HousingWire just reported about the October 2021 Mortgage Bankers Association Annual Convention held in San Diego, California this year. I'm not a subscriber to HousingWire so the image below about what was stated in their news item came from a friend.
"At the Mortgage Brokers Association expo in San Diego (Lyle) Radke of Fannie Mae said that Fannie Mae has been drilling down into its trove of appraisal data. The mortgage giant expected to find a correlation between an appraiser's expertise and the quality of their report, and assumed that a trainee's work might not be as good as that of someone more veteran. Nope. 'What we found is that there is virtually no difference' Radke said. 'They score almost exactly the same in terms of collateral risk, and in terms of internal (quality control), trainees actually score a little better than non-trainee.' "
An appraiser trainee is a new appraiser who works under a mentor appraiser who has years of experience. The trainee does not do an appraisal by themselves. They only do appraisals with a mentor appraiser who instructs the trainee and is by their side every step of the way from the pulling of comps to the actual property inspection to the report writing. The mentor reviews every part of the appraisal process and the report. After the mentor makes any needed corrections, edits, changes the mentor signs the report along with the trainee.
Of course an appraisal done by a trainee and a mentor will be as good if not better than one done by the mentor alone. The mentor is teaching, training the trainee. The mentor wants to make sure the appraisal and report is perfect. The trainee and mentor know that all of their appraisals will be thoroughly reviewed and scrutinized by the governing board so the trainee can get their license. It's part of the licensing process. The FHA also reviews all FHA appraisals especially ones with a trainee.
HousingWire, the Mortgage Brokers Association and Lyle Radke clearly don't understand the appraiser trainee program. Appraiser trainees NEVER do an appraisal by themselves. They only do it with the mentor appraiser. It's against the law for a trainee to do any part of the appraisal by themselves. That's the purpose of the program. It's odd because everyone in the finance industry had a hand in creating the trainee program. It's no wonder so much misinformation about appraisals and appraisers is spread in the media today.
Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.
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