For example, Class is behind the task force effort to build a well-trained and diverse appraiser workforce. Like all industries, the appraisal business has struggled to find workers partly because of the tight labor market, and the PAVE report notes issues unique to the appraisal industry. “The cost and burden of becoming an appraiser is extremely high, contributing to appraiser shortages and making it more difficult for underrepresented groups—including people of color and women— to access the profession,” the report says. “According to the Department of Labor’s [DOL] Bureau of Labor Statistics [BLS], the appraiser/assessor profession is 97.7 percent white, and women comprise only 30.4 percent of the workforce, making appraisers perhaps one of the least diverse professions in the country.” Class leaders were aware of those statistics and had been working on solutions to bring more women and minorities into the profession, Conolly says. The training process involves a supervisor/apprentice model, where it is sometimes difficult to find people who will work with new recruits. In a nationwide program, Class has been pushing hard to find supervisors who will join the company and work with apprentices. “We are actively recruiting supervisors and providing them with trainees,” she says, adding that the industry offers excellent pay and benefits. “Our goal is to have minorities in these training pods so we can bring more diversity into the industry.” Consumer Education and Worker Training The task force recommendations also call for improving consumer education. “A critical component in addressing the impact of potential bias during the appraisal process is educating consumers and communities on their rights,” the report says. “However, consumers are typically unfamiliar with the appraisal process and are unaware of their rights in the process of buying, selling, or refinancing their homes.” Conolly says that AMCs, lenders and government agencies are in agreement. “Consumers need to know what path to follow if they feel there was bias or discrimination in the appraisal or loan process and which agencies to contact,” she says. One goal at Class Valuation is to eliminate even a hint of discriminatory language in an appraiser’s written opinion. To that end, the company has been running keyword searches through appraisals to identify any questionable words or phrases. Although Class has not observed any trends, Conolly says, the company has been aware that some companies may inadvertently let phrases such as “desirable neighborhood” slip into reports. “We continue to search and refine our process,” she says. “If it does exist, we will find it.” Training also can raise awareness. The company does appraisals in all 50 states and Washington, DC, and is one of the largest AMCs in the country. Until recently, few states have required appraisers to go through formal training on fair housing issues, which loan officers must do through their licensing process. Class incorporates such training for all employees and staff appraisers, even if they work in states that don’t require it, she says. This type of training is different from what was required after the real estate crash in the late 2000s, when the appraisal industry had to assert its independence from the lending industry. PAVE is intended to eradicate bias. Although appraisals are based on objective data points, such as similar sales in a neighborhood, the reports could vary from appraiser to appraiser because they ultimately involve some subjective observations. Those concerns have been borne out as government agencies have tracked trends since 2011 that found both conscious and unconscious bias, Conolly says. Different appraisers might come up with different values because of varying perspectives of a home’s amenities, she explains. Relying more on objective data and less on subjective observations would help, she adds. “Trust but verify,” she says about the foundation of data collection. “And now we have so much access to data that it can be verified.” PAVEing the Way continued from page 29 30 REVERSE MORTGAGE / JULY-AUGUST 2022
RkJQdWJsaXNoZXIy MjQ1MzY1