Sorry, HousingWire, You’re Wrong

VaCAP Board

VaCAP Board

Coalition of Appraisers in Virginia at Virginia Coalition of Appraiser Professionals
Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.
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HousingWire Blasted by Appraisers: Sorry, HousingWire, You're Wrong

Appraisers Blasted HousingWire…

Last Week HousingWire published an article about the appraiser shortage. The author did not source appraisers for factual information and relied on the propaganda being fed by Appraisal Management Companies (AMCs).

“At the current pace, appraisals can kill deals and even give cash buyers an added advantage, according to Urban Institute’s report.

Some argue, there are not enough appraisers to meet the rising homebuyer demand as they struggle to fill out long or even redundant forms. Appraisers themselves often comment on HousingWire message boards and say there is no shortage; Quality appraisers are just unwilling to make, what they say, are unreasonable concessions.”

Appraisers commented and told the author how wrong they were. Then another article was published telling appraisers “you are wrong.”

“Many complain about the appraisal management companies, and the allegedly excessive fees they demand from appraisers…

Some even went as far as to call HousingWire “fake news” and criticized the “inaccurate reporting.” Others make fairly strong arguments that the government-sponsored enterprises collude to undermine the appraisal industry. However, appraisers failed to prove that there is not a labor shortage in their field.”

Well the profession came together and blasted the author again…

“No offense to the reporter, but this article is wildly bias against the reality of the appraisal community, just like the Urban Institute article this article was based on – that based slow closings on appraisers and not the AMCs that don’t pay the market rate. This confirms Housingwire’s biased against the appraisal community. This was clearly written for the AMC community which are paid advertisers. Back in the Paul Jackson days you could count on some semblance of neutrality despite economic advertisement reality. Now, this article and headline was pure clickbait. Housingwire remains very protective of the false “appraisal shortage” narrative only seen by AMCs and remains silent on the appraiser lawsuit against Coester, a close friend of Jacob Gaffney…”

Now finally, HousingWire is publishing factual information by an appraiser, Jonathan Miller. No sugar coating, no negativity, just the facts in simple terms.

“AMCs take half of the market rate appraisal fee to manage us. This administrative fee is earned by confirming we had a license, forcing us to interact daily with 19-year olds — chewing gum checking on the status of their appraisal — subjecting us to expanding scope creep to validate their existence and run analytics on our appraisal opinions to keep us accurate. This relationship is done all in the name of compliance even though there is no regulation requiring banks to use AMCs. And remember that litigation of cases involving AMCs such as eAppraiseIT showed collusion on a much larger scale.

AMCs pushed the idea that a 50% fee reduction net to the appraiser would not have any impact on quality. Of course, if that were true, wages across all industries in the U.S. would be halved almost immediately. And best of all, the 50% pay cut to appraisers would be hidden from the consumer to reduce their “confusion” as advocated by REVAA, the AMC trade group.”

This is a major step for appraisers. OUR VOICE IS BEING LISTENED TO! VaCAP encourages each person reading this to read the article on HousingWire, comment and share. Your voice is being heard loud and clear!

Thank you HousingWire for publishing the truth!

Image credit flickr - Wouldpkr T B
VaCAP Board

VaCAP Board

Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.

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7 Responses

  1. Jack Of All Trades says:

    Amc’s are an evil entity, they will do whatever it takes to lie, cheat to hold on to what they have, you could be the last appraising standing and they will still try to send you $65 desktop work, they are the evil empire of the industry.

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  2. Gary says:

    Get rid of AMCs and then see if there is still an appraiser shortage. Both consumers and appraisers are being ripped off by them.

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  3. Raymond says:

    Again, the AMC business model is NO friend of the residential lending appraiser or any appraiser working with AMCs. The AMC business model was created, implemented and designed BY and FOR lenders and lender interests groups. Its creation was cloaked with the perception that it will improve appraisal quality and independence. Now, how can this be, when AMC take 50%+ of the appraiser’s fee and then implements the lenders goal of controlling the entire appraisal lending process. Appraisers are forced to comply or they are blacklisted and removed from doing appraisal work. The AMC business model is basically professional slavery. Let’s hope someone, at sometime, will cut the appraiser chains.

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  4. Retired Appraiser Retired Appraiser says:

    Jacob Gaffney hires kids straight out of school (if they are that old) to write for Housing Wire and then proceeds to defend them like they as if they are veterans with 30+ years experience. The vast majority of these kids know nothing about the housing market much less the appraisal business. I had a go around a couple of years ago with the guy and when I backed him into the corner over a ridiculous appraisal article his last attack on me was over my misspelling the reporters name.

    My recommendation to Housing Wire reporters is to get some real experience first. AMCs would love to hire you to harass appraisers and they’ll pay you considerably more than Housing Wire. Who knows…you may even learn something.

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  5. Aunt B says:

    Shortage??? Yeah, there’s a shortage of appraisers willing to endure relentless badgering and unnecessary “revisions” by AMC “reviewers” who get paid to “find” trivial mistakes and waste your time. I have DUMPED most of them and I know I am not alone.

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    • Raymond says:

      if there is any shortage……..it’s a shortage of common sense among lending appraisers who chose to give up 50%+ of their appraiser fee and endure irrelevant underwriting requirements.

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  6. Ralph says:

    I read the Housing Wire article, It is PURE FANTASY!  Pushed by large AMC’s such as Title Source who charge $750, pay the appraiser $350, and hide behind dumb ass logic, stating  “The consumer does not care how the hamburger is made” Here’s hoping your future is filled with loan re-purchases and the crappy reports you will continue to receive.

    This is also pushed by mortgage broker’s blaming long turn times on a perceived appraiser shortage when it is simply AMC’s price shopping for fast & cheap, wasting 2 weeks, when if they paid C&R in the beginning the report would be done.

    In any financial arrangement which has a middleman, that is the only one who benefits.  AMC’s continue to contribute nothing to our profession, but least they are finally starting to feel the pain!

     

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