HousingWireHousingWire
Cindy Chance, the CEO of the Appraisal Institute, was terminated during what she described as a “secret board meeting” on Thursday night that she was excluded from.
The Appraisal Institute now faces a backlash from members who support Chance, a veteran nonprofit leader who joined roughly a year ago and pledged to make governance reforms and support the work of on-the-ground appraisers.
The Appraisal Institute did not respond to HousingWire’s request for comment, but in a letter to members on Friday, the trade group said that Chance is “no longer in her role,” and a search for a new leader would soon begin. John Udelhofen will step in as interim CEO.
“We are committed to finding a leader who reflects the mission, vision and values of the Appraisal Institute and helps us carry forward the progress made towards our Strategic Plan goals,” Board President Sandy Adomatis wrote in a letter to members.
“We want to reassure you that we take our mission as Directors of the Appraisal Institute seriously. We are moving forward with our progress on the top goals in our Strategic Plan to modernize our education delivery and development of new materials and continue to modernize technology and offer the programs we’ve heard are most valuable for you. As is our mandate, our efforts will remain focused on recruiting and retaining member professionals. We will continue our great work with PAREA, and our efforts in the areas of diversity, equity, and inclusion that include further expansion of college and university relations.”
Chance told HousingWire on Friday that she received “no specific feedback” prior to the termination notice. She said she was terminated without cause.
“People have been saying this would happen since the Q3 board meeting,” she said. “I heard about them planning to fire me through leaks and innuendo, not from the Board itself or any of the officers. I’m very proud of my work and my focus has always been the welfare of the members and the appraisal profession.”
Asked why she was terminated and if there were any disputes, Chance replied, “You’d have to ask them.”
Chance said she was “on the record as recommending governance overhaul, but I wouldn’t call that a dispute — that was a recommendation based on my fiduciary responsibility to the organization. I was executing successfully and communicating transparently to the Board and the membership regarding my progress on our board-approved goals.”
Chance also said the board president and other members “stepped in to make significant decisions including directing staff, firing key contractors and ending partnerships,” while she was CEO.
The trade organization, which is the largest professional association of real estate appraisers, provides free training resources to appraisers, distributes grant money and publishes a quarterly publication called “Valuation.”
The Appraisal Institute has been criticized by the government for a lack of diversity in its ranks and has acknowledged a need to modernize. According to the group’s own statistics, 78% of U.S. appraisers say they are male, 1.3% identify as Black and 4.3% as Hispanic. More than 70% of appraisers are over the age of 50 and many have been retiring.
Another point of tension is the relationship between independent appraisers and appraisal management companies, middlemen that often take a substantial cut of the appraisal fee, squeezing profits for appraisers and accelerating the shift to virtual appraisals.
Multiple independent appraisers on Friday took to social media to air grievances about Chance’s dismissal, and in some cases, announce their resignations from positions at the trade group.
“She was terminated because her positive changes threatened the entrenched interests of the Institute’s Board members,” said Lori Noble, a West Virginia appraiser who has been openly critical of the organization’s board. “They have a lot to answer for now and it is up to the members to demand a full audit of the organization or some type of legal action to explain the behavior and conduct recently, as well as the last several years.”
