Fourth Annual International Conference on Housing Risk Wrap-Up

On Wednesday October 28, 2015 experts on valuation and economics joined together to speak at the fourth annual international conference on housing risk. Data and information highlighting collateral risk and housing measures were shared over the two-day conference. The Collateral Risk Network (CRN) sponsored the event hosted by the American Enterprise Institute (AEI) at their office in Washington, DC. To help share the experience, we caught up with some of the attendees to get their opinions on the conference.

Greg Stephens: “Kudos to Joan Trice, Ed Pinto and Stephen Oliner on the success of the fourth annual international conference on housing risk at the AEI headquarters in Washington D.C. October 28th and 29th. The AEI/CRN conference panels from government, industry, academia, and the financial community shared volumes of data and analytics providing further clarity into the prior failed policies contributing to the recent economic crisis, which in turn, provide guidance into how to avert a similar catastrophic event in the future. Ed DeMarco’s luncheon presentation provided thought-provoking observations and recommendations relating to capital markets, the GSEs and the need for reliable data for investor decision-making and more risk confidence. After taking 17 pages of notes, I am anxiously looking forward to the Fifth Annual AEI/CRN conference to be held on October 5-6, 2016.”

Ed Pinto: “The housing risk research presented at this year’s conference builds upon work presented at the three prior conferences held beginning in 2012. As a result we are developing a broad and deep body of work that is adding to our understanding of housing risk—something that has not happened since the 1930s-1950s. A few examples follow: Dr. Stephen Oliner (AEI) presented work based on 9 million single-family detached properties in ten metros that provides new insight into the role land prices and location played in the boom and bust. Dr. Yanling Mayer (FNC) reported on research documenting the consistent presence of anomalies in the appraiser’s use of the sales comparison approach. Edward Pinto presented a prototype mortgage lending value appraisal for a property in Montgomery County, MD—a goal set out at the 2012 conference. Plans are already underway for the 5th annual conference to be held on October 5-6, 2016 (save the date).”

George Mann: “The speakers and attendees at this conference are on the cutting edge of making significant changes to the residential real estate mortgage risk and valuation disciplines. I encourage everyone involved with residential real estate to take the time listen to this year’s conference online and read the presentations.”

Mike Coyne: “For those of you unable to attend in person or view the event streaming online, the 4th annual AEI conference on international housing risk was another stimulating affair. The conference was co-hosted by the CRNs queen of all things valuation, Joan Trice. Joan had a chance to open and close the conference with comments, along with AEI Fellows Ed Pinto and Steve Oliner, who provided articulate bookends for diverse presentations ranging from academic theories to practical application in home finance and valuation.

Specific to the valuation topic, Ed Pinto presented his continued work on the design of the future appraisal, focused in part on the identification of new factors impacting value, which are not adequately analyzed in the current appraisal process. We also heard from Yanling Mayer, of FNC, who provided some interesting statistics culled from the FNC appraisal pipes revealing tendencies on comparable adjustments, some of which were less than flattering to our practicing brethren.  Ed DeMarco focused his comments on the need for greater transparency and improved infrastructure in the collection and distribution of data relevant to the understanding of value of any given piece of collateral. Joan provided her summation of the numerous issues facing appraisers and the future of the profession showing once again her breath and depth of understanding of the complex nature of the appraiser’s situation and the need to develop a thoughtful and sophisticated solution to ensure the viability of the appraisal profession in the future.  (Joan is currently vetting candidates for the appointment to the Appraiser Czar)

I enjoyed attending the conference in person and find benefit from the direct interaction with presenters and attendees, but I applaud the AEI for making the conference available through live streaming as well as posting a video of the event of their website https://www.aei.org/events/fourth-annual-international-conference-on-housing-risk/. I would encourage everyone to make time to view portions of the conference. “

As seen above, those who attended this years AEI conference on housing risk are already looking forward to next years. Stay tuned to Appraisal Buzz for more details on next year’s conference on housing risk (happening October 5-6, 2016) and other events on the horizon. If you missed the conference, you can view its presentations and streaming video here.

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