federal level to protect “appraiser independence” but no enforcement. In the last 18 months we watched as some of the largest AMC’s, working as agents for the TBTF’s, skip town with millions in unpaid appraisal invoices. Reports have gone from 15-20 pages a few years ago to well over 30 pages now and the work hours to produce these reports have doubled while compensation has been cut in half. This leaves some quality of reporting something less than respectable.
If this is the case, I say send the memo out, “no appraisal needed”. Tell us we are finished now. With the average age of a appraiser in the mid 50′s it would be quite decent of the powers that be if they could give us a little lead time to figure out how we can supplement social security in our retirement.
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