Housing Notes: AMCs Running Out of Appraisers

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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Housing Notes on Appraiser Shortage, Coester AMC Lawsuit…

Housing Notes: AMCs Running Out of AppraisersIn a recent article, Jonathan Miller, author of Housing Notes, points out several key factors in the appraisal world today. Pat Turner, President of VaCAP, reached out to Jonathan about sharing his information. Here is what Jonathan had to say…

“This is a great moment to expand insights on what is really happening. AMCs have run out of appraisers to work for half the market rate. And those that might take less of our fee are still costing us another 30% of lost productivity with ever expanding scope creep. Brexit has pushed rates lower and refis are booming, creating heavy demand for appraisers.”

To read Jonathan Miller’s Housing Notes, click here. Please share the article with agents, appraisers, consumers and most definitely lenders. Recent events have shed some light on a few AMCs that may not be operating with the utmost of honesty. The lenders need to know who they are partnering with! The more we share what is happening in our profession, the better protection for the consumer.

Housing Notes: Is There An Appraiser Shortage?

Nope (sorry, just going for drama here). Check out the Appraiserville section below for lots of discussion about appraisal management companies, the entities (AMCs) that are perpetuating this rumor for their own survival.

Rob Chrisman’s column in Mortgage News Daily provided his own stream of consciousness within the middle (in bold) of quoting and paraphrasing how the current NAR president sees the appraisal industry:

The president of the National Association of Realtors (NAR) Tom Salone discussed appraisals recently. (Forget the fact that an appraiser can “only” do 2-3 a day, they don’t want to work 7 days a week, they seem to receive about 10 requests a day, few want to train their future competitor who will eventually undercut their price, and all are usually pressured by real estate agents to deliver on price.) Mr. Salome stated, “…in addition to affordability concerns, an issue seen earlier in the housing recovery may be reemerging. Realtors are indicating that appraisal complications are appearing more frequently as the reason why some home sales settlements are being delayed…

“Appraisal-related contract issues have notably risen over the past year, and were the root cause of over a quarter of contract delays in the past three months…This is likely a combination of sharply growing home prices in some areas, the uptick in home sales this year, and the strong refinance market overworking the already reduced number of practicing appraisers. Realtors are carefully monitoring this trend…”

The NAR president demonstrated what is a common lack of understanding on the state of the appraisal industry right now, despite that the problem is clearly impacting his members. The appraisal industry needs to convey to NAR what is actually going on. There is no shortage of appraisers. There is a shortage of appraisers willing to work for half the market rate. Forget the Appraisal Institute in this regard, they are mired in their own internal politics and have long flirted with being pro-AMC.

Remember, when you (AMC) take nearly half of someone’s income overnight, it changes the quality of new applicants entering the appraisal profession. This would be true with any profession. The experienced appraisers are penalized because they were properly trained and know better than to take shortcuts. Experienced appraisers don’t see their profession as one of a form-filler.

The Coester AMC Lawsuit in Maryland

Here is an incredible and essential read for all appraisers. Ask yourself after you read the following documents whether you want to be associated with an AMC like this? I remember seeing a quote on an appraisal a long time ago from the adversary’s appraisal (the one competent thing in their report) in a litigation: “An appraiser is measured by the clients they serve.”

Follow this link to read Jonathan Miller’s Housing Notes.

A Link to Jonathan Miller’s Housing Notes is now on the Appraiser Resource Page of VaCAP’s website.

While we are sharing… Check out the American Guild of Appraisers (AGA). The American Guild of Appraisers, like many other appraisal organizations is a friend of VaCAP. The AGA has presented Virginia appraisers a fantastic offer that is well worth considering.

Check it out here.

There are many benefits to the AGA:

AGA:
Strength in numbers – AFL-CIO / OPEIU / AGA – 13 Million strong, Independent appraiser support, Coalition support, Competent Peer Review, Board representation

OPEIU:
Fight for member injustice, Support AGA members, Death benefits, AD&D benefits, Product Discounts, Travel Discounts

AFL-CIO:
Fight for member injustice, Support OPEIU & AGA, Insurance, Towing, Auto roadside assistance, Scholarships, Legislative representation

For more information on the AGA contact: Jan Bellas at 301-220-4100, janbellas@appraisersguild.org

Scheer vs Coester Amended Lawsuit July 29 2016

Image credit flickr - Tax Credits
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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37 Responses

  1. Wayne says:

    I agree with you Greg! However I go a bit farther as a personal note. I dislike AMCs and absolutely see ZERO need for them. They bring NO punch to the party. My office does not accept assignments from ANY AMC….we do not ask what the fee or bid on the fee. It just does not matter what fee, turn time or property! If they are an AMC they are TOAST as far as we are concerned. JOIN US….lets get rid of these parasites! The AMCs have to have us….we do not need them. Time for them to find another scam!

    As a side note…I noticed on the Forum where a “Trainee” was asking about how to apply to ALL AMCs ….Just another reason that I will not accept any TRAINEE! Just my opinion based on a General Certification and 35+ years of experience,….if the appraiser is seeking AMCs……they will not be with the rest of us long!

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  2. Lidell Greenup says:

    About time appraisers wake up and stop being used.

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    • bill johnosn says:

      Appraisers were awake from day one and signed petitions, disagreed with the Appraisal Institute and there support for the regulations. Just because others don’t listen, doesn’t mean we were a sleep.

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  3. Bubba Jay / Retired Appraiser II Bubba Jay / Retired Appraiser II says:

    i disagree that there is a shortage of appraisers. we can clearly see the numbers of appraisers plummeting every year. we can clearly see the lack of appraisers entering the business because of over-regulation. we can clearly see appraisers turning down more work than ever before. we can clearly see appraisers getting burned out working 24/7/365 trying to keep up with it all.

    looks like a shortage to me. good luck convincing the banks that there isnt a shortage when it takes longer and longer to get an appraisal back, and closings continue to get pushed out and delayed.

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    • bill johnosn says:

      Your comments are area specific Bubba and do not represent my area. Good luck getting any work at discounted prices if your quote is over 5 days in my area. The banks bring to light the low volume trouble areas (dozens of assignments), while they can pay below $300 in high population areas (thousands of appraisals).

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  4. GAPeach says:

    Some nasty stuff were added in the amended lawsuit…

    dildos…washed-up faggot…the N word…” This Brian Coester is a real piece of work isn’t he!

    Anyone still doing business with him? If so WHY?

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    • Baggins - Baggins - says:

      They’re both entirely unbelievable. Sorry charlie, not at all sympathetic about peoples personal relationship problems. Really took the umph out of the plaintiffs charge, that he was so desperate and low he’d have to make up name calling stories. Not buying it for one dang minute. And if Coester said that, so what, he should hire Yananopolis as his new spokesperson or something. Give me a break. Let me get a tiny violin out for all the oppressed people who earn 180 thousand dollars a year. Boo hoo, I’m crying right now. People who live in glass towers should not throw stones.

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      • Baggins - Baggins - says:

        Call it bold. I call it normal. So what? Everyone can take their overdeveloped sense of sensibility and modern pr nonsense, and, well things that have no value typically are discarded or repurposed sooner than later. Capitalizing and shouting regarding SJW content, typically is something only SJW’s do, just FYI. Don’t get triggered. You are not a special snowflake. There is no safe space here.

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  5. Baggins - Baggins - says:

    Per the article, no it’s actually true. A decade of amc oppression takes it’s toll. And for mortgage lending specifically, once demand ramps up again, appraisers cannot meet the demand. The amc’s did all the hiring! It’s a problem of improperly allocated funds.

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  6. pat t says:

    If you are owed any $$$ demand immediate payment before it’s too late!!

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  7. Wayne says:

    Corporation: An entity created by the state with no soul to be damned and no ass to be kicked.

    AMC: A parasite encouraged by congress to feed off of the pitiful appraisers who lack the intelligence to stop the thieves of services of appraisal valuation. A group that could be stopped in a heartbeat if appraisers had balls!

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  8. Wayne says:

    Well…what to do? The phone directory guy called and wants us to renew our advertisement in the phone book. There are about 150 appraisers in my area but only two plus is listed in the phone book. I asked my partner and she said do whatever! Well, that was not much help! WE already have the reputation of being the most picky appraisal company in the area. We refuse all AMCs, all mortgage brokers, NO FHA or USDA. Sorry but if you are not busy as hell there is a problem in your market! LOL,..is there a reason why 150+ appraisers in my market do not advertise in the phone book? Do they not know that there is a phone book or do they just have so much business that they do not give a damn about a phone book? And you are accepting assignments from an AMC? IF so…WHY? (do you really want to feed this scum?)

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  9. Bill Larkin says:

    Id be curious to know what you mean by your definition of AMC. There are many entities out there. Do you work for companies that supply handling the order process for lets say a local bank. Ive had some of my clients sub out the process of the ordering, does that mean I am working for an AMC.

    As for your question regarding the phone book! If thats been whats allowed you to maintain a business without any AMC work. I would do it, but if it were me personally, I would invest that money into google rankings. Do you use a phonebook anymore, I certainly dont.

    Good luck whatever you choose.

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    • Baggins - Dare them to get appraisers licenses. Baggins - Dare them to get appraisers licenses. says:

      I used to market and solicit all the time.  Now I purposefully delete that old content, try not to solicit ever, and only answer the phone sparingly.

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    • Wayne says:

      Hey Bill, I suppose your question was directed for me so I will be happy to answer. We have banks that have created a department to order appraisals. We work with them daily. We also receive assignments from Mercury, etc. I do not consider these to be AMCs. I consider an AMC to be a third party company that gets between my real client and myself. They attempt to control the appraisal process from the fee and delivery time to the actual delivery of the report. I WILL NOT WORK WITH THESE SOBs!

      Now for the phone book question. I am not a computer guru! If i need assistance I ask my 8 year old grandson to take care of it for me. I am not alone in this situation. My grandson has very little money…..but some of my old friends that need an appraisal have money. They go to the phone book as that is what they are used to doing. Between 75 to 150 appraisers in my market and only 3 of us have a phone book advertisement. Yes we have a website also…but, gee there are only so many of these appraisals that I can do at one time. My goal is to take a cruise every three months and a few vacations in between. LOL…Life is good! Best wishes to all!

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  10. koma says:

    I’m on this AMC panel not to due any work for them I just want to see what they are sending out. The other day they sent an order for a non-complex 2055 w/ REO addendum for $495 when they typically pay $200 (junk fees). Fair fee for the area is $325. It sat under my cases for 3 days before it was gone. Was not accepted by me IDK if it was accepted at all. Boy when it’s said they can’t get appraisers to work with them they aren’t kidding. It’s looking like their bad deeds against appraisers are coming back to bite them in the ass..haha

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    • Wayne says:

      Hey Koma, as you know, if our fellow appraisers do not provide the income for the AMCs to exist, they will not exist. I do not feel sorry for any appraiser who accepts work from these scum companies and then posts the boo hows! Somewhat comical! Many appraisers are tired of this crap and just watch while the less qualified jump to satisfy their AMC masters! Too funny! (these appraisers think they are smarter than the rest of us!….they have no damn clue)

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      • Koma says:

        Wayne I agree! I’m going to lose access to this company soon because they want my new license and after three years of snooping on them I just don’t want them to have my updated info.

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