The National Appraisal Congress recently announced the formation of the Society of Young Appraisal Professionals, described by DS News as an NAC subcommittee focused on addressing the declining workforce in the residential valuation space.It is hard to imagine this story was not printed on April Fools Day.
They need a subcommittee to investigate the increasing shortage of residential appraisers?
Are the reasons not obvious?
Much, if not all, of the fault for the destruction of this industry, of which I am a professional in, stems from the passage of the Home Valuation Code of Conduct, a piece of punitive legislation spearheaded by the former Attorney General and now New York Governor Andrew Cuomo (D). This is a big government piece of legislation, heavy on regulation, most notably forcing those who order appraisals for lending institutions to utilize Appraisal Management Companies. These AMC's, most of which are partially owned or have fiduciary relationships with the banks, dictate the appraisal process, and sometimes the content, while "confiscating" half the fee.
As Ronald Reagan so eloquently stated, "I hope we have once again reminded people that man is not free unless government is limited. There's a clear cause and effect here that is as neat and predictable as a law of physics: as government expands, liberty contracts."
With the implementation of extensive government regulation of appraisers through the HVCC, the reduction of fees through mandatory use of AMC's and restrictions placed on the subjectivity of the appraiser, the risk of appraising in many cases has grown to exceed the reward.
It appears the free market has just officially informed us of just that.
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