“We have investigated ourselves, and determined we did nothing wrong. Great job boys, see you at the club.”

I picture this in a movie clip in “Wolves of Wall Street” when he was first showing the “guys” how to use his script and well….I’m not going to use words here to describe it. Google “The Key to Making Money” scene.

Or here at minute 4:00.

Anna. All but a minuscule portion of the amc industry is inexorably corrupt. Honest companies do not demand their vendors lie to customers and conceal their billing amounts, then base their volume of work order requests on the vendors open willingness to collude with defrauding customers. Grading, tiered placement, performance stars, all merely a flimsy cover to engage in preferential assignment, seeking the most biased, most compliant appraisers. As there is no individual licensing with amc employees, they are never held accountable, so they can break any and all rules with impunity.
The singular ‘controlling appraiser’ model which the amc industry was structured around is an absolute failure, especially as the amc’s often scale up to corporations as large as lending institutions. Amc’s have defrauded American consumers and appraisers alike of billions of dollars, violated Appraiser Independence rules every which way conceivably possible, ruined careers, and have done so outright in the open for the world to see.
And not one time ever in a decade and a half has an amc’s controlling appraiser ever been reprimanded or lost their appraisers license. That’s also in part due to the conflict of interest of having a corporate amc representative sitting on a state board when that state boards fundamental purpose and modeling formation is based on oversight of individually licensed persons, not corporations. At no point ever in any state has an appraiser oversight board recommended penalties to mortgage bankers whom control the amc’s.
_____________________________
Spencer. Well, of course. Lenders so much as tell amc’s that if they continue to hire appraisers whom stall out their deals, they’re just as replaceable as the appraisers. Amc’s, the long arm of predatory lending. Over time the ‘separation from mortgage loan production’ has created a culture of non accountability where mortgage brokers and even realty sales agents now openly pressure appraisers, knowing very well all it takes is one phone call and that appraiser is gone.

There is no point in collecting evidence anymore or complaining to anyone. The culture of corruption, kickbacks, and revolving door favors has extended through the entire lending industry as well as regulatory oversight groups. The oversight system is completely dysfunctional.
We have investigated ourselves, and determined we did nothing wrong. Great job boys, see you at the club.

In present restricted markets with limited sales, every deal counts. Every AMC is sensitive to ensuring the deal goes through, making the client happy in making more money. Less money is made when the deal falls apart (industry norm for same low appraisals, even through the concept is erroneous). A happy client stays on the hamster wheel. Anyone that is actually doing their job as an appraiser (unless they are pre-screening each order before acceptance) will come across assignments where values indications in the report will not “make the deal work” for those predetermined value points. If you are that appraiser too often, you are relegated to the “b” list, as in black list until they desperately need a warm body to throw an assignment at when no one else on the panel will touch it. I’m that “b” appraiser that won’t sell out to cheap fast fees with reports on Clickforms. I complete high quality (not error free, I’m human and sometimes get in a hurry) and a reasonable fee with fast turn times. AMC’s don’t fit this model, which is why I’m having the worst quarter since 2016 and having started in 2013, that saying something.

That said, there have been controversies and criticisms surrounding AMCs. Some industry professionals argue that AMCs don’t always uphold their original purpose. For example, they’re sometimes accused of prioritizing cost-efficiency over quality by hiring less experienced appraisers or pressuring appraisers to accept lower fees. Legal issues also arise when AMCs fail to comply with regulations, like the Dodd-Frank Act or the Uniform Standards of Professional Appraisal Practice (USPAP). Allegations range from unfair fee practices to failing to provide appraisers with sufficient independence.

If you’re noticing recurring issues with AMCs, it might be related to the gap between intended regulation and actual enforcement, as well as inconsistencies in how AMCs operate across different states.

oh that is funny….of course they do

https://www.youtube.com/@PatriotRadioNewsHour/videos

“The powers that be”…….

Try my brand.

We the Appraisers need to get rid of that middle man, the AMC. It’s worthless, didn’t change anything but take some of our money.

Identification and recognition of YOUR client is critical by Legislation and law.

Call the borrower and ask what they are paying. The a**holes are NOT your client!!’

If the banks don’t own them, the AMCs certainly are their lackeys!!!!

It’s easier to give instructions/demands to a central entity than try to force a dozen appraisers to do their bidding.

Dave was awesome, until he wasn’t. Straight Judas. He even forced his son to Abandon the Appraisal Advisor website, which would have been the premier source of appraiser whistleblower activity for corrupt amc group practices. There was so much disclosure in just the 4-6 weeks the site was actually operational, they did not know how to handle it. This website you are on now is the closest you’ll get. Wished I would have saved screenshots and such. Down the memory hole it went, all of it. There are no whistleblower protections, not for appraisers when dealing with amc’s. Community Partnership Program, what a joke.
https://blogs.alamode.com/appraisal-advisor-closure-new-community-partnership-program/

Forward this to the Comptroller? CFPB certainly won’t do anything.
https://appraisersblogs.com/appraisal/occ-bulletin-regarding-amcs-lenders-and-appraisal-advisor/
https://appraisersblogs.com/appraisal/appraisal-advisor-a-real-estate-appraisal-technology-company-launches-nationwide/
https://appraisersblogs.com/appraisal/appraisal-advisor-now-completely-free-for-appraisers/
https://appraisersblogs.com/appraisal/appraisal-advisor-ceases-operations/
https://www.businesswire.com/news/home/20130416005236/en/Appraisal-Advisor-a-Real-Estate-Appraisal-Technology-Company-Launches-Nationwide

https://web.archive.org/web/20230000000000*/www.appraisaladvisor.com
Learn to use the Way Back Machine.

Them krooks is allways smarter than the Indians, but Pocahontas’s will win in the long run.

Second image. Mentions the fines.

From Dave Biggers emails to appraisers, sent 10/19/2010 email titled: “Customary and Reasonable” fee regulations. Check your email history if it goes back that far.

Oh hell, fine, let’s run through this again. The CFPB is the entity that changed Customary AND Reasonable, to customary OR reasonable, and created the safe harbor rule which basically nullified the original spirit and intention of the C&R rule in the first place, basically sanctioning the wholesale exploitation of the appraisers by the amc industry. For good measure they approved additional redaction which removed the original $10k per violation instance, and repeat DAILY fines of $20k, per continued violation instance, for non compliance with fair appraiser compensation, as those fine structures were set in place to guarantee compliance and force amc’s to bill additional for their services, or be wiped out by fines. Mercury systems at the time, when it was still a sister company to Alamode, before the Dave Biggers industry betrayal, published a C&R survey from their systems which basically would have functioned as an established fee survey or minimum amount any amc could have compensated appraisers or risk those fines.

For the newer appraisers whom may be here, the DoddFrank RegZ rule on Appraiser Independence, C&R compensation had specifically prescribed a condition that appraisers must be compensated by an amc, an equivalent amount as if an amc was not present, thereby forcing amc’s to bill for their services separately or compel the lenders to charge consumers more or cover the amc costs on the lender side. It was a death sentence to stop the predatory amc industry before it gained any more traction. TAVMA the amc trade group at the time worked with their partner lenders, ran lobbyists to the CFPB, and just like that the updated HUD consumer fee disclosure forms did not contain a separate line item for amc fee amount, but rather improplerly co mingled the amc and appraisers fees, and the C&R fictitious safe harbor appraiser compensation language was set into the official DF RegZ explanation pages. Hence;

Please advise when the fictitious CFPB C&R safe harbor interpretation will be rescinded. One of the big shots on AF used to constantly post that, I think it was Mike Kennedy, but not sure, been a decade now. And other notable tag lines such as; Distinctly different fees for distinctly different services.

https://www.consumerfinance.gov/rules-policy/regulations/1026/42/
Scroll down, I gave you the top of link, if you scroll down the link address changes in real time while you scroll, if you want to reference one part specifically. Also this Fast App amc documented behavior is a violation of several provisions here. But don’t look for the CFPB to solve anything, there were several hundred thousand appraisers and the industry when CFPB also sold us out, and this industry literally shed one hundred thousand appraisers after their corrupt interpretations which went against the spirit of Reg Z AIR rules. So many worked into the updated legislation in the first place. The thousands of appraises who put in so much effort were devastated. That’s like a backstory for the Retired Appraiser guy who posts here, he was like somehow involved in advocacy to save the profession from all the exploitation, and thousand of other disgruntled former and current appraisers like him. That’s why it’s such a supreme disappointment and admission of absolute ignorance and improper ethic about their own industry, when appraisers mention they’re still willing to work with amc’s. In turn, those amc appraisers place themselves in a defacto position that they agree that these amc companies have standing and merit to exclude the rest of us from the workforce. The most unethical appraisers claimed the lions share of orders and that’s all she wrote. That’s evident here too, the few guys got millions in order compensation, everyone else rode the bench. The appraisal coach has entered the chat.

Missing the IVPI yet? I’ll never quit posting this. Basically it would have been a VA panel type setup, for the entire GSE systems set. I was talking to nationally recognized appraisers to get myself on the inside to be part of this emerging institutions daily operations team, but it never materialized, sadly. That’s why I’ll never let it go, those criminal lying scumbags with the amc trade groups sold one thing but delivered another. At one point I was approved down the entire TAVMA list, and never once identified an amc that complied with C&R as intended, nor did I find a single one which behaved in an ethical manner. The AIR violations are just daily normal occurances for these companies. I have two full legal drawers and a lengthy digital folder record to prove it. But who to prove it to? TAF sold out to the amc trade groups long ago. We are not just under represented. We are plainly not represented at all. It’s a pay to play system and every appraiser has to determine their level of engagement. This is why I still to this day only pay basic licensing and CE fees, and bare bones software costs. The TAF group and their subsidiaries is a big club which I am not a part of, nor do I want to be. If AI offered me a full fledged membership for free, I would refuse it. Who would want to be associated with a member group whom betrayed that much trust, co opted their members to antagonistic interests, and profiteered the whole way through. Cosmic cobra ain’t even the half of it, but at least someone noticed what has been going on this whole time. Don’t get me started on the Altera group, or we may have to start talking about how they all owe us reperations, if they actually believed in equity, which they do not. These people have absolutely no problem nor inhibition about throwing individually licensed appraisers whom are outside of these groups under the bus and to the dogs of state agencies. Know where you are at, take it slow, do not outsource, and remember all it takes is one single time. Stay under the radar, it’s all you can do unless some sort of larger movement brings actual industry corrections towards better ethic. Sadly we’re going the wrong direction with current TAF leadership, having milk and cookies at Brookings Instittue and hiring the same lawyers who sue their own appraisers, all funded on the taxpayers and member dues dimes. Whatever with the amc’s, they’re just instant out of the box telecom companies, dime a dozen and I’m not paying for them, that’s the lenders responsibility as the lender hired them. Until that correction is made to a cost plus system, we will continue to refuse service.
https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf

Related. Appraisers need to get educated, adhere to a better ethic, or just quit already. Won’t miss them.
https://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/amc_appraisal_management/page/2/
https://appraisalnewsonline.typepad.com/files/the-amc-full-fee-hypothesis—jeff-schurman.pdf

Two posts, two example pieces per the above post. Thank you.

I liked Dave Biggers; he convinced me the plagiarizing was dishonest and reflected badly of appraisers who practiced it.

The saving grace here appears to be that when the numbers are lower than their expectations, they do not rely on the appraisal, but rather just get another one. Several times now we’ve seen the judges disposition that ‘since they did not rely on that appraisal for a loan.’

I think I bid a relo. for them. The bid included extraordinary info, alerting them about The Hobby Farm, including water shares, fruit on the trees, managing and marketing contracts.
They voluntarily paid a fee & cancelled the job. Stating that the situation was too complex.
There are several companies with conscious out there doing a good business.