Appraisers Just Say No to Certain Assignments From Certain Clients
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Some appraisers just say no and refuse to do assignments for low echelon AMCs fishing for cheapest and fastest appraisers…
A very experienced Chief Appraiser, Mr. Greg Stephens, for the largest independently owned appraisal company in the US, Metro-West, has had an article published in National Mortgage Professional magazine, about the state of affairs concerning the so-called “appraiser shortage.”
You can read the article here.
While this article reveals important details based on appraiser population facts, there is a glaring omission. The omission is relative to “why” certain mortgage lending assignments are being delayed. It is different, and perhaps more important, than just the raw numbers of appraisers.
There are two additional factors that affect appraisal report production in a timely manner:
- Certain appraisers across this country refuse to do assignments for low echelon AMC’s who fish for the cheapest and fastest appraiser, and who then provide extremely poor appraisal review services by poorly trained non-appraiser personnel; and
- certain appraisers refuse to do assignments for a large national bank lender who happens to be the #3 mortgage loan provider in the US. This lender has the reputation of treating appraisers shabbily, plus piling on additional reporting requirements. That attitude and their conduct has been discussed in various places, such as forums, blogs, podcasts, peer emails and newsletters, for many years. As a result, some appraisers just say no when that lender becomes known prior to accepting an assignment.
Mortgage lenders have been slow to realize these critical factors that have negatively impacted appraisal report production. It’s not just the fact that there are 20% fewer appraisers today than were operating pre-2008. It’s also related to extremely poor business practices by certain elements upstream of appraisers.
Fortunately, appraisers are becoming much wiser. They are finally realizing that they are ‘worth’ much more today than they have been in the past – in terms of fee for service. Appraisers are realizing that being treated poorly is a very valid reason to just say no to certain assignments from certain clients.
Bad practices are correctable. It’s hoped that the ‘upstream’ entities will take a hard look at procedures, policies and practices, really begin to realize appraisers are an ally to help make their lending business successful, and make necessary changes.