As a longtime reader of Housingwire, I always saw them as a great resource on the goings on in the mortgage industry. But lately, I grew concerned about the one-sided coverage as it related to my industry – residential appraisal.

HousingWire recently published an “appraiser shortage” blog screed that was tone-deaf to the problems facing appraisers. To their credit, Jacob Gaffney, the editor-in-chief, reached out to me for a rebuttal after reading all the negative appraiser feedback in the comments section. Rather than address specific failings of this piece, I opted to focus on current appraiser reality.

To start, the residential appraisal industry has a perception problem.

Read my full post on HousingWire.

Here is another thought on this appraisal shortage silliness. Not too long ago there was a webinar hosted by Housingwire that included some Powerpoint slides by one of the panelists, Matt Simmons. He is a Florida appraiser and former state regulator. He shared it with me and one of his slides is quite amazing. He matched mortgage origination volume with the federal registry of appraisers.

The finding?

The ratio of appraisers to mortgage volume has been higher since the housing bust than during the housing boom. While the chart only goes to 2015, both total origination and appraisers have changed little since then, so the ratio would remain stable, consistent with the post-financial crisis pattern. In other words, there are more appraisers now than there were during the Housing Bubble based on mortgage volume.

UPDATE Full Housingwire Blog Post with Comments [PDF]

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2 Responses to “[Housingwire] Hey 50-percenters, there is no “appraiser shortage” so knock it off”

  1. Someone else drank the koolaid

  2. Financial CHOICE Act says:

    Mic Drop! This is the most honest information that has been published on this topic so far!

    James Worden- What a great perspective to view and comment on what is happening on the lending side of this issue.

    Appraisers just want to be allowed to report an unbiased opinion of market value. They want to serve their clients and be able to compete in the fair market system. That ability was taken away the day that Dodd/Frank Act was put into place. That day the client to appraiser communication was taken away and that day was the day for the system to add a level of protection to the consumer by placing a firewall between the loan officer and the appraiser; however, what took place was a number of the large banks that owned AMCs set up the example of the terrible business model of taking a portion of the fee that the appraiser was supposed to be paid and called it the “appraisal fee”. That was the example for AMCs that would enter the market to follow. Don’t be transparent to the consumer and take as much of the fee as possible from the professional that is actually doing the appraisal assignments.

    Jonathan Miller- Please continue to turn on the light on what is happening to consumers every day!!