Last month marked the 7-year anniversary of Appraiser Fest. The conference was truly like nothing that had been done before. It was organized by appraisers for appraisers. The agenda was more about bringing the profession together and protecting the public trust. Appraiser Fest was not about promoting the profit of others at the expense of appraisers; nor was it about hiding the unchecked facts of fraud and ill doings against consumers. It was about public awareness and trust. It all started with a renewed sense of energy with appraisers at Appraiser Fest.
The excitement and energy from Appraiser Fest did not stop at those attending the conference, this renewed energy spread throughout the appraisal community. Appraisers were talking to each other, holding lunch an learns with Realtor sales offices, writing blogs, posting podcasts and spreading the word about the shenanigans that had and continued to occur. Warnings to all were now part of appraiser’s everyday communication.
The impact of the Dodd Frank Legislation and lack of enforcement was in full swing. States allowed Appraisal Management Companies to go unchecked and the blow back to the states that attempted to enforce the law were shot down with FTC complaints and expensive lawsuits. Louisiana fought long and hard against the status quo. The end result was the very law that was designed to protect the consumer ending up costing the citizens of Louisiana millions of dollars and they received no protection. Consumers across the country are still unprotected from the lack of enforcement.
This begs the question, is the system corrupt? We all know the answer, so there is no need to expand the discussion.
In 2020 a documentary directed by Patrick Lovell was released called The Con . The 5-part series was a story about the housing market and the fraud that occurred. The appraisers who attended Appraiser Fest know first hand why this documentary was part of the renewed energy among appraisers. Many of those that attended were interviewed and shared their stories of what was going on. Many shared how appraisers warned for years of what was going to happen and no one listened. Profit above public trust.
You are probably asking why is this being brought up again, this is old news. Well let me tell you, this is not old news it is current news. Hybrid Appraisals, Appraisal Waivers and Appraisal Management Companies are the new Con.
Public protection is being dismissed for profit; consumers are being misled; warnings on what will occur are being ignored. Homeowners who purchased their home with an appraisal waiver or hybrid appraisal are finding out they over paid and are now upside down on their home. This is the absolute worst position; short sales and foreclosures have already started in some areas, unless something changes, this will only continue and lead to another financial crash.
Now this is not being pointed out to spread doom and gloom, but for all of us to pull out the energy we had in 2018. Let’s get vocal! Tell everyone what is happening, when you talk with an Realtor agent, share what the appraisal management company is charging their client, inform them of the consequences of hybrid appraisals and appraisal waivers. Remind them of their duty to inform their buyers and sellers.; Remind them if the market crashes, so does their income. Buyer and seller lawsuits against the agent who did not advise their client can and will happen. Fannie and Freddie have already come after appraisers. What is stopping them from going after sales agents?
We all need to watch The Con again to remind us of what happened. Then let’s get out there and tell everyone of the new Con!
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Well said!
Thanks’