Class Action Against AMCs on the Horizon
Property inspectors suing ServiceLink to obtain minimum wage…
Peter Christensen wrote another article on LinkedIn about wages being paid by lenders and AMCs. This one should get your attention as it is from Independent Contractors suing an AMC. This will set a precedent and start a chain reaction.
In a nut shell, property inspectors are suing ServiceLink for work performed to obtain minimum wage. Yes, you read that correctly, minimum wage. According to the article, property inspectors receive between $3 and $5 for each assignment.
The article does not specify the specific service the property inspectors perform, but think bifurcated or hybrid product for a moment. Someone is being paid $3-$5 to provide the data the appraiser is to rely on to complete an appraisal. How good is that data going to be?
Now think REO for a moment. Someone being paid $3-$5 is providing data to the lender or servicer on the condition of the property and making a large financial decision based on that data. See the article here.
Excerpt:
…in a prior LinkedIn article (link), I wrote about the potential legal threat to appraisal firms relating to the classification of appraisers as independent contractors. We have not yet seen a full-scale “reclassification” class action by appraiser contractors against a mid-size or large appraisal firm (or AMC) but one sign that such a threat might be over the horizon comes from the filing of a property inspector re-classification lawsuit against a field services subsidiary of Servicelink. In Collins v. Servicelink Field Services, the plaintiff property inspector alleges that Servicelink Field Services used workers like himself who were hired through third-party vendors so that Servicelink could avoid minimum wage, overtime and other regular employee obligations. As an inspector performing property inspections delivered to Servicelink Field Services, the plaintiff alleges he was paid $3-$5 per inspection. This lawsuit was filed in San Diego Superior Court on August 10. Servicelink Field Services has removed the case to federal court and filed a motion to dismiss that is now pending.
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Service link. Lol. Shady.
AMC”s should be audited for one.
Interesting weren’t AMC’s created to be the middle person between a lender and an appraiser. Seems they are drastically misbehaving. So AMC’s were created to keep everyone independent and are now trying to do away with the appraiser all together.
You cant make this stuff up
I hope it works, appraisers tried to sue ES Appraisal Services who was the AMC for Chase and J.P. Morgan Chase and we lost, the judge in Florida threw the case out. I guess he had stock in Chase.
Diana, there is much greater clarification of client relationships now than there was before. Both federal regulators and TAF is on record as saying the lender is the client. The FNMA forms specify it.
Federal Regulators “See no daylight” between the lender and their agent AMCs. The lenders regulatory obligations are not in any way diminished by using an agent (AMC).
This particular suit is essentially generally meaningless to appraisers right now. Except for pointing out that there are very low paid people involved in hybrids and other undefined services, the vendor-vendee relationships are very different I believe.
WE should be contemplating our own class action suits. FWIW I think that lies in the direction of the old FNC class action suit over theft of professional work product. A theft that there is now a mountain of evidence that it is ongoing and includes some of the original participants as well as many new players. A theft that (I believe was 5th Circuit Court of Appeals) has already been recognized. I’ll recheck the court when it’s closer to time to take our own actions.
Anyone interested in interim, write me directly. mike@mfford.com
So if AMC’s can hire anyone to do a field inspection then why aren’t appraisal companies allowed to hire field workers that are appraisers to do inspections. Our hands are tired or we could compete on another level with the amount of work we complete.
As Yossarian would say “Catch-22”. IF you are an appraiser, then most states require that you adhere to USPAP. Even as a trainee. The hybrid hucksters don’t want to pay enough to expect USPAP compliant property analysis.
Corporate America is a nasty disgusting place where the pond scum thrives and wants to feed off off everyone’s profession and diminish the small business owner into a minimum wage employee
Collins v. Altisource Solutions, Inc. et al
Filed: September 20, 2018 as 3:2018cv02185
Defendant: Does 1-50, Altisource Solutions, Inc.
Plaintiff: Joseph Collins
Cause Of Action: Diversity-Notice of Removal
Court: Ninth Circuit › California › California Southern District Court
Type: Labor › Labor: Other
Collins v. ServiceLink Field Services, LLC et al
Filed: September 14, 2018 as 3:2018cv02142
Defendant: ServiceLink Field Services, LLC, Does 1-50
Plaintiff: Joseph Collins
Cause Of Action: Diversity – Labor
Court: Ninth Circuit › California › California Southern District Court
Type: Labor › Labor: Other
And they firmly believe someone is going to perform a thorough property observation for 5 bucks?
Again….5 bucks….
Corporate is not going to concern themselves with the actual quality of this “5 dollar observation” as they are a private company looking to make a profit. They will just force an appraiser to sign an agreement so that they are not liable. Then will continue to make money off the backs of the appraisers.
Not saying all, but those paying 5 dollars.
??? …..think about the work most ethical appraisers put into a property observation…5 dollars…that is insanity…
Fast food workers are fighting for $15 dollar an hour wage….who would do all this for 5 dollars is beyond me just for starters but…..there must be someone….
And again….who protects the consumer?
Whoa !!!!!!