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- Appraiser Countersuing Black Homeowners for Defamation - January 30, 2023
Amateur AMCs Misguided Requests & Unecessary Demands…
I’ve written consistently over many years about the misguided request many lenders and AMCs have about “requiring” appraisers to include a copy of their license and E&O binder page in reports.
I have consistently suggested appraisers PUSH BACK whenever you encounter this demand when it is in the list of items to be included, shown in the AMC assignment engagement documents. I’m not the only one doing this.
It is absolutely essential that you review these docs prior to accepting and doing any assignment for anyone, especially the multiple new amateur AMCs that are having significant problems finding willing quality and competent appraisers to do their requested assignments. I define ‘amateur AMCs’ as those who fall on their swords trying to appease the low echelon lenders with virtually any request lenders/investors make, such as the license/E&O issue. Quality, high echelon AMCs don’t have these requests in assignment reporting instructions.
Many of the amateur AMCs operate like this:
Just a few days ago, I had an encounter with such an AMC. When reading over their ‘include in reports’ requirements, I found this, and responded back to them as you see:
“In reading through your reporting requirements, I find this, which I do not do for any client, at an time, for any assignment:
Provide a copy of appraiser’s license & E&O within the report.
Your job as an AMC is to have these docs on file from the appraiser BEFORE awarding any assignment, and then provide those docs to your lender clients… outside of any report… if the client thinks they have to have them.”
Today, I received a reply from that AMC from the person identified as the “Appraisal Coordinator:”
Regarding your concerns of providing a copy of your license and E&O within the report. This is something that the lenders requests; however, it is not required. You may make a note within the report stating that you will not be providing the requested information.
So folks… let me see if I, and you, understand this. On one hand, it IS required; on the other hand it is NOT required. So which is it, really?
In reality, these items are not actually required.
So, appraisers, just quit including license & E&O in reports and if pushed, just decline the assignment. Take these items out of your reports immediately. Eventually – if enough appraisers quit acquiescing to these unnecessary demands – the ‘requirement’ will disappear from appraisal reporting requests.
Otherwise, hope you all have a Happy Christmas season and Merry New Year, and thank you for allowing me into a small segment of your appraisal world with my occasional emailed comments and other info!