Appraisers' Free Forum

Edd Gillespie wrote:From what I hear mortgage brokers were better clients, but we squawked due to the excesses a few.

I pretty much agree with everything Edd, Jim, and Dennis have said in this thread. On the big picture, you guys have it. However, I would nit-pick this one statement. In my experience, every mortgage broker was a good client so long as the payment was COD and the value didn't interfere with their commission. If either one of those things was not true, then EVERY mortgage broker was a terrible client... and they had ways to spread the word. Of course, since there are relatively fewer AMC's, this problem is likely to get worse, not better.

I've been toying with the idea of starting a "local" AMC. Since I don't appraise secondary market anymore, appraisers would not consider me competition. By keeping it local, I could serve local mortgage brokers and assign jobs based on which of the bidding appraisers was closest to the property geographically. I could charge less than most AMC's because I have a really thick skin. However, I would require that mortgage brokers pay me up front, that could cause problems. What do you all think?

Steve, I know a couple of SRA's that have joined the AMC bag......soon they will be in trouble also. A quick note from todays reading of the Wall Street......BS

All and I mean all of the guys who drove the market into the ground are now back, starting new companies - No jail time, they go back to exactly what they did before. The lack of holding one accountable, allows the Freedom to deFraud people & investors all over again. Yet the powers that be will absolutely drive the little guy into the ground......Bullies need to be slapped around some.

Forget the Health Care Bill, nobody will be able to afford Food if this is allowed to continue in the wrong direction again;

Jay Trotta wrote:Steve, I know a couple of SRA's that have joined the AMC bag......soon they will be in trouble also.

I'd be really interested in why you think they will be in trouble, Jay. Could you elaborate?

Steve Owen wrote:

Jay Trotta wrote:Steve, I know a couple of SRA's that have joined the AMC bag......soon they will be in trouble also.

I'd be really interested in why you think they will be in trouble, Jay. Could you elaborate?

I think Jay was saying that they'll be in trouble - not the SRAs saying it.

I thought I understood it until Otis got in it. What I see about appraisers, SRA or otherwise, running AMCs is that it will be almost impossible to remain independent. So simple solution, if you run an AMC, don't appraise.

The next problem will occur when AMCs also have to remain independent, which is going to happen if residential mortgage appraising is to have any remaining credibility. Then the banks will order appraisals some other way and put the AMCs out of business.

Banks are not going to turn over any control to appraisers in the mortgage lending process whatsoever. Appraisals are ordered hurry up and cheap now after the deal is sealed, what more evidence do you need that appraising is irrelevant as far as lending is concerned?

Edd Gillespie wrote:What I see about appraisers, SRA or otherwise, running AMCs is that it will be almost impossible to remain independent. So simple solution, if you run an AMC, don't appraise.

That was my basic idea. I didn't have it fully fleshed out, but what I was thinking was that I don't do secondary market appraisals, therefore, I could run it for local mortgage brokers only. The more I look into it, though, it doesn't sound so good. My original idea was to set up a sort of automated ordering... the mb goes on my site and it automatically sends it to the three closest appraisers who each bid... then I assign it to the lowest. Figured it would not require a high fee on my part to make it profitable. But, I don't think it will work. Most of the mb's seem to be contacting lenders who order the appraisal through AMC's.

I'm going to pop a vein!!!!

Cuomo's an ass for ramming this down our throats!!! I just ing hate NY politicians

I just got a call from my wife...one of our pendings was appraised low.

The stupid itch came FROM OUT OF AREA AGAIN (for those of you who don't believe this is happening), she used short sales as comps & ignored THE BEST comp 5 freaking houses away That's 3 for 3 on out of area appraisers on our last 3 sales. This one didn't have to travel more than 100 miles round trip like the last two...she just had to hop a ferry (TWICE! ). THIS IS A MAJOR METROPOLITAN AREA

Thirty years appraising & real estate combined experience between us & thanks to ing Cuomo I think it would take an act of GOD to straighten this one out.

What ing horseshit!!! Cuomo & his HVCC have got to go!!!!!!!!!!!!!

Since my AMC is almost up and running, I am also interested in why an appraiser shouldn't own an AMC.

Yes, I am serious. I am starting an AMC. I'm hiring staff and I hope to stop appraising residential properties by the end of the year. I will continue appraising commercial properties.

Joker wrote:Since my AMC is almost up and running, I am also interested in why an appraiser shouldn't own an AMC.

Yes, I am serious. I am starting an AMC. I'm hiring staff and I hope to stop appraising residential properties by the end of the year. I will continue appraising commercial properties.

You'll apparently have lots of work, Joker. Friday, FHA announced that it is adopting HVCC-like regulations. Looks like it's working... I might decide to get back into secondary market appraising rather than open an AMC.

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2009/09/fha-adopts-some-hvcc-guidelines-mortgagee-letter-0928-appraiser-independence.html

http://www.appraisalbuzz.com/newsletter/2009/newsletter_09_21_09.htm

Steve Owen wrote:

Joker wrote:Since my AMC is almost up and running, I am also interested in why an appraiser shouldn't own an AMC.

Yes, I am serious. I am starting an AMC. I'm hiring staff and I hope to stop appraising residential properties by the end of the year. I will continue appraising commercial properties.

You'll apparently have lots of work, Joker. Friday, FHA announced that it is adopting HVCC-like regulations. Looks like it's working... I might decide to get back into secondary market appraising rather than open an AMC.

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2009/09/fha-adopts-some-hvcc-guidelines-mortgagee-letter-0928-appraiser-independence.html

http://www.appraisalbuzz.com/newsletter/2009/newsletter_09_21_09.htm

Why? You tired of making money

Have you seen the fees the AMC's are paying?

Mako wrote:
Why? You tired of making money

Have you seen the fees the AMC's are paying?

Read the articles, Mako. I think that will sort itself out in time (and not very long time, at that). As, I also think the problems you are having right now will sort themselves out.

I still don't know why an appraiser shouldn't own or operate an AMC. I will not be doing residential appraisals for this client.
(or maybe I could sell the business to my wife and then I could.......nah!)

We're very appraiser friendly; we make sure the appraiser gets his full fee and we provide a service to the client.

If you could make more money ordering appraisals than you do appraising, wouldn't you do it?

Joker wrote:I still don't know why an appraiser shouldn't own or operate an AMC. I will not be doing residential appraisals for this client.
(or maybe I could sell the business to my wife and then I could.......nah!)

We're very appraiser friendly; we make sure the appraiser gets his full fee and we provide a service to the client.

If you could make more money ordering appraisals than you do appraising, wouldn't you do it?

When you get right down to it, nothing is wrong with it. Appraisers are abused and the AMCs are the new messengers of that abuse. It has dissolved into a we v them.

In addition AMCs are notorious for being clueless and accepting sloppy work and emphasize speed and cost above all else. If there was an AMC that was as concerned about USPAP quality as appraisers are that would be a good deal, but until then be prepared to join the enemy.

We'll see how "appraiser friendly" you can remain.

Edd Gillespie wrote:...until then be prepared to join the enemy.

We'll see how "appraiser friendly" you can remain.

Yes, that is true. However, the new FHA rules do offer a glimmer of hope... full fees and all AMC fees disclosed. It's a start.

Has anyone explored Appraisal Firewall?

I intend to do the same thing but with the added feature of a report "audit" against certain appraisal rules and report guidelines. The appraisers get their fee paid directly by the lender and the lender pays me instead an appraisal processing department.