Wow Carl, that’s a shocker!  Chronos is the new brand for Matt Martin.  They specialized in government HUD MM contracts (aka FHA default heading to the HUD HomeStore).  Then they branched into mortgage lending during their name transition.  They pulled out of some locales, but launched in others.

They were for a brief period, better than this.  But even during initial matt martin MM contracts, they did try to use clear captl to outsource appraisals.  Fortunately specific HUD letters for MM managers prohibited such engagement.  Unfortunately, HUD no longer recognizes a minimum fee thresh hold for FHA appraisal services.

I lost them when their HUD contract came up, and they moved to the origination side.  Clearly, their focus was not C&R fees.  I can’t believe they made up that graphic and actually published it.  That’s the smoking gun right there boy.  Good luck getting anyone in legal to pick it up, these companies are national heavy hitters and get that HUD work via contract bidding over 5 year periods, while simultaneously using that superior infrastructure, lender access point, and existing national management platform to skip right past other amc competition.

Wayne, the ‘how’ or ‘why’ part is because of HVCC. Banks were able to cut HUGE expenses from the P&L Statements by eliminating all appraisal department salaries and benefits.

Couple that with a comparatively small number of actual lenders (I’m talking about the people that actually lend the money as opposed to ‘correspondent lenders’ or mortgage brokers) which all use AMCs with present fees covered by TRID and the picture gets clearer.

Anti trust laws only apply to independent appraisers…NOT to price fixing between major banks and the AMCs that THEY dictate to!

Now, since almost all loans are insured or guaranteed by someone other than the bank these days, they don’t even have to worry about loan quality (OR collateral)! Lowering fees to $75 for products like the old proposed PACE PRO garbage will yield greater net returns than HVCC ever did!

Just an update! There is now a more recent U.S. Valuation Profession Fact Sheet – December, 2016. This one indicates that there were 73,731 actual number of appraisers as of December, 2016….still many dropping out each month since then.

There was a reduction of 2,344 appraisers within that six month period. Again 62% of the current appraisers are over 51 years of age. This report indicates that 51% (37,603 appraisers) are doing residential appraisals. Again I say that i do not have any idea why the current appraisers are still bending over for any AMC…. Say NO…lets put them out of business and we can move on to a profitable profession. I know I am dreaming. Send your dues money to an organization that is working in your interest. Send your money to attend an Expo or to be TRAINED by some self-appointed guru! It makes me wonder about some of you! LOL

Mike,

I hear what you are saying! I do find it very strange that the most recent information I can find pertaining to the actual number of appraisers is the U.S. Valuation Profession Fact Sheet – June 2016. This report is almost a year old and I have watched approximately 200 appraisers drop out of this industry each month since then. That report indicated that there were actually 76,075 actual appraisers. The report indicated that of that number 51% prepared residential appraisals. If true, that would be 38,800 who were preparing residential appraisals as of June/2016. So, 38,800 appraisers in the entire United States, Puerto Rico, Guam, Virgin Islands, etc. The Texas Real Estate Research Center provided a study a while back that indicated at least 1/4 of appraisers refused to work with AMCs. If that study was correct we should have less then 29,100 appraisers in our total industry doing residential appraisals for Appraisal Management Companies.

The State of Texas where I live has 254 total counties. The best information I can find indicates that there are 74 counties (29.1%) that have zero appraisers; 50 counties (19.69%) with only one appraiser; 24 counties (9.45%) with two appraisers. These are total appraisers and do not reflect those who prepare residential assignments or the 1/4 that do not accept AMC work.

Maybe I am missing something, but I just cannot understand how Appraisal Management Companies could possibly have such a hold on this industry. I do not understand how so many parasites could exist and feed off such a few people. What makes appraisers send their hard earned money to organizations with worthless designations, or those who promote AMCs, etc. at the expense of the typical appraiser.

We keep hearing all of the foolishness about a shortage of appraisers. Then many in our industry report that they cannot earn a living unless they allow the parasitic AMCs to exploit them. I just do not understand!

My own work is down to about 10% or less loan work (of any kind). I simply don’t like working with AMCs or even banks anymore. I’m blessed that I can often choose (though not always). Sometimes cash flow dictates that I accept transactional appraisal work.

One area all appraisers can look into though is estate and gift tax; or establishing a new basis for inherited property (NOT the same thing as estate return filing assignments). Its not hard to do. Just read the IRS instructions and follow them. Fees are typically better. STAY AWAY FROM fractional interest discounting! Even if you ‘know how’ it is a minefield and not worth the effort. Leave that to the CPAs.

Introduce yourselves to family law attorneys in your area. Let them know you are always available to answer general appraisal questions ‘no charge’.

Gee….I just have never understood how we got into this situation. Personally, our office refuses ALL AMC assignments and have not accepted one in years. If these folks are earning a bunch of money it is not off of our efforts! STOP I repeat STOP working for these parasites and they will go broke and be gone in a short time! They exist only because there are appraisers willing to allow them to suck their profits from the appraisers efforts. Should we feel sorry for those stupid appraisers? Are you an appraiser who pays dues to one of the silly appraisal organizations that do nothing for the common appraiser? Send your dues, let them spend your money to run your cart into the ditch! These folks are brilliant and they have proven it over and over! LOL…Go pay to attend an EXPO…hire a coach, hire a trainer…Send your money and watch the pitiful results! The time has come to wise up!

That list is posted on our office tack board as companies we do not work with regardless of terms and price.

This one is from ServiceLink. Their share was $300… almost as much as the appraiser’s fee.

Not made up. Here is the original screenshot. Not sure who Chronos Solutions are…

From their website:

Traditional and Alternative Valuation Services – In strategic partnership with fully licensed, nationwide appraisal management companies, Chronos Solutions provides single-family, co-op, condo, multi-family and commercial appraisal services, as well as best-in-class Residential and Commercial Evaluations and  Broker Price Opinions (BPOs). Related services include value range verifications, value reconciliations, desk and forensic reviews, Automated Valuation Models (AVMs), Property Condition Reports, and valuation surveillance.

Chronology of the appraisal shortage:
2008: AMC says you must take assignment for $200 and we want it back in 48 hours or we find someone else.
2009: AMC says you must read these 26 pages of rules to follow.
2010: AMC says you must correct report reviewed by former Taco Bell employee.
2011: AMC says we need field reviews for $300.
2012: AMC says you must wait for your payment for 90 days.
2013: AMC says their PDF reader didn’t find key words in appraisal, please revise report.
2014: AMC says you must be the first and lowest priced responder to this blast e-mail to 50 other appraisers.
2015: AMC says you must look over these 20 alternative sales and tell us why you didn’t use them.
2016: AMC says “OMG THERE IS A SHORTAGE OF APPRAISERS”

I read this one too but it is part of a Facebook post and may or may not be made up. No specific AMC name indicated anywhere that I could find.

hahaha….anyone really surprised. Look, lenders appraiser mentality is “fast and cheap”. It really doesn’t matter what name they have or what’s membership.

Rogue, your post is brilliant and very very embarrassing to my best friends.

and yes the appraisal institute is in bed with them.

Did they just admitted to fastest and cheapest!!? Increase in whose assets?

AMC’s have proven to be nothing more than parasites gouging consumers and shopping for the cheapest and crappiest appraisal …so they can increase their revenue. Plain and simple!

Mike, You bring up valid points, I find it very ironic that Alan Hummel, a chief appraiser at an AMC is stating there is no appraiser shortage. It just supports the fact the “shortage” was a fabrication.  It is sad the Appraisal Institute is so badly embedded into REVAA. The AI used to be a great organization. The membership has really been screwed over and I don’t think they even realize it yet.  Why anyone is still a member of AI is beyond my logical reasoning. They bring nothing to the table. At least with AMC’s, we knew their true colors from the beginning.. Just more smoke and mirrors with AI.

Thanks for all you do for appraisers!

These would be the additional members of REVAA out there “promoting awareness and advocacy for the real estate valuation industry.” and the fine folks who are ” Leading the Way.”  Thank God they are out there doing all that ! ( ad nauseum )