Date: 
Fri - May 20, 2011

For What it's Worth
From independents to AMC's, nothing is the same anymore in the appraisal industry.

   George Heredia, VP and Chief Appraiser of Axios Valuation Solutions/ eMortgage Logic in Fort Worth, Texas, blames the current crowd of appraisers for launching what many argue could be the demise of the profession. "I see the profession still intact, albeit a bit shattered and bruised," Heredia write in a commentary about the profession. " But that has not always been the result of outside forces and much of our profession's ills are due to our own inability as appraisers to grasp market and business changes, embrace new technologies and have a collective voice at the highest levels of government."

Technology Improvements and  Fears

   Specifically, Heredia pinpoints the automated valuation model, an electronic appraisal that uses mathematic modeling, which he says have been constantly criticized for replacing the good, old-fashioned appraiser physically observing the property. However, his experience with the technology has been the opposite.

   In using an AVM, Heredia said appraisal timelines sped up and gave him more work. He was required to analyze the AVM output when making bulk purchase decisions, a job that involves thousands of loans. As data becomes more available, Heredia said the human appraiser becomes more important in analyzing AVM output.

   "The conclusion is that AVMs are not a product that should be feared because it provides a valuable tool to the appraiser reviewing appraisal work, as well as provides a solution to lenders, asset managers and others to make quick risk assessments that in turn may generate appraisal orders, "Heredia said.

 For the complete story, please visit Housingwire.com or HW May 2011 pg.72