Appraisal Institute Board of Directors Tried To Sneak Sham Bylaw Changes Past Membership

January 6, 2021 | 12:26 am | Investigative |

Back on December 4, 2020, I wrote about the sham bylaw change being floated by the Appraisal Institute to avoid the embarrassment of the recent sham election process: The Sham 45-Day Bylaw Modification Process To Keep Jim Amorin’s Sham Petition Process Explained

To rush this through, the Appraisal Institute Board of Directors meeting is being held Wednesday, January 6th with sketchy notice.

Don Boucher, SRA and Jennifer Marshall, SRA, AI-RRS came through for membership and forwarded notice of the meeting. – send Joan an email requesting the login as presented below

_________________________________________

Dear AI Professional,

We hope that 2021 will be a happy, healthy and prosperous year for you!

Sorry about the late notice but we wanted to make sure that you know about and request an invitation to the Special Board Meeting on January 6th at 3 EST. At the Meeting, the Board will be discussing and voting on changing the Bylaws based on the recommendations in 45-Day Notice on VP Election Process and memberships comments. To request the link to attend the meeting please contact the Board Secretary, Joan Barngrover, at jbarngrover@appraisalinstitute.org.

Thanks for continuing to be proactive and staying involved.

Regards,

Don Boucher, SRA and
Jennifer Marshall, SRA, AI-RRS

_________________________________________

Everyone who reads this post and who is a member of the Appraisal Institute should attend the virtual board meeting. As members, you have the right to log in to the meeting. Here’s how:

_________________________________________

Thank you for expressing your interest in attending the Special Board Call, January 6, 2:00 pm CT.

Following is the GoToMeeting connection information to observe this meeting. Please mute your phone when entering the event and please do not share your webcam. You will want to log on at least five minutes early as the meeting will begin right at 2:00 pm CT.

Please join my meeting from your computer, tablet or smartphone.
https://global.gotomeeting.com/join/876886637

You can also dial in using your phone.
United States: +1 (571) 317-3122
Access Code: 876-886-637

New to GoToMeeting? Get the app now and be ready when your first meeting starts:
https://global.gotomeeting.com/install/876886637.

_________________________________________

These changes being floated are so blatantly corrupt that it is beyond unethical. The purpose of these proposed bylaw edits to the existing bylaws will enable FOJs (Friends of Jim Amorin) to keep their own exclusive club paid for by the membership with salaries at 2x the market rate, first-class travel all over the world including wives and friends, and cornering control of lucrative teaching stipends as they have for the past 10+ years.

As a further sign of the lack of transparency, notification of the board meeting to vote on these sham maneuvers wasn’t adequate. Some members only received notice today (Tuesday) for a board meeting on Wednesday. The cynical me believes that this meeting was timed to occur at the moment there will be a massive global media circus in Washington, D.C. (Wednesday) to decide whether to confirm the state results in the federal election. In addition, it is three days into the New Year and they were clearly counting on rushing this under the radar before people wake up from their holiday grogginess. This is a strategic move pure and simple – to continue to wrestle control of the organization from membership and it marks the beginning of the end of the Appraisal Institute.

All eyes will be on the new AI President-Elect Rodman Schley, MAI, SRA at the Board of Directors meeting – who has created a favorable reputation with the membership as someone who believes in transparency and has showed signs of pushing back against the FOJ pillaging of this once-proud organization.

This is Rodman’s moment – if he allows for these sham changes without a fight and hides behind the use of “executive sessions,” he will be just another annual decorative rotation in the Presidential position – Jim Amorin’s posse gets to keep running AI National into the ground until it takes its last breath (in about 5 years).

Incidentally, I’ve been told a member has reached out to the Illinois State Attorney General for their interpretation of “executive sessions” as a tactic used by the Board of Directors to hide their actions – apparently it is not permissible because Illinois is an open session state.

At the end of the year, in the middle of the holidays, 76 Appraisal Institute members signed and sent a letter to their Board of Directors outlying what was wrong with the suggested bylaw changes in the 45-day notice letter. To wrangle 76 members in the middle of the holiday season in late December represents how upset these members were. All the signers are heroes as far as I’m concerned who care more about the future of the Appraisal Institute than its executives do.

Here it is:





Here are my thoughts on yet another sham election maneuver to ensure the continued corruption of The Appraisal Institute:

  • Any member of the Board of Directors who votes for these changes is corrupt and should be removed from their position immediately. They are in favor of self-dealing and not membership. The BOD should not be afraid to hide their votes.

  • The proposed changes are being made to enable CEO Jim Amorin to override the NNC after they thoroughly vet a candidate proposed from membership like they tried to do to Craig Steinley and failed because of the membership uproar. These bylaw edits are being made to tidy up the loopholes to make it happen next year.

  • The 6 year period to lockout executives after NNC membership should not be reduced to 4 years because it makes it easier for FOJ’s to self-deal.

  • To raise the 20% board member vote requirement to 30% is a pure sham. I believe most organizations require a supermajority to override. My goodness, the absolutely embarrassing procedure to insert FOJ Tankersly instead of the NNC’s Steinley thoroughly vetted nomination because Jim asked him to is unconscionable. Unconscionable that it was proposed and that Tankersly gladly accepted.

  • This bylaw edit more easily enables the Board of Directors and the executive team to publically smear and shame a vetted candidate who won. Guess what happens? Quality candidates won’t apply anymore. Only FOJs.

  • This bylaw edit is clearly an act of misconduct by the board. It is a blatant abuse of power and board members who vote for these edits could very well have legal exposure in the future.

  • “Executive sessions” or voting in secret is unethical – if you have to hide how you voted, then something is wrong with your motivations – you see yourself as answering to Jim Amorin and not the membership – you can’t have it both ways.

  • The proposal to ban any input on a candidate is bizarre and reflects the AI’s drift towards irrelevance through self-isolation. Elected officials, competing trade groups, regulators, etc. should all be relevant to weigh in on the quality of a candidate. This proposed edit essentially dictates that a candidate has to get recommendations from FOJs for an application. Incredible.

  • Finally, this bylaw edit is not being done for the membership – it is being done for FOJs exclusively. Imagine Jim Amorin explaining his edits in a public meeting – membership would be booing and throwing beer cans at him for the basic audacity of it.

Over the last decade, the Appraisal Institute went from 27K members to 17K members. That’s a 37% drop, trailing basic U.S. credential trends over the same period. What’s AI National going to look like in another decade with only 7K members?

The membership needs to apply the heat to the Board of Directors NOW. I’m also waiting for a board member to step up and get state and federal law enforcement to look at the sham election maneuvers as evidence of corruption.

My goodness Board of Directors, are you there only to pad your resume, or are you there to uphold the responsibility of the position? If you do nothing but go along then you’re just as corrupt as the FOJs.

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Peak Suburb Has Passed

December 28, 2020 | 2:22 pm | | Explainer |

The New York Times got the market nuances right in their epic end of year The Real Estate Collapse of 2020.

And including epic charts makes it even better.


I noticed that the Streeteasy median rent chart used in the piece shows the same pattern as my recent chart in Bloomberg. That drop in rent is gigantic.



[Source: Bloomberg – click image to open article]

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TRD Quick Question: Jonathan Miller “What’s Happening in the NYC Real Estate Market?”

December 28, 2020 | 1:51 pm | | Explainer |

I recently completed a quick interview with Stuart Elliott, Editor In Chief & CEO at The Real Deal who asked me questions with a uniquely mellow intensity. The Real Deal is required reading for anyone in the real estate profession or interested in real estate. Fun.





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NYT Real Estate: Signs of a Manhattan Rental Market Recovery

November 21, 2020 | 12:49 pm | | Charts |

This weekend’s New York Times Real Estate Calculator column provides a visualization of the recent rental market results in The Elliman Report: October 2020 Manhattan, Brooklyn & Queens Rentals

The Manhattan changes were the most interesting to me – record highs set for the vacancy rate, concession market share, concession amount, yoy% change in median net effective rent overall, studio, 1-bed, & 2-beds. Yet we saw for the first time in fourteen months, a jump in YOY% new lease signings and the highest October new lease signing total on record.

The significantly weaker rental market final hit a point that caused demand to begin to flood back into the market.


[click to open article]

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With All That PPP And Without All That Travel, The Appraisal Foundation Doesn’t Need A Grant From ASC This Year

August 19, 2020 | 1:36 pm | Investigative |

This post previously appeared in the August 14, 2020 edition of Housing Notes. I’ve been writing these weekly summaries on housing topics for more than five years. To subscribe for free, you can sign up here. Then you can look forward to each issue every Friday at 2pm New York Time.

The TAF decline in credibility keeps on coming…

After the recent letter debacle where the Appraisal Foundation (TAF) opined falsely that Title XI did not permit the Appraisal Subcommittee (ASC) to provide oversight on TAF, we now have a letter from TAF essentially saying they are making so much money that they don’t need a grant this year from ASC. Who is writing all these letters? It can’t be Dave.

[click for full pdf]

In other words, because TAF saved so much money from not being able to fly around the country during the pandemic, they don’t need ASC Grant money this year. From this point, it’s only a hop skip and a jump to saying they don’t need the grant money so therefore they don’t need oversight. And grant money comes with “strings attached” – that the money used from a grant had to be accounted for to the ASC. And if TAF doesn’t need oversight this year, what is to stop them from raising USPAP related fees and stop collecting grant money forever? The conspiracy theorist in me is starting to worry about that aspect of this new more forceful tone out of TAF these days against any oversight.

No Grants = TAF + PPP

Why would the TAF turn down the annual grant process but still have the need to request PPP? What is the hardship they are declaring when they are saving hundreds of thousands in travel costs that are already questionable in their scale?

My appraisal firm in Manhattan applied for PPP because our business collapsed more than 90% almost immediately for two months. It enabled us to survive. I would think it would be obvious to TAF that their $626,000 annual travel expense would collapse. What other revenues would be sharply curtailed in the new online world?

That’s why Jeremy Bagott, MAI, AI-GRS, the Cosmic Cobra guy, issued this press release on July 6th:


* * * FOR IMMEDIATE RELEASE * * *


WITH MILLIONS IN CASH AND STOCKS, APPRAISAL FOUNDATION HAULS IN CARES ACT RELIEF

(LOS ANGELES, July 6, 2020) – Over the years, the tiny, publicly funded Appraisal Foundation has built up a large reserve in cash and publicly traded equities. Its war chest grew from $3.6 million in 2010 to $6.5 million in 2018, the most recent year its IRS Form 990 is available. Its Cause IQ peer nonprofits had nothing like it in their reserves. Despite this burgeoning pot, it has continued to receive public grant money each year from state-licensed appraisers via the mandatory National Registry Fee. In early July 2020, it was learned that, despite wielding this hefty reserve and its guarantee of annual public grant money, the nonprofit also applied for and received CARES Act relief through the Small Business Administration of between $150,000 and $350,000. This is money that could otherwise have gone to struggling mom-and-pop appraisers hurt by the pandemic.

From 2010 to 2018, the nation’s licensed appraisers paid the 14-employee organization more than $6 million through the mandatory National Registry Fee. The group then parlayed that subsidy into more than $27.6 million in publishing revenue extracted from the same captive appraisers during that time. It has copyrighted the publicly subsidized materials and granted exclusive online course rights.

In 2017, the foundation paid its top officer more than $760,000 in an internal retirement-plus-salary deal that effectively doubled his pay from the previous year. For 2018, trustees paid him $414,000 – less than the previous year’s haul but still more than twice the salary of the chairman of the Federal Reserve, who oversees 20,000 employees and the nation’s central bank.

These issues would be no one’s business were this organization not receiving guaranteed annual public grants, tax-exempt status and allowed to wield a government-authorized publishing franchise and contracts with the U.S. Department of the Interior and Department of Justice – and it is now receiving PPP money. A congressionally authorized federal contractor with guaranteed public grants is not what lawmakers had in mind when they passed the CARES Act, which includes the PPP program.

During this pandemic, expect to see licensed appraisers further weakened with fewer options and higher license upkeep costs. Expect the nonprofit to further leverage its copyrights – the development of which appraisers pay for. It is now receiving CARES Act relief. It has never let a good crisis go to waste.

If you’re frustrated, here’s something you can do right away:

Email Mark Abbott, Grants Director at the Appraisal Subcommittee, at Mark@asc.gov and James Park, its Executive Director, at Jim@asc.gov and tell them you want the Appraisal Foundation’s next grant to be reduced by whatever public funding the foundation has received from the CARES Act during the pandemic and its reserves of cash and publicly traded securities, which totaled $6.5 million as of its most recent IRS Form 990. The $40 National Registry Fee paid by appraisers each year ($80 at biennial license renewal) needs to be rolled back by a commensurate amount to provide relief to appraisers. The waste and abuse going on at this tiny nonprofit is being underwritten by the public and it needs to stop. Please cc Arthur Lindo at the Federal Reserve at arthur.lindo@frb.gov.


    • *

About “Dispatches from the Cosmic Cobra Breeding Farm”: The culmination of two years of research, a new book illuminates over-the-top spending and questionable dealings at the familiar Beltway nonprofit. Published just before the pandemic, it chronicles international jet-setting by officers and trustees, conflicts of interest, lobbyist tie-ins, outsized cash reserves and swollen pay at the tiny nonprofit. The book is available at Amazon in paperback and Kindle versions. You can read more about it on the book’s Amazon page.

The Appraisal Foundation’s IRS Form 990 may be viewed online at Propublica’s Nonprofit Explorer. To find it, Google “Propublica Nonprofit Explorer” and type “Appraisal Foundation” into the search box and follow the links.


# #


Here is another email from appraiser Jeremy Bagott (The Cosmic Cobra guy). Bold my emphasis.


Dear Colleague,

Thanks to the Small Business Administration’s data release on July 6, a few news outlets are working doggedly to expose organizations that, with dubious need, have applied for and received federal PPP relief. Ryan Tracy of the Wall Street Journal recently wrote about double-dipping by state highway contractors in Florida who applied for and received PPP relief despite holding government contracts unaffected by Covid. You can read the story here (but you’ll have to get past the Journal’s paywall).

A rogues’ gallery of organizations that have applied for PPP relief include Harvard University (with its $39 billion endowment), the Los Angeles Lakers of the National Basketball Association (with its reported $3.7 billion valuation) and, yes, the congressionally authorized Appraisal Foundation. The former two were shamed into giving the money back once the matter was made public.

Unlike Harvard and the L.A. Lakers, survival of the Appraisal Foundation and its paid panels is literally guaranteed in a federal statute. The statute mandates its guaranteed annual government grants. The making of the grants is part of the Appraisal Subcommittee’s charter. According to its IRS Form 990 for 2018, the most recent available, the Appraisal Foundation spent $626,000 on travel that year. (If past years are any measure, some of it was on international junkets for top officers and favored trustees.) It no longer has that travel expenditure due to the pandemic. The foundation also had $6.5 million in cash and publicly traded equities, according to its 2018 tax form. Why did it apply for between $150,000 and $350,000 in PPP relief?

If you now google “Appraisal Foundation” and “PPP,” the top hit is a CNN Politics site that identifies the Appraisal Foundation as a nonprofit that has applied for and received PPP funding. You can see it here. The Wall Street Journal and CNN are doing God’s work in this respect.

If you’re frustrated, here’s something you can do right away:

Email Mark Abbott, Grants Director at the Appraisal Subcommittee, at Mark@asc.gov and James Park, its Executive Director, at Jim@asc.gov and tell them you want the Appraisal Foundation’s next grant to be reduced by whatever public funding the foundation has received from the CARES Act during the pandemic and its reserves of cash and publicly traded securities. The $40 National Registry Fee paid by appraisers each year ($80 at biennial license renewal) needs to be rolled back by a commensurate amount to provide relief to appraisers during the pandemic. The waste and abuse going on at this nonprofit is being underwritten by appraisers (who are also voters and taxpayers). It needs to stop. Please cc Arthur Lindo at the Federal Reserve at arthur.lindo@frb.gov.

Best regards,



Jeremy Bagott, MAI, AI-GRS
jbagott@gmail.com


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The ‘Urban To Suburban’ Narrative Is Really ‘Manhattan To Suburban’

August 19, 2020 | 1:26 pm | | Charts |

This post previously appeared in the August 14, 2020 edition of Housing Notes. I’ve been writing these weekly summaries on housing topics for more than five years. To subscribe for free, you can sign up here. Then you can look forward to each issue every Friday at 2pm New York Time.

The New York Times created a terrific graphic on our Elliman New Signed Contract Report by illustrating the performance of Manhattan and Brooklyn versus Westchester County. Brooklyn’s sales market performance is closer to Westchester than it is to its city counterpart.


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Quid Pro Quo: The Right Candidate Got Elected And Corrupt Leadership Got To Keep Their Sham Election Maneuver

August 8, 2020 | 6:19 pm | Investigative |

Yesterday’s AI Public Airing Of The Sham Election Process was a dark day for the institution but a bright day for the good guys. The actual selection of Craig Steinley after he won the national nominating committees’ endorsement took literally thousands of members to apply pressure to the BoD. Thankfully it worked.

However, in order to enable the Board of Directors to do the right thing, they got to keep the sham petition process in place. Membership will have to go through this all over again next year and every year that Jim Amorin stays as CEO. Look for Tankersley to shame himself again next year.

The feedback I received from membership who watched this carnival was patently negative. The Board of Directors meeting came across as disorganized, tech-averse, and embarrassing. At the moment, they have shown they are clearly not our industry’s leader.

The presentations by Tankersley and Steinley couldn’t have been more different.

Tankersley

First, Tankersley’s bloviating about how tight he is with the board was really awful. I still can’t get over that someone with his credentials doesn’t appear to have any shame for agreeing to be a player in the sham petition process. It’s only purpose is to overrule the vetting by the NNC so that Amorin can get his lackey’s in. At no time in the five weeks, I’ve been chronicling this debacle has AI Leadership provided a specific reason for the need for this sham petition process.

Here were a few nuggets from this Amorin lackey.

“Times like this bring out the best in people or the worst in people” LOL

“Open your eyes to what the possibilities are for this organization” LOL

How embarrassing.

Tankersley emphasized he is a team builder which is obviously false for the fact he is a candidate in this sham election process. He wants to expand the education delivery yet that ship has sailed. He wants to examine the financial structure to which I ask, why? The whole purpose of this sham election is to keep the yes-men like him in the pipeline so they can travel first class with wives, friends, and family around the world. The lack of ethics here is absolutely unconscionable.

It should be noted that Tankersley criticized Steinley directly which revealed that he is not a teambuilder. The feedback has been that the Execs/BOD gave him pure softball questions so he could answer them and even with that, he was cringe-worthy.

Steinley

Why bother going into details? The man was relaxed and the consummate professional. His performance was clearly proof as to why he was selected by NNC over Tankersley. He is what the Appraisal Institute needs to finally get AI National moving in the right direction.

Steinley was announced as the winner by the Appraisal Institute yesterday:


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THE CON Episode 1 Debuted This Week And It Was Compelling Because Good Appraisers Lived That Hell Too

August 8, 2020 | 6:15 pm | TV, Videos |

Although I’ve shared the following CNBC clip before, it’s worth showing again given my 15-year ago hairstyle. In 2005, I was interviewed by CNBC in the midst of the Housing Bubble and said that 75% of the appraisals being done then weren’t worth the paper they were written on (hey it was 2005 and they were done on paper, not pdf). They found me because I had just started my Matrix Blog because no one seemed to be listening to appraisers. Incidentally as of this week, Matrix is 15 years old!!!

And the October Research stats presented indicating that 55% of appraisers felt pressure to hit the value rose to 90% in the next year! The outlook was dire.

When I was interviewed, I was trying to keep it together because I assumed my business and my livelihood would be gone by 2008 if things continued. Thoughts about supporting my family of 4 sons and making my mortgage payments loomed large, but I couldn’t be morally flexible unlike many of my local peers who thrived as a result. Most lenders and mortgage brokers didn’t care about valuation quality, just hitting the numbers to make the deal. The appraisal profession became seen as one of “deal enablers” instead of neutral valuation benchmark setters. My big competitors at the time (who were part of the 75%), told me essentially: “Aw Miller, You Don’t Get It.” No, I didn’t. All my “75% competitors” during that era lost their licenses and/or went out of business after Lehman collapsed in 2008.


This is why this new documentary “THE CON” means so much to me. It tells the story that “good appraisers” like me and my firm have never been able to tell. Instead, good appraisers have been lumped in with the bad appraisers who are long gone.

Watch for my appearance along with several of my colleagues around the country in this week’s episode 2!

Think too much risk was the reason for the 2008 financial crisis? Nope. Unmitigated greed and systematic fraud are the real issues — and no one’s discussing them…. Until now. @theconseries is now available on virtual cinema: thecon.tv/watch #TheCon

Beginning now, you can watch entire THE CON series, episodes 1-5 through a network of independent cinema outlets.

Watch Last week’s Episode 1


The Previous Victim Of The Appraisal Institute Sham Election Maneuver Shares What Happened

July 25, 2020 | 5:25 pm | Explainer |

This post previously appeared in the July 24, 2020 edition of Housing Notes. I’ve been writing these weekly summaries on housing topics for more than five years. To subscribe for free, you can sign up here. Then you can look forward to each issue every Friday at 2pm New York Time.


Here’s a shoutout to Jim Amorin and Leslie Sellers as you are reading this right now – – here’s a refresher on Appraisal Institute history…

Like Craig Steinley, the 2007 victim of the unethical petition process I’ve covered over the previous two weeks, Anne L. Johnson was selected by the nominating committee to be Vice President after being vetted against a number of candidates. This sham petition process was implemented to get Leslie Sellers (he voted for himself after not making the cut with the nominating committee) on track to later become President and then led AI to exit TAF without a legitimate explanation – it caused me to quit and accelerated the deterioration of the once-great organization, essentially screwing its own membership by fostering its growing irrelevance.

To be clear, I want the Appraisal Institute to either thrive or get out of the way of the appraisal industry. This corrupt behavior is going to continue and the operations executives will keep overruling the voice of the membership, so that leadership can keep enjoying high pay and expensive perks, inappropriate to an organization that has lost a third of its membership over the decade, a steeper decline than credentialed U.S. appraisers. There is one thing they are doing now that should be good for appraisers – more on that next week. But any good continues to be overshadowed by current behavior that is corrosive to organizational credibility.

Unless this petition process is removed from the bylaws, the deterioration in credibility will continue.

To current Board Members, please pick one:

Are you:

A. simply sheep that sit on the board to pad your resume and remain afraid to make any move that gets the operational executives mad? or
B. an industry leader who knows right from wrong and can see the corruption right in front of you and are willing to do something about it to rebuild long-term organization integrity?

But I digress again…

Anne L. Johnson lays the situation out in her July 21, 2020 note that was sent in support of Craig Steinley, the current (only legitimate) nominating committee choice. I’m sure all board members are aware of this dark moment in Appraisal Institute history more than a decade ago and now is the time to start asking questions and demonstrate integrity. Fingers crossed.


So I’ve made my case. Now here is how members of the Appraisal Institute can take action NOW.

A plan of action has been laid out professionally by the North Texas Chapter and is not being critical of the Board of Directors.

Clicking on the image will take you to the CALL TO ACTION web site.


[click on image to go to the CALL TO ACTION link]

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The Appraisal Institute Has Missed The Opportunity To Come Clean With Its Members

July 13, 2020 | 9:35 am | Investigative |

This post previously appeared in the July 10, 2020 edition of Housing Notes. I’ve been writing these weekly summaries on housing topics for more than five years. To subscribe for free, you can sign up here. Then you can look forward to each issue every Friday at 2pm New York Time.

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UPDATE JULY 13, 2020

The Appraisal Institute felt it was necessary to write a letter to respond to my original July 3rd post: The Appraisal Institute Ignores Its Membership For Third Time In Sham Election Maneuver. Their response letter was surprisingly amateur and showed how little they respect their membership. Read on.


UPDATE JULY 16, 2020

I have just been told that Michael Tankersley did NOT serve on this year’s Nominating Committee. He was a candidate for the Vice President position. The note below has been updated to reflect that.


Although Steinley was the – SOLE – duly vetted and selected candidate of the nominating committee, somehow the board had to go through a secret, 6-out-of-24 “process” to place Tankersley back onto the ballot after not being the selection of the nominating committee. Why?

The Appraisal Institute at a crossroads. To all those who have nothing to hide, hide nothing. The sham petition process was hidden from the Appraisal Institute’s membership. In response to my initial call out of this sham election process last week, the Appraisal Institute attempted slip this by membership using a highly disrespectful “fogging” letter from the current president. It insultingly omits all the critical issues that have roiled membership while rambling on and on about process and assuming the membership isn’t very smart. No matter how much they try, AI leadership behavior in this sham election process is unethical and does not serve the membership whatsoever.

Here’s a reminder to the Board of Directors: you serve the membership, no matter who you pledged your allegiance to when you signed up for this gig. Please honor your commitment to them and your commitment to honor and integrity as leaders of the industry. For at least the last decade, this once-proud organization is a shadow of its past because of self-dealing from the same people we are witnessing now. It is up to you to do the right thing and act like the leaders you can be.

______________________________________________________________

Original Post

Today, all (I assume) members of the Appraisal Insitute received a letter from current AI president Jeff Sherman, with whom I’ve met and spoken with on several occasions during his tenure and liked him and what he represented. MAI members from around the country have forwarded it to me and expressed their profound disappointment in this organization that they used to love.

Here is the consensus feedback by members who received this letter.

It just makes me sad that this is the way it is. I think many of us are a bit dumbstruck by this.

I found the letter mind-boggling and a simply attempt to fog the issue at hand. I have to assume that this was written by AI counsel because it reads like a lawyer’s writing with a little softening from other parties. I will also assume this response was directed by the current CEO in an attempt to stop the viral membership backlash of the sham election process that has rattled the organization so he can continue to control who future presidents are. So I am very confused as to why Jeff signed off on this letter since its contents contradict what I have been told by past presidents, past board members, and current members. It hurt to read it.

For now, I am going to chalk this up to “fogging” so that the actual logic gets buried in the debris. This is how lawyers do this. By the way, has anyone ever considering sending the details of this action and the past ten years of self-dealing to federal prosecutors in the Northern District of Illinois? If this is how their executives run the organization, and all the perks I keep hearing about, it makes me wonder about the state of their finances. The handling of the FMC debacle comes to mind.

But I digress.

Here is my running commentary on the letter that is presented below:

  • This sham election maneuver has not been in place since 1991 – Ask the former president who made this happen (I have the name) under oath to get Sellers on the ladder in the first place and ruin the career of a star female nominee.
  • An 11 member nominating committee gets to vet candidates recommended by the membership to review and they are charged with picking the best one and then announce it. They vetted 3 this year and picked one. It’s literally that simple.
  • The winning candidate’s name was announced by the nominating committee.

And then magically…

  • The sham maneuver was made to get the CEO’s pick inserted which should never happen.
  • Tell the membership right now why there is a second candidate.
  • I’ve been told repeatedly that a board member can vote for themselves in the petition process and as of today, some current board members are fighting like hell to keep any such votes hidden from membership, presumably so potential self-dealing will not be exposed.
  • To repeat, one person was selected by the nominating committee and two weren’t. There is no disagreement on this. Why does the CEO get to pick a candidate that was not selected to run against the person who was selected?

Why are there suddenly two nominees without any transparency? This letter does not address this point at all yet it is the entire point. The rest of the letter is faux transparency. Give the membership the actual reason there are suddenly two candidates, one picked by the nominating committee and one picked by the CEO (and that CEO-blessed candidate should be ashamed of themselves).

  • As many as 3,000 members will get to watch the 10-minute presentations of two candidates – one vetted by the nominating committee and one hand-picked by Jim Amorin. The act of showing this on video isn’t transparency at all. It’s a charade. The most deceitful part of the petition process has already occurred before the camera was turned on. There is no explanation of how the second candidate was selected.

The fogging part that is most distasteful in this letter is that it is laden with process gobblygook but contains zero transparency, something the membership is demanding right now.

Here is the closing paragraph of the letter.

I now offer to you, and to each Board member, this is not about style or personality; it must be about the best interests of the Appraisal Institute. I have supreme confidence that the trust you have placed in your elected representatives will be confirmed, regardless of the person chosen.

The problem with this closing statement is this sham election process is not being done in the best interests of the membership, but rather it is being done in the best interests of the operational executives running the show.

This is truly a sad day for the Appraisal Institute. If the board does not fight for the rights of the membership and respect the selection process, then the organization as we know it is just a monarchy, largely like when it began to be a decade ago with the same cast of characters.

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[Spectrum TV/NY1] Stuy Town Vacancies Surge 7/6/20

July 7, 2020 | 8:34 am |

Michael Herzenberg of NY1 did a great story on the exodus from Stuy Town after the landlord provided terms for people to break their leases. The story was inspired by a press release from CHIP (I haven’t seen) which talked about the pandemic exodus as the reason for the rising vacancies. I thought that was a bit of hyperbole since the other key factor has been the inability of the real estate brokerage industry to do in-house showings by state mandate until June 22nd. The lack of mobility has also been a key factor in driving vacancy higher.

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[Bloomberg TV] Bloomberg Markets 7-6-20: A Busy Housing Market This Summer

July 6, 2020 | 5:17 pm | | TV, Videos |

Had a wonderful, nearly 7.5-minute conversation with Vonnie Quinn on Bloomberg Television’s Markets today discussing how the housing market will likely look over the summer. The interview touched on the analysis in the Douglas Elliman Report series I author.

Some ‘inside baseball’ fun. I was connected to Bloomberg via Zoom from my home for this. If you look closely at the 5:15 mark, you can see my garage door open as my wife drives in. My wife panicked when watching this clip, thinking she would be on TV as she walked out of the garage, but randomly ended up using the other door.


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