Take Control of the Appraisal Process
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If the appraisers want to take back their industry they need to come together…
This new law in NY has aroused a lot of comments from appraisers but let’s be honest.
Appraiser have been complaining about AMCs for the last 10 years and waiting for the government, regulators and other to solve the problem with the whole AMC disaster. I have written about this before, the appraisers have no one to blame except themselves. If you wait for someone else to solve the AMC problem you are looking in the wrong place. We all know of the problems with AMCs going out of business, bankruptcy (Coester, AppraiserLoft, and many others) and leaving many appraisers with unpaid invoices. The following would resolve that problem and would take most of the power away from the AMC which they now have.
If you could just get the appraisers, 75% of them, to come together and do just a few things we could solve most of our problems.
The first step is simple and most appraisers would love this small change. We all need to pick a start date (all appraisers need the same date), let’s say 7/1/2019.
On or about 6/15/2019 when you receive an appraisal assignment from anyone, every client, AMC, Lender, mortgage broker, everyone, notify them as of 7/1/2019 all appraisal invoices must be paid prior to the delivery of the completed appraisal report, no exceptions. If all or most appraisers would stick together on this they would have no choice except to go along with our demands.
This is the first step in taking back control of our industry.
Along with this the appraiser should also include that they will not pay for any technology fee, upload fee or any other fees (Appraisal scope fee, Mercury fee, AppraisalPort fee) imposed by the AMC or anyone else.
Remember that when you sign the report and send it to the lender/AMC the report is completed and the appraiser should be paid at that time, after you have submitted the report you have no power over the AMC/Lender, you are at their mercy. Many of them say that the appraisal is not complete until you have responded to all their revisions and other request.
I do lots of work for Attorneys, Accountants, private party and I always require full payment prior to delivery of the completed appraisal, no exceptions. I do not accept credit cards, PayPal or direct deposits, these can all be reversed if the payer complains. A check is almost as good as “Cash” in this county because if a check is returned for any reason, insufficient funds, stop payment or almost any other reason I can take it to the District Attorney for the county and they will collect the entire amount and send me the funds. The District Attorney collect 4 times the amount of the check and they keep 3 times the amount of the check and give me the full amount, no questions asked. They have been doing that for over 25 years in this county for any business at no charge.
The AMCs approach to the appraisal industry was simple, contact the source of the appraisal requests, lenders, mortgage brokers, mortgage lenders and promise them all kinds of fee services and corral the flow of the requests. Next divide and conquer the appraisers by sending out the requests to several appraisers at the same time and make them bid on the assignment. Since they controlled most of the assignments and the money the appraisers had little choice except to take what the AMC offered.
If the appraisers want to take back their industry they need to come together.