Since the financial crisis began, experts in the field have been wakeful of tools for assessing mortgage and collateral risk. On October 28, AEI (American Enterprise Institute) and CRN (Collateral Risk Network) are cohosting the fourth annual international conference on housing risk in Washington D.C. Ed Pinto, Resident Fellow and Codirector of AEI’s International Center on Housing Risk, joins us to talk about the conference.
BUZZ: Ed, thanks for taking the time to speak with us. To begin, will you let our readers know a little bit about your history in the industry?
ED: I just finished my 41st year in the housing finance industry. An attorney by training, I have worked at a state housing finance agency; two mortgage insurers; Fannie Mae, where I was executive vice president and chief credit officer; spent over 20 years as a consultant; and most recently, 7 years with the America Enterprise Institute, where I am currently codirector of the International Center on Housing Risk.
BUZZ: On Wednesday October 28th, the fourth annual international conference on housing risk will be held in Washington D.C. What were some of the goals associated with the creation of this conference?
ED: When Joan Trice and I planned the first conference in 2012, our goal was to highlight theoretical and practical research in the field of collateral risk. There was and continues to be a crying need to reengineer the appraisal. In the conferences to follow, that topic was broadened to all areas of housing finance risk. Each conference has built on and expanded upon research and ideas presented in prior years.
BUZZ: Who are some of the speakers at the event?
ED: We will have speakers presenting research from FICO, Trulia, CoreLogic, Demographia, John Burns Estate Consulting, MGIC, Fitch, the IMF, HypZert GmbH, AEI, and many others.
We are pleased to have Edward DeMarco, Milken Institute senior fellow and former FHFA acting director, as the keynote speaker.
BUZZ: What topics will be discussed at the conference and what can attendees expect to learn about housing risk?
ED: The seven panels will cover the following topics:
- Measuring Mortgage Risk
- The Housing Cycle: Measuring Intrinsic Value
- The Wealth Building Home Loan
- Housing Markets
- Informing the Consumer
- Perspectives on Housing Risk
- Housing Risk: An International Roundtable
- Designing and Delivering the Appraisal of the Future—Today.
BUZZ: Who is the target audience for this conference and how can people sign up to attend?
ED: In addition to the robust and practical research presented each year, audiences have enjoyed the opportunity to interact with a broad range of attendees from industry, academia, the financial community, and government. This includes a broad representation from the appraisal industry, including appraisers, AMCs, regulators, data providers, lenders, and industry associations. Use this link to RSVP. There is no charge for this event.
BUZZ: How will this year’s conference differ from the some of the conferences of the past?
ED: This year’s conference will be a milestone towards the goal to reengineer the appraisal. Steve Oliner will present AEI research, begun in 2012, on the role land has played in the boom and bust, research based on 9 million single-family homes in 10 metro areas. Joan and I will outline the design and delivery of the “appraisal of the future—today” and will include an example using a subject property.
BUZZ: What is one thing that people should know about the event, prior to signing up for it?
ED: Come prepared to be informed about the latest research in housing risk and be a part of the extensive discussions that take place following each panel.
BUZZ: For our readers who can’t attend the conference this year, what is one thing they need to know about what is currently going on with mortgage and collateral risk?
ED: History appears to be repeating itself in terms of a new housing boom. We are in the 35th month of an ongoing national seller’s home purchase market that started in September 2012. It has been fueled by historically low mortgage rates and high and growing leverage. As a result, real home prices have been increasing rapidly, up 12.5 percent from the 2012 trough, and are far outstripping income growth. Stay tuned as the national media is ignoring this story.
If you are unable to attend, you are welcome to watch the event live using the same RSVP link. Full video will be posted within 24 hours.
BUZZ: Thanks for taking the time to speak with us. We are looking forward to The AEI/CRN Fourth annual international conference on housing risk, taking place October 28.
Some general info:
What: Fourth Annual International Conference on Housing Risk: New Risk Measures and their Applications, cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk
When: Wednesday, October 28, 2015 | 8:10 a.m. – Thursday, October 29, 2015 | 1:15 p.m.
Where: AEI, Twelfth Floor
1150 Seventeenth Street, NW
Washington, DC 20036
How: Use this link to Register There is no charge for this event.
Hotels: There are no specific conference hotels. There are numerous hotels in a wide price range near the conference location, but best to reserve early.
Have any comments or would you like to submit content of your own? Email comments@appraisalbuzz.com.
Share this article
Written by : Appraisal Buzz Staff
Keep up with the latest news, interviews, and topics with the Appraisal Buzz. Email comments@appraisalbuzz.com with anything you would like to tell our staff.
5 Comments
Comments are closed.
This “Reengineering” the appraisal smells of automation and form filling. That way we can repeat the bubble market again, and again, and again. The money handlers will be able to keep this repeat cycle going. The only thing that I don’t know is, who will be tossed the blame when the appraisers are gone? The game of “Let’s place the blame on the only part of the process that has nothing to gain in the whole housing market process” will no longer work.
Sounds like more bureaucrats and management types deciding the fate of the appraisal industry again. To date, their appraisal recommendations, requirements, and guidelines have been ineffective at best and detrimental to the residential real estate business at worst. Why not sit down with experienced appraisers and listen to what we have to say for once. You may learn something.
I’m so
tired of this spin! Throughout the entire appraisal process we are constantly
in contact with people who are in most cases not our equal (not licensed
appraisers) but who want to monitor our work and offer their opinion. I may
speak to the lender (who is clueless and no longer employees appraisers), the
AMC (may not even require registration) and that may be 2,500 miles away, the
borrower (who doesn’t even know his appraisal fee is being split) the owner
(who is clueless / worth twice as much as Zillow), the listing agent (who
fraudulently fills out the MLS with bogus data), the buyer’s agent (tired after
showing 30 properties / wants commission) the college dropout AMC reviewer
(they can review because they completed a single 7 hour USPAP class) and last
but not least, the lenders underwriters who routinely show their ignorance with
their countless (reread the report its in there) not required by USPAP please
pay me for the 2 hour addendum I must put together to not answer the questions
that doesn’t even apply. The regulators are going about their perceived issues
the wrong way as recent regulations, (MC form, UAD form, XML formatting, CU
platform) are attempting to dumb down the appraisal to their entry level
understanding instead of requiring the majority of the above mentioned parties
to raise their standards/understanding. If the Certified Appraiser (CA) must
have a 4 year degree, hundred +/- hours of initial classes, yearly background
checks, take and pass the trainee test, take and pass the Residential test,
take and pass the Certified test, document and submit thousands of hours of
work for review/approval to the state, commit to 2.5 years of shoulder to
shoulder apprenticeship training, complete 56 hours of continuing
education (every 2 year cycle), often need 3, 5, 8, or at times 10 years of
experience from initial licensing just to be eligible for assignments, and
be put on a waiting list to maybe perform VA appraisals, be monitored
by lenders do not use lists (blacklisting) and big brothers
collateral underwriter platform (CU), then I think the issue is with the
other parties and not the appraiser. Appraisers provide a current
supported OPINION of value and this should be only a small piece of data to
determine ones qualification for a loan. We all know that the goal
is (get rid of the appraiser) and with low pay, higher liability,
increased entry standards, complaints of limited appraisers, and conferences
like this to reengineer the appraiser/appraisal system the goal may be one step
closer.
I am receiving less money for fees now than I did 10 yrs ago. It is not uncommon to receive a bid request from the AMC’s and then find out that it had been assigned to an appraiser who is outside of the market because his bid was $50.00 lower than mine. I am seeing the same thing happening in the market, hit the number and we will guarantee you all the work you can handle. sound familiar?
I do not see a single residential appraiser or representative of one of the major appraisal organizations on that panel. This conference looks like more nonsense from the “financial engineers” that brought us HOUSING BUBBLE 2006, HVCC, scope creep, and AMCs. The residential appraisal industry is not dying. It is being systematically killed off by the financial industry executives whose own self interest trumps the public interest.