The Appraisal Institute is very excited to continue working with Fannie Mae and the National Urban League on the Appraiser Diversity Initiative and looks forward to welcoming sponsors and prospective appraisers. Learn more about how we are accomplishing that initiative, and other timely updates, from the past month.
Appraiser Diversity Initiative Sponsorship Program Seeks Applicants
I am pleased to share that the Appraisal Institute, in collaboration with Fannie Mae and the National Urban League, is seeking applicants for the Appraiser Diversity Initiative Sponsorship Program.
The Appraiser Diversity Initiative was created to attract new entrants to the appraisal field, facilitate entry in the appraisal profession and to foster diversity in the appraisal community.
ADI sponsors workshops and other activities to inform aspiring appraisers about the requirements to become an appraiser and the multiple career opportunities available. ADI participants are awarded education scholarships for the completion of base course requirements to become an appraiser. The purpose of the sponsorship program is to utilize and maximize the ADI’s reach through private sector organizations such as appraisal firms, financial institutions, technology companies, associations and others.
Sponsor applications are accepted on a rolling basis. If you know of a potential sponsor, or prospective appraiser, encourage them to learn more and apply today.
AI Discusses Diversity, Equity and Inclusion with the Media
As an organization that takes pride in being the nation’s largest professional association of real estate appraisers, AI continues to combat unconscious bias in the profession. Our Communications Department and outside public relations agency have been actively working with the media, which is why you might have seen that we have been quoted in a number of important stories. I will gladly continue to take media interviews to address this issue and provide the appraiser perspective.
I would like to share some of the recent coverage that we have been mentioned in over the past several weeks, including:
- NBC News– The increased scrutiny has also prompted the Appraisal Institute, the nation’s largest professional association of real estate appraisers, to acknowledge the issue of racial bias within the appraisal industry. “When we see even one story of a consumer who feels they were treated differently because of their race, it’s very concerning because that goes against everything we stand for. Appraisers take a lot of pride in being an objective source of real estate value information,” the institute’s president said in a statement to NBC News. “Over the last two years, the Appraisal Institute has been amplifying and accelerating internal initiatives and partnerships to bring about positive change, including improving diversity within the profession. We recognize that recruiting for greater diversity will make us stronger and more representative of the communities we work in and contribute to greater cultural awareness.”
- HousingWire– The Appraisal Institute, a trade association which represents appraisers, expressed its support for the legislation, and urged lawmakers to pass the bill. But the Appraisal Institute’s president, Rodman Schley, cautioned against pinning the blame for discrimination just on appraisers. “We must confront and combat potential bias in appraisal, and we support vigorous enforcement if discrimination is proven,” said Schley. “However, we must not lose sight that structural biases within the broader marketplace and among all stakeholders within real estate and lending continue to play significant roles that impact the realities of the real property market.”
- CBS TV Indianapolis– In instances where concerns have been raised about appraisals, we do not know all the circumstances in how appraisals may have been ordered by lenders or appraisal management companies, how appeals may have been handled, or what instructions were given to subsequent appraisers. Regardless of that, as an organization we must educate ourselves about potential bias, just as professions across America are doing. At the same time, of course, appraisal is one piece of a larger ecosystem to look at when it comes to housing issues. We don’t think there is any one solution to a problem rooted in hundreds of years of history.
- Forbes– The Appraisal Institute’s initiative educates candidates about real estate appraisal, provides resources for interested candidates and opens the door for mentorships from practicing appraisers. Scholarships are funded by the Appraisal Institute Education and Relief Foundation, which has committed $150,000 over three years to the initiative.
The outlets below have placed their coverage behind a pay wall and require a subscription, but I wanted to share these clips with everyone as well:
- Politico Pro– “This is an issue with an incredibly complex, deep-rooted history that goes beyond appraisals,” said Rodman Schley, president of the Appraisal Institute, the largest trade group for real estate appraisers in the country. “Solutions will require collaboration across the housing and financial ecosystem.”
- HousingWire– “We look at the numbers and the facts and mirror what the market tells us,” stated Schley, the Appraisal Institute president. The Appraisal Institute sees no problem with this. “Appraisal methodologies such as the sales comparison are grounded in economic principles intended to fairly and objectively value property for all,” Schley stated. “These approaches have been tested through time and economic crises and are observed across the world.”
- Valuation Review– Appraisal Institute (AI) President Rodman Schley spoke with Valuation Review about this, and the work AI is doing to create a more equitable housing environment in this country by providing initiatives to advance representation, training and education for their membership. “What is important is that we continue to equip our membership with tools to recognize and interrupt unconscious bias and ensure they have a deeper understanding of the root of racial inequities in this country,” he added. “Beyond this, we believe the interagency task force should include adjoining mortgage processing issues such as lender ‘reconsideration of value’ and appraisal appeal processes as well as creative approaches to financing underserved markets.”
AI Will Premiere Two Seminars in August
I encourage you to check out AI’s 7-hour seminar, “Inconsistency – It’s Hiding in Plain Sight in Your Appraisal,” which will premiere Aug. 7 in Orlando, Florida. This seminar will concentrate on common inconsistencies found in the reports of even the most seasoned appraiser. For example, developing the income approach using contract rent (leased fee value), developing the cost approach but not adjusting for lease fee (simple fee value), or using the sales comparison approach to analyze comps based on contract rent and other analyze based on market rent (mixed bag). The results of these inconsistencies make it impossible to reconcile to a proper value regardless of whether the assignment calls for leased fee or fee simple value. Register and learn more.
“Historic Preservation (Façade) Easements: Appraisal Techniques and Valuation Issues,” is a 7-hour seminar that will premiere Aug. 11 in Orlando, Florida. The valuation of conservation and historic preservation (façade) easements continues to be an extremely controversal aspect of appraisal practice. The Internal Revenue Service currently has more than 1,000 charitable donations of conservation and preservation easments under review. This seminar will address its special appraisal challenges and issues. Register today!
Annual Conference attendees can use discount code ORLANDOAIC2 for $25 off both seminars.
Other News Around the Appraisal Institute
And here’s some other important news from the Appraisal Institute:
- If you haven’t registered for the Annual Conference, taking place Aug. 9-10, at the JW Marriott Orlando, Grande Lakes, I encourage you to get that done by July 19 and save $100! Learn more about this terrific conference, our excellent keynote speaker and all of the exciting things for you and your family to do in Orlando. I can’t wait to see you all in person!
- You may have seen that President Biden is forming an interagency task force to look at appraisal bias allegations and issues. This task force is modeled after legislation pending in the current Congress (H.R. 2553) supported by the Appraisal Institute. The details on this task force have not been released yet, but we may see them soon. By all indications, the task force will be looking at a range of complex issues, including fair housing, consumer disclosure, and lender guidelines and dispute processes, to name a few. It’s a discussion that the Appraisal Institute is ready to be a part of, as the issues cannot be dealt with in isolation and must involve the full range of stakeholders, including appraisers.
- AI posted two new videos to its YouTube channel during the past month. In one I explain AI’s new affiliation model, and in the other I discuss diversity, equity and inclusion in the valuation profession.
- 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.
Have a great month!