Tagged: AMC

NAR Concerns and Survey on Property Data Collectors 12

NAR Concerns & Survey on Property Data Collectors

NAR is conducting a survey and wants to know if you have any concerns regarding property data collectors, if the appraisal fees are higher since the involvement of data collectors, if borrowers are made aware of a fee for the appraisal and a separate AMC fee or were the fees bundled, if the property data collector gave the impression that they were the appraiser, whether you have any safety and privacy concerns with the data collection process, quality of data collected and whether they need to be licensed…  In a letter to the Federal Housing Finance Agency (FHFA) regarding appraisal...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Automated Valuation Models

AMC Fee Impact on Appraisal Fee 78

AMC Fee Impact on Appraisal Fee

While the borrower was charged $695 for the appraisal, the appraiser was only paid $301. The AMC fee was $394.  We often hear complaints from GSEs and lenders that appraisal fees are too high, hence the push for modernization. Yet they fail to acknowledge that this is due to an overly bloated middleman – the appraisal management company (AMC). As a consumer, you should be aware of the potential for being fleeced on appraisal fees. It’s possible that you could be paying more than double what the appraiser is receiving for actually doing the work, with the excess going to...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Dodd-Frank Act / C&R Fees

Clean-Slate Laws, Bad Policy Could Dispatch More Felons to Borrowers Homes 8

‘Clean-Slate’ Laws, Bad Policy Could Dispatch More Felons to Borrowers’ Homes

The idea of unlicensed individuals being hired off the streets and paid a pittance to video and photograph the interiors of borrowers’ homes, which would include the exact location of valuables and children’s bedrooms, has been unsettling to some.  An astute real estate broker recognized the name of a Michigan man awaiting sentencing in an armored-car robbery. The latter had been engaged by one of six companies authorized by mortgage giant Fannie Mae to dispatch so-called “data collectors” to borrowers’ homes. The broker alerted the bank and the National Association of Realtors. New, progressive laws designed to conceal felony convictions...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

The New & Improved Fannie Mae FRAUDULATOR 2.0 42

The New & Improved Fannie Mae “FRAUDULATOR 2.0”

Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie Mae is increasingly being referred to by some, if not many American Appraisers as The Fraudulator / Underwriter 2.0 (FU-2). To be clear it is not limited to the Collateral Underwriter (CU & CU-2) software. The new Fraudulator (FU-2) combines the CU products with their numerous improper uses. The end result of which includes OUTRIGHT FRAUD being perpetrated against banks via the repurchase letters Fannie Mae now issues on a quota based system rather than because of legitimate appraisal defects....

AGA / AI / AMC / American Society of Appraisers / Appraisal / Appraisal Institute

AMC Hires a Convicted Felon as Property Data Collector 63

AMC Hires a Convicted Felon as Property Data Collector

The recent case of Paschal Uchendu, a convicted felon awaiting sentencing for orchestrating a $1.2 million armed robbery of a courier van, which he was entrusted to secure, is cause for alarm when it comes to the use of unlicensed property data collectors. One of the largest appraisal management companies, Class Valuation, had hired Mr. Uchendu as one such property data collector despite his criminal background and pending legal issues – clearly demonstrating their lackadaisical attitude towards vetting employees who are tasked with collecting sensitive information about properties and homeowners. Class Valuation is among the six vendors approved by Fannie...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

No Appraisals Required in the Future! The End of Appraisers? 43

No Appraisals Required. The End of Appraisers?

No appraisal may be required in the future! Fannie Mae took a direct shot at appraisers with the announcement of changes in their Selling Guide. Two options for the future, both of which do great harm to the appraisal industry. First, “third party” inspections. Appraisal trainees aren’t good enough, so now we will have unlicensed inspectors going through the homes of unsuspecting homeowners. And, with this inspection a traditional appraisal is no longer a requirement for the mortgage loan. Secondly, the 3rd party inspection is sent to a licensed appraiser. Fannie Mae wants an appraiser’s signature so the appraiser can...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Speed Regardless of Accuracy Under the Banner of Modernization 14

Speed Regardless of Accuracy Under the Banner of Modernization

Appraisers, something – comparing and contrasting – dawned on me last week, after reading another news release titled “Dean Kelker: Appraisal Modernization is Starting to Gain Momentum“, which is basically pushing an “Enterprise” singular ‘agenda’ of valuation speed regardless of accuracy. Under the banner of “modernization.” VA does not demand appraisers complete assigned appraisal assignments extraordinarily quickly. They give appraisers 7 – 10 days (depending on location) to submit the report after assignment. VA expects good quality and accurate information. FHA/USDA/ONAP also expects appraisal accuracy using an inspection protocol that many appraisers object to, and some choose not to do...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Look in the Mirror 15

Look in the Mirror

The phrase “take a look in the mirror” is a common idiom used to encourage self-reflection and introspection. It is a powerful statement that can evoke a range of emotions and reactions from individuals, from contemplation to defensiveness. At its core, the phrase is a call to examine oneself honestly and objectively. It asks us to step back from our assumptions, biases, and preconceptions and consider our behavior, choices, and beliefs in a critical light. When we take a look in the mirror, we are forced to confront our flaws and shortcomings, but also to recognize our strengths and achievements....

AI / AMC / Appraisal / Appraisal Institute / Appraisal Management Companies / Appraisal News

Opportunity to Work for Free is Not a Plan 73

‘Opportunity’ to Work for Free is Not a Plan

I gave this ‘opportunity’ further critical analysis in terms of time spent versus the fee income potential.  Appraisers, I’d like to disclose a personal ‘opportunity’ that was presented to me last fall, early winter. A company with AMC roots was, or is, recruiting people to become “property inspectors” with the resulting reports potentially fed to other appraisers who do HYBRID, or maybe even DESKTOP reports. The GSEs never intended the DESKTOP report to incorporate separate ‘property inspections’ from a hired third party, but that’s been the evolution because they just look the other way. Last fall, due to the slowdown...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

Staff Reductions at AMCs 24

Staff Reductions at AMCs

Making massive staff reductions in the appraisal management department, including the Chief Appraiser and the Administrative Manager, who both are licensed appraisers. Appraisers, it’s not ‘just us’ who have taken the slowdown in lending “in the shorts.” I have confirmed changes at THREE different AMCs: CoreLogic is laying off all W-2 ‘staff’ appraisers, and most of the staff administering those folks. Corelogic may continue placing assignments with 1099 vendor appraisers. My suspicion is that many of the W-2 appraisers will continue to work with Corelogic as 1099 vendors, especially in the urban areas. Clear Capital is making massive staff reductions...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

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