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» VISIT US ONLINE @ DSNEWS.COM 61 COVER FEATURE VALUATION ERNIE DURBIN II Chief Valuation Officer, Valuation Vision According to available sources, the average age of appraisers is somewhere in the mid-50s. Many practicing appraisers are leaving the profession as they approach retirement and for other economic reasons. e entry path for new appraisers is also steep. Certification now requires a four-year college degree, multiple additional professional courses, thousands of hours of trainee status and culminating exams. e economics are even worse. For several years, trainees earn wages that are substantially subpar compared to other college graduates. e attrition of currently certified appraisers and the lack of new entrants are converging to create a shortage of appraisers in the near future. Many industry experts are working on solutions to this future shortage of appraisers. While some experts are looking at changes to the entry path, others are developing new alternative valuations that will alter the workflow of existing certified appraisers. ese new alternative products will leverage the appraiser's analytical expertise and eliminate time-consuming tasks that can be performed by someone else. Appraisers will spend less time inspecting properties and more time in valuation analysis. is change in the scope of work will allow appraisers to value more properties, providing their expertise from their desk and not the field. Although these products have been around for several years, alternative valuations will begin to flourish in 2016 and the years forward. For now, origination appraisals will continue to follow the traditional track while these alternative products gain ground in the servicing and default space, as well as home equity lending. Appraisers will begin to embrace these products when they realize that they yield the same or better hourly rate of traditional appraisal products. Veteran appraisers know that they can provide these services under a different scope of work and still be fully compliant with the Uniform Standards of Professional Appraisal Practice (USPAP). As new appraisers enter the space, these products will be a part of their everyday practice and they will be accustomed to them from the start. 2016 will be a promising year for the appraisal profession. Appraisers will be engaged in a new sector that expands their appraisal practice. As changes to entrance requirements are considered, currently certified appraisers will earn more money with less costs. is evolution in the marketplace will assure that appraisers remain the gold standard in valuation and continue to service the needs of a changing mortgage industry. COVER FEATURE TECHNOLOGY SHAWN MURPHY Executive Vice President, ValuAmerica Did you know that 50% of home buyers today (*50% compared to 29% in 2008), say their purchase involves a single source (i.e., one real estate firm or other company with different divisions, departments or affiliates to handle each part of the transaction) as opposed to involving several disparate sources? *AGENTS REMAIN BUYERS' FIRST & PRIMARY CONTACTS: Half contact a real estate agent first in the home buying process; and for most, the agent remains the primary contact. *BUYERS WANT CLOSING SERVICES TO BE AFFILIATED WITH THEIR AGENTS: 72% of buyers prefer the firm providing closing services be affiliated with their real estate agent. What does this mean heading into 2016? Increased opportunities across all lines of business for companies who are able to present an "OSS" model to the market. e OSS concept is fostering bundled opportunities across the mortgage and real estate industries. For example, even though REO volume is declining, there are areas to still achieve growth in market share for those that have the ability to offer all services throughout the loan default continuum. Companies that can offer a bundled service offering through a single point of contact to their clients will be viewed as a strategic partner of choice. Factors that will continue to shape our industry in 2016 and beyond include: » Property preservation: City ordinances are becoming more stringent with code enforcements. » Property valuation: e continual development and use of automated and technology enabled valuation tools. » Technology development: Keeping up with new and changing regulatory landscapes while enabling clients to streamline vendor and other panels. » Compliance: Offering the OSS model to assist clients in streamlining vendor management / third-party oversight programs to ensure regulatory compliance. COVER FEATURE INSURANCE RANDY REMPP President, Van Wagenen Financial Services We're expecting a busy 2016 as we'll be called upon to provide solutions for a number of challenges our clients face. Of particular note: HELOC portfolios see several vintage years approaching their end of draw period. At this time many homeowners will find it advantageous to refinance. Unfortunately, home values in many markets have not fully recovered to 2006 levels causing many loans to fall outside current lending guidelines. Resourceful lenders are finding solutions to keep some borrowers from defaulting by refinancing with expanded credit criteria extending the term, and making additional monies available for future draws. Our industry will continue to manage the regulatory challenges presented by the Consumer Finance Protection Bureau and other state and federal agencies. is will lead to higher compliance costs including more spending on systems and additions to staff. Many lender will look to outsourcing of specialized back office functions. is strategy is becoming prevalent not only among the largest institutions but small and mid-sized lenders are finding it essential to effectively manage the regulatory burden. Our overall projections for 2016: COVER STORY SUCCESS FORMUL A INDUSTRY INSIGHT COVER FEATURE

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