The Power of No!
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Appraisers always had the power to end the appraisal management pyramid scheme. All we had to do is say no. Low fees, headaches, and idiotic reviewers have reached maximum capacity. The imploding of appraisal management companies is forthcoming.
Over the past few months, appraisers have been simply saying no to low paying, time wasting, headache giving appraisal management companies; problematic portals too. I even read recently an appraisal was unable to be uploaded to a portal because the opinion of value was below the contract price. This type of influence rises to a whole new level, not to mention the illegality of it. Just saying no is so rewarding to your mental state.
Who is overseeing the bad actions of appraisal management companies? Who oversees the portals? Dodd-Frank mandates states license and oversee appraisal management companies. Are they? Some have tried, but for the most part, states are not enforcing customary and reasonable fees, nor are they enforcing their own laws and regulations. Could it be fear of law suits because of the ongoing FTC actions against the Louisiana Real Estate Appraisers Board? Ever notice the uptick in discipline cases against appraisers? Could that be because of appraisal management companies?
Desperation to find anyone to complete an appraisal is clear with every order being a bid request; bid requests from AMCs you have never heard of; and requests to complete an appraisal for residential lending when it is clear the property is not residential.
I no longer work with any appraisal management company. I transitioned my business to working with clients who value my expertise and agree to my terms. I have not updated my credentials with any appraisal management company in over 3 years and still receive about 10 requests per week from appraisal management companies. I no longer utilize any portal that requires me to pay fee. Bid requests get deleted with no response. Many go directly to my spam folder. I am no longer wasting my time. My clients call me to discuss their needs or assign me the appraisal directly if it is not complex. My life is less stressed, my income is up and my wife says I seem to enjoy what I am doing more.
I have often wondered why appraisers accept a lender or appraisal management company engagement letter. According to USPAP, which we all must follow, appraisers must determine the scope of work necessary to produce credible results. Do these 10-20 page “instruction manuals” allow you, the licensed appraiser to determine what is necessary for credible results? Could these be causing appraisers to bypass their obligations under USPAP causing the increase in complaints to the licensing Boards? Appraisers write the engagement letter for private clients, why we would not do it for lender clients. By definition appraisal management companies are not our client. They have no authority what so ever.
Appraisal Management Companies cannot survive without appraisers. Appraisers can and will survive without Appraisal management companies.
We have the power to eliminate this unnecessary layer. Use the power of no and let the appraisal management companies self-implode.
By By Milton P, Certified Residential Appraiser