You Should Be Insulted…
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A good friend and appraiser colleague of mine in the midwest sent me this appraisal order request from Better Mortgage in New York [redacted]:
My friend and I and most of my peers marvel at order requests like this. They are paying half the market rate to the actual person analyzing the asset to be used as collateral for the mortgage, but most importantly that seems to enable them to provide free lunches and snacks to their employees who process the loans. See the review in Glassdoor.
Companies like this can often find a few appraisers willing to work for this fee because those individuals’ services aren’t in demand (they aren’t competent to earn the market rate), or they’ve fallen on hard times. It’s not a sustainable fee structure (half the market rate) to preserve valuation quality. And new millennial-targeting companies like this seem to be focused on anything but the value of the collateral. The millennials ordering Buffalo Wild Wings on Uber Eats or a mortgage don’t understand what’s behind that click. But they should because they will inherit the reckless mortgage process today as Baby Boomers did after the housing bubble crash. Those clicks aren’t cheap.
This disconnect is a pervasive problem that our industry has been unable to effectively change the message because we don’t have lots of venture capital or large legacy financial institutions backing us as the AMC industry does.
Do you want to take a first step? Think about that order. Stare at it. You should be insulted if that’s all you think you’re worth. If you’re not insulted, then you need to move on and get a job that pays at least minimum wage.