Tuesday, January 31, 2023 | The Latest Buzz for the Appraisal Industry

Reengineering the Collateral Risk Network

While never one for New Year resolutions, I do love this time of year to reflect about where our industry has been, it’s current state and what needs to happen to move forward.

This year’s reflections took me all the way back to 2003 in Orlando, Florida and the very first Valuation Expo. It was also the first informal gathering of the Collateral Risk Network (CRN). In the beginning there were just a few of us debating the valuations issues of the day with perhaps half a dozen lenders. There was no way that I could imagine that the CRN would grow into the diverse body of industry thought leaders that it is today.

Over the years the CRN continued to meet and was instrumental in bringing together stakeholders to discuss and debate issues of the times. A pivotal moment for the industry, and especially for the CRN, was the unanticipated Home Valuation Code of Conduct (HVCC). The CRN submitted modifications to the NYAG’s office and to OFHEO the regulator at the time for Fannie Mae and Freddie Mac. Ultimately many of the CRN proposals were adapted.

With the housing finance industry under attack and a real need for industry wide reform, the CRN leveraged the depth and diversity of the membership and assembled in early 2009 to collaborate on a white paper, Reengineering the Appraisal Process. The group gathered again in 2010 to update the white paper, Reengineering the Appraisal Process Redux. Because of the wide variety of stakeholders participating in these debates the result was robust but certainty not easy. I have offhandedly referred to those times as “an organized fight where occasionally a meeting would break out.” Every single one of those CRN members who rolled up their sleeves during those difficult times is still a member of the CRN today. And that is why the CRN is the powerful voice that it is today.

The industry continues to hover at a major crossroad with complicated issues such as the aging population of appraisers, barriers of entry into the profession, Customary and Reasonable fees and disruptive technologies. While there have been many attempts to solve the issues of today, the time has come for the CRN to once again take a leadership role and leverage its considerable brain trust to identify the key issues and develop a action plan to transform the industry.

In order to facilitate this needed effort I am reengineering the CRN by creating the CRN Council consisting of six committees. The committees will provide information, expertise, advice and assistance to the Executive Council who will help draft the action plan that can affect positive outcomes for the valuation community and it’s customers while protecting American’s greatest investment. We will use the action plan to actively engage regulators and legislators to impact necessary change.

As I mentioned above the CRN Council will have six committees including: Government Affairs; Education; Best Practices; Data & Technology; Emerging Issues and Industry Relations. Supporting the committees will be the members of the Executive Council who will chair and vice chair the committees. The Executive Council members joining me will be: Tony Pistilli, Greg Stephens, Bill Waltenbaugh, Jordan Petkovski, Paul Chandler, Kevin Lahr, George Opelka, Loren Cooke, Rick Langdon, Alan Hummel, Penny Reed and John Cirincione. As you can see we are in pretty good hands.

I want to sincerely thank and acknowledge the commitment of the CRN committee members who have stepped up to participate on the committees, the Chairmen who will lead the committees and importantly the sponsors ACI, House Canary, Property Sciences, Metro-West Appraisal Co., Global DMS, and Clearbox who will help provide the resources to make all of this happen. I am truly excited for the potential to indelibly impact the valuation landscape.

Happy New Year…It’s going to be a busy one!

Joan Trice

If anyone is interested in becoming a member please contact Karen Connolly at 513-490-0226 or Karen@allterragroup.com.

Jeff Bradford

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