The Latest AMC Ploy
Oh what fun it is to become PREFERRED…
From various sources I’m learning that you now have the outstanding opportunity to become a "preferred appraiser" with certain AMC’s.
What does that mean…really?
It means you will have assignments automatically assigned to you at a set (lower than C&R) fee and with a mandated report delivery date pre-selected. This process might even 'help you out' by also pre-scheduling the home visit with the borrower or RE agent for a certain day and time.
It matters not that many of the assignments will be the left over highly complex junk properties other appraisers have turned down due to ridiculous fees or shortened turn times.
Oh what fun it is to become 'PREFERRED.'… Not.
AMC’s are doing this because their recruitment efforts to snag full time "Staff Appraisers" who are 100% assigned to the AMC are not working. So the next gambit they are trying is to see how many appraisers want to have the lofty title of "Preferred."
If you are wise, you will tell the AMC recruiter that you 'prefer' not to be offered the dubious distinction of their 'preferred' opportunity.
Someday, most lenders (and possibly Congress, GSE’s, FHA, USDA) are going to finally 'get it' that the AMC model of hiring low fee appraisers and demanding quick report turn times does not work well and exposes the lender to excess liability. But it might take another massive 'market correction' like happened in 2008 for the lenders to realize this. Note that I didn’t include VA because they already 'get it.'
On a side note, on April 4, 2017, Mortgage News Daily reported that Ocwen is being sued and shut down in multiple states. The story does not mention Altisource by name, that’s the AMC OCWEN uses to place their assignments. Appraisal order volume may be affected by the actions taken by the states noted in the story.
Mortgage News Daily Excerpt
There are bad days, and worse days, and there are days like Ocwen Financial Corporation (OFC) had on Thursday. The company was not only sued on multiple grounds by both the Consumer Financial Protection Bureau (CFPB) and the State of Florida, but saw its operations effectively shut down by the North Carolina Commissioner of Banks.