Inexperienced Appraisers

During the overwhelming sentiment against non-local appraisers, I have consistently made the point that the problem is not use of non-local appraisers, but rather incompetent appraisers who lack local knowledge which violates the Competency Requirement of USPAP. However, a recent comment to one of my blogs alerted me to another contributing factor - inexperienced appraisers.

Before HVCC, appraisers built client base through experience and service to local and national lenders. Many lenders required several years of experience before consideration for appraisal work. Since the activation of HVCC, AMCs have taken over the appraisal process and eliminated the natural and developed professional contact between lenders and appraisers. The AMCs which are totally profit-driven, offer lenders appraisal services through quick turn-times, low fees, and compliant appraisals. Many veteran and highly experienced appraisers have lost their established professional contacts in addition to refusing to accept fees of often 50% typical market appraisal fees from the AMCs and further being subjected to an extremely controlling work environment under the AMCs. Enter, the new, inexperienced appraisers who will work for little because they know no better and travel for that work. With a valid state license in hand, the AMCs are readily using these low cost appraisers to improve their profit margins at the expenseproviding good, locally competent appraisals.