CEO and veteran appraiser William Fall, who heads the William Fall Group, recently outlined some of his ideas on PAREA (Practical Application of Real Estate Appraisal), education, training and the appraiser’s role when it comes to bias.
Fall suggested PAREA is growing with both the course developer crowd as well as strong acceptance at the state level and said this technology has been picking up some momentum in both circles with solid trajectory.
“Actually, I think just about everyone I speak with is enthusiastic about the PAREA program,” Fall told Valuation Review. “The difficulty in finding good supervisors for trainees has been a struggle for some time. Reliability of the training experience as well.
“And underwriters at all levels have a real appetite for solid report analysis,” he added. “PAREA, along with other efforts, will go a long way toward successfully addressing the needs of the industry.”
The appraisal veteran talked about specific lessons learned during COVID-19 regarding the viability and appeal of distance learning.
Fall noted that convenience for all parties is inherent in distance learning. Further, he acknowledged, classes can be taken by a larger group of students. But the real draw has been in the interactive elements available through modern technology.
The “in person” experience can be closely replicated. Discussion amongst participants is often more robust than when being together.
“Distance learning is here to stay,” he emphasized.
Fall discussed his belief that expansion of offerings will occur as techniques and training of educators expand. He also gave his viewpoint on the role appraisers need to have regarding bias and discrimination.
“Speaking strictly for myself and not as a member of the AQB (Appraiser Qualifications Board), the quality of new courses being submitted for approval is impressive,” he said. “Advancements in teaching techniques and tools continues to facilitate a very positive learning experience. And instructors are embracing them more and more.
“We have a role here, no doubt,” Fall added in reference to bias. “Many of the experiences recently cited hardly make any of us feel proud of the profession. A better awareness of how we can perform better is a must. Education around bias has to increase- vigorously. But realistically, ‘legalized red-lining’ is much more impactful in the lending community- even unintentionally.
“And being paid on a commission basis can result in a lesser amount for time devoted to smaller loans, which is often seen in recovering urban areas and that often involve applicants that have had income struggles in their past,” Fall added. “By gravity they are motivated to look for large loans with a high applicant FICO scores, which are easier to do and more likely to close.”
“And a larger commission check. Add to that the proliferation of community banks that are conveniently situated just outside of major city limits so they can avoid CRA lending requirements. Other examples can be cited but I think the point is clear that adverse lending practices are much more likely to have bias impact than those caused by valuation,” Fall added.