We are pleased to announce the Valuation Visionary award winner for 2019 is Paul Chandler, Founder & CEO of Property Sciences.
Each year, the Collateral Risk Network presents the award in recognition of the person who demonstrates leadership, innovation, professionalism, and one who strives to better the industry for their peers. We will be presenting the award at Valuation Expo in Chicago, March 19th.
Paul is a recognized industry leader with 30 years in the valuation community. With a background in valuation, appraisal, lender-platform technology development, and online and print media, Paul continues to push positive change for appraisers to better the profession. Paul was nominated by his peers and we are honored to recognize him as the 9th recipient of Valuation Visionary.
Buzz: Paul, congratulations on being honored as the 2019 Valuation Visionary! How did you first feel when you found out you were being honored with this award?
Paul: First of all, congratulations to Penny Reed and Danny Wiley, two industry veterans who are great assets to our network and bring a deep and keen perspective to our profession. Winning on a ballot that included those two is a great honor.
I have been fortunate to be in this industry for many years, and longevity brings experience and perspective, and in this profession, many scars. Years of undue pressure and attempted influence leaves its wounds.
As the institutional mortgage market has grown in importance to global finance and the drive for production and efficiency trumps all the appraisal profession must now battle with powerful stakeholders who often view an independent appraisal as a road bump and an unwanted protector of public trust.
I know there are a few stakeholders who would prefer me to be given a “buggy whip” award believing our industry is about to be replaced by machines. Fortunately, those stakeholders are either misguided or disingenuous.
Plus or minus 13% on some of the best models in the market is not good enough science to justify replacement of an independent expert professional in a financial transaction secured by an American’s primary residence. If you want to know why we do not yet have standards for AVMs, it is because you cannot build a standard that justifies the use of such models as a replacement for an independent expert to protect the public trust.
Buzz: Can you provide a brief background on your career so we can see how you arrived at this point?
Paul: I started working part-time with a consulting company while in college as a bank branch locator assisting with the identification and acquisition of sites. After graduating from college I stayed with the consulting company for a couple more years until I joined one of my bank clients as their in-house real estate guy. While reviewing their portfolio and assisting with workouts I began to read many appraisals. I learned, during this time, that construction appraisals were often very poorly performed and many of the loans I reviewed should have never been funded. I started Property Sciences to assist banks in making better construction loans.
Initially, Property Sciences performed market and financial feasibility studies, later adding appraisal services. Once we began to work for residential mortgage originators, we realized that speed and efficiency were paramount to success. We developed our own management platform 30 years ago to better measure and manage our operations.
Over the years we have grown into a national appraisal company that controls its own software applications, while providing a full range of appraisal management, litigation, and consulting services in both the commercial and residential fields.
Buzz: The award highlights the person who has been actively involved with the appraisal community and helped better the industry. How do you stay involved?
Paul: I am very fortunate to have a great staff that has been with me for many years. Four years ago I appointed Dean Huynh as President, which relieved me of most day to day operations and gave me the opportunity to be more active within the industry. I try to attend as many industry events as I can around the country, and whenever possible remind my industry brethren that if we do not hang together, we will all hang alone.
I know there are many in our industry who are afraid to fight back against appraisal independence violations due to fear of reprisal. Hopefully I can encourage more of our profession to stand up. The future of our industry depends upon it.
Buzz: What do you see on the horizon for appraisers in 2019?
Paul: I think 2019 will start off very slow due to a lower volume of refinance transactions and the GSEs continued, and in my opinion, dangerous use of algorithms reducing the number of appraisal transactions. Later in the year the industry should make progress against algorithms as more transparency is forced upon the GSEs and the federal regulators are finally forced to develop AVM standards. If correspondent lenders had oversight requiring them to hire professional appraisers and reviewers on staff to manage appraisal procurement and underwrite collateral risk, the industry would become recognized for the many benefits it provides society, and result in growth.
Buzz: For an appraiser who is just starting out, what piece of advice can you give to them?
Paul: There may be no better time to start a career in appraisal than now. Land is a basic. Financial products backed by collateral that are packaged and sold around the world need fair and transparent valuations. The appraisal profession is needed to protect public trust. The current attack on the industry by the institutional mortgage market will eventually be unmasked and reversed.
Buzz: What is next for you as a valuation professional?
Paul: Continuing to work with Property Sciences to provide the highest level of service in the industry, while leading the industry in greater transparency and professionalism. Fair and credible valuations require fair and credible valuation management. Appraisal Management needs greater standards and oversight. We look forward to continuing to stand up for the important role of independent appraisal professionals.
Buzz: Thank you Paul and congratulations!
Paul: Thank you!’
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