Complaint Brings Fresh Scrutiny to Appraisal Institute

The Appraisal Institute has had a difficult year, and now a recently revealed complaint could bring yet another black eye to the organization.

The Chicago-based nonprofit is facing fresh scrutiny after a complaint alleged that the head of its designation review program hasn’t held a valid appraisal license in seven years. The revelation surfaced in a filing last month with the Illinois Department of Human Rights, first reported by Bisnow.

It’s the second complaint lodged against the group’s processes surrounding testing and reviews, following a string of governance controversies and lawsuits that have rattled the influential industry body.

At issue is Gilbert Valdez, the Appraisal Institute’s head experience screener, who oversees the process by which applicants earn credentials such as the coveted MAI (member of the Appraisal Institute) designation. Records from the California Bureau of Real Estate Appraisers show Valdez’s license expired in 2018, two years after he last completed continuing education requirements. Valdez today leads the program, supervising more than a dozen contract reviewers, all of whom must maintain active licenses.

Jennifer Marshall, a former contract screener, claims her deal wasn’t renewed after she flagged the lapse to leadership. Her complaint alleges retaliation and sex discrimination tied to her failed bid for a regional post, arguing the organization ignored its own standards while punishing her for speaking out.

The Institute defended itself, with communications director Bill Garber telling Bisnow that its process is “fair and operates with integrity.” Valdez didn’t respond to requests for comment.

For the appraisal profession, the stakes are significant. The Institute says only 8 percent of U.S. appraisers hold its designations, which can boost earnings and credibility. Those letters — MAI, SRA and others — often appear beside an appraiser’s name on marketing materials and carry weight with lenders, courts and corporate clients.

Critics warn that allowing an unlicensed reviewer to oversee the process threatens the Institute’s credibility and exposes it to legal risk.

This is only the latest scandal in a difficult year for the institute.

Former CEO Cindy Chance filed a lawsuit claiming a toxic culture at the Appraisal Institute, stating she was groped by former president Craig Steinley and pressured to conceal complaints from multiple female employees. She reached a confidential settlement last month.

Another former employee, Alissa Akins, filed a separate complaint alleging she was forced out for flagging irregularities in AI’s continuing education exams. Akins alleged that flawed scoring systems resulted in unqualified appraisers passing and competent ones failing.

The institute attempted to dismiss her suit, but the motion was denied and litigation continues.

— Holden Walter-Warner