Open Letter to AMCs

Appraisal Profession: Open Letter to AMCs

AMCs have failed the appraisal profession, the financial industry and the consumer

Dear AMC,

Thank you for your interest in our profession. The trial period we have conducted is over and the appraisal profession has determined your services are not needed. The reasons for our decision are as follows:

  • The use of an AMC is not required by any federal or state law.
  • The use of an AMC does not provide any benefit to the appraiser.
  • The use of an AMC does not provide any benefit to the consumer.
  • The use of an AMC has not protected the consumer.
  • The use of an AMC has failed to protect public trust.
  • The use of an AMC has increased the cost of the appraisal to the consumer.
  • The use of an AMC has decreased the income of the appraiser, thereby harming local economies.
  • The use of an AMC has increased the turn time for the delivery of the appraisal.
  • AMCs operate on a fast and cheap model which has deteriorated the quality of appraisals.
  • AMCs have caused undue stress on the appraiser by demanding constant updates.
  • AMCs hire unqualified employees that lack comprehension of the appraisal process.
  • AMCs have caused a great number of experienced appraisers to discontinue completing appraisals for financial lending purposes.
  • AMCs have failed to provide any benefit to the appraisal profession, the financial industry, or to the consumer.

Again, we thank you for your interest in our profession and wish you luck in future endeavors. Your services are no longer needed.
The Appraisal Profession

Postscript 10/3/2016

The letter can now be signed by individual appraiser here.

VaCAP Board
Image credit flickr - Jukka Zitting
VaCAP Board

VaCAP Board

Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.

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116 Responses

  1. Avatar Mr Raymond says:

    I’ve been an appraiser for 36 years and I completely agree with this letter. Multiple copies and emails of this letter should be sent to all appraisal groups, lending groups and government agencies. The AMC business model is the “biggest sham” placed on appraisers, the appraisal process and all in the spirit of improving loan risk and improving appraisal quality.

    • While I agree with the sentiment expressed in the letter (and would of course sign it) there is one glaring omission…what do we propose to replace it with?

      Do we leave the solution to finding an acceptable replacement up to the same folks that passed HVCC in the first place?  Make no mistake, a REPLACEMENT system will need to be found  BY US and supported BY US or what we get will be some hybrid developed by the national appraiser-sweat-shop franchises, or NAC if it survived or becomes reincarnated in some new seemingly more palatable version?

      Banks don’t lend their own money anymore. Virtually all (or nearly all) comes from third parties that are either insured; or as we already know are ‘considered to be preferred creditors of the U.S.A. Taxpayer’. As such no serious due diligence is necessary to protect the lenders direct investors. (THINK  about that for a moment!)

      So ALL the bank requires is a system in which the order is processed at little or no cost to them. Even if they have no intention to fiddle with the appraisal process itself. Being banks, they’d also like one that allows them to skim unnecessary junk fees as well.

      Optimally it would be one with a barn door size loophole that permits interested parties to “massage” appraisals from real estate sales agent; to builder, to “loan officer” (by the way, lets do an entire article on what a so called loan officer is someday, ok?); anyway- to banks investment portfolio manager and all their related sales representatives.

      Friends, we have collectively defined nearly all the problems we faced as appraisers over the years…what we seem to be falling short on are the KNOWN viable solutions! We cannot just keep blaming AMCs for that part. It was, and still is  up to us.

      Virginia did well with it’s VA minimum fee and enforcement mechanisms-but it is not enough.

      (1) We still need to get full consensus by that state’s AMCs that they DO have to follow the law and stop side stepping it.

      (2) We still need to RAISE the Virginia amount along with all other states up to a range of from around five-hundred-eighty (for a trainee inspected property) to close to $1,100 for a certified required inspection and analysis; rising to a floating hourly based scale above that, based on specific complexity. THAT solution has been on the table for over a year now with scant support from my fellow appraisers!

      I don’t think any automated ordering systems work for the simple reason that they are operated / administered by low paid and low level clerks with no appraisal expertise and insufficient internal organizational authority to get fee and time exceptions approved. In some cases they are an IT function-not an appraisal department function.

      My own thoughts are that no ‘bank’, mortgage company or ‘correspondent lender’ has enough skill and financial stability to qualify for access to GSE bulk security outlets or Wall Street investors for money if they cant also pay for professional internal appraisal ordering and screening.

      They SHOULD be financially capable of having an appraiser operated ordering system staffed by salaried in house employees to oversee the process. Employees that are at least residential certified for residential lending and general certified for C&I lending. A wisely operated system would also include review competency oversight.

      PS the crookedly operated  Wells Fargo System would NOT qualify! (Go ahead WF SUE me! Lets go public with all your RELS / Corelogic procedural shenanigans – you NEED more integrity related negative news exposure!)

      • Avatar Mike Gibson says:

        WE put the amc at the end of the process. We go back to having and servicing our own clients  and when report is ready we submit to the amc of OUR choice for compliance and delivery to the lender.

  2. Avatar steve says:

    WOW what a thoughtful waste of time

  3. Avatar Lauren R Moschette says:

    How about sending this letter for appraisers to sign? Enough signatures could actually change something.

    • Deplorable Baggins Deplorable Baggins says:

      That’s what the last guy said. LOL. Biggers went to the hill with a monster stack of anti hvcc petitions. They asked him how much cash he could generate to sway the lobbyists and the subsequent voting.

      • Avatar Bill Johnson says:

        Biggers also sold off the Mercury Network where in the press release it was stated that they do 20,000 transactions A DAY. With 20,000 transactions a day multiplied by $10 a pop multiplied by the number of years in operation, the amount of money processed was staggering. I’m still waiting for their additional data to reflect fees by AMC clients versus non-AMC clients as so much was accomplished the first time it was offered.

      • Deplorable Baggins Deplorable Baggins says:

        You will be waiting for ever. The mercury system still offers some sort of fee survey, but the details regarding separation of amc or not, remain a mystery. The only way to track C&R, is to have separation on hud disclosure if amc fees were present or not. In their aggressive position to conceal those fees, they inadvertently untied many appraisers hands. Nobody knows where the fees go, and there is more variance in what is a standard fee or not, than ever before. So go ahead, raise your fees. They’ve only so much as begged you to do it through irresponsible regulatory oversight. These days, we quarterback and manage the whole thing, especially the quote unquote amc managers. More responsibilities result in a straight line consideration towards higher fees.

      • Avatar Bill says:

        You guys put on a tough front on here but in reality, many appraiser’s next click on the computer screen will be to accept a $200-$300 order or whatever it may be below R & C. Until we stop taking these we loose. I understand that is 10-15 hours of working at Walmart when you could just do a $200 report to feed your family but enough is enough and by the way, Biggers sold Mercury off to his brother…

        • Mike Ford Mike Ford says:

          Bill, I declined four this week as being sub standard fee based. Bankruptcy case whereby attorney told owner fee was $300. I said my MINIMUM was $450 for a non complex appraisal. She called me back saying she could only draw $365 out of her retirement for the appraisal fee. While I had empathy for her position, my MINIMUM fee remains just that. It is the minimum amount of money for which I will develop a professionally credible opinion of a clearly defined value for a specific interest in real estate.

        • Bill, you clearly represent someone other than an independent fee appraiser. Our fees are set like any other business model, that is based on a break even analysis relevant to our specific business. You are suggesting the individual fees should be accepted to just get the work, but I promise you if that mentality is used in the field you will never thrive for the nearly four decades that I, and other like me have been in this business.

      • Deplorable Baggins Deplorable Baggins says:

        Bill accused us of putting up ‘a tough front’! Dude, the world is what you make it. You may not believe it, but I’ve stayed in front of this for 3 years straight now. The numbers keep climbing.  My last batch was a 20 something set which I kept around 16 of them. All $650. I’m actually only half way through that a month later, but the second half should result in more efficiency. Did the tough ones first. I’ve been smoking low fee requests for a decade, nothing new here. Move along. If you’re dealing with those tough issues though, just keep marketing. I used to market 3 a week, and did so for a decade off and on whenever things were short. If we’re replaceable, so are they. Distribution is their game, we just play it. In the lean times when the audacity of 200/300 requests was more common, I still maintained a 350 min for hud reo, or a 400 min all origination. In the worst times, try to land the hud client, that is easy work. They’re still paying a static 350, 20 years later. When I started in family biz over 15 yrs ago, I remember automatic by scale, and we’d get 550/750/1250,2500. They trusted us, because we were trust worthy. We took two months on everything unless it came with 200 rush fee.

        Bill my tag line for a long time was this; I’m not interested in competing with discount appraisers or their turn times. I never have been, and never will be, the cheapest or fastest appraiser.

        The whole deal with competition is it can ramp up only as much as you allow it. Either the appraisers can make this gig work and work well, or they’re just spinning wheels on their downward flush into the inevitable fail point where they are forced to leave. So either way any appraiser is headed whom may be so kind as to read my posts; Please pick up the pace.

        Star Wars Move Along

  4. Avatar Carl says:

    Great letter by Vacap and great idea by Lauren. I would sign this letter!

    And don’t pay attention to steve. He’s probably an AMC troll.

  5. Avatar vicki says:

    I will sign also

  6. Avatar Diana N. says:

    Very well written. I’ve been appraising for 40 +years and you sure would get my signature.

  7. Thanks for the great suggestion for individual signatures. VaCAP will discuss and consider it. In the mean time, please feel free to redistribute the letter and forward it to everyone.  We need every consumers, lenders, appraiser and legislator to comprehend the impact the AMCs have had on this profession. Thanks for supporting VaCAP!

  8. Avatar koma says:

    We need to send this to the lenders who use these AMC’s to get any results. I think putting pressure on the money is the way to solve this. AMC’s as long as they are getting the money they don’t care what we think or say!

  9. Avatar Dan says:

    I agree with every single point in this letter and you bet I will put my john hancock on it!

  10. Avatar Pat says:

    Should we do a petition?

    to FNMA fhlmc FDIC CFPB ?

    • Avatar Jeanie says:

      Pat, yes! I will sign the petition.

      I forwarded this letter to all my clients…past and present. Appraisers need to send this letter to lenders, not AMCs!

      • Deplorable Baggins Deplorable Baggins says:

        You’d make more intellectual headway by forwarding them various appraisers blogs article links. Hearts and minds. The petition deal is obviously not working. If you want the corrections sought after; sign the audit the fed petition instead. Have you guys thought about how negative interest rates will influence distribution process? Food for thought.

    • Avatar Lauren R Moschette says:

      I’ll sign

  11. Avatar B says:

    Wow you forgot to give them the next profession in which they can suck out a living of and live off of the hard work we do for what, their outstanding management skills and 30% fees for what they do?

  12. Avatar Ralph says:

    I think AMC’s are finally feeling the pressure, since they now want to AQB to lower the standards  for licensing and are now screaming to let Trainees sign reports. (these are the largest & worst ones calling for this) You reap what you sow and enough appraisers have finally said NO to $225 fees w/6 comps & 48 Hr Turn Times. Keep declining those orders and they will go out of business!

    • Avatar DianaN says:

      Ralph, I wish it were true that those $225 jobs are being turned down, all I know is when I click on the site to turn it down or re-negotiate the fee I get the message that it’s already been accepted. Must be the trolls under the bridge. 🙂

      • Keep in mind the majority of AMC’s are now hiring their own staff appraisers to keep the fees low. I was offered a staff position by CoreLogic at $17.50 an hour, I have not laughed so very hard in a long time. Of course the reality is this is not funny at all. But this decision will hurt them in the long run. Diversification is the answer do not base your business model on AMC work and you will do fine. Real Estate Appraisal is a profession and it is time the we as professionals educate our clients to this fact.

  13. Avatar Matt says:

    Come on guys. I get it – the AMC model is not ideal in its current form, but to say they didn’t accomplish their goal is naive. We’re all better shielded from value pressure. I’m sure none of us would have succumbed to such pressure, but there are appraisers out there who did, and therefore, they are to blame for the current system.

    That to be said, I really don’t mind AMCs all that much. Once I learned how to interact with them I found I could focus solely on appraising rather than marketing and bill collecting. I also like the fact they carry bonds so they are bound to pay us, which was not the case with lenders. I don’t know about you all, but we had to write off a ton of fees when lenders started to go under a decade ago.

    Of course I wish fees were higher, but I think that’s starting to normalize as well.

    My two cents is that if a petition is to be signed, it should be better crafted to focus on the true issues. To say AMCs don’t provide any value for the industry is not exactly right (in my opinion), and I think making that statement weakens the overall argument. Focus on the cost to the consumer and turn times if you want to create change.

    Or do what I did and find the best 3 or 4 to work for. Then just focus on appraising rather than all the other stuff that used to come along with it.

    • Seriously? You might wish to take a moment and reconsider what you just said. Back in the good old days an appraiser could tell the aggressive lenders where to go, and maintain relationships with those lenders that were more reasonable. When you have a handful of thugs that represent all the lenders, and they dictate your fee, your time, and the manner in which you analyze and word your reports this has become a hot bed of pressure. Only the very best can surf these shark infested waters and not succumb to the pressure. If you do not agree, you have already drank the kool aid my friend. I will say Kadish for your business when it is investigated, for lender pressure.

    • Baggins Baggins says:

      No. Value pressure is required by law to be prohibited. My fee is required by me to not be shared. You don’t need an amc for that. Take shorts and share if you want to, that’s your business decision to make. I get the same and better benefits, simply avoiding amc’s all together, without the shorted fees, of course. Stop working for companies on the brink, the you’ll be more likely to get paid.

  14. Avatar Ralph says:

    Matt, I think you are being naive. AMC’s still provide value pressure, disguised as value reconsideration, expect you to analyze another 10+ comps for free, do not allow you to attach an invoice to the appraisal, (since they don’t want you to know how much you are being screwed) and do not want the fee to the appraiser disclosed on the closing settlement in a separate line item. There is no transparency. All my clients are non AMC, and it takes me all of 2 minutes to create and track my invoice. You may be happy giving up 50% of your fee in order to not run your own business, but all AMC’s have succeeded in doing is driving good appraisers out of the industry.

  15. Avatar Mr Raymond says:

    Sorry Matt but i think you are missing the mark. Obviously there are exceptions most anything and everything. No doubt there are a few good AMC out there. I work for one very small AMC only and they are tolerable. However, the great majority of AMCs especially the larger one like CC and SL are just seeking “fast and cheap” appraisals. Fast and Cheap is the goal and its masked behind USPAP plus other unreasonable appraisal demands that add nothing to appraisal quality.

    How can a lending appraiser provide impartial, objective and unbias appraisal reports and opinions, when the AMCs and lenders,(lender interest groups) dictate all the terms of the appraisal process???? They dictate the fee, the turn time, when to call for an inspection, comp selection, comp parameter, comp adjustments and comments, the # of comps needed, etc, etc. If the appraiser does not comply they are blacklisted. pretty amazing…Again working for the majority of AMCs is the closest thing to professional slavery.

  16. Avatar pat says:

    Mr. Raymond,

    That response of yours is one of the best I have ever read.  Thanks!!!

  17. Avatar Nick says:

    Mr. Ramond,

    You are 100% correct. The unbiased appraiser is no longer free of influences. This is why true appraisers will not work with appraisal management companies, among the obvious fee and turn time issues.

    The AMC’s are running out of appraisers to abuse, which is why they are saying there are not enough Appraiser to support demand. This is total BS!

    If they paid C&R and developed relationships with appraisers the industry may have stabilized. However, we are now past to point of no return and the AMC model needs to be prohibited due to the abuses to public trust and lack of Appraiser support.

  18. Avatar Mr. Raymond says:

    Pat and Nick, thanks, as i have stated this AMC business model is NO friend of the appraiser. We have gone pass the issue of C/R fee. Appraisers under the AMC model, are no longer in control of the appraisal process. There is little impartial, objective and/or unbias reports or opinions being rendered. pretty amazing to me that one reason for adopting AMC model was to shield appraisers from undue influence. quite laughable now…..the amc (via lenders) control the entire appraisal process, even IF, the AMC pays a C/R fee they still are making demands or requirement, we as appraisers, understand has little or nothing to do with improving appraisal quality or loan risk. Case in point last year I did a basic URAR and the amc called me that they needed a side yard photo before they could approve the appraisal and close the loan. I asked how does the side yard photo improve or make the appraisal estimate more reliable. U/W replies, we don’t have an issue with the value estimate but need a side yard photo. My reply, will the loan go bad because the side yard photo is not included in the appraisal report? U/W, No but we need a side yard photo. Yikes. The APPRAISAL profession should be in control of the appraisal process not our LOAN clients. The big issue is how does the appraisal regain control and influence of the appraisal process, to say nothing about basic professional respect.

  19. Avatar Bill Johnson says:

    Where to begin? I Just received a Mercury Network order (declined $325 – $14.25) with the following statement.
    “Special instructions from your client:”

    This lender and AMC now want interior pictures of improved PERSONAL PROPERTY items? Does this mean I now need to explain to the borrower that your newly purchased refrigerator must be photographed from the inside?

    After I’ve already agreed to a due date, you now want me to postpone my inspection several days so the borrower can install carbon monoxide or smoke detector that you didn’t tell them they need?
    On this conventional loan you want me to check things are in working order?

    You want me to agree in advance to a 24 hour window if the report does not pass the UCDP. What a joke.

    • Avatar Koma says:

      Bill you are correct WHAT A JOKE!

      I received an order where if the subject property is in a PUD, they want me to physically inspect ALL of the amenities included, i.e., pool, weight room, tot lots, basket ball courts, etc and photograph and comment on the condition of all these items. Also, if any of the comparables are located outside the subject subdivision the same actions are to be performed on the common areas of the comparable subdivisions.

      Order was denied! A week went by and they sent it over again and again order was denied! This time they called me and asked if I could help them out with this order and I told them NO. When asked why I pointed right to that “requirement” and they were not surprised stating it’s not the first time they are hearing complaints about this from appraisers.

      • Avatar koma says:

        AMC cold call today; we have a non-complex drive-by (not a county I cover) for $550. Man in area where I see C&R fees at $325-$350 2055 these guys must be really hurting. Informed them too busy and do not take cold calls from AMC’s.

    • Bill somewhere in previous articles I think I have a template reply (LRES and Blast Orders, I think) that could be well suited for this.

      I would add the following; Dodd Frank prohibits you from telling me what I must do to appraise a property. You are telling me to cross over into becoming a code compliance officer which I have not been certified or licensed for.

      My counter offer to your offer is: (1) Fee to be $1,500 paid in advance or charged by credit card at time of inspection payable to my firm.

      (2) ten to fifteen day turn time AND AN ADDIITONAL $500 fee if you want ME to verify the APPARENT AND ASSUMED local municipal code compliance status (my suggestion is you hire an ASHI Certified Home Inspector instead).

      In fact, do it anyway! Because MY appraisal report WILL be subject to that level of inspection by a disinterested third party whose professional inspection credentials I respect. I’d feel bad charging you for my research time for what I am going to condition anyway! (An acceptable alternative would be your borrower attorney’s letter confirming that the home meets all local codes). I am going to ASSUME CODE compliance in the absence of readily apparent visual discrepancies.

      (3) I deliver ALL COPYRIGHTED appraisals in pdf or other format acceptable to me by email. ANY other system is subject to special handling charges and will cost you an additional $500 (also paid in advance) to cover the costs of my hiring a processing compliance clerk.

      (4) I believe the above eliminates issue about timely uploads to the UCDP system.

      YOU and FNMA can decide an alternative data collection service system that does not involve my involuntary servitude, nor use of my professional work product for unapproved purposes.

      This approach should completely eliminate any future issues with this AMC service.

  20. Avatar Mr. Raymond says:

    Bill Johnson you provide just another example of how appraisers have lost control of the lending appraisal process. We are the appraisers. Thus we, as professional appraisers, should be dictating many or most the the appraisal requirements. That is NOT happening. We are mere pawns on a amc/lender’s chess board. Appraisers need to face reality that this AMC business model needs to changed.

  21. Avatar Pat says:

    These are Urban Legends and B S from ill informed form monkeys.  I got a call today from a service that said they had buyers for my business.  I asked do you know what y business is??

    answer was uh uh huh.  I said have a great day and do your research.  Hell I might have sold out for the right amount

  22. Avatar Tony says:

    So glad after 30 years I let my state certification go, and left the fee world for mass appraisal. How could I convince anyone that I was an expert on valuation, when by remaining in my old profession it was obvious that I did not value myself? If I am to be paid like an employee, I might as well be an employee with good benefits and paid vacation. Even with the very unambiguous language written into Frank-Dodd regarding customary and reasonable fees, we as appraisers are so little valued that we could not even get any traction in getting a federal law enforced! How is it that I am not entitled to compensation from CoreLogic (FirstAmerican EAppraiseit’s most recent name) for f*cking  over my business by their blatant appraisal fraud scheme with WaMu that ended in loss of 50% of my business revenue due to their settlement with Andrew Cuomo? I was not a party to that illicit business deal yet I and thousands of other appraisers ended up paying for it while CoreLogic raked in even more money. I truly pity those of you left in the business, and really think you should truly evaluate why you are still hacking away at this devalued career path.

    • Avatar DianaN. says:

      Lets not forget ES Appraisal Services and their prime client J.P. Morgan Chase. They also screwed hundreds of appraisers across the country when they shut their doors and Chase never made good for any of the appraisals they received and made their loans and mucho money on.

  23. Retired Appraiser Retired Appraiser says:




    Just saying: AMC are laughing at you appraisers because you are too lazy or stupid to organize and boycott AMCs.

    • Avatar Appraiser Advocate says:

      Retired Appraiser,  On what facts are you relying on for your insulting comments to appraisers?  Appraisers are standing up to the lenders and AMCs more and more each day. The perceived “appraisal shortage” is a direct result of appraisers not working for AMC’s. Appraisers are joining the coalitions in record numbers. VaCAP  alone has increased its membership by 40% in the last 12 months. Nationwide the number of appraisers increasing their certification is going up, meaning the appraisers are moving forward in their education and opportunities, leaving the AMCs behind.

      I have a great deal of respect for anyone in this industry, retired or not, but perhaps your efforts would be better served to support our industry. Rather than insult those who remain, join your local coalition, get involved, meet with your state and federal legislator, talk with Realtors, communicate your concerns with NAR, talk with lenders, be a PRODUCTIVE voice for our industry.

      • Retired Appraiser Retired Appraiser says:

        I’ll touch base with you in the year 2036 to see how your war against AMCs is coming along.

        The perceived appraiser shortage that you speak of has nothing to do with appraisers standing up to AMCs but rather an increase demand in mortgages due to low interest rates. Once rates increase it’s back to crying the blues again for appraisers.

        As for supporting “your industry”, I must inquire:  What industry? It’s not an industry and it’s certainly not a profession. Professions fight for their rights and their fees…appraisers have been sitting with their thumbs up their asses for 7 years….crying….crying…CRYING. For for unknown reason they are celebrating this year because they are almost making the same fees they earned SEVEN YEARS AGO…although they are now doing twice the work per report.

        I spent more time fighting AMCs, organizing petitions, writing to Congressmen, and getting stories into the national media (CNBC & Ken Harney’s stories) than anyone form 2009 through 2012. Don’t lecture me on participation. You’re living on borrowed time in a dead end JOB (not profession). That’s been obvious since 2012 when I gave up my worthless license.

        Yes my friend. AMCs have been laughing at appraisers for 7 years and for good reason. They sit and watch as 90,000 appraisers still argue over how to change a flat tire.

        Best of luck!

      • Baggins Baggins says:

        For one, I’m looking forward to a rate increase. REO is so much easier than origination.

        Don’t make me post a full sized Chuck Norris meme in here, because I will. I most certainly will.

    • Avatar steve says:

      Appraisers should listen, because you are right on here. If anything, it’s been more like 20 years instead of 7.

  24. Avatar Bill Johnson says:

    Sorry to the author to change topics, but I have a moral question that could possibly spawn a future article. I measure a house at 1,817 sf, while public tax records reflect 1,621 (typical area residence 1,200 sf). The borrower offers two past appraisals one done a year ago (divorce), while the one from two years ago was via a refinance. Each reflect within 5 sf around 1,621 sf. A quick 3 minute call to the cities records department, resulted in proof of a 621 sf addition completed in 1992 (e-mailed to me) in addition to a reflection of the original 1,200 sf structure. The actual records reflect within 4 feet of what I measured, however the reported sf was incorrectly reflected as 1,621 sf.

    The as measured and improved property (1,817 sf and not 1,621), pushes the subject to the next premium level where the existence of the additional rooms and sf is very significant (tens of thousands – Overall near $600,000).

    What if anything is the current legal responsibility of the appraiser, versus the moral responsibility?

    The reflected market value from two years ago versus the loan amount reflected an LTV of slightly greater than 80%. Who loses and who wins when if valued correctly, the LTV would have been lower than 80%?

    If during the divorce the assets were split and the market value was off by tens of thousands of dollars, who wins, who loses, and what options will the current party have now?

    What should be done about the two previous appraisers mistakes unknown to anyone but me and now the borrower?

    Lastly, via the original refinance appraisal from two years ago, the collateral underwriter will flag ME for having varying property characteristics than what was previously on file.

    What say you?

  25. Avatar DianaN. says:

    If you are certain of your measurements and you also have supporting data for the additional SF. that is what you use. I have found many errors between the GLA in assessment data and the actual living area and also amenities. You report what you see and what you can prove and don’t worry about the other appraisers.  I just appraised a property where the owner was being assessed for a non-existant in-ground pool and shed and had been since she purchased the property. Most homeowners never check assessment information unless they feel their taxes are to high. This poor woman had overpaid by $3000 since purchase 10 years ago. I contacted the City Assessor, told her the problem and she said they would immediately remove the amount of the pool and shed and could only refund for the last 5 years, but would do so. In a case like that, any appraiser with a conscious should say something, the prior appraiser who looked at the property before I did, never did.  I would let the borrower decide what they want to do about the prior appraisals.  You did your job and did it well.

    • Avatar Koma says:

      Diana you are spot on. As to Bill when the borrower offers up to show me previous appraisal(s) I say NO Thank You. If your ever pulled into court over your appraisal and an attorney asks you if a previous appraisal was offered to you by the borrower. When you say yes he will jump on that saying the borrower gave them to you to influence your opinion of value. Trying to explain that away will be a hard mess. Also, when I perform an appraisal for a divorce typically both parties provide an appraisal. Now your talking about possibly 3 appraisers missing out on the correct GLA. Not saying it’s not possible. How do you know the borrower gave you the complete appraisal in both cases. Maybe an addendum explaining the GLA difference was missing.

      Now that the lender/borrower will have your correct measurements it’s up to one of them to move forward if they know about/have the previous appraisals.

      Just my thoughts and thanks for listening!

      • Avatar Bill Johnson says:

        Koma, in todays world and in my example the previous refinance appraisal from two years ago WILL be used against me as my data will be unfairly compared to it (CU platform). Forget the fact that its been two years and things can change, but I will always use what ever data source is available. Although the CU system will not read my comments, in the name of defensive appraising, I have provided a general comment to explain my findings verses what I will be compared to. If we are to be uninfluenced by seeing a purchase price, I think that same thought should go into a review of past appraisals.

      • Deplorable Baggins Deplorable Baggins says:

        Bill, want to bet two beaver pelts that the CU system will eventually be identified as having tracked unique writing volume, and also identified use of boilerplate information or not? Possibly also elevating potential risk for appraisals which the developing appraiser has short cutted boilerplate and used generic typing services? Appraisers sit back thinking how great they manage their businesses, utilizing any of the typist services advertised every other page in workingre and the likes. No fault of workingre of course, they’re just taking the advertisers money, as orourke says you know. But wouldn’t it be something if such a development method eventually resulted in this widespread forced exodus of remaining appraisers? I say go your own way, write reports uniquely. Learn to talk and type the language of real estate in a specific manner for each specific assignment. So what if I only do 2 a week, sometimes 3. It’s a nice steady pace and I have to date, never had to undercut to get assignments.

      • Avatar koma says:

        Bill,  First I just want to say I’m not wanting to argue with you just giving my opinion and appreciate the exchange. Second I don’t care what another appraiser has as info in their report as long as mine is rock solid like I always do. If they, by following the CU (crap), want to have my license more power to them. I’ll just go back to my previous profession and believe me I won’t lose a wink of sleep at night! And last knowing the purchase price in my opinion is completely different then knowing another appraisers opinion of value on the same property. If you have a chance listen to Phil Crawford he breaks down my last point (way better than I can) on one of his podcasts at Voice of Appraisal.

      • Avatar Bill Johnson says:

        Kona, how can we argue if I’m always correct (ha)? As it relates to obtaining and reviewing past appraisals I’m sure I could come up with a list of reasons not to do it, but for the most part I consider it part of the information gathering stage and always ask for it. If in my example my measured GLA is different than public tax record files and a conversation is started with the borrower to explain the variance, if other documentation is available and offered (past appraisals), then I will review it. My sketch reflected a wall that was 50 feet long and within a few seconds of looking at the previous appraisers sketch, the same wall was indicated to be 43 feet. Upon a 2nd trip to the property (4 miles away) to confirm my data, the borrower saw firsthand the original appraisers error (50’ not 43) and will use my sketch along with the attached permits to correct the information on public file. The past appraisal was not assumed to be correct, end of story, but rather was used as a second opinion (a wrong one) that ultimately had no bearing on my opinion. I have other thoughts on reviewing past appraisals that should probably be saved for a different time, but think of older houses (refinance) where you have recent photos to observe, sketches, characteristics that don’t show up in public record files, and past sales in 36 months that we must analyze and explain.

        I have learned more from people who disagree with me, than who agree with me.

      • Mike Ford Mike Ford says:

        Koma, respectfully who cares if the attorney says the borrower gave me something to attempt to influence me? The borrower, and or their agent is SUPPOSED to attempt to influence me! They just aren’t allowed to do it improperly.

        They can give me comparables sales; they can give me copies of permits so that I don’t improperly exclude add ons, then can give me written cost estimates (grossly inflated or otherwise), and they can give me building plans with finish schedules in support of high quality claims. Yes, they can also give me copies of appraisals.

        If I refused to  look at any such submission, then the other attorney could argue that I am in violation of USPA by not considering all relevant and available information.

        We ALL (or almost all) learned how to either say no to improper influence or to disregard it many years ago.

        Very few appraisers are ‘cupcakes’ to be improperly influenced simply by knowing what one side or another wants; hopes for or simply thinks a property is worth.

        I’m tired of third party non appraisers (not you by any means) telling me how I can or should perform an appraisal. IF they become an experienced appraiser THEN they can have an opinion.


        • Avatar Koma says:


          It comes down to Damned if we do, Damned if we don’t!

          I’m just stating that of course they can give me copies of permits so that I don’t improperly exclude add ons, they can give me written cost estimates (grossly inflated or otherwise), and they can give me building plans with finish schedules in support of high quality claims, but with me I will not accept or look at another appraisal offered up by the borrower, agent, lender. Also, your telling me that I’m in violation of USPAP for not looking at that other appraisal offered up to me? I’m going to disagree with you.

          Phil Crawford agrees with me on that one (looking at the other appraisal) and he goes one step further by not accepting sales provided by the borrower or agent. Unless they give him the exact method they came up with obtaining their sales, but typically he does not take them.

          • Mike Ford Mike Ford says:


            I’m not saying you are in violation of USPAP. Im saying that is the opposite attorneys position to the scenario you pointed out.

            I try not to assume there is only one way to handle real estate appraisal issues, but let me offer both you and Phil Crawford the following scenario.

            Appraisal performed January, 2015 (subject to completion of hypothetical conditions). VERY high value for the area, BUT conditionally supportable. May 2017 appraisal for sale purposes. Seller thinks his prior appraisal is supportive of a current value and offers to give me a copy of it.

            I take it. I completely disagree with all the value conclusions. I’m going to go with my own analysis completely UNTIL I read the part of the other appraisal where it talks about a hypothetical condition that the cracked foundation could and would be repaired for a cost not to exceed a quarter of a million dollars.

            Seller forgot that was in the buried text part of report. I’d have had no other way of knowing about the foundation issue. Will that prior appraisal affect my conclusions and opinions? You betcha! At a minimum Im conditioning the appraisal on a structural engineers report.

            There was no visual evidence of a cracked foundation. Seller did not disclose it

            • Avatar Raymond says:

              mike, I agree with your comment. appraisers should take “in” as much info as possible and then begin the process of objectively and impartially filtering the info that is most appropriated to the valuation of the property being appraised.  I know appraising now a days is more complex in many ways. however, i have always reverted back to my personal theory, that appraisers are like umpires at a baseball game, regardless of all the self serving players, coaches, managers and fans, the umpire (appraisers) has to objectively call them the way they see them.

    • Avatar Bill Johnson says:

      I absolutely used my measured sf (I went back to check my work), along with support from the original builder plans and the noted addition in 1992. I can support my findings for the GLA, while it appears others have assumed public records were correct and either altered their measurements to be close to what they thought was the truth, or both just made similar errors. If one appraiser was approved for the divorce and through his error one party was short changed $20,000 dollars (under valued), then knowing the truth can be a difficult pill to swallow. If the current owner should of had a higher value two years ago and as a result has been paying PMI along with a higher mortgage amount, then does the borrower has a case against the original appraiser?

  26. Avatar DianaN says:

    Thanks Koma, we think alike, however in a divorce situation, I do want to review the other appraisal to make sure it’s not biased. In fact many times if I thinks it fair and honest based on my research, I will advise the Atty. to stipulate to the value rather than have their client spend more money for an appraisal that will probably be close in value. However, if the other appraisal is “cooked” in either direction, that appraiser better watch out. I don’t make much $$ that way, but I don’t rip somebody off either.

  27. Deplorable Baggins Deplorable Baggins says:

    Here is an important piece of information. Lenders know how damaging amc’s are. They are unable to use them in some states, and are assigning direct. Meanwhile, they are still assigning through amc’s where possible. Just FYI.

  28. Avatar TOM D says:

    great posts with some good humor. certification flooded the market with new appraisers. we still have too many appraisers. Before certification i estimate that in my state there were under 700 appraisers who the lenders would accept work from. resist any talk of trainees. the current amount of appraisers should be cut in half. then amc’s will finally understand when no one answer their phone call, that amc’s like satan should burn in h.ll.

    • Deplorable Baggins Deplorable Baggins says:

      Good ones. I stopped answering the phone for anyone outside of my 303 or 720 area codes. Every day, more bid requests. Every day, more panel invites. Every day, more direct orders capture my attention. The direct wholesaler I’m working with just raised fees permanently in CO. 550/600 I think. It’s a start. We excercize our consumer decisions (so to speak), by carefully selecting whom we work with, and selecting them for long term decisions and ethical reasons, not because the company merely called and/or invited us, or may coincidentally need some pickups today. 

      My first qualification question for any and all amc’s for years has been this; What is your standard minimum fee in Adams county? If they do not have standard minimums, that is code word for a business model where they entice appraisers to undercut each other. The second question is this; What is your maximum fee you can assign this to me right now? If they have to ask permission from the lender, that’s basically toothless management. I’ve never seen such a large bunch of managers whom are effectively unable to manage anything except the appraiser without permission. They seemed to have missed the point of their intended positions as a safeguard to lender influence, and instead have readily pandered to lenders as being managers of appraisers, rather than stewards of ethical appraisal distribution process. When someone with 15 years less experience than me, has never held a professional license or no longer holds one, punches in and out with no lingering responsibility, etc.  ell, you take what you can get, but one day you will also have the opportunity to put the shoe on the other foot. There are articles floating around that these marked increases in appraisal fees is tantamount to extortion or price gouging. Well, the free market principals apply or they don’t. That sword swings both directions. All appraisers are doing is operating within the confines of the distribution systems the amcs’ and lenders themselves created.

      For Tom’s comment; It’s vital to include mention of debt based consumerism driving this whole thing, because that irresponsible self positioning of regular consumers is what continues to drive the market. Enter the wild card; My order up now is an FHA 15 w/ cash out. That will certainly feed the beast for a while longer. The perfect storm has already built up, and is likely cycling with maximum potential energy, or close to it.

  29. Avatar Bill Johnson says:

    My apologies again to post this as it does not apply to the original topic nor my offered up secondary topic, however in the past few minutes the following was brought to my attention.

    “Beginning October 1st, 2016, those working towards getting a Trainee License (AT) no longer need to complete the examination to be issued a license. Going forward from this date, an applicant will only need to complete the one hundred and fifty (150) hours of Basic Education, the four (4) hour Trainee/Supervisor course, and pass the background check required for the AT level license.”

    Why would the sate of California or who ever was involved in this decision eliminate the independently given trainee test before a license is given? This may be the beginning of the end (lowering standards) where over a single weekend one may be able to get an appraisers license. Wow.

    • Deplorable Baggins Deplorable Baggins says:

      Think they already did that in CO, although I do not look at that often. Promulgated from asb guidance? The trainee license was important. It seems though, that’s been substituted with a different web of rules regarding applicable shelf life of earned experience hours, and other correlative qualification points. The point of the trainee license was you had to at least pass entry testing to begin earning hours. Hopefully there is also some cross correlation regarding having to take that trainee mentor class, at a minimum before you can start earning hours.

      • Avatar Bill Johnson says:

        In my opinion, the point of the independently given trainee test was to confirm that the stated individual (ID was shown) in fact has the knowledge for the job. What’s the going rate in India or your country of choice to outsource the 150 hours of basic education and a single 4 hour course (joke). If its taken on line who really knows who is doing the work. Although my state doesn’t allow it, is it the goal to have trainees (not confirmed to have the knowledge/no test) conduct more in the field inspections to speed up the process?

      • Avatar Raymond says:

        FYI: i recieve this email from CA appraiser office:  Beginning October 1st, 2016, those working towards getting a Trainee License (AT) no longer need to complete the examination to be issued a license. Going forward from this date, an applicant will only need to complete the one hundred and fifty (150) hours of Basic Education, the four (4) hour Trainee/Supervisor course, and pass the background check required for the AT level license.
        For more information on the Basic Education modules required for the AT license level, please refer to the Basic Education Modules by clicking the link, or by visiting our website: , clicking on Licensing & Registration and then clicking on Basic Education Modules/Subtopics.

        • Mike Ford Mike Ford says:

          Raymond, how about California BREA telling would be trainees that they are better off NOT becoming licensed trainees?

          Seriously, Cynthia of BREA said their current position is that a trainee is actually better off (safer) if they remain unlicensed until they are ready to get a full license. California is not a mandatory license state, but IF you have any kind of license you are obligated to follow USPAP in all appraisals whether for FRT or not. If you have no license they don’t care what you do. Even fraud would be out of their jurisdiction…though presumably they COULD refer such fraud to local district attorneys-though they themselves would not be authorized to investigate it.

          If you are unlicensed, and you are not signing in an FRT appraisal then California BREA has NO JURISDICTION over you. None. Your mentor or trainer will be under their jurisdiction but the trainee would not be. You can still get credit for experience if the trainer mentions and discloses the extent of your work in his reports.

          If you have no license then BREA has zero authority over you (except in FRTs) Imagine that. Even if you have a license revoked you can still appraise in California as long as it is not an FRT!

          So much for “their protection of the public.”

          Note: Ca. is now rated as ‘excellent’ in the ASC bi annual audits of their FIRREA compliance. First time in their history despite a long history of non compliance dating back to their inception as OREA. I guess having the BREA Chief on an advisory committee to ASC has its benefits.

  30. Avatar Nick says:

    Maryland requires the course work and no testing to be a trainee.

    However, I would not think of hiring a trainee unless they have all their coursework completed for CR, are geologically competent, have a working knowledge of cost estimation, experience in analysing real estate market dynamics and know their way around the mls. Add a bachelor degree, which we have required for 3 years and then I may have a place for them.

    Now using the AMC model, I can only pay this trainee about 20k per year for them to work 60 hours per week with no insurance. They would need their own E&O, mls and car. After expense they would net around 12k.

    Alternatively, they could get food stamps at $450 per month, housing voucher of $800 per month and social security disability at $1,500 per month. For those who are to lazy to do the math, that is 33k +/- tax free per year.

    It should be noted that if they are smart enough to have the entry level criteria, then they possess sound research and investigation skills to live off the government and net more money or find a career that is more profitable than appraising.

  31. Avatar Mr Raymond says:

    lets get back to the subject: the letter to the AMC. we need to begin to pressure the powers to be, regarding the professional slavery, appraisers are having to work under. emancipation for appraisers.

  32. Deplorable Baggins Deplorable Baggins says:

    Well Ray, I keep on trying, hitting the wall.  I still to this day take time to respond to most of these emails, although I scarcely actually consider the orders any more. I have not provided ‘a fee and turn time bid’ I think in well over a years time now. Too busy with the sure thing. Here is a portion of the letter I wrote to an amc just today. You know what they say, we’re all in this together.


    Remember, the amc is the manager of the appraisal distribution process, they are not the managers of the appraisers. Please charge per diem for the simple act of managing the distribution, separately from the appraisers billing.  At no point what so ever, should the appraisers variable fee, effect the amc’s static fixed fee.

    Amc’s are really struggling, and they’re emailing and calling blind, have been for years now. Many appraisers like myself are still hopeful they’ll finally see the big picture. The free market is the free market, and it’s pretty difficult to deal with when you’re the one on the losing end, when in an overly competitive environment. That is why in the interest of fairness and equitable engagements, the amc, the lender, and the appraiser, should all show mutual respect for each others businesses, and never ask for fee and quotes and play one entity against the other. They should instead strike permanent and lasting deals for longer term working relationships. Amc’s must strike national deals to take care of appraisers nationally, not merely just in locations where demand is in excess. I never wanted to operate in a climate where people were readily replaceable, but in the end, I had to land somewhere. My landing spot looks good at the moment. If I hear of amc’s doing it better, at that point I’ll perhaps get interested again.

    I just checked out your website. I’ve never been able to guarantee a 5 day turn time, not ever, not since day one. That’s definitely too aggressive of a posture to take. You’ve negotiated and advertised a scope of work term which I am absolutely not interested in. You probably should reconsider that approach. Focus on managing the process properly, stop bragging about whipping appraisers around for 5 day turn times.

  33. Avatar Wayne says:

    Some of us are really concerned about C&R and what AMC’s are doing. There are many of us that do not give a damn what an AMC wants or what some silly person thinks C&R should be. Thankfully I fall into the camp that I will not work with an AMC. When they call we NEVER get to the point of what fee or turn time. I ask are you an AMC…they say yes and I say goodbye. That is the end of that! I understand that all of you cannot do that…but I wish you could! LOL

    You are the one with the license/certification…why is it that someone that has no license/certification is telling you what fee you will accept and what time frame you will meet. I have plenty of appraisal work without AMCs….how will they eat or pay their bills unless YOU feed them…I know that I am not going to do that! I am sorry to say this but it is you appraisers working with AMCS that are as harmful to our profession as the AMC’S themselves. Find another career if that is the best you can do!

    • Avatar raymond says:

      Wayne, totally  agree with your comment. Working within the amc business model has gone far beyond just low unfair appraisal fees and ridiculous turn times. Its total professional slavery and if appraisers do not comply they are blacklisted and receive no work. The appraisal profession has lost all control of the lending appraisal process to our very clients, lenders, amc and lender interest groups.

    • Baggins Baggins says:

      Wayne, funny thing about that. If you take the time to be honest and fair with the amc callers, continually illustrating these untenable business arrangements and requests, also asking for process corrections so you could work together equitably, you’d find many a regular amc phone worker can’t believe they’re being asked to do this. You can hear the frustration and defeat in their voices, as they call down the list hoping for an appraisal miracle. Asking them standard qualification questions often opens the doors to fair conversation. Many of the regular amc workers would seek process corrections if they were able to do so, they can see the deficiency in the processes quite clearly. But as long as that cash cow keeps on paying, and it makes financial sense to continue to grind through replaceable telecom workers, most amc’s will continue to prefer to spend on sourcing discounted appraisals, as opposed to operating a more lean and less involved participatory presence. You can tell they’re against the wall, when the managers and senior people are trying to source the appraisers. They’re publishing articles now, regarding how to solve the problem they themselves created. If they just disappeared, the problem would be solved. I continue to believe that fewer orders should result in fewer participators, not decreased wages.

      • Avatar Wayne says:


        You and I do seem to see some of this appraisal industry from the same window! I know that Bank of America, Wells Fargo, Chase, etc. continue to make real estate loans whether or not I like it. LOL…personally I will go to hell before I work for these companies or their AMCs. I totally understand that some of my fellow appraisers jump up and down trying to get assignments from this type of company or a Core Logic, Coester, etc.

        Personally I have a problem with my fellow appraisers who accept assignments from companies like this. Check it out…two guys graduate from high school same day. One earns his law degree…the other his general appraisal certification. Which one came back home first? Yep the lawyer came home first and will make the most money.

        Appraisers accepting assignments from AMCs are allowing those companies to exploit our profession and cheat us out of our professional recognition. They are scum and the appraisers who work with them and allow them to earn a living need to reconsider! Really…if after all you have gone thru to earn your license or certification…If an AMC is your only employment….go away, grab the Dairy Queen job! Just my opinion…no respect for you here!

      • Baggins Baggins says:

        Have any stats on amc employee turnover?  That would be an illuminating figure regarding the supposed professional handling of these orders.  I keep waiting for an amc whistleblower. Still waiting for the tech guy to come clean regarding biased process in violation of this or that. That’s how this thing holds up though, the tech guys are not legal specialists, the legal specialists only focus on liability, and nobody consults the appraiser. These guys are so clueless regarding valuation services, they simply still do not understand that appraisers nationwide have continued to offer free consultation services. Consultation services is one of the three valid services appraisers offer. It all comes down to the mechanisms of management. Amc’s are not in place to manage appraisers, they are in place to manage orders. Appraisers whom do not identify that difference will remain part of the problem, not the solution. Some amc’s are fair to work with, since they have such limited managerial presence. It’s time we all started making simple qualifications and drive this market. In terms of influence, the appraiser is the consumer of amc services. We feed that market. So put your consumer dollars to good use, or boycott, but please distribute wisely in the interest of your own future. The act of forcing a lending client away from one amc to another or to direct is as simple as consumer drive, consumer demand, and consumer acceptance.

  34. Avatar Diana N. says:

    As as long as appraisers are accepting these $225 fees the AMCs will be in control. 5 were in my email today that I was ready to turn down or re-negoiate the fees but they were already accepted. Shame on you appraisers working for slave wages.

  35. Avatar Bill Johnson says:

    Nothing like enjoying a Friday night when Streetlinks sends over an Ocean front property (hello its on Ocean Ln) for $365 with a due date of 5 business days. Maybe this is like one of those times you occasionally read about when lost letters show up 30 years later. In this case the fee is from 1986. God help us.

  36. I have read most of what everyone has said, I agree to most, However it has always been my thought that if I want to go broke I will do it for myself and not for someone else. Anyone ever heard of telling the AMC’s what “your” fee is! I have no problem. If there is someone else out there who will work for the $250 -300 fee let them have it. But it will take all of us saying no to the low fees to get them up. My local banks pay me $400 why should I take 300 from the AMC. I have sent the VACAP letter to them. They have come back after saying no to my fee and gave it to me. PLEASE Try it a few times. It will work and you will get paid for your work. You must value yourself.

  37. I have been appraiser for 16 years, I have worked directly for Fannie Mae, Freddie Mac and HUD. In each position I have directly or indirectly had a part in either writing, reviewing or implementing policies and or regulations. I have seen first that AMC’s in the mix between lenders and appraiser has hindered the process and cost more in time and money for all involved. Secondly, AMC’s usually result in a less quality of report. This is because typically appraiser have to complete twice as many reports to make the same amount of money they use to make before AMC’s and the reports are rushed, both resulting in a less quality report.

  38. Avatar George says:

    I appreciate the effort and agree wholeheartedly with the sentiment of the letter and will sign it, but isn’t it addressed to the wrong party. What possible good will it do to direct this toward AMCs?

    It needs to be sent to every lender, mortgage company, correspondent lender, and any other entity using the AMC services. The lenders are the ones who benefit from the AMC. They get the service for FREE. They LOVE amcs, especially the ones who own their AMC and profit from it. The lenders should be the target.

    • mike ford mike ford says:

      Agree and I have signed already but it is a start. Frankly some federal regulatory agency executives already follow this blog so Id be amazed of lenders are not also getting the message.

  39. The letter can now be signed here.

  40. Avatar Raymond says:

    the realtor groups, for a long time, have established the sales commission income at 6% and it has been followed consistently regardless of the sale price or any other feature. This established real estate industry sales commission rate is an example for the real estate appraisal to follow in some form.

  41. Avatar Raymond says:

    A email from a AMC that quite laughable.  Nice way to implied fast and cheap is our motto:

    We are in the process of updating our algorithm and want to make you aware of two key changes that include:

    Adjusting our timeliness score. Our updated algorithm will score you on how you deliver against your commitment dates and on the total time from acceptance-to-delivery of an order. Your scores will be ranked against your peers in your same geographic region.
    Tip – Setting timely inspections will positively impact your score.
    Factoring in “reassign” rate. Accepting an order then asking for it to be reassigned later leads to lost time and inefficiencies. Our new system will reduce the scores of those that accept orders then decline them later. Please note there will be no penalty if the reason for the reassign request is something outside of the partner’s control, such as conflict of interest or competency.
    Tip – Please carefully review all assignments before accepting.

    As always, the quality of your reports is still the most important factor in your score.

    The updates to our scoring algorithm are in final testing and should go live within the next month. To be better prepared, please review your procedures and revise as needed to better align with our new scoring.

    • VaCAP Board VaCAP Board says:

      Which AMC is this? Please contact us privately if you do not want to publically announce it.

    • Avatar Diana N. says:

      What BS. can we rate the AMC’s the same way? Thanks for posting.

      • Baggins Baggins says:

        There was a brief time period we could. This served the important purpose of being an outlet for appraisers to share details of what would otherwise be concealed or unknown, such as denial of payment issues for individual orders. Essentially it was a very simple blog, dealing only in ethics, payments, and assignment company grading. Only licensed appraiser members were allowed to participate with maximum privileges. You just can see it now, those amc managers steaming over the content, and not being allowed to have equivalent membership rights. Also, lots of google cached content exists on these efforts.

        AppraisalAdvisor on Facebook

        Meanwhile, appraisers continue to get graded and rated on every platform, while being given no opportunity to better the group effort via criticism of anyone else.

        It’s safe to say at this point in time that amc’s have clearly aligned themselves with the interest of lenders as their first operational priority. This is the spirit of what HVCC, and subsequent Reg Z rules were supposed to prevent.

        • While my preference in communicating with interested appraisers is through I appreciate that some (many?) appraisers want to know they are only talking with other appraisers and not industry trolls.

          Again, I prefer the open forum format of AB here, but for those that want a fully restricted blog site may I recommended Facebook blog site called 100% Real Estate Appraisers. Its operated by Mark Skapinetz out of Georgia and has a very strong regular following with about 721 members.

          Or, read both AB and that one. You have to apply for membership there and Mark WILL vet applicants

  42. Avatar DianaN says:

    Amen brother

  43. Avatar Tony says:

    As I stated in my comments last September, I left the fee world for good and am now doing mass appraisal work for a local government. I have been able during this time to take a good look at my former profession and offer some advise that I have come to realize from distancing myself from my prior career. Firstly, lenders place little or no value in the appraisal report. They order primarily because they are required to. They base their loan decisions on credit and ability/likelyhood that the borrower will repay the debt. It doesn’t matter if the borrower is overpaying for the collateral as long as they repay the loan. Period. The appraisal does not protect them in any way. Making good loans to qualified borrowers is what protects them. Second, does it bug you that while lenders (through the AMC’s that they own) are wanting quicker faster appraisals, while at the same time the Appraisal Standards Board is loading up your lives with worthless new regs and standards that decease turn times and increase your liability? In my last year in the fee world, every new email from the ASB just sent my blood pressure through the roof. Its like they live on Fantasy Island. I presume they believe that by increasing standards, the world will somehow come to believe that the individual appraisal report is this document of major importance, but the reality is they are only hurting the professionals in the field. The hard fact of the matter, as I stated above is The Lenders Do Not Place Any Value in your Appraisal Report! With AMC’s, they have found a way to make a little (very little) money off something they don’t want or value in the first place. My advice is to do very good quality work for clients who will value you for it. Unfortunately, there are very few of these clients out there, and none of them are lenders.

    • Avatar Raymond says:

      tony, totally understand your position. Ironically, I started my appraisal career 43 years ago doing mass appraisal for county government. I left that government work, for appraisal work in the financial institutions, then started my own appraisal business. Given the current state of the appraisal business, I would not recommend others to follow my foot steps. I took my career walk under entirely different economic circumstances.  I have friends who did what you did for financial stability and other benefits, which are good reasons.  However, i’m told the mass appraisal process involves little appraisal thought and more # crushing, which again if OK just a different world. best wishes.

  44. Avatar Tony says:

    Raymond, in mass appraisal, the computer algorithm does the “number crunching” If it was just math, we humans would not be necessary. I’m finding (to my surprise) that my job involves more appraisal thought than when I was a fee appraiser. I spend a lot of time calling buyers, sellers and Realtors to confirm sales (without the imposed deadlines of lenders), analyzing properties to determine accrued depreciation and defferred maintenance and trying to estimate the contributory value of various site improvements. Its a collaborative effort with departments that estimate replacement costs using cost guides and local builder data (I used to laugh when I reviewed reports that said that they were using local builder data, when I knew that for the most part the appraiser had pulled a number out of thin air to avoid paying for a Marshall & Swift subscription, but here we really do have builder data). Our department spends a lot of time working on neighborhoods that have unusual characteristics and trying various strategies to estimate values. When sales start to roll in, and the numbers fall into line, its nice to know your theories are being verified by the market. And if you make a mistake, you just fix it. No worries about some zealous reviewer ruining your career.

    • Avatar Raymond says:

      Tony, best wishes!!

    • Avatar Raymond says:

      tony, best wishes!

    • Baggins - taxation without representation Baggins - taxation without representation says:

      Tony, your post is nearly inspiring enough to look into an assessors position.  I presume this is the position you’re talking about?  Your post also has me thinking about the continued mismanagement of the origination industry and intrusive injection of technical tools, the way they’re trying to apply mass assessment methods and expectations to the independent value analysis market geared towards individual home value for origination purposes.  Surely this indy market is unexplored territory for data aggregators.  Before the restriction of the free market for independent appraisers, it was common practice to tailor reporting more towards individual price value opinions.  As opposed to the current trend of estimating a pinpoint value through mass data aggregation.  Assessors are allowed to have a range, independent appraisers are not.  Yet we’re all supposed to use the same approach methods?  This is my argument against reliance on mass data and pure estimates without actually having been on site and seen the property first hand inside and out.  Also, hot markets in CO just resulted in a 40% tax assessment increase of my home, nearly 100k.  Upward moving markets do have a very tangible downside. Not coincidentally, taxation hikes during bi and tri annual re assessment were the full 3 years behind market. Sales slow down and presto! Higher taxes. Energy costs up 30% as well. The vicious struggle between affordability qualification and real world economic factors continues on.

      • Avatar DianaN says:

        I just completed 9 tax appeals in my town due to recent revaluation. All were waterfront properties and the site values were out of site. When I met with the assistant assessor I asked him how the city arrived at these site values, No response..ok what sales did you response, “Come on, I said, you had to have some method of valuing these sites” his response was “we walked the beach”. WOW wish we could value property by just walking the beach or street. He then said they use computer algorithim, ok, what information was entered. No answer… I reminded him of the old saying,”garbage in, garbage out”.

        • Avatar Tony says:

          DianaN, I can’t speak for other jurisdictions, but we value our vacant waterfront land with vacant waterfront land sales. (and successfully defended 100% of our appeals last year)

          • Avatar DianaN says:

            Me too, and that’s how I intend to support my values, it will be interesting to see how the city supports theirs.

  45. Avatar Marty says:

    Let’s face it, AMC’s were created by bankers and politicians for personal and financial gains. AMC’s are deceiving the public by not allowing appraisers to include an invoice within the appraisal, this way the AMC can add 20 to 50% on to the fee and the unsuspecting buyers thinks it all for the appraisal. Chicago Tribune wrote a whole article on this. Every state should should mandate that AMC’s pay for appraisal within 30 days. This would keep AMC’s from owing appraisers millions like with the case in Florida.

  46. Avatar Tom says:

    The consumer should pick their appraiser just like the consumer picks their Real Estate Agent and their LO.

    • Tom you are absolutely right. Appraisers are licensed and in many cases certified by their states as having achieved a level of experience and appraisal specific education (and presumed) competence above the norm.

      Relocation companies used to provide sellers with a list of several appraisers to select from. Apparently those appraisers knowing listed prices or desired prices of a seller didn’t affect their independence. Then again The Relocation Network was much more competently operated than FNMA is.

      Patients select their doctors unless they are in an HMO; even there they have some degree of choice. Clients select their attorneys. Tax clients select their own CPAs or other accounting professionals. IRS does not say you can only use a CPA that is chosen by their third party agents!

      VaCap is slightly wrong on this one. It is not the AMCs that have failed the American Public regarding appraisers. It is the Congress of the United States, Federal Regulators and State Boards. It is also a very few (one?) formerly reputable peer organization(s) that puts the interests of only their premium members ahead of all other appraisal interests or the profession at large. The above group has neutered FIRREA first and then they allowed ALL of the foxes in to the hen house of appraisal to establish what specific rules would be used to ‘protect’ the public.

  47. Avatar Diana N. says:

    You said it all Mike, and very well I might add.

  48. Avatar M.C says:

    Hybrid appraisals are a fake product, not reliable, or accurate and will cost the American consumers and state governments millions. This product will bring about another inflation bubble in the housing market.

    #1 – No appraiser goes to the subject and performs an inspection. Therefore the back of the house could be completely destroyed and or back up to a junk yard, Google Earth can’t see everywhere.
    #2 – Appraisers cannot make an accurate assessment of the condition, amenities or effective age of the subject property.
    #3 – therefore, without an accurate assessment of the subject’s effective age, how can any practical adjustments be made?
    #4 – the same for lots.
    #5 – All of the necessary information that an appraiser would gain from a site inspection is not always available in MLS and or public records.
    #6 – Hybrid appraisals are being performed by those who do not have geographical competence. 

  49. Avatar Diane Brown says:


  50. Avatar Pt says:

    Or much competence at al!?!

  51. Avatar Natalie Rivera says:

    I do not agree with these statements because this is just one side of coin and it has biased accusations.

    First of all –

    1.The use of an AMC is not required by any federal or state law.

    – Yes but with AMC it gives more convenience and comfort for mortgage company and appraiser

    2.The use of an AMC has not protected the consumer.

    – It does because AMC make sure that the project is done at the right time and provide accurate results.

    3.The use of an AMC has failed to protect public trust.

    – I totally disagree on this because how can you say that it’s not for public trust where infact AMC values the feedback from the appraiser, customer and the mortgage company. It ensures that the project is done correct.

    And I thank you.

    • You either own an AMC or have never conducted business in the capacity of an appraiser as your responses lack merit. You are either misinformed or a troll.

      A search of the ASC National Registry shows no one with the last name “Rivera” ever holding appraisal credentials.

    • Avatar Diana N. CREA,CRA,GRI says:

      1. Whether or not it’s required, lenders refer to the AMC. and from my banking friends, it really isn’t more convenient.

      2. The only thing most AMC’s are concerned with is making sure the numbers fly, not whether or not the consumer is protected. I just revied an appraisal where the value came in over the sales price by $5,000, guess what, the true value was $20,000 less than the appraised value and the AMC was not happy with the results.

      3. my answer to 2 above also covers this remark.

      I have been appraising over 45 years and never had any problems working directly with lenders, they were happy, the clients were happy, and I never MADE THE NUMBER to make it fly.


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Open Letter to AMCs

by VaCAP Board time to read: 1 min