John Brenan has enjoyed a career in appraising spanning over four decades, assuming various roles and titles with numerous companies. The latest endeavor finds the veteran appraiser establishing his own business as founder of JSB Consulting.
“Having been impacted by my prior employer’s (Clear Capital) restructuring due to the mortgage and real estate downturn, I embarked on establishing my consulting practice,” Brenan told Valuation Review. “Despite the timing not aligning with my initial plans, I have long contemplated engaging in such an endeavor, driven by my strong desire to utilize my four decades of industry experience to benefit individuals and organizations. I believe that establishing a consulting practice will serve to achieve this objective.
“With my diverse experience, I can cater to a broad range of individuals and entities,” he added. “This encompasses assisting individual appraisers undergoing investigations by state or regulatory agencies, providing guidance on regulatory compliance and best practices to lenders and appraisal management companies, aiding state appraiser regulatory agencies in revising laws and regulations, offering litigation support and expert witness services to attorneys and organizations involved in appraisal and fair housing cases, as well as delivering USPAP instruction and guidance.”
Brenan said initially, he had reservations about how his new practice might be received, given the presence of outstanding established consultants in the industry such as Tim Andersen, Greg Stephens, and Joshua Walitt, among others.
However, Brenan told us he has been fortunate to receive a remarkably positive response from numerous professionals in the appraisal field, including the fine individuals he mentioned.
“I’m delighted to say that I am already engaging in some collaborative projects with them,” he shared with us. “Furthermore, I have received feedback from many other colleagues who believe that establishing my practice maximizes the benefits I can offer, providing me with a significant sense of reassurance. These supportive peers have demonstrated unwavering confidence in my abilities and have even referred several prospective clients. As a result, my vision of becoming a valuable resource to a wide spectrum of individuals and organizations is beginning to materialize.
“My primary objective is to facilitate the successful navigation of industry changes for appraisers, lenders, appraisal management companies, and regulatory agencies,” Brenan added. “Acknowledging the inevitability of change is essential, as virtually every industry has been impacted by technological advancements and evolving laws, regulations, and policies. While individuals have the freedom to resist change, maintaining a professional stance necessitates informed decision-making.
Another goal Brenan outlined is to rebuild public trust in the appraisal profession, given the current divisive issues it faces. The profession appears to be severely fragmented, he told us, evident in the frequent vitriol exchanged within online discussion groups and forums. Transforming these platforms into supportive environments for the industry would be a significant achievement, he said.
He encourages appraisers to actively engage in positive platforms and contribute to conversations addressing common challenges affecting the profession, fostering potential solutions. Brenan also aspires to contribute to the field of education. A pressing need exists for the public to gain a better understanding of the appraiser’s role, which serves as a foundational starting point.
However, he added, extending education and enhancing comprehension regarding obligations and services provided would greatly benefit appraisers, real estate agents and brokers, lenders, AMCs, and even regulatory agencies.
Currently, the veteran appraiser is operating independently.
“I have the advantage of seeking guidance and engaging in collaborative endeavors with exceptional individuals, such as those I’ve already mentioned,” Brenan said. “As my operations expand, I anticipate the necessity of augmenting my workforce and exploring additional potential alliances. This allows me to tap into my vast network of skilled professionals, some of whom I have already approached for assistance in ongoing projects.”
We also wanted to know, from his vast experience, what areas of valuation he believes appraisers are seeking the most guidance on.
“I believe most appraisers know ‘how to appraise.’ However, appraisers must recognize that, to an extent previously unseen, the ‘outside world’ is examining who we are and how we conduct our business,” Brenan said. “This increased scrutiny of the profession focuses on issues like appraisal cost and timeliness, lack of new and diverse entrants to the profession and, perhaps most notably, allegations of racial bias. Regardless of one’s perceived accuracy with these concerns, it is simply insufficient to dismiss them outright. A response such as, ‘there is no problem here’ does not resonate.
“While some professional trade associations have provided guidance to their members, the majority of appraisers remain unaffiliated,” he added. “Thus, understanding how to navigate these challenges is crucial for appraisers to make constructive contributions to the ongoing discourse. I believe appraisers should be clamoring to be part of these conversations and aiming towards cooperative solutions.”
Recently, The Appraisal Foundation’s ASB (Appraisal Standards Board) adopted its new edition of USPAP. Brenan shared his thoughts on these recent proposed changes, saying given the public scrutiny, the ASB took action to address perceived gaps in discriminatory prohibitions within USPAP and enhance appraisers’ understanding of fair housing obligations.
Many appraisers, he went on to say, contended existing USPAP requirements already mandate appraisers act independently, impartially, and objectively, devoid of bias. Therefore, the central concern was how the ASB could unambiguously incorporate prohibitions against discriminatory behavior into USPAP while aiding appraisers in comprehending the full implications of nondiscrimination laws.
“The new nondiscrimination section within the Ethics Rule, spanning approximately three pages, appears to effectively outline an appraiser’s obligations, accomplishing the ASB’s intended objective,” Brenan said. “However, for many appraisers, the practical guidance provided by the ASB through Frequently Asked Questions and Advisory Opinions is where the application of these principles becomes paramount in their daily work. In this context, I believe that the extensive 13-page Advisory Opinion 39, Antidiscrimination Laws and Nondiscrimination, and the 8-page Advisory Opinion 40, Antidiscrimination and the Research, Analysis, and Reporting of Location Data, including Demographics, for Residential Real Property Appraisal Assignments, may not achieve their desired outcomes.
“Rather, they may inadvertently intimidate some appraisers, leading them to perceive the issues as highly complex and challenging to navigate, potentially deterring compliance and fostering avoidance instead,” he added. “Therefore, the approach taken in integrating this new material into future USPAP courses will be critical for achieving success.”
The recruitment of new appraisers into the profession is always a hot topic amongst veterans currently in the industry. We asked Brenan if he thought enough is being done in terms of paving a desirable path for individuals to travel down the road leading to a career in valuation.
“The appraisal profession is undergoing significant changes in relation to appraisals conducted for mortgage lending purposes. Despite the belief held by some that the objective is to eliminate appraisers, those who adapt to the changes will continue to play a role in this domain,” he said. “However, it is important to acknowledge that there may be individuals resistant to embracing these changes, and considering the aging population of active appraisers, a void is likely to emerge. Consequently, there will be a necessity to incorporate new appraisers into the profession.
“While there may be debates surrounding the necessity of adding new appraisers, the indisputable need lies in diversifying the appraiser population. Enhancing diversity not only aligns with ethical principles but also strengthens the profession and fosters public trust,” Brenan added. “It is essential to recognize that the lack of diversity is not exclusive to appraisers alone; numerous professions require greater diversity to ensure their survival. From my perspective, any argument against promoting diversity is difficult to comprehend.”
With regards to ample education being provided to those seeking entrance into the appraisal profession, Brenan said setting aside additional educational requirements pertaining to fair housing requirements currently under consideration by the Appraiser Qualifications Board, most people generally agree the basic appraisal education required to obtain an appraiser’s license adequately prepares someone to practice. Training, on the other hand, is a very different topic, he pointed out.
“It is widely recognized that the supervisor-trainee model is ineffective. With limited exceptions, the majority of trainees encounter significant challenges in securing a willing supervisor,” Brenan told us. “Moreover, it is crucial to acknowledge that this model essentially molds a trainee into a replica of their supervisor. Consequently, trainees acquire their supervisors’ established practices encompassing geographical preferences, property types, and long-standing methodologies. In this context, it becomes evident how such a scenario can impede exposure to cutting-edge technology, resources, and tools necessary for effectively addressing contemporary industry challenges.”
He also suggested supervisors who adopt a more “traditional” approach in selecting appraisal assignments and executing them may inadvertently hinder trainees who are open to exploring alternative assignments and utilizing the latest techniques to accomplish them. This can result in a significant disservice to the trainees.
Finally, we wanted to know what other challenges Brenan sees appraisers facing through 2023 and beyond.
“I believe challenges will continue to persist throughout 2023, particularly affecting appraisers specializing in mortgage lending appraisals due to a decline in loan volume as compared to the recent past. Furthermore, additional developments are likely to arise, with initiatives such as the ongoing efforts of the PAVE Task Force, which is centered on consumer concerns,” he said. “Among the focal points receiving considerable attention is the establishment of a standardized process for Reconsiderations of Value (ROV). While I firmly believe that enhancing consumer understanding of this procedure is beneficial to all parties, it is imperative to safeguard appraiser independence during the implementation of any ROV framework. This issue is a perfect example of where appraisers should be involved in discussions and their input needs to be part of the solution.
“Of course, unexpected surprises may very well emerge in the latter half of 2023,” Brenan added. “However, I believe that by upholding professionalism, demonstrating responsibility, and actively engaging in discussions and problem-solving, we can effectively contribute to shaping our future rather than allowing it to be determined for us.”