AMCs Add Weeks to The Appraisal Process?
By my math, this is a 18-day process… appraisal part only took 3 days as a rush…
Despite being approached all the time to add our firm’s name to an appraisal management company, we decline. However, when wealth management companies were forced by their parent company, they made arrangements to help attract better firms like ourselves to consider working with them:
- Pay our fee
- Respect our turn time quote
- Not inundate us with clerical addenda requests
Last fall we were approached by 4 different AMCs because their wealth management clients demanded they fix the problem of not attracting the better appraisers in their coverage area.
In the first three that onboarded us, we got a lengthy addenda request that included things like inserting the “floor” level” of the office address of the client in the report. I’d push back and request a conference call with all the parties and to their credit, they rethought the review process and we rarely see addenda anymore and when we do, its fair. That’s how it should be.
It also proves a very significant point – most of the laundry list items included in addenda requests are either over-interpreted or simply made to justify the AMC’s existence but on our time and money. They are not regulatory requirements that is claimed when appraisers give pushback.
The fourth of these firms finally on-boarded us and our appraisal timeline looked like this:
- Day -3 – assumed it took 3 days to find a cheaper appraiser since it was ordered as a rush (borrower wasn’t in a hurry)
- Day 0 Rush appraisal requested
- Day 0-5 days borrower allowed access
- Day 5-8 we delivered report 3 days later as quoted
- Days 8-13 reviewed by AMC
- Day 13 – AMC delivers a 30 point review of clerical fixes that had nothing to do with the multi-million dollar valuation
- Day 14 – I send an email to both the bank and AMC requesting a call to discuss review process. AMC responded that chief appraiser would review
- Day 15 – no response yet
By my math, this is a 18-day process although we don’t have a response yet. The appraisal part only took 3 days as a rush.
Here’s a redacted partial (admittedly terse) response –
We don’t have this issue with lenders we deal with directly. Read more »