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Major litigation against the appraisal industry’s largest trade group
The Appraisal Institute (AI) is a deeply broken trade group that has operated without real competition for years and has been rife with bad behavior, as I’ve chronicled here for years. I commonly refer to AI here, but make sure you understand that I am not using it as a short for “Artificial Intelligence.” Ha. As with the NAR legacy in the real estate brokerage industry, AI was a near-monopoly despite the existence of other smaller trade groups. AI has a self-dealing leadership culture that is seeing its membership collapse.
I served as a clearinghouse for AI bad behavior from 2016 to roughly 2023, after I began writing about it here on Housing Notes, in a highly read section called Appraiserville. Every week, I would explain the self-dealing, and I literally had the receipts. Dozens of senior appraisal leaders in the Appraisal Institute and others in high industry positions around the country who deeply cared about the organization were constantly sending me proof of corruption, enough to write extensively nearly every week. I even badgered the media, including the New York Times, The Real Deal, Bisnow and American Banker, when they would call about other topics. There have been some terrific stories that have led to or resulted in other AI stories. But the ultimate problem with the investigations is that the public does not really understand the appraisal profession, which limits the extent of coverage, and that has really worked to the industry’s advantage.
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In 2023, I testified for 3 hours at FHFA in Washington, D.C., on C-SPAN (a bucket list item checked off!), the second in a four-part series, about the parallel corruption at The Appraisal Foundation (TAF), another appraisal organization in most appraisers’ lives. I played a role in making this hearing happen, along with several of my industry colleagues around the country. It was both satisfying and frustrating.
The Appraisal Foundation (TAF)
While not a trade group, Congress created TAF more than three decades ago, but it really needs to scrap it and start over. It has been jerry-rigged by their leadership to overstaff themselves, foster unnecessary bureaucracy and pay themselves high salaries as compared to peers, doing a disservice to the appraisal industry by serving as the keeper of our industry’s certification language, the Uniform Standards of Professional Appraisal Practice (USPAP). It grew to be a bureaucratic profit mill, cranking out changes to USPAP, led by the same person until recently.
My change in focus
After that 2023 hearing in D.C., I thought about the enormous amount of time and energy I have spent trying to promote change in the appraisal industry. I love my industry colleagues around the nation who worked with me on this effort. I have enjoyed my career in appraisal in New York. But few appraisers are still entering the profession, as existing appraisers are dying off. The median age of our industry is over 60. From 2023 to 2025 alone, the Appraisal Institute saw its membership fall from 16,000 to 11,000, a 31% decline (down 74 percent from 42,000 in 1991). Industry-wide estimates show about 92,000 real estate appraisers (with many holding both residential and general credentials) in 2016, versus about 65,000 in June 2025, a decline of roughly 27,000 appraisers or about 30 percent in the last ten years.
I did my best to shine a light on the AI and TAF leadership’s self-dealing, but in the end, not much had changed. So I pulled back from my efforts in the appraisal industry after the 2023 hearing and focused on other things because the industry doesn’t seem to want change badly enough. I also recently stepped down from several appraisal-related organizations because I felt it was time to focus on other things at this point in my career.
Never-ending litigation
But when former AI President Craig Steinley filed his lawsuit this month against AI (see below for all the litigation against AI over the past two years), a number of appraisers began sending me copies of other lawsuits, so I started taking notice again. This post is a recap of the past two years of AI litigation. I keep wondering about how they are going to keep paying for all these settlements with collapsing membership. Good grief.
Here’s the litigation list:
Beata Swacha vs Appraisal Institute, Craig Steinley
The $412,000 payment to the former Appraisal Institute CFO in 2024 by the Appraisal Institute reported by The New York Times appears to have resulted from a pre‑litigation settlement demand or internal complaint.
There was no litigation document filed to my knowledge.
Alissa Akins vs Appraisal Institute
Lawsuit filed 3/28/25: Alissa Akins, the former Director of Education and Publications of the Appraisal Institute, filed a complaint against the Appraisal Institute for wrongful termination after she reported fraudulent activities related to the misreporting of exam scores for real estate appraisers. The complaint alleges that the Appraisal Institute knowingly provided inaccurate results to consumers and regulatory authorities, leading to the licensing of individuals who did not meet the necessary standards. Akins claims she faced retaliation for her whistleblowing, resulting in her termination and damages including lost wages and emotional distress.
Cynthia Chance vs Appraisal Institute, Craig Steinley
Lawsuit filed 12/1/24: Former Appraisal Institute CEO Cynthia Chance sues AI and board officer Craig Steinley in Cook County, alleging that after a national search brought her in to fix culture and operations, Steinley subjected her to persistent sexual harassment (including unwanted touching, sexual comments and rumors that she was his “girlfriend”), while AI leadership ignored a longstanding pattern of his sexist behavior and broader governance problems. She claims she repeatedly reported harassment, inaccurate state certification practices and exam issues, inflated membership reporting, biased instructor selection that disadvantaged women and minorities, self‑dealing in teaching assignments, concealment of PAREA losses and resistance to addressing harmful AMC practices, but was undermined, tightly controlled via “directives” and ultimately terminated “without cause” in retaliation, in violation of the Illinois Human Rights Act and Illinois Whistleblower Act. After her firing, she alleges AI leaders defamed her by telling others she had embezzled money and sold AI’s “body of knowledge” to a competitor, and she further claims AI negligently hired, retained and supervised Steinley despite prior complaints, seeking damages, reinstatement‑type remedies and fees.
Jennifer Marshall vs Appraisal Institute
Lawsuit filed 4/10/26: Jennifer Marshall, a long‑time contract “Experience Screener” and “Peer Review Screener” for the Appraisal Institute (AI), sues AI in federal court in Chicago, claiming she was secretly terminated in retaliation for repeatedly reporting what she viewed as ongoing fraud and USPAP violations in AI’s designation and peer‑review processes. She alleges AI knowingly used an unlicensed head screener, misled candidates and regulators about compliance with USPAP and maintained opaque, arbitrary review protocols, then cut off her contracts and undermined her campaign for a Region X director role after she raised these issues to leadership and the membership. Marshall brings claims for breach of contract, violation of the Illinois Whistleblower Act, and common‑law retaliatory discharge, seeking back pay, front pay, compensatory and punitive damages and attorneys’ fees.
Jennifer has worked tirelessly to help the residential industry and to bring AI back by ridding it of the cronyism the Appraisal Institute represents.
Craig Steinley vs Appraisal Institute, Cynthia Chance, James Park, and Denise Graves, Paula Konikoff, Sandra Adomatis, and Collateral Risk Network, Inc.
Lawsuit filed 5/8/26: The complaint alleges that former Appraisal Institute (AI) president and long-time leader Craig Steinley is suing AI, several of its officers and the Collateral Risk Network (CRN) in federal court in Chicago, claiming they misreported AI’s membership numbers for years (including counting deceased and non‑dues‑paying retirees as active members) and continued to disseminate inaccurate figures in IRS filings and public statements despite his repeated objections as Audit Committee Chair and later leader. He asserts that internal presentations in 2024–2026 confirmed that thousands of supposedly “active” or “retired” members were actually deceased or non‑practicing, yet senior leadership characterized the loss of roughly 2,000 retired designated members as a voluntary, policy-driven exit rather than a correction of long‑known inaccuracies.
Craig’s case seems to be some sort of scattershot effort chronicling the past to reframe or correct his legacy within the industry. Jim Park recently assumed the reins of CRN which is working to improve the mortgage industry and as a former appraiser, has been a friend to the appraisal industry for decades. I’ve known Craig for a fair amount of time and Cynthia Chance during her leadership era of AI.
Byron Miller vs Appraisal Institute
Byron Miller, SRA, AI-RRS, ASA, RAA, MSSE, filed a complaint with the Illinois Department of Human Rights against the Appraisal Institute regarding the 2026 Vice President election. The law firm that represents him, Franklin, Greenswag, Channon & Capilla, LLC, informed its client that it was okay for me to share this private action. This firm is also representing new litigation by Craig Steinley and Jennifer Marshall, and with the lawsuit by former AI CEO Cindy Chance having settled. Byron is a good friend of mine and a good person, and best of all, he is a super nerd like me, focusing on how the sausage is made. He has worked hard throughout his career to further the profession through legislation and action. He’s recently provided industry service as:
2019 Relocation Appraisers & Consultants (RAC) President
2020, 2024 President North Star Chapter of the Appraisal Institute
2020-21 Appraisal Institute National Director – Region III
2023 MN Real Estate Appraisal Advisory Board (REAAB) Chair
2026 Twin Cities Estate & Financial Planning Council (TCEFPC) Board
2021-25 Appraiser Qualification Board Member (AQB)
2025-2026 IRWA North Star Chapter 20 Secretary
His case will likely be the sixth legal action against the Appraisal Institute for egregious behavior since 2024. I’ve got the popcorn ready.
Self-dealing is responsible for the expected demise of bank appraisers
The appraisal industry’s largest trade group has been particularly absent from the profession’s shift to automation through internal turmoil over the past two decades. AI’s brand has deteriorated significantly over the last few decades, and its lack of leadership in the profession may ultimately lead to its demise.
Fannie Mae has substantially expanded its use of automated valuation models (AVMs) and reduced reliance on traditional appraisals through programs like Value Acceptance and Value Acceptance + Property Data. Since early 2020, these appraisal alternatives have been used significantly. As of Q1 2025, Value Acceptance eligibility increased from 80 percent to 90 percent LTV for primary residences and second homes, while Value Acceptance + Property Data expanded to program limits up to 97 percent LTV.
AI membership in 1991 was 42,000, and by 2025, it was down to 11,041, a 74 percent decline. I dug up the chart below, which I made in 2017, and noticed the AI was dropping faster than the industry beginning around 2014. But no alarms were set off back then either.
There has never been a clear public plan to stem the precipitous decline in membership.
Final thoughts
AI (and, in parallel, TAF) is a captured, near‑monopoly whose insular leadership culture, self‑dealing and lack of transparency have fueled both internal collapse and a wave of whistleblower, harassment and exam‑fraud allegations, even as the profession faces existential pressure from automation and an aging workforce. Drawing on those details, plus recent reporting and complaints, the emerging litigation record suggests that what once looked like isolated bad actors now resembles a structural governance failure: alleged misreporting of licensing‑exam results to regulators, inflation of membership counts amid a 70‑plus‑percent long‑term decline and repeated retaliation claims from senior insiders who tried to intervene. That combination not only magnifies the AI’s legal and regulatory exposure, including potential action by Illinois agencies, but also weakens the profession’s ability to argue for its relevance just as Fannie Mae and others lean into automated valuation models, raising the odds that this trade group’s crisis has accelerated, rather than resisted, the marginalization of traditional appraisers.
I’ve always loved my profession and my colleagues across the nation who do the necessary work, but we are probably nearing the end of the bank appraiser era. We are mostly an army of lone wolves and have been unable to stop those with concentrated power.
The actual final thought – Whenever I hear the title of this song, I think of my appraisal industry.
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