A LOOK FORWARD
We believe this may be partially attributable to
pressure on the appraiser, by either the borrower or
lender. That is why we believe that appraiser
independence is critical. We must protect the ability
of the appraiser to do the right thing. We take that
very seriously at Freddie Mac and are exploring
additional ways to better protect appraiser
independence. The other side of that argument is, of
course, that appraisers have the ability and
responsibility to control this themselves during
development of the appraisal and the writing of the
��������������������������������������������������������������������������������������������������
and reporting accurately all condition, quality, and
value concerns are essential. From a practical
standpoint, I understand that this may be easier said
than done. Just know that we are dedicated to
partnering with the industry to improve appraiser
independence.
OUR COMMITMENT TO THE
INDUSTRY - TRUST
At Freddie Mac, we are committed to reinforcing the
integral role appraisers and appraisals will continue
to play in the industry. We believe that we need to:
• Foster and encourage an environment of
support for appraisers;
• Help promote appraiser adoption and use of
better tools and technology;
• Provide a bridge of understanding for practicing
appraisers from “small data” to “big data;”
• Support Appraiser Independence;
• Acknowledge appraisers’ collective need to
embrace advanced skills and techniques; and
• Promote greater appraiser accountability.
28 | APPRAISAL BUZZ SPRING 2020
We are taking steps to help appraisers learn the
������������������������������������������������������������������������������������������������������
����������������������������������������������������������������������������������������������������������
Appraisal Institute to co-brand needed training and
education. Delivering coursework that reinforces the
skills needed for more complex and specialized
assignments is a meaningful step in the right
direction. While some level of automation and
technology may help facilitate and inform the
valuation process on lower risk loans, at some point,
complex and unique assignments (e.g. Rural Area
Properties and CHOICE MH) will require appraisals
that demand advanced skills and training.
THE INDUSTRY’S COMMITMENT TO
US – ACCOUNTABILITY
With increased trust will come increased
accountability. No longer can pressure, the “form,” or
the “market norm” drive appraiser behavior. The GSE
minimum acceptable scope of work, for example, has
in many cases become THE scope of work across
all assignment types to many appraisers. Even when
complex assignments demand more, we rarely see
additional approaches to value developed simply
because the GSEs don’t require it as a minimum
standard. We as an industry are certainly better
than that.
Ohio State football great and former head coach,
Wes Fesler (1949-1951), famously stated, “Good men
are bound by conscience and liberated by
accountability.” Please continue to work with us to
be positive agents of change for our profession. To
Coach Fesler’s comment, embrace accountability as
liberating. I personally look forward to partnering with
you as we walk this path forward together.
SCOTT REUTER
������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
concerns. He holds a BA from Ohio State University and has completed the Executive Leadership
program at Cornell University. His management experience includes positions with Bank of America,
GE, and Goldman Sachs. Scott is a second-generation appraiser and began his career as a fee appraiser.
The valuation team at Freddie Mac is responsible for review and oversight of valuation consistency and
��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
establishing and maintaining a credible quality assurance process across multiple lines of support.