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Appraisal Bias: Taking Action, Leading the Conversation

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As the summer ends, I hope you’ve had time to do the things you enjoy with friends and family. One of my favorite things I look forward to this time of year is the start of college football. As a life-long suffering South Carolina Gamecock fan, it is difficult experiencing annual renewed optimism and then watching reality set in with yet another disappointment. However, I would not trade the fellowship and love of the school and game for simply winning. As the adage goes, “There is always next year.”

There is no better excuse for entertaining people with southern food and drink than a college football game (pro football works as well). Nothing brings people together like sharing a meal and enjoying each other’s company around a table filled with smoked brisket, pulled pork BBQ, green chili corn pudding, red rice and spicy mac ‘n cheese. Top it off with a “pitiful pearl” lemon pound cake (as my mother-in-law calls it) or some good old fashioned banana pudding. It does not get better than that.

In the spirit of bringing people together, I’d like to share with you some of the great work the Appraisal Institute is doing to address bias in the profession by building bridges and connecting people with different viewpoints.

Appraisal Bias: Taking Action, Leading the Conversation
As AI membership, and likely all appraisers, are aware, the past couple of years have found us facing the issue of appraisal bias. Even the words are difficult to hear and against what appraisers stand for in our work. Yet, this challenging issue also provides an excellent opportunity to educate the public about the role of the appraiser, a chance to look at how we can take additional steps to help consumers and focus on making our profession more diverse and inclusive now and in the future. Here are some of the ways the Appraisal Institute is addressing the issues.

Collaboration
– AI is collaborating with other valuation-focused organizations such as The Appraisal Foundation, American Society of Appraisers, American Society of Farm Managers and Rural Appraisers, International Association of Assessing Officers, National Society of Real Estate Appraisers and MBREA | The Association for Valuation Professionals.
– Through collaboration, we have hosted webinars to share the value appraisers bring to real estate transactions and clarify how we fit into the broader home appraisal ecosystem.

Media
– AI’s president is often interviewed, sharing salient points during lengthy Q&A. Unfortunately, only a few important points are covered and sometimes they are taken out of context.
– AI is nurturing relationships with current media contacts, establishing new connections, and telling our story as often as possible.
– AI has enjoyed coverage in many high-profile national and local media outlets, including Bloomberg, The Washington Post, NBC.com, HousingWire, National Mortgage News and National Public Radio.
– AI chapters and members are urged to send media inquiries to our national Director of Communications, Brent Roberts, broberts@appraisalinsitute.org.

Legislators and Regulators
– AI’s representatives have testified before Congress.
• AI has provided input to the Biden administration’s Property Appraisal and Valuation Equity Task Force (PAVE).
• AI has provided input to advance model state legislation on valuation bias and fair housing.
• AI has driven numerous discussions that focus on protecting consumers AND advocating for appraisers.
• AI is giving a consistent and balanced public message, earning us a seat at the table.
• AI’s consistent message allows legislators and regulators to find our message firm in advocating for appraisers, yet open to conversations on solving complex challenges.
• Questions about the efforts in Washington and in state capitals should be directed to Bill Garber, director of government and external relations, bgarber@appraisalinstitute.org.

Appraiser Diversity Initiative
• AI has a leading role in the ADI, which is a partnership with Fannie Mae, Freddie Mac and the National Urban League.
• AI received a $3 million commitment from Chase Bank to fund scholarships for diverse aspiring appraisers. These scholarship recipients are taking our education and buying our books.
• The ADI program is providing opportunities to aspiring appraisers and exposing new appraisers to the AI Body of Knowledge and the profession’s best education.
• To learn more about this program go to:www.appraisalinstitute.org/the-appraisal-profession/appraiser-diversity-initiative/.

PAREA
• The AI Board of Directors has invested in the future of appraisal experience opportunities by developing a Practical Application of Real Estate Appraisal program. AI was awarded a $500,000 grant from TAF to supplement this investment.
• This program will attract aspiring appraisers and give AI a first touch for education and mentors that guide them to successful completion.
• To date, more than 30 states have accepted the PAREA program as an alternative to the experience requirement. This eliminates the challenge of finding a supervisor.
• The AI Board of Directors committed $2 million to seeing this program completed. This is a commitment to growing the residential appraiser population and potentially AI membership.
• Learn more about PAREA: www.appraisalinstitute.org/service/faq/#572

AI’s Bias Research Solutions Project Team
 • AI’s Bias Research Solutions Project Team was created to review several studies that address the topic of appraisal bias.
• During the past 1 ½ years, the Project Team has carefully analyzed studies published by the government-sponsored enterprises, university researchers and others, and have developed initial findings.
• The Project Team hopes to publish its final report in the next couple of months.
• Once the Project Team’s report is finalized, it will be shared with the national Board of Directors, as well as AI’s membership.
• National leadership also will be prepared to address the studies, if asked, by the media, legislators or other interested parties.

Going Forward
 • The Appraisal Institute continues to be a voice for professional appraisers and an active thought leader in education, guidance, and policy.
• AI must be a part of the ongoing conversations with the media, legislators, and regulators.
• AI must work with other organizations to protect the future of the profession.
• AI must encourage new, and diverse, individuals to join our organization.
• AI must stand with other organizations in defense of appraisers.
• AI must continue to acknowledge and seek opportunities for growth and change.

Appraisers are a proud, dedicated, hard-working group of professionals, and together, no challenge is too big. Is AI a great organization now? Yes! Could we be even better in the future? Absolutely!

AI Education and Relief Foundation Assistance Available in Wake of Hurricanes Fiona and Ian
If any AI professionals, or other individuals who have made meaningful contributions to the real estate profession, have been impacted by Hurricanes Fiona or Ian, the AI Education and Relief Foundation could provide assistance. Learn more about how to apply or make a donation: https://aierf.org. Since 2005, more than $300,000 in emergency financial assistance has been provided to appraisers and other individuals in need.

High School, College Students Eligible to Become AI Student Affiliates
As campus life again begins to bustle this fall, I encourage you to reach out to your high school, college and university connections to let them know that students are able to join the Appraisal Institute as Student Affiliates without having to pay a fee! This is an excellent opportunity for students who may be thinking about a career in real estate appraisal to learn more about the profession. This is open to all high school juniors and seniors, and all college and university students currently enrolled in an undergraduate or graduate program.

AI Insurance Trust Benefits Available for New Designated Members and Members Under 52 Years of Age
Last call! The Appraisal Institute Insurance Trust provides a variety of insurance policies for the benefit of AI professionals. The Trust reinvests in its participants by offering premium credits and negotiates with the insurance carriers for premium discounts. Each year, AIIT gives the newly designated AI members who are under age 52 a $50,000 one-year term life policy at no charge to the member. And the newest benefit from AIIT – until Sept. 30, 2022, New York Life is offering to AI members who are under age 52, a $50,000 term life policy with no underwriting requirements, no medical exam, no health questions. Guaranteed acceptance (with some eligibility limitations).

Latest Face Value Podcasts Share Opportunities in Green Valuation, Lender Work
Did you know that two new podcast episodes were produced this month? In one, host Tonia Vailas, MAI, AI-GRS, is joined by Stacey Thoyre-Runde, Candidate for Designation, and Tim Runde, MAI, for a conversation on commercial green valuation. They dive into personal experiences in this area, covering opportunities for appraisers to get into this space and how to go about it, debunking misconceptions about appraising commercial green properties, AI offerings and what makes this work both challenging and rewarding. Whether you’re a commercial or residential appraiser, you’re not going to want to miss this!

In the other episode, host Warren Boizot, SRA, AI-RRS, speaks with Ken Dicks, MAI, and Michelle Rogers, SRA, about ways appraisers and lenders can successfully work together. Listen to this exciting conversation with residential and commercial perspectives, hear what lenders really need from appraisers and find out how to get into this type of work.

Click here to listen and subscribe.

New Residential Review Form Available
The Appraisal Institute’s Residential Review Form Project Team has developed a review form for residential appraisals. A PDF can be accessed on the AI website here. This new review form will be especially helpful in preparing reviews for non-lending purposes. The form is designed to assist the reviewer in completing the review process and help the reviewer meet professional standards.

Three New Appraisal Institute Videos Published 
The Appraisal Institute has published three new videos on various topics in the last month. 

Other News Around the Appraisal Institute 
And here’s some other important news from the Appraisal Institute: 

  • At its Nov. 10-11, 2022, meeting in Chicago, the Appraisal Institute Board of Directors will consider proposed amendments to the Appraisal Institute Bylaws regarding the International Member on the Board. The comment deadline for the 45-Day Notice is Nov. 7, 2022. Email your comments to 45daynotice@appraisalinstitute.org. 
  • Are you looking for some excellent exposure, and potential new business opportunities, for yourself and your company? Is there an exciting topic that you think other appraisers need to read about? Do you have expertise you’d like to share with your peers? I’d invite you to submit your ideas for consideration in Valuation, AI’s quarterly magazine, or The Appraisal Journal, our peer-reviewed journal. 
  • The Appraiser Diversity Initiative is an important priority for the Appraisal Institute. I’d encourage you to keep updated on this initiative on AI’s Appraiser Diversity Initiative webpage. If you know an individual who is looking to join the valuation profession, please encourage them to check out the website as well.

The Appraisal Institute continues to expand its social media activities. Be sure to follow AI on Facebook, Twitter,LinkedIn, YouTube, and its blog, Opinions of Value.