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feature responsible for their conclusions, there is simply no discernable ROI to such a relationship," Floyd added. Essentially, the mentors, who have to take on the price of training appraisers, find them- selves facing a long mentorship period, where the process is more demanding than in years past and the overhead expense is too high to easily justify. The National Appraisal Congress (NAC), a Five Star Institute membership group com- prised of appraisers and appraisal management companies, began advocating last year for changes in how mentors and appraisal trainees work together to resolve barriers to entry. "In certain states, regula- tions make it impossible for an appraiser trainee to serve as a force multiplier on behalf of their trainer or mentor," said Jordan Petkovski, chairman of NAC and chief appraiser for Title Source. "The end-result is a timely and costly training process that discourages the mentoring of the next generation of valuations professionals. In a decade, the falling ranks of new appraisers will catch up to consumers and financial firms—all of whom will eventually be hit with longer origination timelines and higher appraisal costs due to the dwindling number of appraisers operating in this space." Petkovski is not alone in his assessment. An attitude of con- cern has already spread through- out the industry, causing NAC to step forward to assert a solution for the industry. "Trainees are at a standstill right now," explained Ernie Durbin, a Member of NAC and chief valuation officer for Valuation Vision. "It is purely an economic issue. Traditionally, training new appraisers has been a part of growing an appraisal practice. Unfortunately training new recruits is not economically viable in today's valuation envi- ronment." In the past, a supervisory appraiser would benefit from having a two-year apprentice under his or her umbrella since the trainee could simultaneously function as a force multiplier on behalf of their mentor, allowing the trainee to inspect a home after obtaining a certain level of competency without the supervi- sor having to be onsite. This prevented appraisers from losing money on trainees since a trainee with a certain threshold of experience could get into the field and handle most of the process without taxing the time and financial resources of the trainer. "Apprentice appraiser training appears to be at a low point since appraiser licensing was enacted," explained Michael Floyd with Streetlinks Lender Solutions. "In my view, the greatest challenges lie with the lack of incentive for supervisory appraisers to participate in the process under the current regulatory environment. Due to their regulatory oversight, lenders either do not allow trainee appraisers to be involved with their assignments or they require the supervisory appraiser to accompany the trainees during every appraisal inspection, which decreases productivity due to duplication of duties." State regulations in several key states—Arizona, Florida, Illinois, Maryland, Mississippi, Missouri, New Mexico, Oregon—also make it difficult for mentors to financially justify the expense of taking on new trainees. To resolve Get Your Voice Heard—Become a NAC Member Founded by the Five Star Institute in 2014, the National Appraisal Congress (NAC) is a member-led group that gathers periodically to collaborate on sustainable solutions for issues impacting U.S. appraisers and their profession. In the spring of 2015, NAC met with members of Congress and top regulators from the Consumer Financial Protection Bureau and HUD to advocate for sensible and streamlined regulations in the valuations space. With the number of appraisers under the age of 40 rapidly declining, NAC is the first advocacy group to proactively address issues impacting the industry by developing proposed solutions and advocating for strategic change at the state and national level. • Best Practices and Ethical Standards • Educating and Mentoring the Next Generation of Appraisers • Removing Barriers to Entry in the Appraisal Industry • Standardization of Background Checks in the Valuations Industry • Leveraging Technology as a Tool for Progress in Appraisals • Alleviating Future Shortages of Professional Appraisers through Advocacy, Education and Training 24 | Th e M Rep o RT "In a decade, the falling ranks of new appraisers will catch up to consumers and financial firms—all of whom will eventually be hit with longer origination timelines and higher appraisal costs due to the dwindling number of appraisers operating in this space." —Jordan Petkovski, chief appraiser, Title Source