Appraisal Institute Criticized for Unlicensed Reviewer Since 2018

Designation Under Fire

The Appraisal Institute (AI), a major professional body in real estate valuation, faces scrutiny over claims that its top experience reviewer, Gilbert Valdez, has lacked an active appraisal license since 2018, per Bisnow. 

Valdez, who oversees AI’s designation reviews, is named in a whistleblower and discrimination complaint filed with the Illinois Department of Human Rights.

Despite his lapsed license, Valdez continues to evaluate designation applications—reviews that are meant to ensure compliance with industry standards.

Inside the Allegations

The complaint, filed by former contract reviewer Jennifer Marshall, alleges she was let go after raising concerns about Valdez’s qualifications. Marshall, who holds two AI designations, warned that relying on an unlicensed reviewer posed legal and reputational risks.

Valdez, who retired from private practice in 2016, last completed state-required continuing education that same year. He now leads the department responsible for screening applicants for credentials like the MAI.

AI’s Response

AI defended its process, saying in a brief statement that it “operates with integrity,” but declined to address the specifics of Valdez’s licensing status.

Contract screeners are required to hold both an active license and the designation they’re reviewing. It appears this standard hasn’t applied to Valdez, who oversees about half of all applications.

Legal Turmoil

Marshall’s complaint adds to a growing list of internal and legal issues at AI. In the past year:

• Former CEO Cindy Chance was ousted after pushing for reform and later settled a retaliation lawsuit.
  
• Ex-education director Alissa Akins sued AI over alleged test score misreporting and retaliation.
  
• Marshall also claims she was unfairly excluded from a leadership role in favor of a male candidate, forming the basis of a sex discrimination claim.

Reputation at Risk

AI’s designations, particularly the MAI, are viewed as gold standards in the appraisal world and are held by just 8% of US appraisers. But that reputation depends on the credibility of its review process.

Appraiser and podcast host Phil Crawford said lapses in licensing and continuing education raise red flags: “Members don’t deserve this level of leadership.”

Why It Matters

The situation exposes a possible double standard in professional oversight and adds to questions about AI’s internal governance. With multiple lawsuits and mounting criticism, the organization’s ability to uphold the integrity of its credentials is under threat.

What’s Next

The Illinois Department of Human Rights is reviewing the complaint. Industry pressure is growing for AI to restore trust and tighten oversight.