Recent Changes in Appraisal Industry
As we move further into the 21st century the appraisal industry, like most industries of one sort or another, has and will continue to change to meet the demands of the lending industry and society at large. Advancements in technology for example have helped to streamline various functions while rendering other practices obsolete. Here are some changes lenders and brokers should keep track of when engaging with AMCs in the future.
Reduction in Appraisal Certifications
The Appraisals Qualifications Board of the Appraisal Foundation has recently reduced the requirements necessary to be certified as an appraiser. This is in response to a shortage of licensed appraisers and the fact that the average age of appraisers is in the late 50s and getting older.
Some of the reductions include lowering the amount of college hours from 30 to zero as well as the amount of time needed for training while out on the field. These changes were the result of a three year process and became effective on May 1st, 2018; it’s our hope that this leads to an influx of new appraisers who will improve our reputation as an AMC by working directly with our clients while providing them the best service.
The Move Towards Automation
As stated earlier, technology has served as a double-edged sword for multiple businesses, providing both tangible benefits and potential downsides. Automated valuation models are gradually being re-implemented to help streamline appraisal reports which could have an impact on, and increasingly compete with, traditional appraising services.
As machines subsume much of the work that was once tasked to appraisers, the latter may have to adopt big data analytical techniques into the process in order to keep up with automated models. It may become a necessity as technology becomes further ingrained into our social and economic frameworks, thus maximizing our performance and turn times among other things.
Following the partial rollback of Dodd-Frank and the introduction of a new “registry” component, there is likely to be more pressure to consolidate and merge the various AMCs out there today. This will be especially apparent in the middle market as larger names in the industry appear to have cooled their demand for further acquisitions.
One of the changes resulting from the registry is an incremental fee for every panel of appraisers, which could affect small and large AMCs differently depending on the regulatory environment of the states where they reside. Trimavin stands out from the rest of the AMCs by embracing new technologies and methods of faster report deliveries as a part of our strategic calculus.
Some of these changes might seem startling at first and they very well may be, but could also lead to innovative approaches to the way we conduct business in the appraisal industry if we tackle them with the right mindset and perspective.