Newz: AMCs, Appraisal Institute Is Accused of Cover-ups, Appraisal’s Perfect Storm
May 9, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: Can’t Complete Appraisal with Access Denied
- Choosing the Right Appraisal Management Companies (AMCs): A Guide for Appraisers
- Staggering $900K Glass Lake House in Oklahoma Surfs to the Top of the Most Popular Homes List
- Wildly Inappropriate Behavior’: Appraisal Institute Is Accused of Cover-ups
- 5-minute YouTube video, posted yesterday by Cindy Chance, former AI CEO regarding her lawsuit that was filed May 8
- Appraisal Institute’s Harassment, Tests, and Dance with AMCs
- #MeToo And Testing Fraud Applies To Appraisal Industry’s Largest Trade Group
- Pulte defends his authority as board chairman of Fannie, Freddie
- Upheaval at mortgage regulators leaves questions for lenders
- The Appraisal Profession’s Perfect Storm: A Veteran’s Take on a Dying Craft
- Mortgage applications increased 11.0 percent from one week earlier
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Choosing the Right Appraisal Management Companies (AMCs): A Guide for Appraisers
Excerpts: Today a large percentage of residential real estate valuations are coordinated by appraisal management companies. For appraisers, working with AMCs is almost a necessity.
Let’s look at how appraisal management companies work, the pros and cons, and—perhaps most importantly — how to choose the right AMCs to partner with.
Additionally, we’re sharing insights from appraisers who answered our survey question, “What’s your best tip for working with AMCs?”
How to choose the right AMCs
To prevent challenges and ensure smooth operations, it’s crucial to select the right AMCs. We recommend taking the time upfront to find a few good AMCs that value your appraisal expertise, then building relationships with that smaller group.
Use the following steps to choose the best AMC partners for your appraisal business.
Step 1: Find AMC candidates
Step 2: Investigate each appraisal management company
Step 3: Narrow your list to select the best AMC partners
Tips from Appraisers
- Prioritize communication
- Ensure timely delivery
- Be friendly and polite
- Get to know the AMCs and their practices
- Don’t sell yourself short
To read more, Click Here
My comments: Good article on AMCs. Worth reading. Includes appraiser comments. I wrote about how to evaluate AMCS in the monthly Appraisal Today. The most recent article, including a Client Rating Grid, is in the January 2025 article: “What are your best current and former AMC/lender clients?”
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Staggering $900K Glass Lake House in Oklahoma Surfs to the Top of the Most Popular Homes List
Excerpts: 2 bedrooms, 2.5+ baths, 2,650 sq.ft., 5,227 sq.ft. lot
The three-story, contemporary lake house with a glass-encased first floor is on the market in Oklahoma for $899,900, offering a “one of a kind” opportunity to enjoy unrestricted views of the water—courtesy of its see-through design.
The kitchen is massive & the island is large enough to accommodate 8 barstools-the adjoining living space has a large additional space Upper level is cozy and private to enjoy tranquility of your surroundings and views for days! The upper level boasts the second kitchen with 5′ long workstation sink with Bertazzoni appliances including a 48” gas range. Kitchen opens to a living space with amazing views!
To read more and see photos in the listing, Click Here
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Wildly Inappropriate Behavior: Appraisal Institute Is Accused of Cover-ups
New York Times
By Debra Kamin
Debra Kamin interviewed more than 20 appraisers and former staff members of the Appraisal Institute, and obtained a confidential legal settlement, text messages, emails and internal reports about testing materials.
The Appraisal Institute faces concerns that one of its leaders has a history of harassing women and that it did not disclose that some certification exams were incorrectly scored.
Cindy Chance, left, a former chief executive of the Appraisal Institute, sued the trade group on Thursday, claiming sexual harassment and retaliation. Her suit follows that of Alissa Akins, …, who says she was fired after blowing the whistle on errors in the tests used to train and certify appraisers.
All the harassment accusations inside the Appraisal Institute are against one man — Craig Steinley, 64, a former president and the current vice president of the trade group, who denied the allegations.
“There is a culture of sexual harassment, cronyism and good old boys,” said Sandra Winter, 62, who first joined the board of the Appraisal Institute in 2012.
The Appraisal Institute and Mr. Steinley did not immediately respond to requests for comment on the lawsuit on Thursday.
My comments: I subscribe to the New York Times and read the entire article. I included short excerpts but cannot include a link. The “fair use” rule of copyright law allows me to use brief excerpts. The article below by Jonathan Miller has a “gift” link to the full article.
As I have said many times, I am a member because my MAI designation is very valuable. Also, I have an excellent AI local chapter which is definitely pro-residential.
I don’t have a positive opinion of the AI (Appraisal Institute), which was formed from the merger of the American Institute of Appraisal (AIREA) and the Society of Real Estate Appraisers (SREA). I belonged to both organizations. AIREA was primarily MAIs. In the past, most res appraisers were wives of the MAIs. SREA was primarily residential. After unification, MAIs took over. Less was done for res appraisers and many quit, giving up their SRA residential designations. I am a former President of the East Bay Chapter of SREA. I really liked SREA. This current mess makes it much harder for me to remain a dues paying member. AIREA was and AI is definitely run by the “Good Old Boys”.
I started appraising in 1975. At that time, residential was considered “inferior” to commercial. It continues today at the AI. Cyndi Chance was very pro-residential. She was fired. I got the message. Few women have been AIREA or AI presidents. I got the message. The current AI president is a woman, Paula K. Konikoff.
After AIREA and SREA merged into the AI I was active on a national committee for about 6 months. I did not care for how the organization was run. Quitting the Appraisal Foundation in the past was the first bad move. Firing Cyndi Chance. The Steinley mess above. I am not at all surprised that the issues were not handled well by the AI. As a member, I have not heard any explanations from the Executives or the Board of Directors.
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Link to a short, 5-minute YouTube video, posted yesterday by Cindy Chance, regarding her lawsuit that was filed yesterday against A.I. & Craig Steinley. To watch the video, Click Here
Per the video “This is my statement regarding the influence of REVVA, the AMC lobbying organization, on the Officers of the Appraisal Institute based on their behaviors leading up to my dismissal.”
My opinion: The video is about AI and AMCs. There are many different opinions on all these AI issues. I don’t think any members know about what really happened. The AI Board of Directors has never provided any explanations to members.
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Appraisal Institute’s Harassment, Tests, and Dance with AMCs
April 9, appraisersblogs.com
Excerpts: The Appraisal Institute’s latest chapter is a double dose of harassment woes — harassment allegations rocking its leadership and the systemic harassment of appraisers by AMCs, all under a scandalous spotlight.
AI’s President Paula Konikoff quickly countered with a promise of investigation, claiming the article doesn’t reflect their true colors, while vowing to battle Akins’ lawsuit and shrugging off the testing fiasco — because who needs accountability when a polished PR statement will do? Meanwhile, a petition on Change.org, launched by Alison Arms, demands Steinley’s removal from the executive board, citing the reputational and financial toll of his alleged actions — a clear signal that the rank-and-file have had enough of this unfolding drama.
I did not have time to do more excerpts.
To read the post and the lawsuit, Click Here
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#MeToo And Testing Fraud Applies To Appraisal Industry’s Largest Trade Group
By Jonathan Miller
Note: This article has a “gift” link to the original New York Times article above.
- Appraisal Institute Is The Perfect Comp For NAR’s Bad Behavior
- Former Appraisal Institute President Files Lawsuit Over Her Termination
- Missing Ethics In The Appraisal Industry’s Largest Trade Organization
A while back, I wrote that the Appraisal Institute (AI) was the perfect comp for NAR’s bad behavior. Today’s blockbuster New York Times story Appraisal Trade Group Accused of Covering Up Sexual Harassment and Test Flaws (gift link), shows how right I was about the organization’s lack of ethics.
This was just illustrated by AI leadership in March with litigation over the cover-up of incorrect exam testing scores.
I’ve been writing about AI’s self-dealing for about eight years here on Housing Notes and have been personally threatened and smeared by those in the cult. I have painstakingly documented how AI ignores its residential membership, and how its leadership takes pointless first-class flights to Europe and China on the dime of the hard-working membership.
I should point out I am not a member but deeply care about the damage AI inflicts upon the industry I love. In addition to this new evidence of bad behavior, the industry’s largest trade group has fewer members than they claim (after removing all the non-paying deceased members) and seems to be quickly running out of money. An audit would confirm this, especially a forensic audit, but AI steadfastly refuses to permit anything other than a ‘sure, that’s the ticket!’ review of their financial dealings.
However, regarding the matter at hand, there are many female victims of unchecked behavior in their leadership. What a tragedy for the victims and the entire industry. Expect annual membership dues to rise sharply as membership falls more quickly. No disrespect meant to their hard-working membership, but does having an MAI or SRA designation tangibly mean anything now?
However, regarding the matter at hand, there are many female victims of unchecked behavior in their leadership. What a tragedy for the victims and the entire industry. Expect annual membership dues to rise sharply as membership falls more quickly. No disrespect meant to their hard-working membership, but does having an MAI or SRA designation tangibly mean anything now?
To read more, Click Here
This article has the link to the lawsuit. Search for Lawsuit, down the page.
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ABOVE IS A SAMPLE FROM THE 212 PAGE NEW URAR CLASS HAND OUT OF EXPLANATION OF THE QUESTION ON BROADBAND
Review of Appraiser’s Guide to the New URAR Class
In the May 2025 issue of Appraisal Today
Excerpts: This is my second article on New URAR. The April issue had the first article, New URAR, What It Means for Appraisers. The June issue will compare the new URAR with the current forms.
The 112 page PDF document “Appraiser’s Guide to the New URAR”
handout with 275 slides, provided only to attendees is a “must have” to learn about the New URAR. Mandated use is November 2, 2026.
Using a tablet, such as an ipad, is strongly recommended
Per the instructor only one third of residential appraisers are using a tablet or
other mobile device. I don’t think the New URAR app will work on a smartphone. Way too many fields to fill in.
The instructor recommended hiring a young trainee who can help you learn
it, if needed.
If you are not using a tablet, I recommend practicing now with your forms
vendor’s current app to get used to using a tablet. When your software vendor has the new app ready to be used, you will have practiced on a much smaller app for the current forms.
What will software vendors do?
Instructor said a lot depends on what each software vendor does. They will
have classes to teach you how to use their new Report software. I am not sure when they will have them ready.
Should you prepare for the class?
The 112 page PDF document “Appraiser’s Guide to the New URAR” is a good idea, if only skimming the topics. That is what I did before the class and it helped. The class material is almost overwhelming.
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Pulte defends his authority as board chairman of Fannie, Freddie
May 6, 2025
Excerpts: The FHFA head says the regulator is ‘essentially the board chair, the board itself, the stockholders’.
Bill Pulte, director of the Federal Housing Finance Agency (FHFA), had previously been tight-lipped about his reasoning for ousting 14 board members at Fannie Mae and Freddie Mac and installing himself as chairman of both boards on March 17, shortly after assuming office as chief regulator of the government-sponsored mortgage giants.
But during a Tuesday appearance on Fox Business, Pulte asserted that the FHFA has the authority to dictate board matters at Fannie and Freddie.
“We got rid of a bunch of different board members, and we basically are exerting the authority that the U.S. federal housing (agency) has and has always had,” Pulte said. “It’s always been essentially the board chair, the board itself, the stockholders. And really what we’re trying to do is run these things as businesses.”
To read more, Click Here
My comments: Who knows what will happen and, more important, how appraisers are affected.
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Upheaval at mortgage regulators leaves questions for lenders
Excerpts: A prominent mortgage industry attorney spoke with Scotsman Guide about ongoing turmoil at the CFPB, Fannie Mae, Freddie Mac and other regulators.
In its first months in office, the Trump administration aggressively made changes at all levels of the federal government, including to the mortgage and housing industry regulators. Bill Pulte, new Federal Housing Finance Agency (FHFA) director, fired most members of the Fannie Mae and Freddie Mac boards and then appointed himself as chair of both.
Russell Vought, Consumer Financial Protection Bureau (CFPB) acting director, was accused of trying to reduce the agency to “five men and a phone” amid a spate of firing. The Federal Housing Administration (FHA) jettisoned policies aimed at preventing appraisal bias and the U.S. Department of Housing and Urban Development (HUD) canceled fair housing grants.
To read more, Click Here
My comments: Who knows what will happen and, more important, how appraisers are affected. Of course, we all want to stop the alleged appraisal bias requiring us to take more bias classes, including a long section in the current USPAP class.
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The Appraisal Profession’s Perfect Storm: A Veteran’s Take on a Dying Craft
by Desiree Mehbod
May 2, 2025 Opinion Post.
Excerpts: The new UAD form, the AMC fee gouging, the waivers, the false bias claims – it’s a perfect storm of assaults.
I’ve been an appraiser since 1993, back when fax machines were cutting-edge and the internet was a clunky novelty. Over three decades, I’ve seen this profession weather storms — economic crashes, regulatory overhauls, you name it. But what’s happening now? It’s not a storm; it’s a tsunami. Our industry is hemorrhaging talent, drowning under false accusations, and getting squeezed by corporate greed and bureaucratic overreach.
As someone who’s stubbornly refused to bend the knee to Appraisal Management Companies (AMCs), I’m here to lay it all bare — the numbers, the betrayals, and the sneaky maneuvers threatening to bury us. Buckle up; this is an opinion piece from the front lines, and I’m not holding back.
The last few years have been a masterclass in how to alienate an entire profession. Take the Biden administration’s push, amplified by legacy media, to paint appraisers as racists. The National Fair Housing Alliance (NFHA), flush with millions in federal cash, ran misleading ads that vilified us, sowing mistrust without a shred of courtroom-proof guilt. Not one appraiser has been convicted of bias, yet the accusations flew. Some, like Shane Lanham, are hitting back with defamation lawsuits, but the damage is done.
Then there’s the AMC racket, a parasitic middleman scheme that’s not only bled appraisers dry but also siphoned a staggering $12 billion from homebuyers, as the Appraisal Regulation Compliance Council (ARCC) uncovered. I’ve written about their lack of fee transparency — a polite way of saying they’re skimming our earnings while appraisers scrape by.
I’m still here, though, because I believe in the craft. There’s something noble about walking a property, piecing together its story, and delivering a number you can stand behind. But the powers that be seem hell-bent on making that impossible. The NFHA’s funding may have dried up under Trump, but the scars remain.
The push for automation and deregulation isn’t slowing down. And those AMCs? They’re still laughing all the way to the bank. If we don’t start valuing appraisers — our expertise, our objectivity, our grit — this profession won’t just shrink; it’ll vanish. And when it does, don’t be surprised when the housing market feels the full force of this perfect storm.
To read more plus over 80 appraiser comments so far, Click Here
My comments: Worth reading from a knowledgeable appraiser. The author is the founder of Appraisersblogs.com. I frequently post links to their blog. I like their very creative images also!
I have seen a lot of changes in my 50 years of appraising. When I started my business in 1986 I did commercial and residential appraisals and non-lender appraisals. I did res lender appraisals for 20 years and quit in 2005 (too much volatility in business volume). I had lender clients I liked who paid well. The only time I was questioned was when I forgot to put the value in and other typos. I was very lucky. I missed the chaos of 2008 – AMCs, fees, etc.
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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.
Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.
My comments: We are all waiting for rates to drop in 2025.
Mortgage applications increased 11.0 percent from one week earlier
WASHINGTON, D.C. (May 7, 2025) — Mortgage applications increased 11.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 2, 2025.
The Market Composite Index, a measure of mortgage loan application volume, increased 11.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12 percent compared with the previous week. The Refinance Index increased 11 percent from the previous week and was 51 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 11 percent from one week earlier. The unadjusted Purchase Index increased 12 percent compared with the previous week and was 13 percent higher than the same week one year ago.
“The economic news last week included a negative reading for first-quarter GDP growth and further signs of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact on mortgage rates was mostly downward but just back to levels from early April. The 30-year fixed rate declined to 6.84 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Conventional purchase application volume increased 13 percent and was up 9 percent from year-ago levels, a surprisingly strong move given lingering economic uncertainty. Borrowers of conventional loans tend to have larger loan sizes and more apt to be move-up buyers. Government purchase loans were also up 6 percent for the week, led by a 9 percent growth in FHA purchase applications.”
Added Fratantoni, “With rates moving lower, refinance volume increased 11 percent, led by VA refinance applications, which were up 26 percent.”
The refinance share of mortgage activity decreased to 37.1 percent of total applications from 37.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.3 percent of total applications.
The FHA share of total applications decreased to 16.4 percent from 16.7 percent the week prior. The VA share of total applications increased to 13.3 percent from 13.1 percent the week prior. The USDA share of total applications decreased to 0.5 percent from 0.6 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.84 percent from 6.89 percent, with points increasing to 0.68 from0.67 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500)decreased to 6.86 percent from 6.88 percent, with points decreasing to 0.46 from 0.60 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.56 percent from 6.61 percent, with points increasing to 0.87 from 0.86 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 6.17 percent, with points decreasing to 0.65 from 0.76 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.97 percent from 5.89 percent, with points decreasing to 0.31 from 0.63 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.
Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone: 510-865-8041
Email: ann@appraisaltoday.com
Online: www.appraisaltoday.com
