Appraisers Alarmed by USDA’s Poor Decision
Nope, not going to happen…
I received an email from what appeared to be from USDA. As a long time USDA appraiser, I opened the email:
Verdi Consulting, Inc. has been engaged by the United States Department of Agriculture, Rural Development Office as one of two vendors under a Blanket Purchase Agreement (“BPA”) for Nationwide Single-Family Housing Origination Appraisals. The USDA has provided your information as a preferred incumbent Vendor Appraiser. We would like to invite you to register and sign up as a qualified vendor appraiser to receive requests under this contract.
Vendor Appraiser Management for this contract is managed by our sub-contractor Clarocity Valuation Services (“CVS”). Clarocity is a National Licensed Appraisal Management Company (“AMC”) and will oversee all appraiser services including engagement and appraisal management related services and all aspects of appraiser vetting, management and order. To register and sign up as an appraiser for this contract, please click here
If you have any questions, please do not hesitate to contact us on USDA-RD@Verdiconsulting.net.
We look forward to working with you.
Well, I can’t repeat the words that I blurted out in this blog article, but rest assured, I would never allow my kids to speak them and my mother would have grabbed a bar of soap!
From Verdi Consulting’s’ website:
Our team includes certified public accountants, fraud examiners, government financial managers, information systems auditors and information security professionals.
They have no business getting involved with appraisals! Further they have fraud examiners that should have done some due diligence on Clarocity. If they could not see the fraud committed by Clarocity and all you have to do is Google Clarocity. It will go down-hill quick, very, very quick. Verdi Consulting has no business being involved with appraisals.
Clarocity is not an American owned company. They have a very poor reputation among appraisers for non-payment, slow payment and below reasonable fees. Appraisersblogs has had many articles warning appraisers of their financial difficulties, fractional penny stock prices and nonpayment to appraisers. If memory serves, didn’t Clarocity use the upcoming government shut down as the excuse they did not pay appraisers?
Financial difficulties aside, Clarocity has been the biggest promoter of bifurcation. This has failed, not once, but twice. Now they are going at it again with IROC as their new owners.
USDA originates mortgages for low income borrowers in rural areas with little to no money down. These loans carry a higher risk and allowing a company like Clarocity to be involved in any capacity does nothing to protect the borrower, the investor or the communities. The consumer/taxpayer is on the hook for even more.
I spoke with my USDA local agent that I have worked with for many years who referred me to the national office. I have sent a letter expressing great concern and advised them I will not be registering with Clarocity.
I encourage each of you to contact USDA and express concern for this very poor decision as well.
(202) 690-4730; (f) 202-690-4737
Address: USDA Rural Development
Rural Business-Cooperative Service
1400 Independence Ave. SW, Rm 5803-S STOP 3201
Washington, DC 20250-3201
By Advocate. The author is a Certified Residential Appraiser and has chosen to use the pen name Advocate to protect their identity. Many famous people including Benjamin Franklin, Agatha Christie, and Steven King have written under a pen name for various reasons. Just Google pen names used by famous authors, there are only 45,700,000 results to choose from.