Lawsuit of Coester vs. VREAB
Voice of Appraisal Podcast RE Coester vs. VREAB Lawsuit
Folks,
Phil Crawford with Voice of Appraisal has another great podcast about the appraisal profession and the recent lawsuit filed in Virginia against the Real Estate Appraiser Board (VREAB). This is probably the most important Voice of Appraisal show to date. In this “must listen” podcast, Phil discusses Coester lawsuit against VREAB and AMCs’ unsustainable business model. He does a stellar job with his analysis and recommendations of Coester vs. VREAB lawsuit.
Phil, a fellow appraiser, who has become a catalyst for change in the appraisal profession, stated in his earlier message:
In the next 30 days, the independent fee appraiser profession will reach a critical and pivotal moment in a long history of internal and external conflict. Sides will be chosen and battle lines will be drawn, and the true nature of those participates within our industry will be known, for all to see.
I would ask all of you to hold fast and dig deep into your individual constitutions as we cover a war between appraisers and AMCs that could change the very landscape of this vital industry forever. Reputations will be put on the line. Public opinion within the industry will be defined. This open battle of integrity will show the world who has best intentions for the American Appraiser, the American financial institutions, and ultimately the American People.
Stay strong and don’t be afraid. Speak up for your profession and embolden yourselves with the knowledge that the American Appraiser Movement gains more and more strength, today, and everyday into the future!
Catch Phil’s weekly radio Podcasts and shows with the most up to date news, and top analysis of real estate trends and issues that affect appraisers nationwide at Voice of Appraisal or on YouTube.
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Great Show! I listen every week. Thanks VOA!
Good show
Excellent AMC Coester and AMC analysis. Two issues: One is Sherman Anti Trust Act; other is your perception that somehow $499 is max consumes will pay for non complex conforming FNMA loan limit appraisals (unless I misunderstood?).
While Sherman Anti Trust IS serious, it should NEVER preclude you and I from having discussions about what we believe to be reasonable fees based on certain types of assignments, or educational and overhead burdens. We still have (as you also mentioned) First Amendment rights to discuss the issues of the day, even with specificity as to fees. I advocate for a variety of new, but very specific ways to determine specific reasonable fees through the American Guild of Appraisers (OPEIU/AFL-CIO). If you or others choose to accept the touted merits of my pricing arguments, then where is the anti trust violation?
I know from personal experience in the pre widespread days of AMCs that routine non complex can be anywhere from $500 to $650 [California] with generally only mild flinching nearer the upper end, though quoting those fees over $550 are enough to get me shopped. I routinely charged up to about $3,500 for higher end luxury properties until AMCs killed that market with their $750 for desperate appraisers doing $2 million to $4 million appraisals.
Your bigger message though to AMCs is spot on! They COULD and should have been the knights in shining armor on the big old white chargers…instead of being the evil black knights of olde.
Both they and banks have broken business models. Coester will self implode. Banks would do well to have appraisal fee reimbursement policies up to realistic market rates…even if that is up to $5,000. So they build it into the rate.
FINISHED!
Fellow appraisers, please visit http://mfford.com/html/c___r_fees.htm
Apologies for using my personal site but logistical and time constraints made it necessary.
It is to read a draft proposal for minimum national appraiser fees. I appreciate some believe no one other than themselves should set fees, and I concur. Except, in the real world of today where someone (lenders and AMCs) are ALREADY SETTING your fees. If not directly, then through ruinous less than customary OR reasonable fee competition.
Im interested in your meaningful, constructive feedback as well as comment & discussion here.
For those that insist ONLY regional fees are practical, this same system works for the lowest to highest regions of America. Subtract 13% for low cost areas; add up to 9%+- for higher cost areas.
Operating premises were:
1. AMCs are here to stay. Liked or hated, they are part of the chain now.
2. LENDERS want AMCs to offer one size fits all pricing. This MAY come close to doing so baring complex assignments. Even there, an inferred hourly equivalent is suggested.
3. If WE don’t set “reasonable” minimums for ourselves, then others will do it for us (or to us).
4. Framework allows for and includes inducements for trainees or less than certified appraisers-who have been largely excluded or ignored by AMCs in recent years.
In addition to posting here, PLEASE also email comments to JanBellas@appraisersguild.org
We are going to start reaching out to state coalitions and other appraiser peers groups. We hope to incorporate helpful comments or views in that effort. In the meantime our parent union is already being contacted to see how we can best proceed.
Thank you for taking the time to read and respond. Mike Ford, AGA; OPEIU/AFL-CIO
The only thing I can say is nothing changed after 2008. The only changes made were for the appraiser. The banks are still doing the same old thing business as usual. There medium is AMC’S . While I cut on my work load and figure out some other way to make a living. I refuse to accept work from pimps. The fact that chase was able to walk away from ES Appraisals is a sham. Florida a republican state did no service for the appraiser. The fact is and I have seen it first hand that there are many stupid appraisers still doing the wrong thing without care. No education or degree is going to fix it. The data system from real brokers to assessments records are in disarray. Come do a regression model where I live. It will not work. There too many differences in the records for consistent results. So for you fools who want to make less than minimum wage I’m laughing at you. For you fools who ignore the relevant facts. You ignore them. Someone is watching.
Joseph, the letters written to the various federal regulators that comprise the FFIEC addressed the shortcomings of AVMs and all the other shiny baubles the hucksters are promoting including the First American PACE PRO product.
Appraisers DID come together and oppose an increase in deminimus lending levels; in fact some of us proposed DECREASING it. Once the public hearings are completed, we will know if it had any effect.
And this just in…… The teflon amc manager strikes again. /
http://www.housingwire.com/articles/37275-coestervms-seeks-patent-for-automated-customary-and-reasonable-appraisal-fee-calculator
We have to keep the pressure on because teflon will crack. Thanks for the info Baggins. Retirement can’t come soon enough.