The Appraisal Institute, a major provider of licensing education and credentialing for real estate appraisers, reached a confidential settlement with former CEO Cindy Chance, ending a lawsuit that raised serious concerns about workplace misconduct and mismanagement.
The institute, headquartered at 200 West Madison Street in Chicago, denied the allegations in Chance’s complaint, according to Bisnow. In its weekly newsletter, the Appraisal Institute stated that settling the case was in the best interests of the organization, its members and the broader real estate finance industry. In a message to members, the nonprofit called it a “learning experience” and pledged to make improvements based on member feedback.
The settlement announcement did not include any financial figures.
The suit, filed in May in Illinois’ Cook County Circuit Court, alleged that Chance was terminated after she reported several complaints from female employees about inappropriate behavior by Craig Steinley, a former Appraisal Institute president. Chance claimed that Steinley groped her and engaged in other misconduct, and that she was pressured to cover up the complaints.
Chance maintained she was trying to change the culture at the organization, according to Crain’s Chicago Business.
Steinley denied all allegations but eventually stepped down under pressure from the Appraisal Institute’s board due to member backlash. He was removed as a defendant in June, after which Chance’s attorney withdrew, leaving her without legal representation.
Chance joined the institute as CEO in September 2023 and was dismissed a year later. Her suit suggested a pattern of misconduct within the organization. The New York Times corroborated her claims, reporting that 12 women described uncomfortable encounters with Steinley and revealed a previously unreported $412,000 settlement the Appraisal Institute paid in May 2024 to its former CFO, who accused the organization of maintaining a “sexually hostile work environment.”
In parallel to Chance’s lawsuit, another former employee, Alissa Akins, filed a separate complaint alleging she was forced out after flagging irregularities in AI’s continuing education exams. According to Akins, flawed scoring systems resulted in some unqualified appraisers passing and competent ones failing. The institute attempted to dismiss her suit, but the motion was denied and litigation continues.
These controversies come at a time when the broader appraisal industry faces significant challenges. The Appraisal Subcommittee, the federal agency tasked with regulating the industry, is under scrutiny from Congress amid allegations of mismanagement and staffing instability. A Bisnow investigation revealed budget cuts and leadership turmoil at ASC, culminating in the recent resignation of acting head Matt Ponzar.
U.S. Senators Catherine Cortez Masto of Nevada and Mike Rounds of South Dakota have called on the subcommittee to explain the alleged mismanagement, highlighting the agency’s importance to the stability of both residential and commercial real estate markets.
— Joel Russell
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