Author: John Pratt

Solidifi Agreement... All Indemnity Clauses Are Not Created Equal... 5

Indemnity Agreements

Solidifi User Agreement… all Indemnity Clauses are not created equal… This is a response to the article that Dave Towne wrote regarding Indemnity Clauses and that they are common in today’s world and appraisers better get used to it. It is also true that all Indemnity Clauses are not created equal and the devil is in the details. This topic came up because of the agreement that Solidifi requires that all appraisers that receive assignments from them must agree to. Let’s delve into the Indemnity Clause which is in that agreement. First the agreement is between Solidifi and the appraiser...

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Solidifi Agreement

Solidifi Agreement provides little or no protection for the appraiser… Many appraisers have seen the Solidifi agreement that appraisers must agree to if they want to receive appraisal assignment from them. This 18-19 page agreement written by a lawyer which was paid by Solidifi provides lots of protection and power for Solidifi and little or no protection for the appraiser. Many of you might be on the fence, should I agree to this or should I not and know that I will lose some business. If Solidifi is your major provider of appraisal assignment they have just put you between...

ENV Format Appraisals May be a Violation of USPAP 10

Appraisals in ENV format

From my perspective there seems to be an increase in the number of appraisal requests that require the ENV format. The conversion to ENV of your completed appraisal report is usually not an exact copy of the report which the appraiser completed and signed. Some forms may not convert, other may separate your photos from the text which go along with the photo and the order of the forms in your report may not be the same and there may be other changes to your report. This should be a concern to every appraiser since the client/lender, is not getting...

Alternative Evaluations... Good or Bad 9

Alternative Evaluations… Good or Bad

All of these "alternative evaluations" are an attempt to reduce the fee of the appraiser… All this talk about alternatives to a full appraisal needs some common business sense added to the conversation. At the end of these comments I will include some of my background and you can make your decision if you think I am qualified to put my 2 cents in this discussion. I have said this before and I will say it again, the lenders (AMC included) just want an Appraisers signature and their E&O insurance with a value and they want it as cheap as...

LRES Wants Your Digital Signature 31

LRES Wants Your Digital Signature

Do NOT send your digital signature! I just received the following message from LRES (AMC) requesting I send my digital signature to them. I think this message should get out to all appraisers immediately. I don’t know if any other appraisers received this message however I would strongly suggest that you do NOT send your digital signature to this AMC or anyone else. I hope you all understand the possible problems this could open you up to, including forgery, fraud and many other illegal activities. If you have any doubts just call your E&O insurance and ask them what they...

The AMC Control Over the Appraiser and the Content of the Appraisal Report 29

Influencing the Appraiser

The AMC control over the appraiser and the content of the appraisal report… The biggest issue that threatens the appraisers and the appraisal industry is the AMCs intrusion into the appraisal process. Many competent and experienced appraisers have left the industry due to the AMCs involvement in the appraisal process. The AMC is the most influential party in the appraisal process and they control the money which comes from the borrower and goes to the appraiser which gives them the power to dictate to the appraiser. The intent of the AMC process was to put a firewall between the production...

Purpose of the Appraisal Report 41

Purpose of the Appraisal Report

We have lost track of the purpose of the appraisal process This is an open letter to anyone who may have an interest in the residential real estate market. This includes buyers & sellers, homeowners, mortgage companies & brokers, real estate brokers & agent, loan officers, FHA/HUD, Fannie, Freddie and others. We have lost track of the purpose of the appraisal process. The purpose of the appraisal process is to provide an opinion of the estimated value of the property. The appraiser is hired to provide his/her opinion of the estimated value of the property usually by the intended mortgagee....

AIR Statement - Revision Requests 5

AIR Statement & Revision Requests

AIR Statement & Changes to a Completed Report I would like some of the experts to comment on the following: Scenario Here is a scenario: The lender request that the appraiser include an AIR statement in the completed report. Sometimes they even have a preprinted statement that you must include in the report. The appraiser completes the report and includes the required AIR statement. The AMC reviews the appraisal and send back a revision request. They want comp # 4 removed from the appraisal. Maybe they provide you with another sale that they want you to include in the report....

Animosity Between Appraisers and AMCs 9

Animosity Between Appraisers and AMCs

AMCs control the money. We hear a lot about animosity between appraisers and AMCs and this doesn’t make for a good working relationship. Business relationships work best when it is in the best interest of both parties to be on a level playing field. Keep in mind that the AMC does nothing for the appraiser. They may provide a service for the Lender. Since this is a service that the lender has contracted with the AMC to provide, then the Lender should pay the AMC a fee based on the value of the service that lender receives (the appraiser is...

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