Re: "Fannie Mae Announces Changes to Appraisal Process." While we trust that many refinance and purchase transactions have been scuttled because appraisers could not find enough comparable sales, the reality is that many of experienced yet unqualified appraisers were asked to do an appraisal that was beyond their capabilities.

As the real estate sales volume picked up, the appraisal industry was forced to keep pace. Many under-qualified persons took the minimum requisite courses, became certified and with virtually no guidance or tutoring, completed appraisals that were accepted without question. Now, after years of experience but no formal education, these appraisers have bad habits and no actual appraising skill. Now, however, the banking industry wants USPAP compliance appraisals with well-supported opinions of value. This will not happen unless the GSEs mandate that banks select only the most qualified appraisers available and pay them accordingly. In the long run however, the oligopolistic lenders must promote education by paying appraisers based upon their educations and designations and not just the absolute minimum. The Wells Fargo/RELS style of appraisal management must be addressed.

William McGinn
Managing Director
Guarantee Appraisal Management Co.
Campton Hills, Ill.