that some lenders are calling for an end to appraisals is an indication of the challenges facing the appraisal profession.

####### Education Requirements

The Appraisal Foundation, a non-profit agency empowered by the federal government to regulate appraisers, implemented a Bachelor’s degree requirement to become a Certified appraiser which took effect in January 2015. This means that an appraiser can not become Certified without a college degree. Because most AMC work, as well as FHA appraisals, now require Certification this move chokes off opportunities for both long-time appraisers without a degree, as well as those contemplating joining the ranks. Many just starting out in their careers have families and obligations and find going back to school untenable- especially without a good chance for financial reward. Add to that the onerous 2,000 hour experience requirement for trainees- a one or two year period when newbies earn next to nothing, and the 150 hours of additional appraisal education required for licensing, and the odds seem stacked against replacing retiring and fleeing appraisers with fresh blood. Limitations on Trainees A number of states also have adopted very strict limitations on how trainees can work under a mentor appraiser. Many have provisions that require “direct supervision” and being “physically present for the inspection of each appraised property.” This all but removes the financial incentive for taking on a trainee, according to many. Lenders also are requiring that the supervisor must always inspect both the subject and the comparable properties personally, and not rely on the work of the trainee alone. These state laws and lender requirements are a serious obstacle and disincentive for appraisers to take on trainees, as it prevents appraisers from fully benefiting from the economies of scale that trainees once provided the profession.

Fees and Supply/Demand and Supply/Demand The biggest and most obvious reason for appraisers leaving the profession, and why there are so few new recruits applying to become appraisers, are the low fees. Most notably, the decline in fees since passage of the Home Valuation Code of Conduct (HVCC) in 2009, which ushered in the era of AMC prominence. Many appraisers lost direct contact with their clients and thus the ability to compete. As a result, most saw their fees cut by up to half by the AMC middleman. Appraisers argue that if AMCs and lenders paid more, more college grads would consider the profession and fewer current appraisers would exit. The concern is that the decline in the number of appraisers could one day become a shortage and that in the next real estate boom there will be a shortage of appraisers and not enough time to train the next generation adequately. Such a scenario might create long delays in loan closings and become gum up the wheels of commerce. This, some say, will trigger lending institutions to replace appraisers with a combination of big data and lesser trained inspectors to get the job done quickly. Solutions The National Appraisal Congress (NAC), an organization made up of some of the largest national AMCs and appraisal firms, has recently begun advocating for reform to the experience and education requirements for trainees. The NAC sees reform of the “direct supervision” requirements in state laws, as well as lender requirements, as critical objectives that will allow the appraisal industry to meet the coming demand for appraisal work. An NAC White Paper, Removing Barriers to Entry in Valuation, argues that given that the average age of an appraiser is 55, there is a “very real potential that over the next 10 years there is likely to be a large