TEGoVA Spring Meeting May 19, 2018 1/17/2019 Impact of Appraisal Management Companies on the U.S. Valuation Profession Jefferson L. Sherman, MAI, AI-GRS Appraisal Institute Vice President TEGoVA Spring Meeting May 19, 2018

Presentation Highlights 1/17/2019 Presentation Highlights Why appraisal users/clients use AMCs AMC screening process AMC ordering systems Acceptance of work from AMCs

Why Appraisal Users/Clients Use AMCs 1/17/2019 Why Appraisal Users/Clients Use AMCs

Appraisal Independence FIRREA Appraisal operations Bank examinations HVCC and Dodd Frank Non-mortgage uses and issues Portals

Home Valuation Code of Conduct Intent of HVCC Unintended consequences Review function Increased use of AMCs

1/17/2019 AMC Screening Process

Appraiser Knowledge and Experience Quality control Cheap and fast Out-of-market

1/17/2019 AMC Ordering Systems  

Appraiser Competency “Broadcast ordering systems” Qualified appraisers Focus on cost and turnaround time Outsourcing of appraisal management functions

Acceptance of Work From AMCs 1/17/2019 Acceptance of Work From AMCs

Importance of Appraisers and Appraisals Pressure to “hit the number” Assembly line Diversified appraisal practice

Importance of Appraisers and Appraisals Commoditization “Cost-plus” models Fee disclosure

Recap Why appraisal users/clients use AMCs AMC screening process 1/17/2019 Recap Why appraisal users/clients use AMCs AMC screening process AMC ordering systems Acceptance of work from AMCs

TEGoVA Spring Meeting May 19, 2018 1/17/2019 Impact of Appraisal Management Companies on the U.S. Valuation Profession Jefferson L. Sherman, MAI, AI-GRS Appraisal Institute Vice President TEGoVA Spring Meeting May 19, 2018