Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
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Thursday, June 30, 2022

The False and Misleading "Greedy Landlord" Narrative by Mary Cummins Real Estate Appraiser


I've sold and appraised homes and apartment buildings of all sizes in Los Angeles, California for over 35 years. My grandmother owned apartment buildings many years ago. I've been a renter in the past. I know the issue from both sides. I've seen the leases, expense sheets and profit and lost statements. 

Let me first state that there are indeed some greedy law breaking landlords in this world. That does not mean all rental property owners are "greedy slumlords." I'm writing this article in hopes that people will understand the industry and rental property owners so they stop promoting the false narrative that ALL landlords are "greedy slumlords."

Rental housing is a business like any other business. You work to get paid and so do rental property owners. They worked hard and saved their money to buy real estate to rent to secure their financial future. They could rent cars, tuxedos but instead they rent homes.

A rental property owner needs a certain return on their investment in order to pay for the upkeep of the property and themselves. They are entitled to market rent and an income just like you are entitled to fair market wages or payment for your goods and services. The reason rents are so comparatively high today is the lack of affordable housing. The current lack of affordable housing is caused by two main problems neither of which have anything to do with the rental property owner. 

One, there are not enough homes or apartments available. Supply and demand is out of balance causing home prices and corresponding rents to rise. Rents directly correlate to home prices. Land prices have risen so much that building new apartments only makes sense if they're expensive luxury units. We need affordable housing but there aren't any new ones being built because builders would lose money. Would you go to work if your pay check was less than zero, if you had to pay to work for someone else? Of course not. Neither would developers. 

Two, most wages haven't kept up with inflation or the cost of real estate. Today's tenants are paying over 35% of their wages in rent. They shouldn't pay over 30%. In Los Angeles it's easily over 50-60% of their wages. You can't rent a one bedroom apartment in Los Angeles with a full time Los Angeles, California minimum wage job of $15/hr. Wages have been basically stagnant while the cost of living has doubled or more. We need to increase wages to match the increased cost of living. Landlords don't control your wages. They wish people made more money so paying rent would be easier.

First some basics on rental housing. A person who owns a home or apartment building which they rent must cover their expenses. The biggest one is generally the mortgage. They don't pay cash for apartment buildings just like people don't buy homes for all cash. They also have to pay property taxes, insurance, utilities for common areas or units depending on age of building (water, power, trash, oil), gardening, repairs and maintenance, management fees, salaries and benefits, business tax, income tax, permits, rent control fees, state fees, county fees, city fees, vacancy loss, rental loss, bad debt, legal fees, eviction costs and more. They also need to keep a fund for renovating units and replacement for major building components, i.e. roof, plumbing system, electrical system, furnaces, air conditioning, appliances, seismic retrofit and more. They need to cover the expense of their own work hours on the property. Most rental property owners are small mom and pops with only one or two small buildings where they also live. If tenants don't pay rent, they can't pay the mortgage and could be foreclosed upon. They'd lose the building and probably also their place to live.

If someone just bought the building, the rental income does not cover all of these expenses and the mortgage. They are losing money for the first 5-10 years especially in Los Angeles, California. If the building is in older rent control, they're losing money even longer because they can't raise the rent to market until the tenant vacates. People rarely leave a rent control apartment because of the low rent. They generally stay for life. The property owners' expenses go up but the rents don't go up accordingly. I know many property owners who refuse to own rent control units for this reason and I don't blame them.

If someone is renting out a house or small units such as 2-4, the income to expense ratio is even lower. The only time the rental income will cover expenses and produce a profit is after the owner has owned the building for many years, all the rents increase to market and the mortgage amount decreases to zero. Even if the building is free and clear, that equity belongs to the property owner. They could refinance the property if they have a large expense and add a new mortgage. They may need money for building renovation, personal medical bills or personal emergencies.

One important thing which most renters don't realize is that rent directly positively correlates to the value of the property. As property values rise so do rents. We've recently (Los Angeles, California June 2022) had a huge appreciation in real estate values in the last two years. Real estate values went up 15% per year and more in lower valued revitalizing areas. Some went up 30% per year. That would mean market rent also went up by that same amount. As property values rise so do property taxes, insurance and other expenses which are tied to the value. Interest rates just increased. If the mortgage has a variable rate, their mortgage costs just shot up as well. Lumber prices went up making renovations and repairs more expensive. All the other costs and fees continue to rise every year. If you're in a rent control building and maximum rent increase is 3% a year, the rental property owner's expenses are increasing at a greater rate. 

I remember 1978 rent control in Los Angeles, Beverly Hills, Santa Monica and West Hollywood. The elderly mom and pop rental property owners who kept rents lower before rent control were forced to sell their properties when they later couldn't break even. Some were mortgage free and still couldn't break even. Some owners lived in their buildings. They lost their homes. These are the people you called "greedy landlords." 

More sophisticated entities bought those properties and increased the rent as soon as legally possible to the maximum allowable amount every year. They evicted tenants any legal chance they got. They passed through capital improvements to the tenants. They converted some buildings to condos. They moved their children into the units. Rent control forced property owners to do this to try to break even so they wouldn't lose their buildings in foreclosure. It was legal and the right thing to do. Again, would you work for less than minimum wage? Of course not.

Some say that housing should be a right. Okay. I just don't believe the government should force private citizens to give away their assets and services for free. If the government wants to buy housing for market rate and let people live in it for free or low cost and lose money, fine. Otherwise it's a violation of the Constitution to take property owners' assets except by eminent domain. In eminent domain they are paid market value for the property. Property owners would be sort of okay with that even though they bought property to hold long term. They'd go into another business such as commercial property or maybe they'd sell cars. 

The problem with this idea is that the government tried this and failed. They couldn't properly maintain the properties because they weren't bringing in enough income and government expenses were high. The government became a slumlord. Remember the "projects?" It also costs the government at least 15% more in administrative costs to run a business than a private entity. The government has to add a minimum of 15% onto each project for this reason. 15% goes right out the window wasted on bureaucracy. The government lost a ton of money trying to provide cheap housing to poor people. This is why they no longer do this. Instead they try to incentivize rental property investors with tax breaks, low interest loans, grants, free or cheap land, density bumps, zoning variances and exemptions from some Building and Safety, environmental and other regulations. This has helped.

If you're a tenant, some suggestions. Work hard, don't take vacations, never buy anything you don't need, save your money, live as cheaply as possible and buy real estate. You can live in it or rent all or part of it out. You've solved your "greedy landlord" problem. YOU are now the "greedy landlord." If you want to rent your units out for $1 a month to people with very little money, go right ahead. It's your property. You just have to pay for the loss. Obviously the main benefit is that real estate appreciates over time, you control your home and you will make money over the long term. 

If you don't want to do that or can't because you're living in poverty, here's more advice. If your landlord is breaking the law by not properly repairing things or is charging over the legal rent allowed, take action. Research the law for your city, county and state. If your landlord is not doing these illegal things, please, be nice to them for your own good. There may come a time when you are between jobs, sick...and need a month or so of grace period on your rent. My grandmother always gave breaks to her nice tenants. Some went months without paying rent during trying times. If you act like a jerk because you've falsely believed the greedy landlord narrative, don't expect a break. Would you do favors for someone who treats you like shit? Of course not. 

If you're a landlord, some suggestions. Obviously if you're a slumlord breaking the law, you won't read this article or the one below. All rental property owners should follow the law or you will be sued and tenant won't have to pay you rent. You will lose money and deserve that. If you're a good legal rental property owner, here's a nice article about how to avoid being stereotyped with the false narrative of the "greedy slumlord." 

https://www.baymgmtgroup.com/blog/how-to-avoid-negative-landlord-stereotypes/

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.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Tuesday, June 28, 2022

Staying Relevant in the Appraisal Industry, by Mary Cummins, Real Estate Appraiser in Los Angeles, California

Staying Relevant in the Appraisal Industry, webinar, class valuation, appraisal buzz, mckissock learning, mary cummins, real estate appraiser, appraisal, mel black, matt simmons, jared preisler, lamar ellis,
Staying Relevant in the Appraisal Industry, webinar, class valuation, appraisal buzz, mckissock learning, mary cummins, real estate appraiser, appraisal, los angeles, california, mel black, matt simmons, jared preisler, lamar ellis, datamaster, mai, sra, 

June 28, 2022 webinar "Staying Relevant in the Appraisal Industry." It was about continuing to get work during this slow market caused by the increase in interest rates. They suggest contacting real estate agents, developers, lawyers, accountants and others to get work doing appraisals for pre-listings, probate, litigation, property tax appeals and more. This is something all appraisers should be doing anyway. You want to balance out your work so you're not reliant on one market. They also suggested getting a drone license and drone to do drone work or add drone work to existing appraisal work. 

https://appraisalbuzz.com/staying-relevant-in-the-appraisal-industry/

http://www.mhsappraisal.com 

http://www.datamasterusa.com

http://www.appraisalbuzz.com 

http://www.mckissock.com


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.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Sunday, June 26, 2022

Wealth gap, income gap, home value gap, race, gender, marital status and Roe v Wade by Mary Cummins

Research has unequivocally shown there is an income and wealth gap between whites and blacks, Latinos. This is why homes owned by white people are worth more than homes owned by blacks, Latinos. People buy the homes they can afford and whites can afford to buy more expensive homes. Appraisers aren't appraising them differently. 

We also know there is a wealth, income gap among men and women, married verses single and especially single mothers with children under 18. Research has also shown that poor, black, Latino women were more likely to get abortions than white women. https://abc7.com/abortion-cdc-data-women/11815941/ 

The reversal of Roe v Wade forcing poor women especially of color to have babies is just going to make the wealth, income gap that much worse. It's also going to cost the states money in welfare, Section 8 housing, Medicare, EBT.... I don't think the GOP really thought about the repercussions of banning abortions. White Supremacists who tow the GOP line including anti-abortion will only have themselves to blame when POC actually do replace them via a higher birth rate. That's already happening but banning abortions will make it happen faster. 

Here's a great article to share with lots of pictures for those who don't care to read.

https://www.vox.com/the-highlight/23182150/abortion-rights-economic-justice

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.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Thursday, June 23, 2022

Alleged Appraisal Overvaluation in Sales Comparison Approach review by Mary Cummins Appraiser


This paper came out in 2017 but is making the rounds again today. The authors believe they found evidence of appraisal overvaluation in the sales comparison approach in appraisals in 2015 and 2016. I read the article and replied below. Directly below is their summary. 

"Abstract Home appraisal came under scrutiny for contributing to the home-price bubble and enabling the origination of risky mortgages that led to the post-2006 foreclosure crisis. Subsequent regulations tried to minimize or eliminate conflicts of interest and improve valuations. Nonetheless, our study of appraisals completed in 2015 and 2016 find that appraisal bias still occurred. Our analysis delves into the underlying appraisal development to identify causes of appraisal bias. Contributing factors are that comps are generally higher valued than the subject property, and appraisers are more likely to comparatively adjust upward lower priced comps but less likely to adjust downward higher priced comps. KEYWORDS housing price determination, residential appraisal"

"Using a large sample of appraisals ordered to underwrite purchase-money loan applications in 2015 and 2016, we find that about 69% of comps were represented by transactions valued at more than the subject property. After controlling for the availability of market transactions and a variety of loan and property characteristics, we continue to find a greater likelihood of selecting more expensive comps."

https://millersamuel.com/files/2022/06/AppraiserOvervaluation.pdf

My reply: The first issue to consider is 2015 and 2016 markets were increasing in value. It makes sense there would be more higher than lower priced comps available. In a decreasing market you would probably see the opposite. 

The second issue is lenders, AMC, underwriters demand that the subject size, bed/bath count and main amenities are bracketed with comps currently listed, pending or sold within three months of the appraisal. Three sold, one pending and one listed comps are mandatory. If you intentionally select properties which are larger and have more bed, baths than subject, they will most likely have sold for a higher price than subject. Sometimes you can bracket size with one comp but need another to bracket bed/bath count. This means you have potentially two out of the three or 66% sold comps which will be, must be superior to subject by design. You still need a comp or comps that bracket the lower end of size, bed/bath count... 

The third issue is supply and demand. How many months of housing supply were available at the time? Was it similar to 2020/2021 where there weren't enough homes available for sale so most properties sold instantly over market? There's no box in the grid to adjust for that. 

The fourth issue is there were many developer flips during this time. The properties were bought low, improved with new kitchen, baths, paint, landscaping...then sold higher. Of course they could be in better condition all around than subject if the subject wasn't also a speculator flip. 

The fifth issue is home attributes which affect value that are not covered by the adjusted factors in the grid or cannot be exactly measured. Those attributes could be curb appeal, staging, marketing, landscaping, superior architect, superior design/remodel, superior layout, custom lot shape, specific superior view, upgraded non line item features... We can only include adjustments which we make using matched pair statistical analysis using math. It's not always possible to extract a value for staging, marketing, landscaping, upgraded non line item features, three tone paint, superior layout, distinct view... 

The writers' conclusion below,

"Our evidence of calibration bias, although helpful to understand appraisal overvaluation, cannot answer the question of how it occurs without further research into the development of calibrated values. To that end, a hedonic pricing model can be a helpful tool to assess the accuracy of a price adjustment associated with a given property attribute or amenity while also ensuring consistency and accuracy in the aggregate. Incorporating hedonic pricing techniques into appraisal development is limited. Given the amount of detailed property information and modeling technology that are available today, the appraisal practice could benefit from employing data-driven analytics to help assess appraisal accuracy in an efficient and quantifiable manner. Future research in this direction can develop a better understanding of the underlying appraisal valuation process."

I'm glad they admitted they don't know how the alleged "over valuation" occurred. Maybe there was no overvaluation. Maybe it was the result of what I stated above or maybe it was something else. Would have been nice to do the same in a decreasing market for comparison. While data-driven analysis is always good you will still need a human to appraise real estate, homes for now because humans are the ones buying, paying for and owning them. The contract price is based on the human's level of desire for the property.

There are some things a human can see, find valuable that an AVM robot or statistics cannot. For example a Mercedes is worth more than another similar car because it has a superior design and is more appealing to the eye and market. So is a Louis Vuitton, Gucci, Chanel purse for the same reasons. Kelly Blue Book values and company sales records are the proof of this. The items are generally made out of the same amount of similar materials yet one is worth more than the other. Design, appeal, every factor in market reaction can't be easily calculated in a form appraisal.  

Citation: Mayer YG, Nothaft FE. Appraisal overvaluation: Evidence of price adjustment bias in sales comparisons. Real Estate Economics. 2022;50:;862–881. https://doi.org/10.1111/1540-6229.12351

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.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Monday, May 9, 2022

California Balcony Bills SB 721, SB 326 Inspections Due January 2025, by Mary Cummins Real Estate Appraiser

balcony bill, sb 721, mary cummins, real estate, appraiser, los angeles, california, repair, inspection, 2025, permit, building, safety,Wikipedia. 

The California Balcony Bill SB 721 passed in 2018. All building owners of three multifamily units or more with balconies or decks must be inspected by a professional by January 1, 2025. Subsequent inspections will be every six years. Any repairs must be made by a professional with permits. The purpose of the bill is to prevent a balcony or deck collapse which can and has killed people. 

SB 721, Hill. Building standards: decks and balconies: inspection.

Existing law provides authority for an enforcement agency to enter and inspect any buildings or premises whenever necessary to secure compliance with or prevent a violation of the building standards published in the California Building Standards Code and other rules and regulations that the enforcement agency has the power to enforce.

This bill would require an inspection of exterior elevated elements and associated waterproofing elements, as defined, including decks and balconies, for buildings with 3 or more multifamily dwelling units by a licensed architect, licensed civil or structural engineer, a building contractor holding specified licenses, or an individual certified as a building inspector or building official, as specified. The bill would require the inspections, including any necessary testing, to be completed by January 1, 2025, with certain exceptions, and would require subsequent inspections every 6 years, except as specified. The bill would require the inspection report to contain specified items and would require that a copy of the inspection report be presented to the owner of the building within 45 days of the completion of the inspection and would require copies of the reports to be maintained in the building owner’s records for 2 inspection cycles, as specified. The bill would require that if the inspection reveals conditions that pose an immediate hazard to the safety of the occupants, the inspection report be delivered to the owner of the building within 15 days and emergency repairs be undertaken, as specified, with notice given to the local enforcement agency. The nonemergency repairs made under these provisions would be required to be completed within 120 days, unless an extension is granted by the local authorities. The bill would authorize local enforcement agencies to recover enforcement costs associated with these requirements. The bill would require the local enforcement agency to send a 30-day corrective notice to the owner of the building if repairs are not completed on time and would provide for specified civil penalties and liens against the property for the owner of the building who fails to comply with these provisions. The bill would exclude a common interest development, as defined, from these provisions. The bill would require any building subject to these provisions that is proposed for conversion to condominiums to be sold to the public after January 1, 2019, to have the required inspection conducted prior to the first close of escrow of a separate interest in the project, and would require the inspection report and written confirmation by the inspector that any recommended repairs or replacements have been completed to be submitted to, among others, the Department of Real Estate and included in certain required statements and reports, as specified. The bill would authorize a local governing entity to enact stricter requirements than those imposed by these provisions.

Link to actual bill with full text.

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB721

SB 326 Bill

This bill mandates that HOA's hire a competent inspector to inspect the common areas of a multi-family project at least once every nine years. This includes load bearing structures such as balconies, decks, stairs, elevated walkways including a sufficient sampling of units by January 1, 2025. If there are repairs to be made, they must be made. 

https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB326

Some tips on inspecting, looking at your own balcony, deck..

https://amtrustfinancial.com/getmedia/3aa40bbd-bf5c-4906-b2e6-295dfe2d0095/Deck-and-Balcony-Inspection-Things-to-Look-For.pdf

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.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Tuesday, May 3, 2022

NFHA Continues their Money Shakedown on the Real Estate Industry by Mary Cummins


This is getting out of hand. A company can't limit their service by price range because it affects POC disproportionately? Nonprofit NFHA money shakedown continues. The Courts have ruled that entities cannot be found responsible for factors they don't control. Research has shown a correlation between POC and socio-economic factors. RedFin did not select the criteria based on race, color, ethnicity ... but price range. Will higher priced product brands soon be forced to market to and sell goods at a loss? The only solution I see is getting rid of RedFn salaried real estate agents. Make them work on commission split that covers RedFn's costs and let them choose their own deals. 

"Redfin’s ‘minimum price limit’ slashed real estate services in non-white neighborhoods—and now the company is paying a $4 million settlement. For prospective homebuyers, the online search portal and real estate brokerage Redfin is a go-to resource. Listings in more than 100 housing markets in the United States and Canada can be browsed easily, and a monthly average of more than 47 million users did so in 2021, according to the company’s annual report.

But in certain markets, search results had a big caveat. Redfin would show the listings, but due to what it called a “minimum price limit,” the company declined to make the full range of its services available—including real estate agents, professional photos, and promotion. That disproportionately affected homes in non-white areas.

“That policy resulted in Redfin predominantly not providing services in Black and Latino areas and predominantly offering services in white areas,” says Morgan Williams, general counsel of the National Fair Housing Alliance. For example, in the majority-minority city of Chicago, the minimum price threshold was set at $400,000, while in neighboring DuPage County, the threshold was just $275,000. In the majority-Black city of Detroit, the minimum price was $700,000, while outside city borders that limit was just $250,000. Redfin defended this policy, arguing that limiting its activities by price is the only fair way for the company to operate profitably.

Redfin objects to the characterization of its minimum price limit as redlining. “Describing a price-based policy as redlining is sensationalistic and wrong because Redfin serves all neighborhoods in the metro areas where we operate,” a company spokesperson tells Fast Company. “We do not make service determinations based on race or the demographics of the neighborhood. Home price is the only fair and objective way to make that determination because home price determines the fees we earn.”

Read the rest at the link. 

https://www.fastcompany.com/90747572/redfin-to-pay-4-million-to-settle-lawsuit-over-digital-redlining

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.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html

Monday, May 2, 2022

Appraisal Foundation Appoints Jillian White to Board of Trustees in Political Move, by Mary Cummins

April 30, 2022 The Appraisal Foundation (TAF) appointed Jillian White, Shelly Tanaka and Meredith Meauwly to the Board of Trustees. They also welcomed back the Appraisal Institute as a sponsor. 

TAF is authorized by Congress as the source of appraiser standards and appraiser qualifications. TAF had been taking a lot of political heat recently because their Board lacks diversity because it's mainly older white men. While I applaud TAF for starting to diversify their Board I personally feel one of these appointments was in response to political pressure. That one appointment is Jillian White.

White is an ex appraiser who was recently named the "Head of Better+" March 2022 per her LinkedIn announcement. Better+ is Better's affiliate businesses of Better Mortgage. Better has been in the news for mass firings, lawsuits and major financial problems. Better Mortgage will most likely soon be out of business as the mortgage market shrinks as a result of the rise in interest rates and overall failure by Better's CEO Vishal Garg. 

Jillian White was a real estate appraiser and real estate agent. "In 2016, Ms. White joined Better, a digital mortgage provider, as the Chief Valuation Officer." "In 2018, she was named the Head of Collateral." During Jillian White's time at Better she has been promoting the false narrative of the "racist white appraiser." She has done this by quoting false and misleading data. Jillian White has cited debunked Andre Perry's paper and Freddie Mac's note repeatedly. Andre Perry's paper was not published or peer reviewed research. It has since been proven to be false and misleading by very well known researchers at American Enterprise Institute (AEI).  AEI also debunked the Freddie Mac note. Tobias Peter was invited by the government to speak at the recent House Committee of Financial Services about this issue and this misleading data.

Promoting the false "racist white appraiser" narrative promotes racism and hatred of others. White an Appraisal Institute appraiser is stoking the flames of hate and racism toward appraisers, white people and the industry as a whole. The Appraisal Institute AI recently stated they would enforce a zero tolerance of racism and hate speech among their members because of hateful racist behavior by appraiser Dave LaVigne. White has promoted the false "racist white appraiser" narrative through her many presentations and articles about blacks "being forced to" "white wash" their homes. Here are a few of those articles, "Why some homeowners of color erase themselves," "Black appraisers call out racial bias," and "Better Website: Keep an eye out for personal bias." 

White went so far as to state “In the case of my family, our home was forever changed after that. A lot of the pictures never made it back on the wall." Who forced them not to return the pictures after the sale or appraisal? Every real estate agent knows and tells ALL of their clients REGARDLESS OF COLOR OR RACE to remove personal photos and items from their home when they sell their home to INCREASE THE SALES PRICE. It has nothing to do with race, color, religion... I did this when I sold my own home and I'm not black. As an agent I suggested all clients do the same.

Below is a still from one of her many public presentations where she points out the family photos, heirlooms and certificates she was "forced" to remove because of "racist white appraisers." This wasn't even for an appraisal but a basic home showing and sale of relatives' homes.  


Jillian White stated in the Better website, "96.5% of all real estate appraisers are white." This is not accurate though it's true most appraisers are white just like real estate agents. "Oddly" people aren't complaining about the lack of diverse real estate agents. Even the general population of the US is over 76% white. People are actually complaining about appraisal gap which is more likely in a quickly appreciating market. They're falsely claiming the cause of appraisal gap is racism because of the change in political climate caused by the murder of George Floyd. 

"The country is in a time of racial reckoning, heightened by a summer of protests against systemic racism and police brutality following the death of George Floyd in police custody." Floyd's death "sparked the largest racial justice protests in the United States since the Civil Rights Movement." "According to data from various sources, the Black Lives Matter movement is now the largest movement in US history." While racism exists and must be banished from our nation the pendulum has now swung to the extreme side. In this new light anything and everything is automatically "racist" today before even looking at the facts. Every appraisal gap is now "racism."

American Enterprise Institute AEI actually did research to see if racial bias affects real estate appraisal values. Their conclusion was NO, it's not common or systemic. 99% of the time we appraisers don't know the race, color, sex, religion of the owners of the properties we appraise and use as comparative sales. 

Jillian White even stated to the media that racist white appraisers are the reason there are few black real estate appraisers. White states white appraisers refuse to have black trainees because they're racist. The actual problem is the trainee process and not "racist white appraisers." Appraisers don't want trainees of any color because they have nothing to gain and everything to lose. Hypocritical Jillian White doesn't even have trainees of any color. 

White stated “This idea that we’re (real estate appraisers) just strictly reporting on the facts, that isn’t true, because if that were true you wouldn’t need appraisers." This shows that White either doesn't understand real estate appraising or she's lying to the public for her own agenda. All Appraisers know Automated Valuation Methods AVMs (robots, algorithms) can't and don't accurately appraise real estate. AVMs don't see views, specific location, upgrades, condition, elevation, lot type... All these facts must be viewed and appraised by a human real estate appraiser. We don't currently have exact view, lot type, degree of remodel ... UAD codes to input into the form. The human appraisers see and report the facts such as type and degree of view, condition, upgrades... Should White even be a real estate appraiser if she doesn't understand the basics of appraising? Should White with these racist ideas, clear discrimination and bias be a real estate appraiser? If a white appraiser were to state these same things but about black, Latino appraisers, they'd instantly be cancelled. In fact AI stated they want to take action against racist appraiser Dave LaVigne because of racist language. Perhaps they should take action against White. White has stated these racist things in her professional capacity. 

Jillian White was a real estate appraiser and agent just like me. We are numbers, math and statistics people. White knows these things she stated are false yet she promotes them for Better mortgage as a form of "diversity" marketing and exposure in the media. That appears to be her real job at the company as she mainly attends meetings to promote these falsities to the public and government agencies. Now that Better is soon going out of business White continues to promote this false narrative at government meetings and presentations to promote herself for a future job after Better goes out of business.

The purpose of promoting the false "racist white appraiser" narrative was to promote Better as "diverse and non-racist." Better had promised to train, hire and use diverse appraisers but they have not done this. This was in fact Jillian White's original job at which she failed. Instead Better fired 900 people December 2021. 2022 they fired 3,000 more. Currently they're asking people to just plain quit.

Better began failing during a huge run up in refinances. Any idiot company could have been successful during this time yet Better was failing last year. March 8, 2022 Better fired 3,000 more people. The CEO of Better's main goal is to go public and cash out. That appears to be his MO based on his last finance company myrichuncle which went bankrupt. 

There is a saying in large companies. When they appoint a lawyer or lower level employee as the head of the company or of a major department it's going out of business. The person was hired to ride the company into bankruptcy. High ranking employees have already been fleeing the company in 2019 and it's increased recently. Considering that Vishal Garg's last finance company went bankrupt then was sued for fraud by investors that appears to be the future of Better. 

White's main recent activity has been speaking at government meetings about "racist white appraisers." She has been the face of discrimination in real estate appraisals in the media. While she has an appraiser's license this is most likely the reason she was appointed to the TAF Board. TAF has given into political pressure to appoint this specific person. By doing so TAF is basically supporting the false narrative of the "racist white appraiser" which is beyond disappointing. I personally feel TAF is doing this just to quiet pressure from Maxine Waters and others who are calling for the end of TAF. While TAF would benefit from diversity I don't believe getting rid of TAF is the best course of action. 

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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Saturday, April 23, 2022

Mortgage Market Layoffs Due to Interest Rate Increases, Economy by Mary Cummins Real Estate Appraiser

layoffs, pink slips, firings, mary cummins, real estate appraiser, real estate, appraiser, appraisal, los angeles, california, wells fargo, better, jp morgan chase,interest rates, refinance, economy, mortgage market, home loans
layoffs, pink slips, firings, mary cummins, real estate appraiser, real estate, appraiser, appraisal, los angeles, california, wells fargo, better, jp morgan chase,interest rates, refinance, economy, mortgage market, home loans


In the past three months in the mortgage industry there have been more than 3,500 job cuts, according to globalsg.com. Wells Fargo just confirmed it recently laid off approximately 550 mortgage processors. This follows JP Morgan Chase, Homepoint Capital (10%), New Residential Investment Corp (NewRez 386 or 3%), Penny Mac, Knock, Movement Mortgage, Blend Labs Inc (200 or 10%) and Better who laid off 900 then 3,000 more recently. 

Wolfstreet.com reported that not only are layoffs among mortgage lenders taking place, but they will also continue. “Layoffs and forced resignations are certainly imminent in the mortgage banking industry,” said Dan Green, principal at BlackFin Group.

Most state the cause is the increase in interest rates, lower demand for refinances and the real estate economy overall. This of course means fewer appraisal orders for real estate appraisers besides other mortgage related industries such as title, insurance and escrow.

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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Friday, April 8, 2022

Vishal Garg, Better Mortgage, better.com - Uncertain Future, Rising Interest Rates, Lawsuits by Mary Cummins

vishal garg, better.com, better mortgage, bankruptcy, lender, lawsuits, lies, firings, mary cummins, real estate appraiser, los angeles, california, going out of business, Photo: Wikipedia, Scott Rosenthal

Vishal Garg an Indian American entrepreneur and CEO of Better Mortgage (better.com) has a mixed history in the world of finance. He's good at starting companies and raising funds. He's lousy at running companies and managing funds. His real job appears to be soliciting venture capital with brash hype. He seems to have only been successful making or keeping money for himself. His businesses have not been successful. 

In 2000 Vishal Garg started MyRichUncle with Raza Khan. The student loan company ended in bankruptcy and investor fraud lawsuits which are detailed in this Forbes article, "Mortgages, Fraud Claims and Dumb Dolphins." 

2014 Vishal Garg started Better Mortgage better.com an online only home finance company. Even with a new start lawsuits followed him. "Khan alleged that Garg misappropriated both funds (allegedly tens of millions of dollars) and proprietary software to launch Better.com, and a group of investors also filed suit alleging diversion of funds through a venture capital firm founded by Garg called 1/0 Capital." 

Vishal Garg was the CEO of a home finance company during one of the biggest refinance booms ever. Anyone could make money and profits making home loans but not Better Mortgage which continued to lose money.  Better secured millions in capital investment from Goldman Sachs. Later SoftBank bought $500,000,000 worth of Goldman Sachs shares in Better. There were talks of an IPO. When the IPO talk fizzled a less desirable SPAC was considered. 

Better Mortgage ranked 18 in home loans in terms of volume. Better doesn't offer FHA, VA, USDA or home equity loans. They have a B rating from BBB because of customer service issues. The number of loans per loan agent is very low for the industry which means they aren't effective.

December 2021 Vishal Garg unceremoniously fired 900 people via a Zoom meeting. At that time Garg admitted that he "pissed away" $200,000,000 of investor funds through his many mistakes. Top Executives fled the company in response. March 2022 Garg fired 3,000 more people. April 2022 the company began asking employees to quit.  At the same time a real estate appraiser whose real job was diversity outreach was promoted to run Better+ which handles the title, insurance and inspections Department. 

Main investor SoftBank has suffered a pullback in investing because of the economy. Rising interest rates have reduced the number of refinances which was Better's main source of loans. All of these things taken together point to the coming end of Better Mortgage as we know it. 

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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Tuesday, March 29, 2022

March 29, 2022 Hearing "Devalued, Denied, Disrespected: How Home Appraisal ... by Mary Cummins

Devalued, Denied, and Disrespected: How Home Appraisal Bias and Discrimination Are Hurting Homeowners and Communities of Color, Maxine Waters, Mary Cummins, Tobias Peter, AIE, Fannie Mae, Freddie Mac, Andre Perry, PAVE Task Force, Committee on Financial Services, bias, racism


"Devalued, Denied, and Disrespected: How Home Appraisal Bias and Discrimination Are Hurting Homeowners and Communities of Color." Tobias Peter is doing a great job hammering home facts and actual research. Sadly some politicians are ignoring the facts and running with the fake research and misleading analysis by Andre Perry, Freddie Mac and Fannie Mae cited in the PAVE report. So is private activist group Fair Housing Alliance. It's clear they know they are hurting blacks, Latinos, poor people and single mothers with their actions. Government actions based on the false research is causing financial damage to poor people. Beyond sad and heartbreaking. Appraisers see the results of this. I appraised pre-foreclosure, foreclosure homes during the great recession. 

I'm taking notes best I can as I'm sick from a vaccination. Pics from the meeting which ran 10:00 a.m to 1:30 p.m. I'll post more later. Video below.

One thing which is abundantly clear is that some of the Representatives don't even know who some of the speakers are. They keep asking private AMC Dean Kelker why he/they don't recruit people in college to automatically be appraisers. He keeps saying they need a license and experience. They think he is part of the government oversight of the industry when he's not.

Maxine Waters is also losing her judgment. She thinks "Realtists" which are just members of the minority organization National Association of Real Estate Brokers should be allowed to be "assessors," think she means appraisers, with no education, license or experience whatsoever. It would be discrimination to allow only this specific group to be appraisers automatically. It also makes no sense and would violate federal and state laws yet she says she's going to do it.

Lisa Rice from the private organization the Fair Housing Alliance keeps citing Andre Perry's false and misleading paper like the bible. She knows it's false yet she uses it to promote her personal agenda which is funds, grants for her nonprofit. She doesn't care that she's hurting poor people and POC. 

Pledger Bishop of the private organization Appraisal Institute AI is being political. He keeps saying we're working on diversity yet he has nothing to show for it. Representatives keep thinking he's part of government. He's not. He has no power to do anything. 

Many Representatives just get up there and use their five minutes to promote themselves and their political campaigns. Many cite Andre Perry's false and misleading paper even though they've been given Tobias Peter's AEI report showing the actual facts. Home values are directly related to income. Certain socio-economic factors correlate with buying power such as income, credit score, marital status, having children under 18... As I've been saying people buy the homes they can afford in the areas they can afford. Appraisers, Appraisals don't set values. The market does.We merely report it.We most certainly do not devalue homes. AEI's report shows that appraiser bias, discrimination is not a wide spread or systemic issue. Home value is a math formula. 

Pledger Bishop, The Appraisal Institute, AI


Tobias Peter, AEI, American Enterprise Institute, PAVE report, research, Andre Perry paper debunked


Video 3 hours 31 minutes starts at 4 min 30 seconds

https://www.youtube.com/watch?v=vFMs5sTOHhc

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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Monday, March 28, 2022

Significance of Maxine Waters' Bill Fair Appraisal Act 2022 by Mary Cummins Real Estate Appraiser




Maxine Water's bill is about more than discrimination. It's also about the complaint process and changing the appraisal regulatory system. The Bill would remove states as the investigatory authority and turns it over to the federal government. If a complaint is filed, the federal government can ask for 24 months of all the appraiser's appraisals. Even HUD complaints only ask for 12 months. This is clearly huge pressure to meet contract price for the borrower even though we appraisers work for the lender. 

ASC stated that TAF isn't accountable to the public. All proposed changes to Standards and Qualifications are public and open for comment. TAF answers questions from appraisers and others for clarification. They are transparent and available.

Based on the Bill ASC will be given new powers and responsibilities when they have a limited track record. For the past six years ASC was supposed to make a national list of all appraisers giving them a unique number. They have received millions of dollars to help accomplish this task yet have never done it. Some appraisers have licenses in more than one state so you can't just add up all of the state licensees. AMCs pay a fee to ASC for each appraiser on their roster. Some appraisers are on more than one roster. ASC has received millions yet has not compiled the list. It makes no sense to give them even more power and responsibility.

It's important to know how many appraisers there are because of the current arguments stating there are not enough appraisers. Most feel the shortage of appraisers is actually just a shortage of appraisers who are licensed and willing to do appraisals for lending purposes. Many don't do lender work anymore because of all the new legislation and layers of extra work.

ASC has also failed to track the national complaint hotline. Now Waters wants the ASC to be in charge of investigating 24 months of appraisals in complaints. If ASC can't do the former, they clearly can't do the later. The Dodd Frank Act put ASC in charge of developing AVM standards yet ASC has not done this within the last 12 years. There is no reason to give ASC more responsibilities when they can't even handle their current responsibilities. 

Jim Park of ASC stated in congressional testimony last Thursday in front of the US Senate that Appraisers had “…driven up service times and appraisal fees to unacceptable levels….” top of page 3 https://www.banking.senate.gov/imo/media/doc/Park%20Testimony%203-24-22.pdf 

This is false. As an appraiser I received $300 for an appraisal in 1984. 1990 it was $350. It's still just about the same amount over 30 years later. Because of the Dodd Frank Act AMCs were mandated to be the middle man between lenders and appraisers. They raised the fees and now take a huge chunk. The AMC receives about $650-$1,800 and pays the appraiser about $350. The AMCs charge whatever they like then make appraisers bid for the assignment. They take the lowest bid and pocket the rest as profit. Dodd Frank mandated AMCs is the reason why fees are higher today. The fees paid to the appraiser have not kept up with inflation even though the amount of work required today is at least twice as much. 

Mr. Park made a discriminatory, ageist statement when stating old appraisers are hard to teach new information. I'm 55 and I always instantly embrace all new technology. I used one of the first laser measuring devices in the 1980's. I use LiDAR today. I ditched the typewriter and paper forms for computer software before any other appraiser I know. I had one of the first real estate websites on the internet in 1997. I had one of the first digital cameras. I use mobile appraisal software. I've tested the new 3D home interior scanners. I made my own computer program to pull MLS data in 1004 format in the '90's. Appraisers love new technology because it can make our job faster and better. We teach ourselves new tricks. 

HUD themselves are responsible for a shortage in the number of appraisers who can complete mortgage lending appraisals. After passage of the Housing and Economic Recovery Act of 2008 (HERA), the Dept of Housing and Urban Development no longer permitted the “Licensed” category of real estate appraisers to conduct appraisals, instead only the “Certified” category of real estate appraisers could complete appraisals for the FHA Insurance program. Before HERA passed, there were 30,286 Licensed Appraisers. Today, there are only 7,321 Licensed Appraisers, because the majority of lenders moved away from hiring Licensed Appraisers after HERA was passed.

HUD has never released documentation showing the number of alleged discrimination complaints against appraisers. Why is the cause of the lack of transparency? They claim to record every complaint they receive. They even release annual reports. Those annual reports have not noted instances of discriminatory appraisals. Why are they not disclosing discrimination complaints? It is likely because, up until last year, the number of complaints has been too few and likely dismissed. It is reported they have roughly 100 allegations currently, none of which have been resolved in the mandatory 100 days. Why are they holding on to the cases?

I was forced to send in multiple FOIA requests to get the results of investigations which I'm following here on my blog, i.e Austin v Miller in Marin, California; Carlette Duffy in Indianapolis, Indiana, Sanders Horton in Jacksonville, Florida and Cora Robinson in Oakland, California. This is the standard reply to my requests. They state I must get the complainant to sign a notarized statement with their name, date of birth, nation of origin, home address ... stating they agree to the release of the documents and information. Of course they will say no. I've been making FOIA requests for over 25 years and have never had a reply like this ever. Some appraisers and I are now contemplating fundraising to hire an attorney to sue HUD to get the results of the legitimate FOIA requests. In the meantime I appealed the FOIA denials. HUD also is the first agency to ever force me to make multiple initial FOIA requests for the same information. This is unprecedented lack of transparency and a violation of the FOIA. 

The ASC study was actually made by the advocacy group the National Fair Housing Alliance NFHA. They are a private non-profit organization. They were given $250,000 to study the Standards and Qualifications for appraisers. Instead their report is on the appraisal regulatory structure and TAF's authority. The ASC is responsible for monitoring the states and their enforcement procedures. TAF sets the standards and qualifications. Blaming TAF for ASC's failure of enforcement mechanisms makes absolutely no sense. 

No member of the ASB or the AQB was contacted or interviewed for the new Bill. There are errors in the report that Jim Park (ASC) would know are obviously incorrect, yet he let the study be published to support his narrative. The NFHA Advocates who authored the study indicated they had insufficient time to complete extensive research for this study, yet were able to draw conclusions, nonetheless.

All major legislation passed that affects appraisers has had a significant negative consequence to appraisers and the appraiser’s business. The appraiser community has not had a voice at the table to provide expertise about the valuation profession. I contacted every member of the PAVE Task Force asking to be involved, to attend meetings, to receive documents and communications as a Latino woman appraiser with over 35 year of experience. I didn't even get a reply. I was blocked from even being informed about what was happening. I'm now forced to send in another FOIA request just to get public information which should have been released.

While Jim Park was an appraiser he's not actively appraising today. He has no idea what appraisers deal with on a daily basis. Prior to the Dodd Frank legislation, there were appraisers willing to function as supervisors and the trainee/supervisor model was functioning, After Dodd Frank, most appraisers had to shut down their small businesses and become individual single-owner shops. Lenders, after Dodd Frank, largely stopped allowing trainee appraisers to inspect the property without the supervisor present, yet lenders will gladly hire third-party non-appraisers to collect data on the property. The lenders do not allow the trainee model to add value to an appraisers’ work. You cannot blame the appraisers for a system that does not allow a new generation of appraisers to be trained.

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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