AMC Abuses? What’s Your Story?
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Many of you have filed formal complaints against AMC abuses with State appraisal boards…
The place was a small subdivision developed with coastal style homes on the Ocean side of route 12 in the Outer Banks of North Carolina. The bank was Bank of America. The AMC was LandSafe and the time was just before Corelogic purchase of Landsafe for $122 million.
I was asked by this AMC to appraise a home for a purchase transaction. My comparable sales consisted of one recent sale of the next door neighbor, one on the same street, and two closed sales in the adjacent subdivision. I was also required to go beyond what was required by the GSEs and grid two listings in my report. My listings were taken directly from the subject’s immediate subdivision as well. After adding all of this data to the grid and making minimal adjustments for differences in GLA, carports, and bath count, I found my reconciled value to be below the contract price. The contract price was outside the unadjusted and adjusted value range of the comps and was also above the unadjusted and adjusted asking price of the active listings I was required to include.
In short, I came in approximately $30,000 below contract price.
I submitted my report and heard nothing more about it until a few months later when I received a certified letter in the mail indicating a complaint was filed against me at the NC appraisal board. The agent stated I had acted in a reckless manner by not justifying this inflated sale price. She also included emails between her and the bank’s loan officer. The loan officer was urging her to file a complaint against me. He stated that they had asked me for a reconsideration of value and I ignored them.
This was a lie. No new comparables to consider were provided by Landsafe. I never received a request to reconsider the opinion of value from the bank, agent, or LandSafe. If I did, I still would not have been able to increase the value because my data was that good.
I successfully defended my report with the board. I mean you couldn’t argue with the data I had. It was right there!
I found out later, when searching for comps for another report, that the house I valued below contract price closed at the contract price despite the fact that I appraised it $30K less. I later found out, from a real estate agent that worked at the same brokerage as the buyer’s agent, that LandSafe had another appraisal completed on the house. The new appraiser could not have used the comps in the subdivision to support the contract price. He obviously ignored them and went outside the immediate subdivision which was not necessary. Needless to say, I stopped doing work for LandSafe.
Fast forward to today, 8 years later, the property located across the street just sold last month (January 2018) for $45,000 less than what the subject sold for even though it’s superior in Gross Living Area, view, bedroom & bathroom count.
As you know, appraisers are tasked with compiling data that will eventually lead them to an opinion of value conclusion. In this instance, I am compiling data of AMC abuses which I will submit to a prominent news reporter. Please comment below with any stories that you may have, detailing specific incidences that you have encountered within the past 10 years that you feel were inappropriate from appraisal management companies. The greater detail the better; however, let’s keep it brief enough to, as Sonny Boy Williams ll would say, “Bring it on home.” Great song by the way!
Your identity will remain anonymous. You do not need to use your real name when commenting.
Have you been blacklisted, threatened, treated disrespectfully in anyway? Please provide specific details if you have any knowledge of appraisal management companies ordering multiple appraisals on one property to make the deal work; if they pressured you to use inappropriate comparable sales, or if you got multiple revision requests which seemed more like harassment. Please name the appraisal management company you had an issue with.
Once a large enough sample of AMC abuses is collected, it will be submitted to the reporter.
Many of you have filed formal complaints against AMC abuses with State appraisal boards. What was the final disposition of those cases? Were these complaints dismissed or did the boards act against the AMC as mandated by Dodd-Frank? Please specify which State appraisal board handled the case. If you are a present or past AMC employee, who have been subjected to AMC abuses, or have witnessed first hand abuse, I urge you to share your story.