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, February 3, 2022

Interview President Appraisal Institute Jody Bishop by Mary Cummins Real Estate Appraiser



https://www.youtube.com/watch?v=HaFfhOo1Edk&t=1830s

"Today’s (February 2, 2022) Buzzcast interview is with Jody Bishop, the new President of The Appraisal Institute. We sat down with Jody and Joan Trice, Founder of Allterra Group, LLC to discuss what the outlook for the Appraisal Institute is for 2022 and what appraisers can expect from their initiatives."

You can go to the video, click the three dots bottom right then view the transcript. Joan Trice JT asked the questions and Jody Bishop JB replied. Below are my notes.

JB: The AI Board couldn't get together until May for a few reasons I won't mention. We used a consultant to handle the meeting to be neutral. We have five top priorities: modernizing education and production, new technology and social media, develop plan to recruit and retain professionals, implement PAREA and develop diversity equity and inclusion action plan. It's time to work to meet our goals. We need a cultural shift to refuse other ideas so we can finish the top 2, 3 or 5 goals. Then we'll be successful.

JT: What about the diversity program?

JB: We already have some effort with the appraisal diversity initiative ADI. Someone gave $3M to the program for the next three years. The National Urban League held symposium to recruit women and POC. We gave grants for initial licensed education, textbook. We started a women's initiative committee a while back. Hope to have a plan by Q3. 

JT: Will AI be matching candidates with supervisors? 

They will take an AI class. We're working on PAREA. AI was given/gave? $500K to write a program on producing PAREA. We will have students do a robust case study. It will take them through an appraisal of a house. We will have mentors going through the program. They should be highly trained after process. (They will do only one home appraisal? Maybe they need to at least do one home, one condo, one 2-4 units?)

Commercial by AI. Become a member today! :-D Their membership has gone from 25,000 to 17,000 today. They've lost almost 30% of their members while their salaries, expenses and travel expenses have increased.

JT: What is your personal agenda, strategic plan?

JB: I have to give board information they need to make decisions. I have to make sure they don't get distracted with other items. We're working through a cultural shift. Other goals are better communication and messaging. 

JT: There is the clear report, appraisal subcommittee report, review of USPAP, Fannie Mae just launched their study on racial bias, PAVE report coming any minute. Any thoughts where PAVE will come down?

JB. We met with PAVE folks. We arranged for drive-by appraisal ride-along. They watched appraiser measure property. It was helpful for them. We're trying to educate these folks about what appraisers really do. They're discovering there's more to it than just the appraiser running amok out there. All these reports of appraisals but we don't have enough information to see what is really going on. We have a team that has studied various reports, Andre Perry's, Freddie Mac, AIE report. We're looking at Fannie Mae report. We looked at appraisal gap in Freddie Mac report. (He summarized their report per FM). FM looked at refinances.They compared appraisals to avm values. It really wasn't undervaluation going on. Maybe there was renovation work in white areas? They're going to look more. 

We're trying to educate about history of diversity, redlining, restrictive covenants... It's helpful to learn what happened in the past to understand the concerns today. 

PAVE will come out in a week or so. Clear study, ASC, looking at Appraisal Foundation as well. The most glaring thing is wanting to allow appraiser to be liable to the borrower. It makes me nervous too.

Commercial.  LiDar measurement. Remote evaluations. incenteram.com

JT: Should the borrower be intended user of report?

JB: It's concerning. You can be sued no matter what disclaimer is in the report (who is the intended user). It gives borrower power to go after appraiser. If we start adding onerous new regulations, liability, it could dissuade new appraisers. 

JT: You can't serve two masters. We don't give them cover to tell the truth. If the appraiser says property in bad condition, lender would put pressure on appraiser not to be honest. The borrower would be angry if appraiser is honest. If it's a hoarder house and appraiser states that, borrower would be insulted.

JB: We should not have flag words (such as hoarder). That's why codes Q, C are better. C4 is not hoarder. Your camera can take 1000 pics. Photos can save you the heartache. 

JT: I'm a fan of transparency but would be better for borrower to get a summary of report but not the report with the UAD codes which they don't understand. 

JB: Hybrids. The appraiser would not be influenced by anyone at the house. Appraisers don't see the borrower at purchase appraisal but may at refinance appraisal inspection. With hybrid there is no connection between appraiser and borrower. The gold standard for appraisal is full inspection, drive the neighborhood, see the comps themselves. That is the argument against AVMs. There is a push to AVM but want to enhance it somehow. The best thing to happen to appraisers is the Zillow news that AVMs are not accurate. The Zillow (failure) was great timing for the PAVE report, Joe Biden team weighing in. 

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
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Monday, January 31, 2022

Diversity, Equity and Inclusion Webinar Series: Revealing Relevance for the Appraiser Profession by Mary Cummins

diversity, equity and inclusion webinar series, revealing relevance for the appraiser profession, mary cummins, real estate appraiser, los angeles, california, freddie mac, asa, ai, bias, january 31, 2022, robbie wilson, david doering, danny wiley, johnnie white, scott reuter, uad form,
diversity, equity and inclusion webinar series, revealing relevance for the appraiser profession, mary cummins, real estate appraiser, los angeles, california, freddie mac, asa, ai, bias, january 31, 2022, robbie wilson, david doering, danny wiley, johnnie white, scott reuter, uad form, 


Leading Real Estate Appraisal Organizations Come Together to Present a New Series of Webinars on Diversity, Equity, and Inclusion

Dec 14, 2021 ASA, Appraisal Institute (AI), American Society of Farm Managers & Rural Appraisers (ASFRMA), International Association of Assessing Officers (IAAO), MBREA, and National Society of Real Estate Appraisers (NSREA) have come together to present a new series of webinars on diversity, equity, and inclusion.

The first webinar, entitled “Revealing Relevance for the Appraiser Profession” will air Monday, January 31, 2022 from 1:00-4:00 PM ET. Registration for the first free webinar is available at: http://bit.ly/30CLfNb

Presenting experts David Doering, ASA, IFA, Robbie Wilson, ASA, RA, SRA, Scott Reuter, and Danny Wiley, SRA, will discuss the details of the Freddie Mac study, including questions/points from the research and what appraisers can do in light of the research findings; as well as how the three approaches of value inform an opinion of value; how comparable sale selection can lead to inadvertent effects on the opinion of value; and how neighborhood or market area determinations are made, and how this definition can cause inadvertent negative impacts.

Webinar Speaker Panel

David Doering, ASA, IFA, Missouri Property Appraisal, Inc.

Danny Wiley, Freddie Mac 

Robbie Wilson, ASA, RA, SRA, Advance Appraisal Group, Appraiser Instrutor.

Scott Reuter, Freddie Mac

This webinar will award 3.0 ASA continuing education hours. This webinar has not been approved by any state appraisal board for real property continuing education hours. A copy of the webinar video will be posted here when available.



Below are my personal notes from the three hour webinar. There were three main parts then Q&A at the end. Johnnie White of ASA was the host of the webinar. Left to right, top to bottom, Robbie Wilson, Johnnie White, Danny Wiley, David Doering, Scott Reuter. 

Left to right, top to bottom, Robbie Wilson, Johnnie White, Danny Wiley, David Doering, Scott Reuter.
Left to right, top to bottom, Robbie Wilson, Johnnie White, Danny Wiley, David Doering, Scott Reuter. 


1. Dave Doering and Scott Reuter were the first speakers talking about the Freddie Mac study. Scott Reuter wanted to clear up a few things. In the desktop appraisal there is a "floor plan" instead of a "sketch." The appraiser doesn't do the floor plan or sketch. It's provided by other sources. The desktop appraiser stays at their desk. Hybrid appraisals are basically a desktop appraisal with someone else providing some of the data for the property. 

Scott Reuter, FreddieMac: Typically we are going to use closed sales transactions which are going to lag current trends. We're not here to beat you (the appraiser) up. (He was referring to the Freddie Mac paper about appraisal gaps.) We have made no conclusions stating there is bias in appraisals. We are just seeing different results from different areas. 

While reviewing appraisals we noticed that currently there is about an 18% appreciation rate yet appraisers are only adjusting 5-6%. (My comment. We still can't go over the highest closed sales so even if we adjust for a full 18% appreciation, it won't change the final value. Maybe it will at least appease the borrowers)

There was an issue of language in reports. The two problems are discriminatory language which you just can't use and subjective language. What does "desirable neighborhood" mean anyway? It's vague. All areas are desirable or they wouldn't exist. Instead you can say the median price in one area is higher than surrounding areas.
















2. Robbie Wilson. Understanding the Three Approaches to Value. It was very difficult to understand what he was saying. I put in both ear buds, upped the volume, leaned forward and still had a problem. All the other speakers were very clear and understandable.

He explained value and the three approaches to value as if the viewers were not appraisers. He said appraisal technique has nothing to do with bias. Only people can be biased using the technology and methods just like the saying 'guns don't kill people. People do.' (Appraisers kill people? Not the best analogy. Now I realize why he posted a disclaimer at the beginning of his presentation saying everything is his own personal opinion only.)(Previously people were saying that the sales comparison approach/method was biased against black people because it relies on the sale of similar properties in similar areas. Andre Perry said this. Others said the resultant values were a product of redlining from years ago. Glad to see that Robbie doesn't agree with that idea.)

We need to do something about racism because of money. TAF said they would do something but they've done nothing. Redlining comes from these same government agencies. There is a mountain of evidence of systemic discrimination in housing. Everyone backs me up. Some are saying appraisers are not biased. Appraisers are biased. We need to kick them out. (He had 49 slides. Here are a few)















Robbie said maybe a sign like this hanging in the office would help. (Who has an office where a borrower would see it?)






3. David Doering, Residential Appraiser. Appraisal Considerations in the Selection of Comparable Sales.

Our current regulations already preclude bias. It's an ethics violation. Definitions of objective and subjective bias. USPAP regulations preclude being subjective. They are now including protected characteristics besides just protected classes. Protected characteristics are for example gender expression. 

There have been numerous isolated incidents of bias in the media. We don't know cause but it's a matter of public awareness. 

Everyone knows the three major determinants of value are location, location, location. You can use comparables from a similar neighborhood if needed. A subdivision is not a neighborhood. You can use comps outside of the same subdivision (I missed a few minutes)















Q & A

To Robbie Wilson: Q: Can an AVM be biased? A: The program writer can be biased. 

To Danny : Q: Will appraisers be involved in the UAD redesign? A: They already are. 

To Danny: Q: What is the difference between the sketch and floor plan? A: Interior walls must be drawn in floor plan. Appraisers don't do the floor plan. It comes from someone else. The redesign of the UAD form will come out 2024. The last redesign was 2005.

To someone: Q: Are property data collector standards being developed? A: I'm sure they are. (He didn't understand question about hybrid data collectors so Danny answered) Danny: I think he's talking about hybrid data collectors. We have data standards and training requirements. They're not Uber drivers and delivery guys. We are testing our data standards. 

To Robbie Wilson: Q: Any advice to anyone falsely accused of being biased? A: Facts will exonerate them. 

Danny answering above question. Your workfile is your friend. 40% of the time (in investigations) appraiser didn't have a true copy of the final appraisal report. They didn't save the last copy, version.

To Robbie Wilson: Q: There are not that many female appraisers. How can we get more female appraisers in the profession? A: Recruiting. 

I'll post the link to the video of the webinar here when it's available. 



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
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