Coester VMS Bank Accounts Seized!

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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coester-vms-bank-accounts-seized

VaCAP has been informed the bank accounts of CoesterVMS have been seized.

Coester letter

We have received the following email from one of our members.

From: *****@coesterappraisals.com>
To:
Sent: Tue, Nov 20, 2018 10:02 am
Subject: CoesterVMS: Accounts Recievables** -I am e-mailing to provide clarity on a letter you may receive from FVC Bank sent by Gilbert Kennedy and Patrick Gil from Shapiro Sher. The letter was sent to provide instructions on account receivables and the proper way of handling them for CoesterVMS as of 11/14/2018. Immediately both Patrick and Gill will be your point of contact for any questions or concerns around the accounts receivables and ensure they handled properly and immediately.

If you have any questions about your outstanding receivables at CoesterVMS, please contact FVC Bank, and or Shapiro Sher and they will handle this promptly. Please send a copy of all receivables directly to Patrick and Gil and please feel free to reach out directly to the numbers below and or reference the letter you received.

Their contact information is below and was included in the letter you received:

Gilbert F. Kennedy
FVC Bank
Office: (240)268-2266
Mobile: (443)299-9297
Email: Gkennedy@FVCBank.com
1600 East Gude Drive
Rockville, Maryland 20850
www.FVCBank.com

J. Patrick Gill
Shapiro Sher Guinot & Sandler PA
250 West Pratt Street, 20th Floor
Baltimore, Maryland 21201
Direct 410.385.4236 | Main 410.385.0202 | Fax 410.539.7611
jpg@shapirosher.com | www.shapirosher.com

If you are owed money from CoesterVMS…..

Please follow the instructions on the letter. There is also a surety bond in place with the Virginia Real Estate Appraisal Board to cover any outstanding obligations owed to appraisers. Please contact the VREAB directly to inquire to the procedure. REAppraisers@dpor.virginia.gov; or 804-367-8552

Image credit flickr - Bradley Gordon
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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87 Responses

  1. Tom Markoski on Facebook Tom Markoski on Facebook says:

    This could be the start of the “AMC-IMPLOSION-METER”

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  2. Matthew Shuffler on Facebook Matthew Shuffler on Facebook says:

    This is long overdue.

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  3. Jason Hubbard on Facebook Jason Hubbard on Facebook says:

    Finally accepted one from them hum

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    • Certresidential says:

      Was that because another outside entity has taken responsibility for paying you? Or do you just like working for free

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  4. Doug Underwood on Facebook Doug Underwood on Facebook says:

    Awe how sweet. Couldn’t happen to a more deserving company.

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  5. Gadda Gow says:

    And there are still idiots out there doing work for this crook.

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  6. TruthBTold says:

    Gadda, what I have come to learn over the last several years is that the banks/AMC’s know that in order for “their” AMC system to work, they will need to recruit people who are desperate to make money, and willing to follow the AMC’s instructions, regardless of how libelous the instructions are! They intimidate staff appraisers away from critical thinking by reducing work volume if they don’t do “exactly” what they’re told.

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  7. Steve says:

    Where does it talk about Coester account payables? Isn’t receivables money that is owed to Coester?

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  8. Diana N. says:

    Shades of ES Appraisals, wonder how many appraisers got screwed this time around. And Coester had the balls to blackball me because they didn’t agree with my measurements of a house, I’ve only been doing this over 40 years. Hope they pay dearly. 

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  9. Michael Wilbanks says:

    I remember when the AMCs were handed our business. They paraded Coester around as the golden boy of all appraisers. Karma

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  10. EJ says:

    Glad they have been on my do not use/black list for as long I can remember. Never have done any work for them.

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  11. Ralph says:

    Appraiser Loft part Deux!

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  12. CRAZY, When are you folks going to STOP extending credit to these crooks. Want to end the AMC madness get paid up front like we used to back in the day. I WOULD RATHER FLIP BURGERS AT MCDONALDS THAN GET PUNKED BY THESE SO-CALLED APPRAISER MANAGERS! YOU GOTTA HAVE BALLS TO SUCCEED IN THIS OR ANY OTHER BUSINESS.

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  13. Dagger says:

    So this is evidence of factoring as well. Coester doesn’t have enough money to pay its costs and pay appraisers either, so basically every bit of revenue that they get needs to go to this bank and the bank takes its piece of revenue and interest before disbursing the remaining funds to Coester to 1) pay itself and 2) pay appraisers.

    Translation – appraisers are last in line to get paid under this arrangement, if they get paid at all. In finance I believe this is technically referred to as “dead man walking”.

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  14. Jay Yibm says:

    Brian Coester is a scam artist, Fritz Draper is a punk and Sheri Olsen is a certified idiot, this flip flam should have been shut down a long time ago, the crap pile is where all these people should go, along with the firm name, don’t forget the brother, John Coester another bum, now in the title business, stay away from him too.

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  15. Scot taylor says:

    They call and ask for a 1004 for $300 here in South Florida. And get it done in 3 days. Karma oh how I love that girl named Karma. Hey Brian, maybe you can go do some BPOs for $20 a piece now. Lots of free time.

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  16. Jim Cochran on Facebook Jim Cochran on Facebook says:

    I am in Ohio. They owe me. How do i collect

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  17. Jim Cochran on Facebook Jim Cochran on Facebook says:

    I’ve called lender demanding payment. I believe they use a hud closing agreement that they show that appraiser has been paid. So it sounds like they are responsible. Hopefully they will pay

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    • Baggins Baggins says:

      Send the bill to the homeowner. Tell them services have been rendered, payment is still expected, and they can sort it out with the lender if they’ve already paid, but you expect to be paid. They can’t refry those refi’s if the customer is upset about double billing. 10 years in it and you’re still working with amc’s? Sad. I’m whistling past this one with ease, because I seek out direct assignment panels. It’s not rocket science.

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    • Jim Cochran on Facebook Jim Cochran on Facebook says:

      Small rural area. Not much work without them. Been appraising for 40 yrs

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    • Jim Cochran on Facebook Jim Cochran on Facebook says:

      Lender says they will pay. We’ll see

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      • Baggins Baggins says:

        My bad. So everyone in town goes through one lender and that one lender uses an amc? This is 2018 and that’s not how it really works anymore. Small towns are connected places too. So just trust the lender whom already sold you down the river to an amc, sounds like a logical position to take. Send the bill to the homeowner and let the lender have a taste of their own medicine.

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        • NJAPPX says:

          what do you mean by direct assignment panels…u mean like mercury, lenderX etc..?

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          • Baggins Baggins says:

            Direct assignment panel is in other words, a cost plus distribution system. The lender sends out appraisals through their choice of distribution network software providers, and hires their own panel manager and small set of distribution clerk staff. They accomplish the same thing amc’s do, with less overhead, fewer employees, less hassle, and in turn pay appraisers closer to market rate since the appraiser is not forced to fund the operational budget of amc’s via fee shopping and/or consistently lower appraisal fees. The distribution departments are returned to their proper place, being simple order management clerks, rather than the amc model which provides a financial incentive for amc’s to drive down appraisers fees in order to pocket the difference as they do not return cost savings to borrowing consumers. Amc’s can use the same distribution platforms so mentioning a software choice is irrelevant. Either an appraiser is working direct in mortgage lending, or they’re sharing a variable or larger portion of the ‘appraisal services fee’ with a third party middle manager company. The best lenders only hire qualified persons with active appraisers licenses to be panel managers.

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  18. Baggins Baggins says:

    Want to read page 2 of this document. ‘Shall henceforth be….’

    Coester, like most amc’s, has an amazing ability to waste appraisers time on exponential levels for no compensation, no cost savings return to borrowers, pocketing the difference, millions of emails.

    Always desperate, all the time. What’s your fee and turn time?

    Remember, these amc’s ask the same questions to the ‘inspector’ the ‘eval provider’, etc, etc.

    Race to the bottom for everyone involved with amc’s, not just the appraiser.

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    • Bill Johnson says:

      Wasting time, you mean like spending time researching a property and discovering its a complex assignment only to get the following response today.

      ” I did look up the property and while I understand you have some concerns to complexity to this order the downside is you’re in a very competitive area/market with San Diego that appraisers are completing for the $350 fee. Please let me know if you are unable to take this order so I can reassign for you as well.”

      In other words, we’ve already quoted the borrower (TRID), so who cares that with 78 sales over the past 6 months (1 mile radius), only one has sold above the subjects contract price ($1,140,000).

      This same company paid me $690 some months back for a similar assignment (different lender), but because this lender quoted the borrower $450, they will keep shopping for any of the 900+ appraisers licensed in my single county who say yes to $350.

      Seek the truth.

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      • Baggins Baggins says:

        You must agree with their methods, that’s why you continue to keep them in business by providing services for them. When an appraiser is able to get leverage and get better fees from amc’s, they have not gained any ground towards industry reform, in fact, quite the opposite happens. When appraisers rake fair market fees from amc’s, the amc in turn pressures appraisers with less leverage elsewhere to work for less to then cover the operational budget shortfall. If appraisers are willing to be this down and dirty and ruthless in their business dealings, they should just do everyone a favor and transition into sales instead.

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  19. KATHY CHRISTIANSON says:

    letter is bogus, they sent me back an email telling me I need to deal with coaster vms

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  20. NJAPPX says:

    They currently owe my company over 4k. We have sent certified letters to all the lenders involved in addition to Coester themselves. We are also filing a complaint with the NJ banking commission and sending them to collections

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  21. DianaN says:

    Last time ES did the same thing, majority of the work was done for JP Morgan Chase, we tried suing Chase because they were actually the CLIENT, and the judge in Florida threw out the case. Guess the SOB had Chase stock.  Good luck everyone that’s owed money. 

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  22. JEG says:

    Sheri Olsen was let go 2 weeks ago, she said she went back last week to work for free and she was the only person there

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  23. Certresidential says:

    It would be reassuring for Appraisers to know that someone reliable other than Coester has taken charge of paying Appraisers fees.

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  24. KATHY says:

    I spoke with a lender today who I sent my invoices to, they forwarded me a letter Coester sent them today telling them their bank accounts are now unfrozen and it is back to business as usual..I told her the letter is bogus, all the staff is gone…lol..nice try Brian Coester

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    • NJAPPX says:

      Its BS, they are trying to stall and go into bankruptcy where they cannot be touched.  They are such POS over there. Send letters to all their lenders

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    • Laydeetee says:

      Kathy, please post that Coester letter you were forwarded. Appraisers are collecting data they can use to get paid. That letter may help someone.  🙂 Thanks in advance!

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  25. KATHY says:

    COPY OF LETTER FROM COESTER TO LENDERS.  AT THE BOTTOM IS THE PERSON TO CONTACT REGARDING PAYMENT, HOWEVER, WHEN I EMAILED HIM HE SENT ME AN EMAIL BACK  WHICH HE SAYS “FOR CLARIFICATION PURPOSES I AM A CONSULTANT TO COESTER AND AM WORKING WITH THEM TO DEVELOP A POSSIBLE PLAN TO PAY YOU AND OTHERS BUT THERE ARE INSUFFICIENT FUNDS NOW TO PAY PAST DUE AMOUNTS.  WE WANT TO ASSURE YOU THAT THE COMPANY IS OPERATION AND WORKING TOWARDS A FINANCIAL SOLUTION.  I KNOW IT IS DIFFICULT, BUT TRY TO BE PATIENT.  THANKS……..IF IT IS BUSINESS AS USUAL, HOW CAN YOU OPERATE WHEN YOU DON’T ANSWER THE PHONE.  I HAVE CALLED COESTER A NUMBER OF TIMES, TRIED EVEN TO GET SOMEONE TO ANSWER AS A POTENTIAL NEW CLIENT, YOU GET SENT TO THE VARIOUS DEPARTMENTS AND THEN SIT ON HOLD FOREVER, NO ONE EVER PICKS UP….BUSINESS AS USUAL….YEAH RIGHT

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  26. Certresidential says:

    Kathy. Re your questions and concerns re the letter, inquiries and responses. To quote Coester who summarizes things best “it’s business as usual”

    And everyone else from the bank to the regulators is either a liar, mistaken or just plain wrong.

    Question is is FVC Bank Who Coester says is their primary Lender going to take the same position as Chase did when it said they were not responsible for paying the Appraiser

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  27. Stop crying and do something positive, organize. When they reopen their doors from a picket line and keep the scaps out. Carry some signs and sticks, people will open their eyes. That’s the way things get accomplished in America. This is supposed to be a Union site, start acting like one.

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    • if they do not come back good, pick the largest mac in the country and protest them by using the same tactics.

      “From as far back as we can remember, people have been protesting — from *burning the bra to the burning issue of racism. Some protests led to significant change, like Ghandi’s passive resistance against the British oppression of indentured Indians in South Africa, and the National Woman’s Party Suffrage Campaign which resulted in the groundbreaking move to allow women the right to vote in U.S.”

      Successful protesting isn’t just random chaos. It is a planned organized mobilization designed to effect change. So how do you guarantee your protest makes an impact?” 

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      • Laydeetee says:

        **Please keep politics off this page.** It’s called “AppraisersBlogs”….let’s keep it “appraiser” and “appraisal” related. Seriously. (you could have talked about protesting without bring politics into it)

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        • ARE YOU NUTS? OF JUST STUPID! MIKE I FEEL FOR YOU THEY DON’T KNOW YOU ARE A UNION GUY? MAYBE I’M WRONG.

          THE PEOPLE THAT CLEAN HOTELS/MOTELS HERE IN CALI GOT MOER SCENCE THAT THIS FOOL.. THEY HAVE UNIONS AND OCCASIONALY GO ON STRIKE!

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          • Curtis, just FYI, this website is not Mike’s website nor the AGA’s. So, it is not a “union site”. The owner is an active appraiser who also happens to be an AGA & VaCAP member. She started this blog in 2011, way before she was a member of VaCAP and AGA.

            Also, please be respectful to your fellow appraisers. Please do not attack someone for having an opinion that differs from your own; if you disagree with someone, please express yourself respectfully. Snide or rude comments are not constructive and certainly not helpful. Thank you for your cooperation!

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        • NJAPPX says:

          100% agreed, don’t need any more political views on here, plenty to go around on TV and social media. Let’s stick to appraising.

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          • Baggins Baggins says:

            The amc appraisers are upset because they were taken advantage of by the non union middle manager amc companies. And now they’re protesting… Rich. Those appraisers could have however, made better decisions regarding which companies they were supporting by providing appraisal services to them. The world is what you make it.

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            • EJ says:

              I saw where 1 appraiser was into coester for 13,000, I wonder how many appraisals it took to get to that figure. I never accepted even 1 assignment from them due to the extremely low fees. What’s it like feeding at the bottom?

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              • Kathy says:

                Being nasty accomplishes nothing, why not be supportive to those who may of not had a choice and had to work for the the thieves at coester. Maybe we could unite and fight for change. And for record, not all of coester fees were low, as an appraiser who did some work for them, I always countered their offers and 95% of the time, my counters were accepted. I fortunately was able to see payment times getting further out and stopped accepting work, I had a gut feeling things were getting ready to implode there

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                • Baggins Baggins says:

                  When it comes to defrauding consumers, one always has a choice.

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                • EJ says:

                  Your right, I hope they recover fully. I guess I’ve just become cynical over the pass 10 yrs & just loose track. This business used to be interesting & fulfilling but now seems to be nothing but a battle.

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  28. NJAPPX says:

    Marvin A Davis
    mdavis2866@aol.com

    Just spoke to him today who advised us that he was brought on to fix their financial issue.  He stated they removed the freeze on their account and they are working on paying people but had no time frame…..Ill believe it when I see it….. Either way I have already sent out letters to over a dozen of their lenders and have received multiple mixed call backs.  Some lenders are stating there is nothing they can do since they already paid on others are working with me to try have us paid.  The good part is that all that I have spoken to are ceasing any further business with them

    Is anyone interested in a collective law suit

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    • Baggins Baggins says:

      And how much does that consultative service cost?

      You guys paid for it!

      Hope it was worth it. They’ll recomp the costs via lower fees to appraisers in the future.

      What’s new?

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  29. NJAPPX says:

    Oh here is what I am doing and I recommend you all get on this as quickly as possible.

    This is my 2nd time a mgmt. co. failed to pay me. The 1st company was called on point appraisals. The problem is by the time I  pursued payment, they had already claimed chapter 11 and company was dissolved. When that happens it’s next to impossible to get paid.

    I can almost guarantee you that Coester is in the process of doing the same thing. They are trying to delay us by telling us, they are still in business and working things out in order buy time to close doors and dissolve, which will leave us with our hands in our pockets.

    I looked up a company that has A+ rating with the BBB and tons of great reviews. They are called Vericore and I told them that there are many more appraisers in my shoes. With that said strength is always in numbers and I feel the more of us in the process the stronger this process can be. They work on 25% contingent commission meaning if we don’t get paid, they don’t get paid but also stated that Maryland, which is where Coester is from is a state that allows collections to tack on there percentage on top of current debt which can leave us to pay 0 to 5% of collected total in the end. Company seems awesome and I highly recommend you start your process before it’s too late……

    let me know how you make out, you can reference  NJAPPX, we have already started on our process.

    my point of contact is

    Jim Davis

    Jim.Davis@vericore.com

    1800 433 4903 xt 1128

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  30. Laydeetee says:

    Just got this email regarding Coester’s Bond in NC…it’s already been exceeded;

    December 4, 2018
    Re: Principal: Coestervms
    Bond No.: TXIFSU0633863
    Obligee: NORTH CAROLINA APPRAISAL BOARD
     
    Please be advised that International Fidelity Insurance Company (the “Surety”) issued an Appraisal Bond to CoesterVMS (“Coester”). The penal limit of the bond is $25,000.00. This letter will advise you that the Surety has received claims against the above referenced bond in excess of the bond’s penal sum. As a result, the Surety will pay claims on the bond on a pro rata basis according to the amount of each parties established claim.
     
    The Surety requests that all potential claimants, that have not already done so, file their claim by sending correspondence and supporting documentation to the addressed or e-mail listed above no later than December 30, 2018. Please note that after December 30, 2018 the Surety will proceed with pro rata distributions to all valid perfected claimants. However, after the penal limit has been exhausted, all claims received after that time will be advised the penal limit has been reached and the bond has been released.
     
    This letter is sent without prejudice to the rights of International Fidelity Insurance Company and its principal and it shall not constitute a waiver or release of their rights, defenses, claims or setoffs, including, without limitation, those based on timely compliance with applicable notice requirements and statutory or contractual periods of limitation.
      
    Very truly yours,
    INTERNATIONAL FIDELITY INSURANCE COMPANY
    Damitta Straughter
    Senior Claims Administrator 
     
    cc:   Jeri Mach, Underwriting Manager – Commerical Surety

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  31. APR says:

    They owe me more than 20k. As a solo appraiser, this affects me a lot. No one answers the phone, nobody answers the emails. It’s crazy. Does anyone know any new information?

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  32. NJAPPX says:

    Try the place I am using for collections…they have an A+ with the better business bureau….read 2 posts up

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  33. Tom Markoski on Facebook Tom Markoski on Facebook says:

    20k? It’s 2008 all over again

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    • APR says:

      More than 50 orders, since July they stop paying, I guess I was the only one in my area. If I had imagined that this would happen, I would have stopped accepting orders in September. My bad.

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  34. John says:

    I’ve only had one company go under in 27 years. I received a letter asking if I like to be paid 5% of the fee or wait with no guarantees of payment AT ALL. In the end I received ZERO payment.

    That happened early on in the AMC development fiasco. I learned a valuable lesson. This scenario has been playing out all over the country for all these years? From day one of the blatant failure of Dodd-Frank, regulations were never enforced. Even after these well documented failures, regulations are still NOT being enforced. How does that happen? It happens because appraisers are not equipped with the knowledge to stop it. We are not lobbyists.

    So far, outside of the state coalitions, the only other organization willing to fight for us is the AGA. How does it all work? How do we all get on the same page? I do not know, but I would be willing to hand over the money I’ve lost in fees over the past ten years to ask for help and maybe a little guidance.

    I’ve responded to some of the fee quote requests with honest fees. I was never assigned the orders but I know appraisers in my area that lowballed market fees and they received the orders. Maybe some of them had no choice but to revert back to the fees from 1990 for family reasons. I took on two additional jobs to make up for the loss in work. Good going AMC’s, you sucked the life out of people’s livelihoods for personal gain.

    As far as I can tell, we’re not the bad people here! We play by the rules to our own demise? Many of the economic failures in this country are real estate related. Real estate hits home whether you rent or own. It’s one of the most basic foundations of our economy. How is it possible that the legislatures find this funny?

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  35. Kathy says:

    I would like to know why appraisers can’t be paid by the title company, just like how all the other fees associated are paid.

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  36. John says:

    On top of all this, I’ve NEVER heard a valid explanation for why appraisers get paid 30 days, 45 days and even 60 days net. You would think that these companies would have enough resources to pay the people that are actually making the product they sell. They have bonds – yet they still run out of money? Who is charged with monitoring this money? I work with clients that consistently pay 48 hours after the delivery of the report and others that pay 7 days and 10 days. ?????????????????

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  37. APR says:

    From Coester:

    “Due to financial difficulties all payments on orders completed prior to 11/15/2018 cannot be paid at this time, our BK attorneys will be in contact with all creditors. Coester can guarantee payment next day on all orders completed on or after 11/16/2018. We apologize for any inconvenience.”

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    • Jason Hubbard on Facebook Jason Hubbard on Facebook says:

      I look forward to seeing Any Coester at a convention. Should be fun!

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    • LayDeeTee says:

      Yeah, right. That’s just their way of trying to fool appraisers into continuing to accept their orders! Seriously guys…stop doing business with these crooks. **BUT…be wary…once CoesterVMS closes it’s doors, the owner will just resurface with an AMC with a new name.

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  38. TruthBTold says:

    I’m with you LayDeeTee, no disrespect to all those who are owed money, but I don’t have a problem with Coester because they treated me like an assembly line worker five years ago when they first wanted to do business with me and therefore I have never done an appraisal for them. In my area, I seldom am working on a property that is less than 800,000 in value. With our market changing, many of my appraised values are coming in far below the contract price or the purchase price of a year ago. Oftentimes resulting in a difference of 100,000+. I deal with a lot of liability, angry property owners that want to contest my appraised values and rich people that are sue happy. My reports have to be well documented and supported. There’s no way I was going to deal with Coester’s low ball fees and slave master attitude. The appraiser’s true bottom line is protecting your license and not having to use your E&O insurance. If you get investigated by the State, they’re not going to ask anybody at the AMC to do any explaining, only you. And if you mention the AMC as part of the problem, they’re just going to laugh at you! BTW, AMC’s report appraisers to state boards more than property owners.

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Coester VMS Bank Accounts Seized!

by VaCAP Board time to read: 1 min