Creating A More Vibrant Mortgage Market
Southeastern Evaluation Team
The mortgage community has given a lot of thought lately to appraisal issues and the impact these issues have on our industry. Issues like appraisal turnaround time, rush fees, and the lack of potential new appraisers entering the profession continue to dominate the discussion.
If these ongoing issues are not addressed in a meaningful way, the mortgage industry as a whole will suffer. To shed light on these issues, the National Association of Realtor’s (NAR) Research Department, in collaboration with the Olinger Group, conducted a survey with more than 2,000 appraisers throughout the country.
Their insights are invaluable in understanding these issues and how the appraisers themselves are addressing these issues. “The work of an appraiser is indispensable to our industry, said NAR president William E. Brown. Appraisers provide the credible, outside opinion on a property value that agents, lenders, and ultimately the consumer depend on to guide them through a transaction. If the regulatory burdens holding appraisers back go unaddressed, the challenge of providing that timely appraisal will only get worse. We have to work together as an industry to clear the way for appraisers to continue doing their work while building an environment that encourages talented newcomers to get in the game.”
Key Takeaways from the survey include:
Training is a real issue: Few seasoned appraisers are doing it, and those who do often do so for no pay. One challenge highlighted is the unwillingness of lenders to accept appraisals performed in part by a trainee, as well as concerns with liability. Fewer than 20 percent of appraisers will train others.
Appraisers are working to address turnaround times: But, there’s less willingness to perform FHA/VA loans. Appraisers also complained of lower compensation from bank-owned asset management companies as opposed to work done for law firms, lenders, and independent AMCs such as Southeaster Evaluation.
Dissatisfaction with the profession is high as challenges with FHA, others persist: The average tenure of an appraiser hovered around 22 years, but roughly 10 percent of respondents said they may leave the field within five (5) years. Frustrations with regulatory burdens and insufficient compensation are the top two reasons cited for a desire to leave.
In total. 2,248 appraisers completed the survey. The survey specifically targeted appraisers who currently work in the field or have done so in the past year. It was conducted online during the latter part of January.
The survey respondents were both licensed and certified appraisers registered on the Appraisal Subcommittee list as well as members of the NAR.
Most respondents were either certified residential appraisers (72.4%) or certified general appraisers (20.3%). Licensed appraisers accounted for 8.1% or respondents. A majority of all respondents were field appraisers (81.4%).
The average age of respondents was 54.6 with almost half having earned a bachelor or higher degree and are mostly male (70.9%). You can view the NAR Appraiser Trend Studies here.