Appraiser Exclusionary List

Dave Towne

Dave Towne

Certified Residential RE Appraiser at Towne Appraisals
AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003.
Dave Towne on e-AppraisersDirectory.com
Dave Towne

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Exclusionary List Banning Appraisers

Exclusionary list not discussed in the House Subcommitte hearing…

Appraisers,

Rob Chrisman, in his column in the Mortgage News Daily e-newsletter on 11/18/16, dropped this tidbit of news:

Nationstar Mortgage now maintains and distributes a monthly Appraiser Exclusionary List. Correspondents are encouraged to review the Nationstar Mortgage Appraiser Exclusionary List prior to submitting a loan for loan purchase.

That’s all Mr. Christman said about this.

A huge problem with these lists is the appraisers involved seldom know they are on one, much less why. Reasons could be trivial, or serious.

When appraisers attempt to discuss the situation with the exclusionary list maintainers, they are stonewalled. No one will give direct answers. At least in cases where the volume of work drops off without explanation, and no pre-notification was done.

This is another element of Appraisal Oversight – which was not discussed in the House sub-committee hearing on Wednesday.

If licensed appraisers are to be “banned” from working for clients – especially after completing multiple reports over a period of time – they should receive an official notice from the client, and have an opportunity to respond to or rebut the alleged discrepancies.

HUD and FNMA have such lists, but they do notify appraisers in advance. And that’s only a last resort, after discrepancies are discussed with the appraiser and the appraiser does not bring reports into compliance.

By the way, in our state (WA) we have a licensing law for AMC’s, which is good. A provision of that law is the AMC must notify an appraiser when the AMC decides they can’t use the appraiser any longer. But the wrinkle to this is many AMC’s have multiple lender clients. If one client decides to put the appraiser on a ‘do not use list’, and the other clients continue to use the appraiser, the AMC does not have to notify the appraiser about the singular exclusion. How do I know? Because it has happened to me over a trivial item not ‘required’ by UAD the lender’s underwriters just won’t overlook.

Image credit jm3 on flickr
Dave Towne

Dave Towne

AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003. Dave Towne on e-AppraisersDirectory.com

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12 Responses

  1. Baggins - Colorado Baggins - Colorado says:

    I’m somewhat concerned that my adamant requests to not be sent fee and time quote emails may have landed me on one of these lists. For years I’ve been victimized by this sort of professional harassment, a non stop never ending flood of fee and time quote request emails. In the heat of Colorado markets here, I must have deleted or argued back at thousands of such emails over several years. I’ve got a compendium of hundreds and hundreds of response letters to prove it.  One day this year I deleted 75 quote requests in a day, and that was about average some days. At least a half dozen a day. I reviewed accidentally copied sender to lists and some amc’s are emailing 50 appraisers per individual order quote. Talk about irresponsible shopping of appraisal order requests, clearly with the sole intention of assigning orders based on lowest fee and fastest turn time. And one day after several threats to turn in companies to the state office, all of them stopped emailing me at once, except for a few limited sized companies. One amc told me they could not take me off the list since they imported their contact lists from other ‘management entities’ whom assimilate and sell appraisers data for profit. I’d like a clear statement from Sterling, Clearbox, and AppraisalScope to as exactly how they use appraisers data and exactly how this data may be tied into automated systems. In the context of this article, does the exclusionary list also get shared with the data aggregators? If they’re going to be part of the regulated food chain, they may be surprised to learn their industry needs quite strict regulation as well. Food for thought. I like one client at a time approach. If it does not work out it’s probably them not me. So for them to be able to sack my reputation or approved standing in a larger assimilated and shared data pool is a foul play. This is the hot button appraisers should be focusing on. Not just the fact there may be exclusionary lists, because certainly there are such lists. But how exactly can integrated systems cause chain reaction effects down the line where the appraisers approval is not supposed to be directly tied to the other companies.

    spockearthgirlsaysstill

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    • Bubba Jay / Retired Appraiser II Bubba Jay / Retired Appraiser II says:

      no need to worry. if you havent heard, there was a House sub-committee hearing on Wednesday. all problems will soon be fixed, and things will be back on track real soon.

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  2. Diana N. says:

    I can’t help wondering how many exclusion lists we will wind up on because we are turning down insulting fees with outrageous requirements.

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    • koma says:

      You speak the truth on that one Diana. I just received an email blast from AMC Class Appraisal offering $100-$200 bonuses if you work for them and can get your report in on time (7-10 days) in certain states…lol Also received a snail mail offer from Rives Valuation Services asking me to move to Texas to do appraisals…haha Pretty soon are there going to be appraiser head hunters working for AMC’s? The circus is going to continue for some time to come!

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    • Bubba Jay / Retired Appraiser II Bubba Jay / Retired Appraiser II says:

      we will never know, and according to this banks disclosure, its perfectly acceptable that a bank doesnt need to give any reason either.

      American Mortgage Specialists, Inc. Mortgage Bank Disapproved Appraiser List

      “please draw no conclusions from an individuals name being present or absent from the list”, however, they do not seem to have any problem posting the list on the internet for the whole world to see, and not keeping the list private and “in house”.

      slander?

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      • Baggins - wake me when the carpetbaggers die. Baggins - wake me when the carpetbaggers die. says:

        I’m not on this list either? How many nasty letters do I have to write before I can be part of the exclusionary list club? I’ve found that companies whom do put appraisers into such lists, are often hesitant to do so with pro active appraisers whom will inquire about approval status, assimilate and record all application and approval activity, and follow up with conflict resolution for anything and everything.

        If all those appraisers just wrote a letter, they’d be off the list. But Bubba, it’s an old 2006 list, from the height of all that you know. Show me a current one. They don’t need lists anymore, they’ve got 5 star Mercury grading which the appraisers do not have access to and only lenders control!

        Did I ever tell you the time when the guy from Axis hung up the phone on me? “If you can’t spot the fish, that means the fish is you!” If they don’t like my attitude, they’re free to get appraisers licenses and do it themselves.

        I’ve had a good time over the past two years, asking amc and distribution managers how many of their staff is ‘on their way to becoming an appraiser themselves’. To date, I’ve never had a single yes response, even though I’ve literally asked the question over a hundred times in live voice calls.

        “When they call you, they need you. Price accordingly.”

        This job is a ruthless grinder of iniquity, confusing regulation, protagonistic grating ‘business relationships’, and crushes the best of them. Out of the 60 something people in my CRA class, like me and one other guy are left standing as CRA’s. He’s actually a CG now. Don’t let the phone salesmen get you down. Recognize being an appraiser is like living on the used car lot, constantly hounded by ameture salesmen. Just charge them more, or move on with your life. Nobody should be an appraiser if they don’t have the ability to be rude right back. This is not a mr nice guy type of business position.

        If I ever get told I’m excluded, I simply have to let them down easy, and tell them they’ve already been fired and replaced. Made that phone call like 10 minutes ago, too late so sorry better luck next time.

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  3. Divedude says:

    Let’s no forget the realtors that will get you put on an exclusionary list in a heartbeat if you don’t play ball.  I had one refuse entry to a property and made false statements to my client which resulted in reassignment.  My client has supplied a written statement to my attorney and I have ample documentation to move forward with a civil liable suit.

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    • Baggins Baggins says:

      The deal is almost all of us have had that happen, in one various manifestation of the event or another. Imagine if appraisers selected from pools of available orders with lender and distributor performance grading tied to each order.  Imagine if lenders actually took risk and lent their own money, telling commission based agents to take a back seat to sound investment analysis. Bring back the IVPI and the clearinghouse distribution concept? When this following concept was proposed it seemed extreme to many. What about now, knowing how far away from valuation protection these lenders and their distributors have taken us?  It’s all about production these days, and the new mantra is the appraiser works for the lender first and foremost. Remember when appraisers had the clout to actually demand the gse’s pay for this? Sometimes it’s helpful to remember where we were, to have better bearing for now. For individual events, why bother?  The problem is institutionalized now.

      IVPI Proposal

      ivpipg2

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  4. chris says:

    God all mighty ! Will this B-shit ever stop ????

     

     

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    • Baggins Baggins says:

      Well that’s an easy one Chris. When will junk fee and unearned fee rules be recognized as legal principals in appraisal order distribution?

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      • chris says:

        I believe in competition. It brings out the best in us. So with that being said, appraisers listen to that great man that just wrote…”when they call, you….you got them…charge accordingly.”

        Best advise I have heard yet.

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Appraiser Exclusionary List

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