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.

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.

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.

Definitely a Trol!

#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. 

Agreed!

True. They also need the pretense of what they are doing, is in the best interests of American taxpayers “The Public” that all rules are supposed to be in support of.

What we CAN do is raise their costs of abuse so high that they will stop them for their own self serving best interests.

.

Mike,

Sounds good, but it’s all about money and power and the gorillas will not let go of either. .

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.

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.

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.

True.

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

Mike,

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.

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.

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.

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.

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.

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.