Understand Your Rights. Solve Your Legal Problems
Consumer Watchdog recently endorsed a proposed bill in the New York State Assembly that would provide the so-called "Right To Be Forgotten," allowing people to request removal of material and search engine links from their name to information that is inadequate, irrelevant, no longer relevant, or excessive from the Internet.
Another key provision of the bill is that the statute of limitations to bring an action for defamation, should an item be libelous, would start when an article is removed from the Internet, not when it was first published. "With this bill, New Yorkers will be the first to be able to tell the Internet, 'fuhgeddaboudit'," said John M. Simpson, Consumer Watchdog's Privacy Project Director. "Unfair and no longer relevant digital footprints following you throughout your life can hurt you. People need to be able to tell the Internet: 'Just fuhgeddaboudit.'"
The bill, A5323 introduced by David I. Weprin (D-Dist. 24), has been referred to the Government Operations Committee. In a letter to Committee Chair Crystal D. Peoples-Stokes, Consumer Watchdog's Simpson, wrote: "The bill fully allows free speech and public debate on the Internet, while preventing abuses and the resulting harm and destruction of the lives and careers of innocent persons…There is no prior restraint; under the bill, a Right to Be Forgotten request can be made only after "a significant lapse in time from...first publication."
The letter noted that nearly nine in ten Americans back the Right To Be Forgotten. A poll by Benenson Strategy Group and SKDKnickerbocker found that 52% strongly support a U.S. law, another 36% somewhat support it.
Consumer Watchdog, a national nonprofit, nonpartisan public interest group, explained in its letter why the Right To Be Forgotten is crucial in the Digital Age.
"Before the Internet, if someone did something foolish when they were young – and most of us probably did – there sometimes might be a public record of what happened. Over time, as they aged, people tended to forget whatever embarrassing things someone did in their youth. They would be judged mostly based on their current circumstances, not on information no longer relevant and often from many years (if not decades) ago. If someone else were highly motivated, they could do manual research and go back into library archives and microfilm, and dig up a person's past. Usually this required appreciable effort and motivation. For a reporter, for instance, this sort of deep digging was routine for, say, candidates for public office, but not for John Doe citizen. This pre-Google reality, that our youthful indiscretions and embarrassments and other matters no longer relevant previously slipped from the general public's consciousness, was Privacy by Obscurity. However, the Digital Age has ended that. Now everything – all our digital footprints – are instantly available with a few clicks on a computer or taps on a mobile device."
Consumer Watchdog's letter cited real life examples of how the failure to provide the Right to Be Forgotten in the United States has hurt and injured many thousands of people, sometimes very badly:
Consumer Watchdog said that Google's experience with the Right To Be Forgotten in Europe demonstrates that Right to Be Forgotten removal requests can be managed in a way that is fair and not burdensome for Google or other search engine providers and Internet publishers. Since Google began considering Right to Be Forgotten requests in Europe in May 2014, after a court decision required them to do so, Google has received 704,314 removal requests, the company reported in early April. Google evaluated 1,963,386 URLs for removal from its search results, and has dropped 716,894 or 42.3%. It declined to remove 944,331, or 56.8% of the links, Google reported.
"The balance Google has found between privacy and the public's right to know demonstrates that Google and other Internet companies can make the Right to Be Forgotten, or Right to Relevancy, likewise work in the United States," Consumer Watchdog's letter said. "Consumer Watchdog respectfully urges you to protect New Yorkers' privacy and support A5323. Indeed, we hope that the New York State bill becomes a model for the entire United States."
(Source: Consumer Watchdog)
Given the large-scale cyber-attack on NHS systems a few weeks back and the ongoing impact of the ransomware which has since spread globally, firm leaders are now beginning to understand that it only takes one click to take down a whole business. Here Matt Rhodes, Quiss Commercial Services Manager, points out for Lawyer Monthly what individuals should be looking out for and how to best safeguard against attacks/infections.
The recent mass ransomware attacks attracted a huge amount of publicity and brought chaos to the large number of organisations across the world, with some choosing to pay to regain control of their data.
It is believed the WannaCry virus was spread without personal interaction via the typical toxic email attachment, attacking vulnerabilities in public systems, which once compromised were used to infect other systems.
However, it could just as easily have followed a phishing attack and serves as a warning for organisations to take cyber threats seriously in the future; 1 in 10 individuals are likely to fall victim and cause untold damage to the organisations for which they work.
More than 90% of hacking attacks follow a phishing or spear-phishing email that unwittingly delivers access to protected systems. Cyber-criminals recognise the weakest points in any organisation’s security are the employees, who can easily be targeted with sophisticated email attacks.
And the criminals only need to be lucky once.
Get phishing and find the weak spots
Cyber-criminals prey on complacency. Every law firm ensures its fee-earners and support staff have undertaken the cyber-security training and knows what to look out for. They may even get refreshers and regular security updates.
But despite the warnings, people quickly forget and the business has no way of knowing how each employee will react to a real phishing attack, which may target different people at different times, with different approaches. Until now.
There are now services that subject employees to regular phishing attacks, designed to look like the real thing and test an individual’s reactions.
The regularly updated service replicates the favourite attack methods of the real criminals, although these ‘spoof’ phishing attacks will only result in a word of warning from managers and highlight the need for more training.
Working closely with the client, the service provider will create credible emails tailored to the organisation, which appear to come from likely contacts, using similar email addresses and subject matters – the attack reflects the emails used by real criminals.
Just like the real thing, specific groups or individuals within a law firm can be targeted at different times, with different emails, some with fake toxic attachments.
Phishing tackled this way does not test physical security, a firewall, or system security. It tests a firm’s security culture and helps highlight those employees who don’t realise the important role they play in keeping the firm and its clients safe.
Simple reporting helps target weak defences
The results of the tests give an instant snapshot of who responded to the simulated attack and what action they took.
The comprehensive reports identify areas for improvement, which can help address issues in the cyber-security training offered at induction. Reports help highlight which individuals need some additional support to help them be better prepared for the growing cyber threat.
It is likely that the first tests undertaken without the knowledge of employees will deliver a failure rate around 33%, which is really quite worrying. After subsequent staff reminders, ongoing training, and the spreading knowledge that employees are being deliberately phished as part of the firm’s security response, the failure rate will be closer to 5%.
A failure rate of 0% is rarely, if ever achieved. We are dealing with humans; even the best trained can be distracted, tired or bored and make a mistake.
Defeating criminals requires more education
The service to target employees will highlight the need for further education and training, most of which is likely to be available from the same service provider, as part of a proactive offering to tackle phishing.
It’s only when employees are faced with ‘real’ phishing attack that the firm will find out who reacts and what they do – at every level throughout the firm, from boardroom to post room.
When those that are caught by the phishing are shown the potential impact of their actions, they better understand the importance of increased vigilance; not just at work, but when working remotely or at home, which all helps re-enforce the security message.
Training helps defend against cyber-criminals, with regular sessions on security best practice, covering topics like creating strong passwords and how to protect data on the move.
Phishing employees is a modern solution for a modern security threat. It will help identify employees who are more susceptible to phishing attacks or who do not care and continually fail tests. Either way, a firm can concentrate its training budget on the individuals that need support or take steps to ensure those that do not care are unable to jeopardise the firm’s future.
Phishing employees needs to be part of every firm’s security culture. If it is not then there should be no surprise when the criminals find the weak spots and wreak havoc, from which a firm might not recover, with irreparable reputational damage.
More than half of the UK fears their personal information has been compromised. New research from Experian found that 54% of people believe they have been the target of fraudulent activity online – up from 39% on last year’s figures.
Experian’s third annual data breach preparedness survey revealed:
Most companies (78%) say they have drawn up plans to react to a breach of their customer’s data, however the findings suggest more could be done to ensure people are kept informed and advised appropriately.
Experian’s research found:
People expect companies to take care of their personal data and will hold them accountable if that information is lost or stolen. Half (51%) of those surveyed believe it’s the sole responsibility of a company to protect customer data from online theft, while just 9% think it’s their own personal responsibility.
Experian’s Jim Steven said: “People are more aware of fraudulent activity and ever so conscious of their personal information falling into the wrong hands. However, it’s not just down to businesses alone, we all have a responsibility to be vigilant and take measures to protect ourselves, online and offline. Simple actions such as using a different password for each of your accounts and enabling two-factor authentication adds an extra layer of security to your accounts.
“For businesses, it’s clear organisations are waking up to the risks posed by data breaches and the effect it has on their customers. Most companies are now making plans for the worst-case scenarios, but it seems many are neglecting fundamental parts of a data breach response and keeping people informed and reassured. A response plan which keeps customers informed and offers them help in protecting their online identity can help to mitigate the damage from a data breach.”
If a company suffers a data breach, their customers expect them to offer support. More than a third (37%) expect web monitoring, while 31% would want credit report monitoring despite just 15% of businesses planning to provide this.
Businesses also need to prepare for an increased level of phone calls and emails from their customers in the days after a data breach. Two-thirds (65%) of people said they would contact the company concerned if their details fell into the wrong hands, although 71% of businesses admitted they may not have the call centre capacity to handle it.
(Source: Experian)
A nationwide study of the financial wellbeing of UK workers ‘The DNA of Financial Wellbeing 2017’ report1, reveals that 31% cite finance as their biggest concern. However, nearly half of HR directors think that their employees biggest concern is work life balance (48%) and career development (43%), demonstrating a mis-alignment between employee and employer.
The findings from Neyber, the financial wellbeing company, highlights that half (50%) of lawyers are borrowing money to meet their basic financial needs, with 17% of lawyers over the age of 65 using credit cards to supplement their income and 14% of lawyers using their overdraft to make ends meet.
An increase in so-called zero hour contracts means that 35% of those working in the legal sector have an income fluctuation of more than 10% each month. This is significantly undermining people’s ability to manage the money on a day-to-day basis, budget, plan and save. More over this fluctuation in income is contributing to financial exclusion due to an inability to access cost effective financial products.
With mental health currently high in the public consciousness, Neyber has revealed that almost a third (30%) of lawyers are suffering from financial stress.
Monica Kalia, Co-Founder and Chief Strategy Officer of Neyber said: “At a time when personal finances are under increasing pressure, employers have a duty to offer greater support to their employees. We are calling for more companies to provide a facility to allow employees to have access to financial education tools, saving facilities and access to low cost loans. Financial wellbeing should be included in every company’s employee engagement strategy. It’s the right thing to do and a financially resilient workforce can only be positive for the company and the UK economy as a whole.
Monica Kalia continues: “The good news is that more businesses realise that staff with financial worries also struggle at work and firms are waking up to ways to help them.”
The report also highlights a divergence between employer engagement around financial wellbeing and the wishes and needs of their workers. For instance, 43% of employees have, or would like access to financial education and awareness from their employer whilst 36% of HR directors rank performance management as their main priority.
(Source: Neyber)
Cambridge University Press and the Society of Legal Scholars (SLS) recently announced that beginning in January 2018 Cambridge University Press will publish the SLS’s prestigious journal Legal Studies.
Now in its 37th volume, Legal Studies is one of the UK’s premier peer-reviewed law journals. The journal publishes on a broad range of interests across all legal scholarship, including doctrinal, conceptual, and socio-legal analyses. Legal Studies reaches a wide international readership. It has recently been accepted by the Clarivate Social Science Citation Index and will receive its first Impact Factor in 2017.
SLS President, Professor Imelda Maher MRIA, said: "The Society of Legal Scholars is rightly proud that its journal, Legal Studies, is an authoritative voice of legal scholarship for scholars around the world as well as for its members, all of whom receive an individual copy. The Society and the editorial team look forward to working with Cambridge University Press in this new phase of the journal's development."
Cambridge University Press Director of Publishing Ella Colvin said: "We believe a partnership between these two leading organizations in law will foster innovative content creation and put this important publication at the forefront of legal scholarship for many years to come.”
(Source: Cambridge Journals)
FAIR Canada and CARP recently announced that they believe the proposed cooperative capital markets regulator (CCMR) is not in the interests of ordinary Canadians.
FAIR Canada and CARP are of the view that such a major change to the current system of securities regulation must represent an improvement for Canadians. The CCMR does not accomplish this due to its governance structure and substantive law.
Ermanno Pascutto, Chair of FAIR Canada states that "the onus is on those proposing to repeal the existing regulatory system to demonstrate the benefits of the proposed CCMR to Canadians. To date, we remain unconvinced that the change will benefit Canadians."
According to Wanda Morris of CARP: "For capital markets to function effectively, investors need complete transparency, competitive fees and confidence that their interests will be protected. These elements are not in place now and the proposals put forward for the new regulator do not address these concerns. CARP urges provincial regulators to go back to the table."
OSC Leading Investor Protection
The Ontario Securities Commission (OSC) is the leading securities regulator on investor protection issues in Canada and under the CCMR, it would be eliminated and replaced by a new regulatory authority. This is set to occur on June 20, 2018.
Most recently, the OSC and New Brunswick's Financial and Consumer Services Commission have been alone in their public support to adopt a regulatory best interest standard to protect ordinary Canadians while the British Columbia Securities Commission (amongst others) have announced they do not support that financial services firms and their representatives should be required to act in the best interest of their clients.
FAIR Canada and CARP believe the reforms led by the CSA and OSC (and supported by the Ontario government) are critical to Canadians being able to adequately accumulate savings and critical to their being able to receive professional, objective advice that is consistent with safeguarding and advancing their interests.
FAIR Canada and CARP are concerned about the elimination of the OSC, particularly since the OSC has not only led regulators in substantive initiatives, but has also been at the forefront of establishing structures that ensure investor representation in policy making. This structural representation includes the OSC's Investor Advisory Panel and the Investor Office. The OSC has also adopted a whistleblowing program with financial incentives. No other securities regulator in Canada has taken these steps.
FAIR Canada and CARP are of the view that, at present, the CCMR is not capable of fulfilling its purpose to "provide increased protection for investors" as set out in the Memorandum of Agreements signed by the Participating Provinces that led to its creation.
FAIR Canada's notes that it has recommended reform of the CCMR to the federal and provincial governments, but has thus far met with no response that addresses concerns about the CCMR not being investor focused.
White Paper on CCMR: "What About the Investors?"
FAIR Canada decided to engage Professor Anita Anand to review the proposed CCMR and compare it to the OSC. In her white paper, "What About the Investors?", Professor Anand concludes that in both its governance structure and substance, the CCMR is less advantageous to investors than the current model of securities regulation and particularly initiatives led by the Ontario Securities Commission.
FAIR Canada and CARP call on the Participating Jurisdictions to reform the governance structure and substantive law of the CCMR so that it can fulfil its purpose to "provide increased protection for investors" as set out in the Memorandum of Agreements signed by the Participating Jurisdictions. Otherwise Canada should retain the current model of provincial securities regulation.
Professor Anand states, "I have long been in favour of a reformed model of securities regulation in Canada. But given the fundamental mandate of investor protection, any proposed model must have at least the same level, if not more, protections in place for investors. The CCMR is not there yet which is the key message of the white paper."
Support from Other Organizations and Individuals
"As the white paper highlights, the CCMR is a step backward in the process of enhancing investor rights and significantly waters down advancements made by the OSC." – Stan Buell, President, Small Investor Protection Association (SIPA), in Letter of Support to FAIR Canada.
"PIAC believes that this paper, written by Professor Anita Anand, is of major importance…Although PIAC historically has as well supported the national securities regulator, we are actively re-considering that position in light of the developments outlined in Professor Anand's paper." – John Lawford, Executive Director and General Counsel, Public Interest Advocacy Centre (PIAC), in Letter of Support to FAIR Canada.
"This report makes it clear what retail investor protections the new regulation should include. Without these provisions, there will be significant regression for Ontario investors." – Ken Kivenko, President, Kenmar Associates.
(Source: Canadian Foundation for Advancement of Investor Rights)
While over half of allocators said the debate around Trump's policy agenda will have little impact on their investment decisions, European allocators feel the increasing pressures of the European regulatory environment, the implications of Brexit and the nationalist movement are impacting asset allocation decisions in 2017. According to a recent survey from Context Summits, nearly three quarters (71%) of European investors are optimistic about the future of the alternative asset management industry, with more than half (54%) planning to increase their net positions in alternative investments by the end of 2017.
The survey of institutional investors and family offices was conducted at the inaugural Context Summits Europe event hosted by Context Summits, the preeminent producer of investment summits for the alternative asset management industry. More than 300 institutional allocators, family offices and managers, representing more than $245 billion in cumulative assets under management, attended Context Summits Europe 2017, which was held in Barcelona, Spain on 7-9th May 2017 at the Hotel W Barcelona.
The results from Barcelona closely mirror survey results from Context Summits Miami 2017, where more than half (51%) of investors surveyed were optimistic about the industry and 72% planned to increase their allocations to alternative fund managers in 2017. A majority of European allocators (75%) also said they prefer investing with emerging managers rather than established managers, significantly more than the 59% of allocators polled at Miami earlier in the year who said they felt the same way.
"Europe represents a major growth opportunity for the alternative asset management industry, and we are pleased to help facilitate conversations between European-focused allocators and managers via our one-on-one format," said Mark Salameh, co-founder and CEO of Context Summits. "As the data shows, European allocators—like their US focused counterparts—are overwhelmingly optimistic about the future of the industry. While challenges remain, particularly in the political and regulatory realms, the overall consensus is that there is strong demand for new strategies and ideas."
John Culbertson, chief investment officer of Context Capital Partners, added: "Europe has experienced several market shocks in recent years, such as the Greek bailout and more recently the Brexit vote, which has caused European investors to approach the market with caution. However, while there are legitimate questions about the future of the EU and the solvency of some member countries, the overall appetite for alternative investments continues to grow."
Key findings include:
(Source: Context Summits)
12,000 people, the majority of them lawyers, walked to raise funds for free legal advice services in London and the South East on May 22nd.
The annual London Legal Walk has attracted the support of the whole of the legal profession, fundraising to enable Law Centres, local Citizens Advice and advice agencies to continue to help vulnerable people access legal advice.
Last year’s walk raised £740,000 and organisers expect to break £800,000 this year.
Those that the advice centres help include families facing homelessness, older people requiring community care, trafficked women and children, people with disabilities, refugees, people who are facing unemployment and those with mental health problems.
Vulnerable people like Willow have suffered most during the recession: “Living with severe mental health problems is challenging. I didn’t know what I would do without my disability allowance. The local Law Centre has given me back my safety and security.”
Willow is a young woman living with severe mental illness. She has spent time in hospital being treated for acute mental health problems. In spite of this her disability allowance was taken away when she was moved to PIP. A huge drop in her weekly income left her in an emotionally distressing and desperate situation. With the help of her local Law Centre, Willow fought and won an appeal to reinstate her disability allowance and a payment of £2,500 in arrears. The extra money makes all the difference to Willow’s life and gives her the security she needs to be able to focus on her wellbeing.
Cuts in civil legal aid and council grants have made access to free legal advice in the capital scarce. There are fewer Legal Aid firms in the high street, some advice centres have closed and others have had to severely reduce casework staff.
Lawyers from all corners of the legal profession came together to raise funds for those in urgent need of legal help. The most senior judges and QCs walked side by side with law students; corporate lawyers; high street solicitors and front-line caseworkers. Many in-house lawyers from multinational companies will be walking.
Sir Terence Etherton, the Master of the Rolls says: “We walked to raise funds for free legal advice charities supported by the London Legal Support Trust.
“The need for these charities has grown over the past few years while resources for their work have diminished.
“That makes the funds raised by the London Legal Walk more important than ever.”
President of the Law Society of England and Wales Robert Bourns says: "The London Legal Walk is a great way for us to come together to support charities that provide legal advice day in, day out, helping a hugely diverse range of people, many of them vulnerable and facing frightening legal situations. And remember those least able to afford legal advice can often be in most urgent need of it. Solicitors and the wider legal profession are committed to helping them.”
Vicky Ling, Chief Executive of the Trust says: “We are delighted that the legal profession have again risen to the challenge and have turned out in even greater numbers than before.
“Free legal advice services change people’s lives, providing them with expert help to reduce debt, poverty and homelessness, and combat discrimination and injustice. LLST work with the charities we fund to ensure every pound raised goes as far as it possibly can.
“Thank you to everyone who has supported the walk thus far, and please do continue to sponsor your friends, colleagues, family members and clients to help us break the fundraising record!”
22/05/2017. London, UK.
(Source: London Legal)
With cybercrime and ransom hacks being a common occurrence in today’s newsrooms, Karen Wheeler, VP UK Country Manager at Affinion talks to Lawyer Monthly about the opportunities that can arise from these kinds of threats, for the banking sector in particular.
We’re living in a world where high profile data hacking scandals and cybercrime attacks dominate our headlines on an almost daily basis. New research by Barclays has revealed that last year alone saw a total of 5.6m cases of cyber fraud reported across the UK; a figure accounting for nearly half of all UK crimes, affecting both companies and consumers alike.
The newest member of the ever-growing club of victims is the NHS, which last week saw a colossal attack in which criminals took control of computers and held hospitals at ransom. But despite the mass media coverage, it’s not just high-profile organisations that are targeted. Cyber criminals are also after sensitive customer information and payment details that can be traded on the dark web.
Clearly, no one is exempt from the threat of digital fraud, and Barclays’ research highlights the need for education on protection methods amongst UK consumers. In fact, almost 40% of people believe they can’t prevent cybercrime, according to a survey by Get Safe Online.
While there’s no doubt that cyber-crime exists, the number of reported cases suggests there could be a lack of clarity around who can be targeted and what constitutes risky cyber behaviour. Furthermore, who is responsible to protect against digital crimes and how customers can protect themselves.
Step 1: Recognise the opportunity
Following its research, Barclays’ has also announced plans to lead a £10million campaign against digital fraud with a primary aim to educate customers. Its campaign, and the current climate in which cybercrime is rife, illustrates a clear opportunity for banks to step up and adopt a role of responsibility in this field; positioning themselves as experts in educating on risk and how customers can protect their identities from digital fraud.
While some financial services institutions may question whether or not this is their job, given the amount of money they lose as a result of fraud, perhaps the question they should be asking is whether or not they can afford not to address this issue?
However, the truth is that banks are actually among the most trusted brands by consumers when it comes to data security. The Symantec State of Privacy Report in 2015 revealed that 66% of banks were the third most trusted by their customers to handle data; only hospitals and medical services ranked above. Evidently, there’s already a great deal of trust and brand value that exists for financial services institutions when it comes to handling data, meaning customers are likely to value their banks’ advice. This is something that currently, many are failing to utilise.
There’s a lot to learn from Barclays and by recognising this as an opportunity, not a challenge, banks can enable customers to make better fraud prevention choices, enhance loyalty and build deeper, more valuable customer relations in a fiercely competitive market.
Step 2: Educate and empower
By enabling people to make better security and fraud prevention choices that are backed up by relevant and knowledgeable support when things go wrong, banks can enhance their reputation amongst existing and potential customers. For example, Barclays’ upcoming digital-led safety campaign provides free support to SMEs as well as an online quiz for customers to assess their overall digital safety level - equipped with advice and tips for improvement.
Whilst this might sound like simple advice, it is guidance that could empower customers to be a little more careful about who they disclose their personal information to. Other examples might include a helpline to provide customers with peace of mind. Such a service could increase a customer’s bond and loyalty to their bank.
Step 3: Offer additional services
In addition to educating and advising customers about risks and ways to protect their identity, banks can also take further steps to build loyalty by offering additional and exclusive services. Barclays is now giving customers the opportunity to set up daily ATM withdrawal limits on their mobile banking app, to prevent the risk of security breaches. This is just one example of an additional account protection service that a bank could offer its customers on top of advice.
By taking responsibility and offering customers not just advice, but an actual service that will help protect themselves, a bank can its extend the influence into customers’ lives, improving their value and retention. In fact, our recent study looking at customer engagement found that banks that offer ‘protecting the customer’ products have 13 per cent higher customer engagement scores compared to the average, meaning they stay longer and are more likely to recommend to others.
Cyber-security attacks have, and will continue to, present a significant threat because of the connectivity of modern life, unless action is taken. There is an ever-rising level of customer data online, which both businesses and customers need to take responsibility for keeping safe. But amidst the threat and concern, there is an opportunity for financial services institutions to look beyond this and instead see the challenge as a chance to build more loyal and lasting customer relations.
Any perceived shortage of appraisers may be location specific and dependent on whom you ask, but there is universal agreement that more needs to be done to keep appraisers in the profession and attract new talent. That's according to panelists at a property valuation forum at the 2017 Realtors Legislative Meetings & Trade Expo.
The conversation with property valuation experts comes at a time of numerous challenges within the industry. NAR's Appraiser Trends Study released earlier this year underlined many of the ongoing issues in the profession, including regulatory burdens, insufficient compensation, and dissatisfaction in the work leading to what some say is a shortage of appraisers.
Providing their insights on these issues and ways Realtors can communicate more effectively with appraisers were David S. Bunton, president and CEO of The Appraisal Foundation; James Park, executive director at the Appraisal Subcommittee; and Jim Amorin, 2017 president at the Appraisal Institute. Susan Martins-Phipps, a Realtor® and certified residential appraiser, moderated the session.
Much of the discussion during the session focused on balancing the need for appropriate regulation without overly burdening the industry. Sharing their own experiences, Bunton and Amorin discussed how the multiple federal, state and international standards can conflict with each other at times and cause confusion, frustration and an inability to appropriately serve the needs of clients.
Citing NAR's appraisal survey, Amorin said that excessive regulation is the number one reason appraisers are leaving the industry, along with decreased fees and increased expenses. While regulation serves its purpose, Amorin stressed the need for 'appropriate updating' given that technology and consumer preferences have changed over the past decade.
"Appraisers are being crushed in the current regulatory environment and there are fewer people entering the profession," said Amorin. "There are changes that can be put into place that make the process easier for everyone and not put added costs on the consumer."
According to Park, public trust in the appraisal profession is important, and while there are certainly challenges in the industry, few of those challenges have to do with federal regulation. He also said outside of a few areas, he believes there is not a shortage of appraisal professionals. Citing the lower mortgage volume compared to the early 2000's, Park said the number of active appraisers is proportionate to the current level of work in most of the country.
Amorin added that although the number of appraisers have declined around 23 percent since 2007, any actual shortages are primarily in some rural areas, and what some see as a shortage in quantity is actually just a dearth of appraisers willing to work for the low fees that have failed to keep up with inflation. However, Amorin did sound the alarm on what could be an inadequate number of appraisers in the future.
"The number of new entrants into the business is abysmally low, and a looming shortage is something we should be concerned about," said Amorin. "The typical appraiser is in their mid-50s. We've got to find a way to make the profession more attractive and lucrative so that technology doesn't completely take over the valuation process."
Bunton agreed with Amorin and indicated he's hopeful an improving housing market will bring more individuals, including millennials, to the industry. "If you're a millennial, what's not to like? You get to use technology, the hours are flexible and there's always work," he said.
The end of the session focused on bettering the appraisal process for the greater benefit of the real estate industry. While appraisers must maintain their independence, Amorin stressed the important role real estate agents can play in helping serve their clients and improve the work of appraisers. He said to applause from the crowd that it's certainly fine for agents to talk to appraisers as long as they aren't putting undo pressure on them.
"Regarding the relationship between appraisers and Realtors®, my message to Realtors® is to help them help you," said Amorin.
To improve the overall appraisal experience, Bunton concluded that real estate agents should be more involved with The Appraisal Foundation and its boards to stay abreast of the issues. "Nearly half of Realtors® are on our boards, and we would certainly like to see that number even higher," he said. "Less friction and more commonality on how to make the system more cohesive for everyone will ensure a better process."
NAR submitted a letter late last year to the Appraiser Qualifications Board in response to their efforts to improve recruitment and retention of new appraisers. Knowing the integral part appraisers are to real estate transactions, NAR supports AQB's revisions to some of the education and experience requirements to bring new appraisers to the industry.
(Source: National Association of Realtors)
