The Collateral Risk Network presents: Collateral Matters. A discussion inside the beltway of DC open to all stakeholders taking a hard look at the role of real estate valuations and collateral risk. Join us in Reston, VA on July 17th for this first-time event and participate in the discussion with policy makers. This is how policy is shaped and an opportunity to have your voice heard. These discussions will be insightful looks into the life cycle of an appraisal and will demonstrate how each stakeholder approaches the appraisal. We’ve recently interviewed Allterra Group’s Vice President of Operations, Karen Connolly, for some more insight on this event.
Buzz: This Collateral Risk Network (CRN) meeting is normally a Members Only event, but I understand this meeting is open to all stakeholders this time. What is the reason for the change?
Karen Connolly: We’re at a critical point in an industry with lots of moving parts; GSE Reform, the appraisal process is under pressure for significant changes and there are a lot of political forces impacting the outcome. It’s incredibly important that the CRN and its brain trust have the exposure to help preserve some of the basic tenets of the process. Members will express their own ideas on reengineering the appraisal process with a primary focus on safety and soundness. We created an open meeting to be able to include every single stakeholder to allow them the opportunity to hear some alternative ideas to shape the future of the appraisal process.
Buzz: How can members and non-members alike benefit from attending the Collateral Matters event?
Karen Connolly: We carefully chose the title for this event because we believe collateral truly does matter. Allterra Group is uniquely positioned to listen to appraisers and other key stakeholders in person at our education events, through our newsletter comment section, and social media. Anyone listening to the appraisal community hears how the appraisal process is being eroded and how the integrity and quality of collateral valuation has taken a back seat to faster and cheaper. This event will allow members and non-members the opportunity to listen to what’s being said in Washington and to be heard.
Buzz: Could you elaborate on the “Iron Triangle” (better, faster, cheaper) and the industry and this event are working towards a better future?
Karen Connolly: We’re focused on safety and soundness not faster and cheaper. There is significant concern by some Chief Appraisers and Risk Officers that there is too much emphasis on faster and cheaper and less on safety.
Buzz: What is the objective of this event?
Karen Connolly: The objective is to tell a story. Beginning the appraisal process by starting from taking the loan application, to ordering the appraisal all the way to when the loan is sold to the secondary market. Telling the story of the appraisal and how it impacts the stakeholders along the way during the life cycle of an appraisal.
Buzz: What in the incentive for non-members to attend this meeting?
Karen Connolly: This event will have lenders, AMC and a number of other key players in the valuation space in attendance. The number one thing I hear appraisers say about the coming changes is that they don’t feel like they are given a voice. Appraisers are on the front line of this issue and the results of reengineering the appraisal process will impact their daily lives. Appraisers seldom get an opportunity to see how the sausage is made. This meeting will put them in front of the policy makers and allow them to hear the discussion. For appraisers who want to contribute, this is their chance.