AI Names 2025 VP Nominee, Issues Phishing Alert, and Urges Support for Licensing Bill
In this issue:
- 2025 Vice President Nominee: National Nominating Committee selection announced
- Phishing alert: Members urged to verify emails and protect personal data
- Valuation insight: Issues stem from misinterpreting as-is vs. as-completed values, not inflated appraisals
- Advocacy push: Members asked to support H.R. 5520 to modernize appraisal licensing
National Nominating Committee Announces 2025 Vice President Nominee
The Appraisal Institute’s National Nominating Committee (NNC) convened on September 29–30 to interview and evaluate candidates for the 2025 Vice President position. Following careful deliberation, the NNC has selected Ashley Johnson, MAI, SRA, as its nominee for the role.
In sharing the committee’s decision, Sandra Adomatis, SRA, Chair of the National Nominating Committee, expressed appreciation for the dedication and professionalism shown by all candidates who participated in this rigorous selection process.
“The NNC deliberated long and hard, as all candidates have many strengths to offer the Appraisal Institute,” Adomatis said. “We thank each of them for their commitment to serving our organization.”
The NNC extends its congratulations to Ashley Johnson and gratitude to all who took part in the process for their continued support of the Appraisal Institute’s mission and leadership development.
Stay Alert: Protect Yourself from Phishing Emails
Recently, an outside group attempted to send messages that mimicked an official Appraisal Institute dues notice. While our systems remain secure, we want to remind members to stay vigilant when reviewing emails that appear to come from the Appraisal Institute or any other organization.
Here are a few best practices reinforced in a Security Bulletin in our Customer Service section to help you identify legitimate emails:
- Check the sender’s address carefully. Official Appraisal Institute messages come from addresses ending in @appraisalinstitute.org. Be cautious of misspellings or look-alike domains.
- Hover before you click. Before clicking a link, hover over it to verify that it directs to an official Appraisal Institute domain or another trusted site.
- Avoid sharing personal or financial information by email. The Appraisal Institute will never ask for sensitive data such as passwords or credit card details via email.
- Watch for urgency or threats. Scammers often use phrases like “immediate action required” to pressure recipients into responding quickly.
- When in doubt, verify. If something feels off, contact the Appraisal Institute directly through our Customer Service page. Do not reply to the suspicious email.
Your attentiveness helps protect both you and our professional community. Thank you for helping keep Appraisal Institute communications safe and secure.
Insights
As-Completed vs. As-Is: When Investors Confuse Forecasts for Facts
Some recent media coverage has suggested that inflated appraisals may be contributing to valuation-related lending problems in “fix and flip” scenarios in cities like Baltimore, Maryland. But there’s no evidence to support that claim. What’s really happening is a breakdown in how value premises are interpreted and applied—particularly by institutional investors and analysts who may not fully understand the difference between as-is and as-completed market values.
Two Different Values, Two Different Purposes
Appraisers know that the as-is market value represents what a property would sell for today, under current conditions. It’s the foundation for most mortgage underwriting and risk assessment.
By contrast, an as-completed value is hypothetical—it reflects what a property is expected to be worth after improvements are made. It’s essential for construction and renovation lending, but it must be understood and managed as a projection, not a present condition.
When institutional investors treat as-completed values like as-is values in forecasting or securitization models, they may inadvertently overstate the collateral strength of their portfolios.
It’s a Forecasting Problem, Not an Appraisal Problem
When those forecasts fall short, it’s tempting to point fingers at appraisers. But the reports themselves typically make value conditions, assumptions, and scope crystal clear.
The problem isn’t in the valuation, it’s in how the valuation is interpreted. Inadequate due diligence, misaligned underwriting assumptions, or weak monitoring of renovation progress can all lead to risk exposure that has nothing to do with appraisal performance.
In some cases, these institutional investors appear to be valuing properties based on projected rental income or anticipated resale prices rather than current market conditions. That approach can quickly detach from reality—not unlike Zillow’s short-lived iBuyer program, where forecasts based on future resale potential didn’t always match market behavior.
The underlying problem isn’t the appraisal; it’s that investment models are substituting speculation for analysis, treating hypothetical outcomes as if they were already realized. When those assumptions fail, appraisers often get blamed for market outcomes that were never within their scope or control.
A Reminder of the Appraiser’s Role
Appraisers remain the profession most firmly rooted in independence, ethics, and analytical discipline. Every credible appraisal report clearly states the value definition, scope of work, and assumptions behind the assignment.
When that information is read and respected, it provides one of the most reliable safeguards in real estate finance. The challenge isn’t to change the appraisal—it’s to ensure those relying on it understand what it says.
Inflated appraisals aren’t the story here. Misapplied assumptions are. Understanding whether a valuation is as-is or as-completed is fundamental to sound lending, risk modeling, and investor decision-making. When appraisals are interpreted accurately, they remain the most dependable foundation in the mortgage system.
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Appraiser Liability Trends: Litigation Risks for Commercial and Residential Appraisers
The Appraisal Institute is proud to present this webinar in partnership with Liability Insurance Administrators (LIA) - the only Errors & Omissions program endorsed by the Appraisal Institute since 1991, and the largest program in the U.S. dedicated to appraisal professionals. In addition to E&O, AI members now also have access to LIA’s endorsed General Liability and Cyber Liability Insurance products, offering comprehensive protection for today’s evolving risks.
Presenter: Steven Bauer, Attorney, Gaglione, Dolan & Kaplan
During this session, experienced outside counsel will spotlight the latest litigation trends and liability risks impacting both residential and commercial appraisers. Attendees will walk away with practical strategies for risk management, a stronger understanding of how claims arise, and best practices for mitigating exposure in a shifting legal landscape.
Key Litigation Issues to Be Covered
- Overvaluation and Undervaluation Claims
Why appraisers are frequently drawn into disputes when market performance, foreclosures, or resales differ from their opinions of value. - Bias and Fair Housing Allegations
The rising wave of appraisal bias claims, federal scrutiny, and how appraisers can protect themselves through sound practice and documentation. - Engagement Letter and Scope-of-Work Disputes
How unclear assignment terms create litigation risk — and steps to ensure clarity and defensibility. - Third-Party Liability
Expanding exposure from borrowers, buyers, and others outside the client relationship, and strategies to limit liability. - Regulatory and Disciplinary Proceedings
The interplay between board complaints, federal investigations, and civil claims. - Risk Management Best Practices
Practical steps appraisers can take to reduce exposure — including maintaining independence, careful recordkeeping, and leveraging liability insurance.
IVSC Valuation Webinar Series 2025, Sponsored by Kroll
Now in its sixth year, the IVSC Valuation Webinar Series brings together valuation professionals from around the world to explore the forces shaping the profession in 2025.
Program Highlights:
- From Inflation to Innovation—Key global trends redefining valuation in 2025 (Nov. 4, 11:00 a.m.–12:30 p.m. ET)
- Valuing the Invisible—New guidance for valuing intangible assets (Nov. 5, 4:00–5:00 a.m. ET)
- Tech-Enabled, Profession-Led—How technology is transforming valuation practice (Nov. 6, 5:00–6:00 a.m. ET)
- Valuation Under Scrutiny—Lessons from valuation disputes and regulatory cases (Nov. 11, 8:00–9:00 a.m. ET)
- Mind the Gap—Exploring divergence between public and private real estate values (Date TBC)
Student Affiliate Webinar
Don't miss out on this opportunity designed specifically for students interested in the appraisal profession and career pathways. Join us October 21 for our Student Affiliate Webinar and gain valuable insights and guidance for those considering appraisal as a future profession.
What You’ll Learn:
- Discover the Appraisal Profession: Gain an understanding of the appraisal field and the career options it offers.
- Steps to Become Licensed: Learn the process of becoming a licensed appraiser in the United States.
- AI Designations & Membership: Build awareness of prestigious Appraisal Institute designations and explore membership opportunities beyond Student Affiliate status, including discounted dues as you transition into new membership categories.
- Student Benefits: Hear how AI supports students with resources, networking, and reduced costs.
- Live Q&A with Appraisers: Engage with two certified appraisers (one MAI, one SRA) who will share their professional journeys and answer your questions.
Advocacy Updates
Make Your Voice Count: Tell Congress to Modernize Appraisal Licensing!
As an Appraisal Institute member, you know your AI team works tirelessly in Washington, D.C., and state capitals to represent your interests. But to truly make an impact, members of Congress need to hear directly from you. Your firsthand experience as an appraiser— and as their constituent—is what makes the difference when lawmakers decide how to vote.
Right now, the House Financial Services Committee is determining which bills to include in upcoming housing legislation markups—the process where committee members debate, amend, and rewrite proposed laws. This is the critical moment to speak up in support of the Portal for Appraisal Licensing Act (H.R. 5520), a bill that would streamline and modernize the appraisal licensing system. The legislation mirrors successful regulatory frameworks used in other industries, such as insurance and mortgage origination, helping to cut red tape and improve efficiency for appraisers nationwide.
Contacting your representative is simple. Click this link and type in your address to find your members of Congress. Your two senators will appear first, followed by your House representative. For this alert, please reach out specifically to your representative in the House. When you call, be sure to mention that you’re a constituent and a member of the Appraisal Institute. If you’re calling outside of business hours, don’t hesitate to leave a voicemail—it’s an excellent way to make your voice heard.
Here’s a quick message you can use when calling or emailing:
I’m a constituent and member of the Appraisal Institute, the largest professional association of real estate appraisers in the United States. I urge you to co-sponsor H.R. 5520, the Portal for Appraisal Licensing Act, which will modernize and streamline the real estate appraisal licensing system, similar to the structures used successfully in other industries. Please also ask House Financial Services Committee Chair French Hill to include this bill in the next markup.
After you’ve made your call or sent your message, please let us know how it went. Every individual effort strengthens our collective voice and helps ensure that Congress understands how critical appraisal modernization is to both our profession and the broader real estate market. Together, we can make a lasting difference—but only if we speak up
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Your Community
Nominate a Colleague for the William S. Harps DEI Award
The William S. Harps DEI Award honors an Appraisal Institute Member who truly exemplifies the values of diversity, equity, and inclusion in the valuation profession and has actively worked to make the profession reflective of all the communities we serve. It commemorates the legacy of William S. Harps, MAI—the first African American to earn the MAI designation (1960), former president of the American Institute of Real Estate Appraisers (1981), and a leader in breaking barriers in the appraisal profession. Harps passed in 2009.
A few examples of notable contributions include:
- Mentoring or advancing underrepresented individuals to the profession
- Leading initiatives or projects that significantly enhance equity and inclusion
- Building programs that increase access for all within appraisal
Do you know an AI Member who fits this description? Nominate them today and help us shine a spotlight on those making a lasting impact.
Until Next week
Team Appraisal Institute
