Appraisers' Free Forum

I posted a letter in a thread I started which was forwarded by a friend...it was from an AMC which sent out a call to action to defend BPO's. They provided a link with a pre-written letter which began "I'm a Realtor® in good standing..." My buddy is not a Realtor®, and when I checked out this AMC's site I couldn't find anywhere that they require those doing BPO's for them to be a Realtor®.

That in my book is blatantly dishonest.

Now I recieve an email myself from another AMC requesting information regarding how long I've been in business & other pertinents which would prove I'm an experienced and knowledgeable appraiser. I presume they want to offer this information to those looking to do away with the HVCC.

Problem is...I've never received a single order from them...not even a request. My fees are apparently too high. Funny they want qualified appraisers to write on their behalf, but they're not willing to pay their price.

They want to use my 19 years experience to make them look good to those who would do away with them.

Again...blatantly dishonest IMO.

AMC's appear to be circling the wagons. I'm going to send emails all right, but it's going to be about the truth!

Steve Owen wrote:IMHO, it's the appraisers and real estate agents who are circling the wagons. AMCs appear to be in the driver's seat for now.

I'll respectfully disagree.

Appraiser's & Real Estate Agents circled their wagons months ago, and as a result it looks like the HVCC is going to be overturned (at least in part).

AMC's are sending out these calls-to-action for a reason...they're feeling the heat.

This is all good news for appraisers as far as I'm concerned. BPO's should be used for listing purposes...not for making loans. And AMC's just run the cost up on the consumer, take way too much of an appraisers fee, and deliver sub-par quality reports as a result!

Also, they apparently don't mind lying to try to swing opinion in their favor.

Steve Owen wrote:Kind of like closing the barn door after the horse is out of the barn isn't it. Overturn it after it has already had its full effect.

And, I doubt seriously that they will overturn most of the provisions... no more comp checks, no more MB's threatening not to pay if you don't do their bidding, no more pressure from RE agents telling the MB not to use that appraiser again. What do you think they are going to overturn?

Of course, HVCC itself was kind of like closing the door behind the end of the horse, if you know what I mean.

"No more comp checks" - I don't know about that...though I'd support it.

" No more MB's threatening not to pay if you don't do their bidding" - not for the foreseeable future anyway. After the S&L Bailout of the late '80's MB's were pretty respectful until about '93...then I started noticing pressure which just increased into 2007 (and enforcement was no where to be seen). I suspect as the economy recovers & this debacle becomes a memory that pressure will find a way to the appraiser's doorstep once again. The period between 2010-2020 is projected to see more sales (as Echo Boomers come of age) than the period between 1995-2005.

Real Estate Agents will quickly learn which MB's can't put deals together & direct their clients elsewhere. Do you think I'd refer a client to the MB whose appraiser shot down one of our deals over $1,010? The one who adjusted GLA @ $40 SF for good quality construction.

"What do you think they're going to overturn?" - The requirement that lenders use a 3rd party source to order their appraisals.

Most of the AMC discussions (here and over there) tend to consider all AMCs to be the same which is far from true. There are (1) the upstarts which are no more than internet start ups, (2)fee shops that suddenly think they can become an AMC by teaming up with MB pals, (3) small & medium AMCs that have existed for years that mainly order REO, PMI and review assignments, (4) the big, sleazy AMC which are evil incarnate, eL Ess I, E Ape, Trans Onion, etc and (5) the wholly owned subsidiaries. #s 1 and 2 will disappear very quickly, # 3s may survive if #4s doesn’t swallow them up or run them away, but #5s are here to stay. El Ess I and E Ape will be history if Citi and other big banks follow what Wells and Cwide, Bofa did and start their own AMC. Wells owns RELs, even if the feds make it illegal, they can sell enough stock to stay within whatever new laws they pass, furthermore, they can make a valid argument that the AMC they own and control is the same as a rotating system which many banks use. It doesn’t matter how fair any of this is. No one in DC or in the general public gives a damn about an AMC taking 30% or even 60% of a fee. Mix it all together with little to no housing appreciation in the next several years, far fewer refis (no equity) and the only AMCs left will be the wholly owned subsidiaries. It doesn’t matter how much noise they make in the white trash forum or how many emails they send to politicians, the days of the illiterate MB and illiterate appraiser partnering up with agents and builders are over. It may even be a new beginning.

I have no problem with competent, ethical appraisers being fairly compensated. Unfortunately the mortgage end of our profession has been inundated by appraisers who aren't prepared to deal with the difficulty of appraising or the pressure to bang the numbers. However, as I have branched out, I have found that appraisers who claim to have been appraising since the 1970s and hold designations are doing the same thing in conservation easement and eminent domain appraisals. I believe a substantial number don't understand what is required and many could care less as long as the client is pleased with the compensation or credits.

What is different in those fields of appraising is not so much that there are some very comprehensive guidelines that put Fannie to shame. But that the intended users are ramping up their scrutiny with extremely thorough and competent review and many appraisals are being rejected with the result that tax credits and compensation are being reversed. A long time local appraiser, who is now facing indictment for fraud in conservation easement appraising, once told me "It is all smoke and mirrors." He used a copy machine to print his reports and never changed the 100 + pages of crap he called "market analysis."

I agree with the jefe that the profession is undergoing a huge purge, but from what has been accomplished so far, it is clear that until the intended users of residential appraisals clamp down, ain't much going to happen. The Foundation is correct in my opinion to require appraisers to put more "skin the game", but until some of the "old guard" dies off or goes to jail, corner cutting will most likely continue.

I've heard it said that licensing ruined the profession. Perhaps licensing exposed the profession.

Things are getting better slowly in this profession and whether AMCs survive or not there are going to be fewer of us and that will at least make it possible to take control of our business decisions and the fees we must charge to continue.

Please note, we have never lost control of our ethics, never.

Steve Owen wrote:That is not a requirement of HVCC. And, I don't believe the ordering requirements in HVCC, which basically say that the order cannot be placed by a commissioned sales person will be overturned.

In talking with MB's I've heard that as a result of HVCC they don't want ANY appearance of impropriety. That's why many went to AMC's. I'm hearing now, however, that IF the HVCC is done away with...they might revisit that decision as many are unsatisfied with AMC's.

I agree that commissioned sales people should not be ordering the appraisal...I've been saying that since '09, but being on the other end now I can tell you, they've tightened the screws about a twist-n-a-half too far!

I doubt seriously that they will overturn most of the provisions

exactly and FHA Is posed to endorse something similar.

The MBs are suffering an exorcism from the business in droves. They are trying hard to remain in business. The AMCs appear to have had it way too easy in the past and now face licensing challenges nationwide. Jan 1, they have to register to work in Arkansas, they have to put up a bond and they have to pay franchise fees to the Secy of State. I got a feeling that any of them that want to work in all 50 states will be out close to 100 grand by the time all the states regulate the AMC. This will eliminate 90% of 'em.