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Is the AQB potentially changing course on Appraiser Qualifications?
Originally sent out by Dave Towne in a recent email and reprinted at www.Appraisersblogs.com . The entire 4-page document, Concept Paper - Alternative Track to the Experience Requirements in the Real Property Appraiser Qualification Criteria, is there plus you can read what other appraisers say!!
There are many ideas in the Concept Paper and the AQB really wants public comment. A few ideas: non-traditional experience requirements, different requirements for residential vs. commercial, shorter experience time frame, two licensed residential tracks, and man more.
Excerpts from Dave's email:
"While all who currently, and in the past are or have served on this (Appraisal Qualifications) Board are individually good and experienced people, collectively by Board action they have nearly caused residential appraising to grind to a halt due to their highly restrictive policy decisions. (Yes, this a strong statement, and 'halting' won't happen until the majority of current residential appraisers retire or leave not long from now - some say within a decade. But current policy enforced nationally has already begun to affect "us" due to few entering the profession.)."
"This Board is mostly comprised of Certified General appraisers; few Certified Residential appraisers have ever served on it. Thus, their viewpoint and decisions have been skewed to high level educational requirements before one is allowed, by themselves without direct supervision, to carry a tape or laser measure, clipboard or tablet, and write residential appraisal reports for mortgage lending purposes".
"From my perspective, it appears to me that the AQB decided years ago to mandate US residential appraisers must be equal to appraisers in distant countries (such as Australia, New Zealand, and Europe) where the lending business model, esteem for the profession and educational requirements are far different than what exists in the US."
"However, it appears the AQB has finally realized the pendulum has possibly swung too far to one side, and are now asking for your input to see what should or could be changed. I commend them for this."
My comment: This paper addresses experience, not education, but discusses the difficulties in attracting people to residential appraising due to experience requirements and proposes a "licensed" category not requiring a 4-year degree.
I attended an AQB meeting in San Francisco quite a while ago, when the 4-year college degree was proposed. I seemed to be one of the few there who said this would not work for residential lender appraising due to the boom and bust of the mortgage industry. Armies of trainees need to be hired during the boom times and let go when the inevitable crash occurs.
This is even more important now that fee appraisers have replaced lender staff appraisers in training new appraisers. Low residential AMC fees, incredible AMC Scope Creep and the inability to use trainees to sign reports, means that it is not feasible for fee appraisers to train appraisers.
Remember what it was like during the boom before Dodd Frank? Armies of trainees were hired by fee appraisers. There were good fees and trainees were able to sign on appraisal reports. As usual, many of the new appraisers left the business when it crashed.
I quit hiring residential appraiser trainees 20 years ago as I did not like having to let them go during the down times.
Click here to read the Concept Paper and see what other appraisers say about it. Post your comments. Maybe you have a few good ideas for the AQB!!
http://appraisersblogs.com/appraisal/is-aqb-potentially-changing-course-on-appraiser-qualifications
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Excerpt:
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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go
Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to http://www.appraisaltoday.com/products.htm or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.
WASHINGTON, D.C. (July 15, 2015)
Mortgage applications decreased 1.9 percent from one week earlier
, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 10, 2015. The prior week's results included an adjustment for the July 4th holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 9 percent compared with the previous week. The Refinance Index increased 4 percent from the previous week. The seasonally adjusted Purchase Index decreased 8 percent from one week earlier. The unadjusted Purchase Index increased 3 percent compared with the previous week and was 17 percent higher than the same week one year ago. Comparing volume over the past two weeks, seasonally adjusted purchase applications decreased by 1.4 percent while the refinance index has increased 6.5 percent.
The refinance share of mortgage activity increased to 50.8 percent of total applications from 48.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.4 percent of total applications.
The FHA share of total applications increased to 13.8 percent from 13.7 percent the week prior. The VA share of total applications remained unchanged from 10.8 percent the week prior. The USDA share of total applications remained unchanged 0.9 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged from 4.23 percent, with points increasing to 0.39 from 0.37 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.20 percent from 4.18 percent, with points decreasing to 0.28 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.02 percent from 4.01 percent, with points increasing to 0.26 from 0.18 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.43 percent from 3.41 percent, with points increasing to 0.33 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 3.13 percent from 3.03 percent, with points increasing to 0.42 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100
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