We are putting the finishing touches on our agenda for Valuation Expo. This year I am especially excited about our panel focused on misaligned incentives. This topic was inspired by my amateur obsession with Behavioral Economics. We have assembled an amazing panel:
Ted Durant, MGIC
Bill King, Real Info
Karin Trost, Wells Fargo
Steve O’Brien, House Canary
It seems like ages ago when I worked with the Collateral Risk Network to craft the “Reengineering the Appraisal Process” white paper. During the housing crisis we spent a lot of time analyzing what went wrong, how did appraisers contribute, if at all, to the mortgage meltdown and most importantly what might be the solutions. The CRN is an amazing collective of problem solvers who bonded like I have never before experienced. That’s why you will never see another comparable group. We, together, watched from the bleachers, some in better seats than others, a slow motion national anxiety attack.
During the crisis and post crisis I read every single book I could find on the topic and some only tangentially related. Much to my surprise one of the most popular Buzz newsletters was on my reading list. For many months, I have owed those who reached out to me personally, that list. It keeps growing but stay tuned for some more book reviews.
For now, I’d love for you to read Dan Ariely’s, “The Honest Truth About Dishonesty”. Read that with your “appraiser lens” and see if you learn what I learned. And better yet, after you read it if you are even slightly intrigued join us on October 2 in Las Vegas and jump in on the discussion yourselves. For those of you who have never attended a Valuation Expo this is what we do best. We have very high level, thought provoking sessions that you won’t get anywhere else. Not even close.
This panel will discuss anchoring. Does it violate independence principles to give the contract to appraises? Are honest people influenced by being given the answers to the question in advance? Are their principles within USPAP that could be modified to better maintain integrity in the process? One of the examples in the book was moving an oath prominently to the forefront. For example, when you testify in court you are asked to swear to “tell the truth and nothing but the truth so help me God”. What if the certification was moved to the beginning of the appraisal with clear consequences to poor performance or bad behavior?
Are seller concessions the last fraud frontier? Does the fact that agencies dictate allowable standards for concessions just enabling bad behavior? Do buyers and sellers always behave rationally? Does the definition of market value and hence the appraisal process really analyze irrational market behavior?
I have so many questions and more! I hope you join us at Valuation Expo. Keep up the quest for learning and helping to improve our awesome profession. A friend of mine recently reminded me that appraisers have the coolest job in the world!
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Register Now! Valuation Expo, October 2-4, 2017, Flamingo Hotel & Casino, Las Vegas, NV
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