The Efficiency Ratio, Built on Appraisal Data
Every bank executive knows the efficiency ratio is unforgiving. You can’t grow your way out of it. You can’t cost-cut your way to relevance. At some point, efficiency becomes a question of decision quality, not headcount. Most conversations about efficiency focus on systems: core platforms, loan origination, servicing, reporting infrastructure. Very few focus on information density. How […]
Ideas Are Like Avocados
They go brown quickly. Everyone in valuation agrees on what should improve. Everyone nods in the meetings. Everyone means to get to it. And then the idea sits. Long enough to go brown. Valuation, on both sides of the table, has no shortage of smart people or good intentions. Fee appraisers have lists. Chief Appraisers […]
When Broken Windows Become the System
The Broken Window Theory says a single broken window can lead to urban decay. It’s no big deal in and by itself. However, if it remains broken, it sends a signal that no one’s paying attention. Trash piles up. Graffiti shows up. Crime escalates. People stop taking pride in the place. Before long, the neighborhood […]
Show Me Your Process (Not Your Secrets)
Most Sunday mornings I make café con leche (Café Bustelo and whole milk) and write blogs to valuation people. It’s become a ritual. And for some reason, I keep coming back to the stalemate between chief appraisers and fee appraisers. On the residential side, you see open promotion of non-lender work. On the commercial side, […]
Attitude Toward Hard
My wife got me stand-up comedy classes for Christmas. The final test is performing on stage in front of 100 people. This is real stand-up comedy, not improv. My first thought was fear, “I don’t want to do this.” About 30 seconds later I reframed the challenge with enthusiasm, “I can’t wait to do this!” […]
Working Defensively vs. Building Intentionally
Think and Grow Rich rubs appraisers the wrong way. The book’s focus on ambition clashes with a professional culture built on caution and risk avoidance. While the industry rewards staying under the radar, the book advocates for intentional growth. This friction makes the message feel “salesy,” when it actually highlights the gap between working defensively and […]