With mortgage origination hitting record volume in 2020, the appraisal industry has been stressed to meet demand. With interest rates at record lows, and available for sale inventory at record lows, home values have spiked with bidding wars further challenging the role of the appraiser.
At the same time, a public policy debate has ensued with the Presidential campaign and election of Joe Biden. During the campaign, Biden laid out a Housing Plan that included a focus on bias in the appraisal process. Specifically Biden calls for the establishment of a “national standard for housing appraisals that ensures appraisers have adequate training and a full appreciation of neighborhoods and do not hold implicit biases because of a lack of community understanding.”
Given the stress on the appraisal business and the heightened awareness the industry is placing on racial inequities in housing, it is an outstanding time to interview one of the top leaders in the appraisal profession: Jillian White, SRA, Better Mortgage.
We sat down for the interview on January 11, 2021. I am very excited to share the following highlights:
Faith Schwartz: Jillian, let’s start out by sharing a bit about your background. What led you to the profession of valuation?
Jillian White: My background is in neuroscience but when I graduated from Columbia I knew that I did not want to pursue the sciences. So, in many ways, I was freed from my undergraduate degree and allowed myself to imagine what kind of lifestyle I wanted. Freedom was very important to me. I wanted to be able to go food shopping on a Tuesday at 11am. Real estate offered a lot of freedom. I initially got my salespersons license but then switched my focus to appraising.
FS: Was it hard to start your own business? What were the top challenges and top reasons for your success?
JW: Starting an appraisal company as a certified appraiser was straightforward and fairly easy. Breaking into the appraisal business as a trainee was very difficult. Finding a supervisory appraiser was more challenging than I anticipated. I sent out hundreds of resumes with no response. Then I changed my name from Jillian White to J. White and began getting
interviews. However, once they saw me, I was once again rejected. I remember one appraiser was so taken aback when I entered the room that he never invited me to sit down. He conducted the entire interview from the doorway and kept saying, “You are too qualified to be an appraiser.” And I kept saying, “Then why did you ask me to come in for an interview?”
FS: Better Mortgage is thought to be one of the most progressive, tech savvy mortgage companies around. What led you to that organization?
JW: Entrepreneurship was my first “job.” I knew that if I ever worked for someone else I would need a lot of autonomy. When I joined Better, there were just 30 of us in the NY office. It was more of an idea than a business. No one knew anything about appraisals. They let me do whatever I wanted. It felt very much like an extension of entrepreneurship. It still does.
FS: What is it like leading 650 professionals as Head of Collateral?
JW: Haha. It’s like trying to parallel park a car on a high traffic street. The driver is blind folded. You are 0.25 miles away with a set of binoculars. You have to give instructions to the driver via walkie talkie and the batteries are dying. Clear, concise communication is key. Nothing can be left up to interpretation. The overall vision of what you are trying to accomplish must be established well before you begin speaking and you have to act fast. I love it! It’s a worthy challenge.
FS: You recently participated in a webinar with me and other professionals exploring whether or not there is bias in valuation. What is your experience and unique perspective in this area?
JW: As a Black appraiser, I understand both sides of the conversation. I know what it is like to remove my brother’s kindergarten graduation photo from the wall to facilitate the sale of my parent’s house. I also know what it is like to receive hate mail from a homeowner who thinks their sleeper sofa adds value. However, I think appraisers are asking the wrong question. Every moment spent exploring whether or not bias exists is a moment not addressing the core issue. Public trust has been broken. Per USPAP, it is the job of the appraiser to not only uphold public trust, but to uphold a high level of public trust. It’s in the preamble, line #1. The entire industry is in violation of USPAP. The questions we should be asking ought to be centered around the restoration of trust.
FS: I see the mortgage industry taking a big step back to evaluate equitable lending and ensuring we are doing everything we can to level the playing field for all borrowers in 2021 and beyond. What can we do to start addressing some of the issues you have identified in the area of risk and bias in valuation?
JW: To level a playing field one must first acknowledge that it is tilted to one side. If there is an acknowledgement of the tilt, then the work can begin. Bias training is an excellent first step. There is no harm in taking it but a lot of risk if you don’t. Next, creating an appraiser population that reflects the community it serves is also a good step. I am leading the Collateral Risk Network task force to increase the number of trainees in the industry with an emphasis on diversity.
FS: What are your thoughts around 3D scanning as an improved technology to support valuation and workflow for appraisals?
JW: An appraiser’s time is best spent determining value. Having appraisers spend a sizable portion of their day in a car driving from house to house to take photos and measurements is not the best use of their time. I am in favor of tools that allow them to spend more time analyzing data. 3D scanning is a step in that direction.
FS: What more do you see ahead in 2021 for our industry?
JW: I see a stronger call to action for equity in every part of the housing system. Market share will go to the institutions that address inequality head on. Those who are nimble and intellectually flexible will thrive. Those who are certain and defensive will be left behind.
FS: Tell us something fun about yourself that few people know and you are willing to share?
JW: From age 6 to 14 I was a pre-Olympic competitive gymnast. Gymnastics is an unforgiving sport. The ramifications of a miscalculation can lead to severe injury. However, discipline and thoughtful calculations lead to results that conventional wisdom would say are impossible. That experience broadened my perspective on what is possible.
At Housing Finance Strategies, we are leading change in all things housing. By interviewing key executives like Jillian White, our intent is to educate and encourage the industry to constantly grow and evolve.
The landscape for appraisal is as challenging as ever, but with leaders like Jillian White in key roles, we are well positioned to learn and address challenges and opportunities the industry faces. What a powerful interview!
Thanks to Jillian for taking the time. And as I like to say: Grow, lead and mentor your peers!