Blacklisting Lawsuit Continues
In early 2014, North Carolina appraiser Michael J. McSwain filed a lawsuit against Yadkin Valley Bank and the appraisal management company (AMC) StreetLinks Lender Solutions, alleging that he was retaliated against for failing to reach targeted values. (See Smoking Gun Allows Appraiser to Sue Over Blacklisting)
According to the suit, McSwain performed two appraisals for StreetLinks in late 2012, on behalf of Yadkin Valley Bank, both of which failed to “meet value.” The suit cites explicit emails from the branch manager at Yadkin which state:
“StreetLinks has sent out a BUTCHER on two of my last refis [sic] … make sure he is not sent out in our county and make sure he is not on the approval list…I thought I would let him do these two just to see. NOW THE DEALS ARE DEAD.”
Yadkin then demanded that StreetLinks remove McSwain from the bank’s Approved Appraiser List and according to new discovery documents that have been made public, McSwain was placed on Yadkin’s Exclusionary List in early 2013. McSwain then filed a lawsuit in February 2014 alleging that both Yadkin and StreetLinks engaged in unfair and deceptive business practices and were engaged in a civil conspiracy to encourage targeted appraisals.
The lawsuit remains ongoing but many of the facts that have come to light during the discovery process will be of interest to appraisers. More than any recent case, McSwain’s suit raises troubling questions regarding appraiser independence: namely, how much has changed since the Dodd-Frank reforms?
Appraiser Panels
At the heart of the issue is whether AMCs should create and maintain their own independent appraiser panels or allow lenders to handpick the appraisers they want used on their loans. In an interview with Working RE, Chuck Mureddu, managing director of AMC Quality Valuation Services (QVS), said that QVS uses its own panel.
“We don’t believe in utilizing a lender’s panel because there’s a risk of diluting the independence part of building a fee panel,”
said Mureddu. (See Low Fee Solution: Cost Plus Model) While independent appraiser panels are not specifically required under Dodd-Frank, many AMCs insist on them in order to safeguard appraiser independence. In fact, StreetLinks’ own Certificate of Compliance, that is issued with every appraisal and is signed by Steve Haslam, StreetLinks’ President and CEO, states that:
“Appraiser Selection was performed at the sole discretion of StreetLinks by utilizing a selection methodology designed, maintained, and supervised by licensed real estate appraisers and is based on the criteria of proximity to the Subject Property, availability, and historical quality and performance metrics.”
However, in legal briefs filed as part of the discovery process, StreetLinks states that it “does not decide which appraisers are included on a lender’s exclusionary or preferred list,” writing that such moves are “solely the lender’s internal decision” and that StreetLinks “has no involvement in determining who belongs on the list, or why.”
Loan Production Staff
A central factor in McSwain’s lawsuit is the allegation that both Yadkin and StreetLinks violated appraiser independence by blacklisting McSwain for his failure to “meet value.” So far, Yadkin and StreetLinks deny any wrongdoing, insisting that their actions are completely legal.
The Appraiser Management Services Agreement between StreetLinks and Yadkin states “the lender panel will be delivered by Customer to StreetLinks…and MUST be sent by the Customer’s operations or compliance department directly from the Customer’s corporate office. StreetLinks will not be required to accept Lender Panel information from Customer’s production or sales staff.”
owever, the initial suit filed by McSwain cites emails written by Yadkin’s Branch Manager, and a loan officer, which seem to indicate that direct input on the appraiser panel was made by the sales and production staff. The initial email that refers to McSwain as a “BUTCHER” and demands that he be removed from the approved list for “killing deals,” was sent by Yadkin’s Branch Manager, but it was a Mortgage Loan Assistant who ultimately contacted StreetLinks and instructed them to remove McSwain from the approved list. After confirmation that McSwain had been removed, Yadkin’s Branch Manager then forwarded the email chain to several other loan officers with the message: “FYI, I have had two cut deeply by appraiser,” according to the suit.
According to federal regulations, Yadkin is allowed to manage its own appraiser panel, but influence from sales and loan production staff is expressly forbidden. The Interagency Guidelines specifically address this point, stating that the “collateral valuation program is an integral component of the credit underwriting process and, therefore, should be isolated from influence by the institution’s loan production staff” and “the person who selects or oversees the selection of appraisers should be independent from the loan production area.”
Secret Blacklisting
McSwain’s experience is shared by many appraisers across the country who, without warning, suddenly stop receiving work from a client after a “low” appraisal is submitted. The internal emails from Yadkin provide a rare, behind-the-scenes record of what actually happens when a lender is unhappy enough with a missed value to retaliate against the appraiser.
In legal briefs filed as part of discovery, StreetLinks does not address the removal of McSwain from Yadkin’s approved list, but admits that McSwain was placed on Yadkin’s exclusionary list in January 2013 and that StreetLinks did not notify McSwain that he was placed on any exclusionary list.
McSwain’s suit alleges that StreetLinks’ failure to notify him of his removal from “its list of qualified appraisers” is against both North Carolina AMC regulations, as well as rules adopted by the North Carolina Appraisal Board, which indicate that AMCs are prohibited from influencing a real estate appraisal by “allowing the removal of a real estate appraiser from a list of qualified appraisers used by any entity without prior written notice to the appraiser” (N.C. Gen. Stat. 93E-2-7 and 21 N.C. Admin Code 57D.0311a). In its discovery answers, StreetLinks expressly denies any obligation to notify appraisers that they are being placed on a lender’s exclusionary list and admits that StreetLinks “has not notified any appraiser that he/she was placed on a lender’s exclusionary list in North Carolina.
It also appears that Yadkin gave StreetLinks instructions to NOT place McSwain on the exclusionary list, but instead to simply remove him from the approved list. However, as part of the discovery process, StreetLinks actually submitted Yadkin’s exclusionary list and it appears that Michael McSwain is on the list.
Regulators Silent
The case remains ongoing in the Gaston County Superior Court and McSwain continues to seek damages from both Yadkin and StreetLinks. It remains to be seen if and when state and federal regulators will become involved in the case. Dodd-Frank defines a violation of appraiser independence as any instance where “A person with an interest in the underlying transaction…attempts to compensate, coerce, extort, collude, instruct, induce, bribe, or intimidate such a person, for the purpose of causing the appraised value assigned, under the appraisal, to the property to be based on any factor other than the independent judgment of the appraiser.”
StreetLinks’ discovery responses seem to provide supporting evidence for McSwain’s contention that he was placed on Yadkin’s Exclusionary List shortly after a Yadkin branch manager referred to him as a BUTCHER and blamed him for two failed deals. According to the suit, Yadkin did not review McSwain’s appraisals for errors or poor judgment and no complaint was ever filed against McSwain for bad appraisal work, nor was McSwain ever notified that he was being removed from an approved list or placed on an exclusionary list. Instead, Yadkin hired other appraisers who submitted appraisals that allowed the two deals to close.
Many appraisers see this case as a clear violation of appraiser independence but so far no state or federal regulators have shown interest in the case. Dodd-Frank mandates a penalty of up to $10,000 per day that the loan exists, so if this case is ever pursued by federal regulators, StreetLinks and Yadkin may each face fines in the millions, since the loans in question were funded in February and March of 2013.
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Appraisers are blacklisted every day. I told a buyer and seller,they needed to finish installing the AC.and have it running…per FHA guidelines. When I refused to change the appraisal to “as is” to close and made it Subject to….. I was bullied, and blackballed. So…. what else is new….
I am a 37 year experienced appraiser and work with few AMC’s. However I take issue with this article as I have never experienced a negative with Streelinks Lender Solutions. The technology used by SL is superior, by far, to any other AMC. The teams QX Liaison or QX Support are well trained and highly professional. Yes they seek out and have developed a team (list) of appraisers across the country and yes there are metrics you must stay within. But if you are doing your research, complying with USPAP and protecting the public then you will not have a problem. Streelinks is fair with fees and turn times. Bottom line: If you cannot comply with the Engagement letter and Client Specifics “DON’T ACCEPT THE ORDER?’ I am personally sick and tired of the whining that continues. The industry has changed deal with it and do your job. I could tear 80% of the reviews I do apart for lack of overall research. Abstraction, Extraction comments are laughable and not supportive. But hey that is acceptable by Fannie Mae until it is not. No I am not a Streetlinks employee I am a Certified Appraiser who enjoys not having to talk to Underwriters, Loan Officers or Real Estate agents and willing to give up a portion of my fee for that convenience. I also respect myself and my long career so I say “Shut up and do your job correctly then the problem will be solved.” Enjoy you day.
oh, i beg to differ. i dumped Streetlinks LS two years ago, and another appraiser friend of mine finally had enough of them this year, and dumped them too. Doing appraisals for 16 years, doing all the research possible, writing two addendum pages full of verbage and explanations, still wasnt enough for them. The constant multiple revision requests over the most insane details, drug out over several weeks, was finally my breaking point. putting up with that nonsense made no sense when there are plenty of AMC’s out there that dont constantly put their appraisers through the wringer like that. i dont miss them one bit. Streetlinks LS was one of the worst AMC’s i have ever dealt with, and dumping them was one of the best moves i EVER made.
I shared the same experience with Street Links Bubba. Once upon a time they were a fantastic company to work with. They paid well, they would listen to your responses and take note, and they paid quickly. Everything changed over a period of 2 years. Their constant demands stressed my office manager out so badly she had to be admitted into the hospital. They (Street Links) were fired the same week. Life is too short to endure such stress on a regular basis.
Interesting.
I’m with Bubba Jay and Retired Appraiser. I dumped SL last year. They were the worst. They pressured you to “reconsider” the value if it wasn’t what the lender wanted. The down right stupid and long list of revisions were enough to drive one to the nut house. I do my research and due diligence, I explain, explain, explain everything. I DO MY JOB. In my opinion AMCs are just an extension of the lender, loan production staff, under writers. I haven’t seen much change since HVCC then Dodd/Frank.
You lost me at giving up a portion of your fee for that convenience. You should not have to pay, so that others do their jobs correctly. IAll grading aside, you know if you raised your fee to competitive levels same as if an amc is not present, all that illusionary grading matrix would not mean anything. Raise your fee to the same level as you can acquire in the absence of an amc, say; the same fees as the VA pays. If Street Links still hires you, you’re right. If not…. Illusionary grading for pretend employees. Just because you personally have never experienced a similar issue as this article represents, does not make it categorically untrue. You’re playing advocate.
I am a new certified appraiser. 2 yrs as a certified. Due to the rules with amc’s I cannot get work. I feel black listed myself. Could sure use some advice on how to attain work.
The best advice that someone could give you with regard to the appraisal industry is NOT advice that you will even consider. I remember all to well the excitement of FINALLY getting my foot in the door of the appraisal business. My advice is to accept the fact that you planted the seed for your appraisal career on top of mountain that turned out to be a Mount St. Helen (there is no way that you could have known).
Count your lucky stars that you aren’t ask deep in the appraisal business and counting on it for your livelihood. I know it’s frustrating but it’s not worth your time, money, and frustration to even pursue this as a part time career. I recommend spending a few hundred dollars more and pursuing home inspection if you love houses. The pay is similar, it requires 50 to 70 percent less time per order, and you can still collect your pay at the door. If you don’t like the idea of home inspection, consider Adobe’s Creative Cloud and get creative. You can earn a genuine living with it for a measly $600 per year. It requires no E & O insurance, no continuing education fees, no gas costs, no crazy MLS fees, no kickbacks of $1,000 to $4,000 each month to AMCs for orders, no crazy software fees like Alamode to enter the business, no pulling your hair out from AMCs calling you 3 times per day for a week over something you turned in 5 days ago, and no multimillion dollar liability if you screw up something.
With Adobe you can design everything to webpages, to magazines, to DVDs…all without leaving your home office. If you go with an online magazine (see xflip.com or flipstyle.com) or a video you can design it once and sell countless copies of your work. I don’t konw about you but the thought of creating something once and selling thousands of copies of it appeals to me. Try doing THAT with a real estate appraisal.
Like I said, consider yourself lucky that you haven’t been able to break into this business. Best wishes to you with whatever you decide to do.
Here is another idea I wanted to throw out to appraisers who may have a few contacts or the ability to raise a little money for a business startup. Start a Title Company. I came very close to buying one out in 2006 to diversify and eventually pull me out of appraising completely. Starting one from scratch is not an easy process because nobody wants to show you how it’s done (beware of those online scam sites too). If you live in a decent sized market (100,000 or more) and you have a few contacts who are Realtors or lenders you can come out smelling like a rose. The company that we were considering buying was once doing 60-80 closings per month before the manager bankrupted them. That was with an average fee of $800 to $1,200 per closing. I learned a lesson quickly (thankfully) by doing my research and talking to quite a few people in the industry upfront. NEVER buy an existing Title Company due to past liability issues that could bite you on the ask in the future. Either start it on your own or partner with someone. Just be forewarned that partnerships increase your odds of going out of business astronomically.
I see four businesses that are logical career paths for appraisers who want out. Rehabs, home inspection, brokerage, and running a title company. Of the four you are likely to make far more money in a title company than all others (unless you are a MASTER salesman).
Simply a thought worth considering for those of you who dream of getting out of this racket.
Thank you for being honest retired appraiser. I work full time for a company completing appraisals. I guess I just expected to plant my seed on a flat surface after the mountain I have already climbed. Sixteen years ago I started out as a secretary for the same appraisal company. I have worked, just as most others have, to get to where I am today. I am good at what I do. I work hard. I just want a fair chance but I’m being blocked at every turn it seems. I want to break out on my own. I have earned it. What I really would like would some ideas about how others that were in my position broke through this wall of steal.
Breaking out was an incredibly tough job even back in my day. Your mentors begin to hate you if they learn that you’ve been talking to their clients. Back in my day we didn’t even have AMCs to reach out to. You may have a shot with them today if you can promise them ultra cheap appraisals and quick turnaround but you’ll burn out quick working for AMCs only. I cannot imagine in my wildest dreams going into the business on my own with the requirements that have been piled on since 2009. Your liability today is at least 20 times greater with everyone and their grandma out to crucify an appraiser.
In my opinion it was the greatest career in the world for many years. That’s simply not the case today and I only expect things to get worse for appraisers. You’ve paid a price that defies imagination to get where you want to go. It’s like you’ve walked from New York City to the Grand Canyon only to find out that they closed it down. I try to be a realist about this because I’ve had six years to study it from outside the castle wall. If I were in your shoes there is no way that I could be a realist about it because I would have put in too much time and effort to achieve my dream.
At one time I would recommend that you advertise on websites like AppraiserUSA.com In 2006 I bought up the top ranked listings in my state in 30+ counties plus 1-3 rankings in several other counties. I also purchased the top ranked sites on several other sites as well (appraisers.com, etc.). We churned a ton of business with internet advertising alone until around 2009. The advertising became pointless after that. You can try a free listing on AppraiserUSA.com and see how it goes. It’s still the top searched appraiser site on the web.
Best of luck. Hopefully you can achieve your dream with minimal effort.
Get better. Sell the service correctly. Always be ethical. Your reports will be passed through a variety of channels you’ll never know about, and that will either make or break your over all approval standing. You’re only as good as your last appraisal, so keep completing what work you can, when you can, and eventually you’ll get more widespread approval. Until such time as you actually claim sole proprietor, you’ll never know if you could actually make a run of it. Total startup is only 3 or 4 grand at most. It’s the daily grind and necessary long term marketing approaches that sends most appraisers packing, or back to those comfy supportive firm environments or supportive positions. You’re not facing a wall of steel. You’re facing a personal fear of being completely in charge of your own destiny. Embrace liberty, or get back in line like the rest of them. Don’t expect anything nice out of this industry when you’re a sole proprietor, except the reassurance that nobody is in charge of you and your personal destiny, except yourself. Rule number one is you can no longer live check to check like a regular employee, and instead need to have a longer term financial management plan in place. There will be busy periods, and then there will be dry spells. Most would be appraisers don’t really understand the reality of striking out on their own, and they ultimately get crushed. If you don’t know how to be super thrifty, manage money well, stay out of debt, and be honest regardless of the circumstances you’re confronted with, choosing an appraiser career will do you more harm than good. You put everything on the line as an appraiser; your health, your equity, your insurance benefits, your income, everything. Make it or break it. Knock, and the doors shall be opened.
Robin, look for Vivian George in Las Vegas. May or may not still be DBA “Valorem”. Her background is not dissimilar to your own. Outstandingly nice and helpful person / appraiser. Its ok to tell her I referred you. IF you cant find her on your own send me your email address and I ‘ll ask her for permission to give you her number or email address.
Robin
After spending 6 months trying to get appraisal work out of banks I turned to mortgage brokers first. When a friend of mine went from selling cars to becoming a mortgage broker I visited his office every day. I eventually became a fixture in the office and was doing precomps for everyone in the office. Eventually they all began to trust me with my opinion. Many used me for precomps and ordered from others but that was the price I had to pay to get started. I then started asking those guys to refer me to others. I took donuts to offices and introduced myself around to every broker that I met.
From the beginning I churned out reports that would put a legal firms documents to shame; elegant covers and binders, linen letterhead and business cards with raised ink, etc. (Digital document delivery ruined that advantage by the way). For years I gave out dinner certificates to bankers and mortgage brokers who took a chance on me as a thank you gift. I later obtained referral work with a prominent bank through a Title Company by offering them a small referral fees. As time went on we obtained a Class A phone number (252-1000) and paid a little extra to use a nice business address for my mail downtown ($50), before launching a website. Chance meetings later led to opportunities with other banks. After a number of years we worked mostly for banks but I found that they paid less and were more difficult to collect from. When two of banking clients were forced to rotate among appraisers I turned to the internet to make up for the loss rather than pursue any more bank work (see above comment). It worked beyond my wildest dreams for several years. We received so many orders from the internet that we were turning away 9 out of every 10 orders. HVCC killed that golden goose overnight.
You’re in a predicament. Banks won’t touch you, mortgage companies can’t touch you, and AMC will rape you plus grind you to a pulp. None of these techniques will work today including the internet. If you make it today it will be based on contacts that you have within a bank…and I’m not talking about tellers. You are far better off financially doing AMC work through another appraiser than you are doing them on your own.
Do you play golf with bankers?
Do you attend social functions with bankers?
Do you network with bankers through business clubs?
If you are truly determined to commit suicide over a five year period these may be the only options you have. The techniques that I used are now illegal or a senseless waste of time.
Per article thread; This is why rotational assignment policies are not just preferable, they are necessary. In the real world, outside of the illusionary umbrella of governmental control, appraisers are routinely benched, disregarded, removed from panels, and blacklisted for any reason necessary for mortgage production to continue full speed. A great solution to this is a truly rotational assignment scenario or round robin assignment, coupled with well vetted appraisers whom the assignment company or person is loyal to, for their professional services. Underwriters should be able to have an influence on appraiser selection, but commission based originators and inexperienced amc assignment reps should not. It’s up to the lender to run a tight ship, always has been. The use of an amc cannot save them from themselves.
Baggins: Thank you for some great advice. Watching the way my bosses business has run I quickly learned that financially it is a balancing act. You are an appraiser for the love of the work not to make it big. I don’t ever recall meeting a wealthy appraiser. Since writing on this blog I had a tantrum…regained my composure…sent a well written email to a Amc and have gotten 2 jobs. Danced!!! That’s all I ask is the opportunity for them to see my work. I haven’t received any clarifications yet. ???? I think what the amc’s need to know is that although we are “newbies” we have actually been practicing. Perfecting. We are hungry for knowledge and right now it’s not my job it’s my passion. They may have a few that should not be doing this job but grouping all into one really isn’t fair. I just want a chance. 1 opportunity to show them my work. It will speak for itself. I want to do this…I have worked very hard and alota $$ to not become rich.
Sure, that’s good. Remember though, you are in this business to make money. It is why you go through all this hassle and reading and education, is to make money and run a successful small business. It is not the appraisers responsibility to save someone else a dollar, or a day. The appraiser is not the last stop for cost savings. Line them up, knock them down. Treat them nice when they’re professional with you. Never cross the line. 10 years later, you can jump to legal or probate. Repeat. 10 years later, repeat again. In the larger picture, any single appraiser has no less than 1,000 or more potential clients out there, somewhere, in some varied line of work. Never settle for less. When clients treat me as replaceable, I remind them through absence, that they are also replaceable. There is no greater objection than absence. This particular article is about something different though, where the lender and agents clearly crossed the line. Normally they’re smarter than that and don’t actually leave a paper trail. But the content of this article thread happens every day of the week, so don’t have any illusions about this industry being friendly or fair because it is not friendly or fair by almost all standards of judgement. So go ahead, and push the fee and make some money. If they could have gotten appraisal licenses and kept up with this industry, they would have.
All good advice for Robin. Be honest, conscientious, competent and persistent. Also go online or buy a list of AMCS; look them up and do background checks on them (internet). Keep in mid some bad ratings will be from bad appraisers, or the AMCs own competitors.
On the article thread- We need to legally recognize that removal from an approved list; being turned down for placement on one, and / or blacklisting are all the same thing, parsed differently to side step regulatory constraints. End result is that the a licensed appraiser cannot work.
I disagree with Baggins about rotations. I prefer merit scoring if it comes down to that, but I have to admit both have pros and cons. I also agree that some level of QC input from the ‘real client’ is reasonable and rational. We are NOT all the same, and expertise should be able to be recognized and rewarded with more work. Perhaps the solution is the underwriter review as suggested by Baggins. Seems to make sense-thought hat also has its own pitfalls.
Maybe we need to reconsider field reviews as well. At one point FIRREA, or an early draft of it called for 10% of all appraisals to be field reviewed. Lenders screamed about costs and delays. Consumers were getting stuck for the fees. Instead, we got second and third tier quality alternatives such as 704 and 2055 drive bys. Like the field review they purported to include most of the same criteria as a review at far less cost (THAT should have been the give away right there). Easily processed superficial secondary analyses do NOT include the depth of research or analysis that a field review does where the reviewing appraiser KNOWS without a doubt there will be a rebuttal; and quite possibly a complaint to the state regulators.
One thing is certain, when one of every ten reports IS field reviewed and the appraiser KNOWS 10% of their work will be closely scrutinized, the instances of non compliant, poor quality work declines drastically. Back when reviews were common, I used to find 15% to 30%+- appraisals were sub par. Maybe 15% to 20% egregiously so (missed values or other very significant factors affecting value and marketability). When I review them today (for QC mainly) I note about 10% fail basic QC (signed; include correct addresses, right description of interest appraised, etc.). My scope does NOT PERMIT in depth review commenting on adjustments, comments or other peculiar omissions of “obvious questions” raised by facts within the reports themselves. IF that scope were broadened, I suspect the seriously deficient rate would climb to 50% to 75% (though still more reliable than AVMs generally).
Last item- When a doctor, attorney or CPA makes a mistake; even serious ones, they are not generally punished for human error. It has to be a really serious ethics breach or extremely rare gross negligence issue before action is taken. Then, the penalty is usually remedial unless its an honesty issue. We are different. Make ONE MISTAKE, and an overzealous regulator can take your license and livelihood away. We need to encourage EDUCATION over punishment for relatively minor errors…even when a value conclusion is affected.
(OK, those that know my posts-you KNEW this was coming!) Join the American Guild of Appraisers (AGA) http://www.appraisersguild.org We are starting to have an impact! Several minor successes in very recent months that I personally am aware of. We can do MUCH more, but we need your support. Even Bubba Jays and Retired Appraisers. Perhaps especially you folks. Baggins? Robin?
i think we finally disagree on something Mike. your merit scoring comment is dangerous and i can tell you why.
what i like about rotations is that it shows no favoritism. you get approved, you are on the list, and everyone gets the same piece of the pie. it also shows no favoritism on the anyones behalf for the appraiser who hits the number all time or the appraiser who doesnt.
the problem with the rating system as i see it is – if there is an appraiser who always comes in low for example, the rating system could be used against that appraiser because of that issue. now, we can argue that the rating system wont be used in that way, but i will guarantee you that behind closed doors it could and probably does today.
the system should be pure rotational, and if they dont like an appraiser, then they should get rid of him, BUT he deserves explanation. there are AMC’s and banks i dont get work from anymore. i have no idea why, but i sure the heck cant learn anything unless someone tells me why. i am an honest appraiser and i am a fair appraiser. was i always coming in too low? was i always coming in too high? have i been blacklisted for some reason? i have no clue, and it shouldnt be that way. for any of us. i strongly agree, encourage education and not punishment.
the bleeding continues . . . . .
Hi Bubba, Wouldn’t it be a dull world if we all felt exactly alike, all the time? You raise valid points…
I guess I am really still struggling with the unavoidable concept of AMCs still, in the first place. Rotational assignments could work as well as anything else, but they’d have the same opportunities for bias that you and I’d never know about.
Even if mandated by regulation, the ‘loophole exceptions’ for distance; turn time etc., etc. would still be so big that if an AMC had a client who told them “This guy has killed four deals in arrow, don’t send him anymore” you’d never know it.
Besides, most trying to circumvent you aren’t even that honest. They’d just make something up about the appraiser being rude, uncooperative, etc.. Last one I had referred to me was out of New Jersey. Homeowner estimate about $100k above appraisal which in turn was only about 25K less than banks owns “guesstimate”. Bank reportedly verbally notified appraiser that owner said he was being discriminated against by the appraiser because he is a [religion deleted] and has an upside down [Icon deleted] on the wall! Even though the entire meeting between owner and appraiser was reported to have been very cordial, with owner even holding an umbrella for the appraiser in the rain!
How can any of us deal with thinking like that? Rotations, merit or as I like to call it just plain old fashioned competency and professionalism aren’t enough if AMC clients are so heavy handed as to think its the appraisers fault when a deal dies, and that by quiet-listing; black listing or refusal-listing they can change that. Lenders are killing themselves as well. Buy backs are being enforced now days.
Personally, I think with the vaunted new CU system, that ALL the past HVCC dictated separation between us and loan production isn’t even needed anymore. They are prohibited from influencing us by law, right? So why keep AMCs? Because they are CHEAPER for banks, mortgage banks and other lenders to operate than having their own appraisal departments!
CU is a “wonder-cure” for FNMA to catch all the high risk (bad) appraisals, therefore why even bother with the alienating separation between brokers and appraisers?
I USED to be able to honestly ask them “Why do you think its worth “x” dollars? Is everything permitted? Do YOU or the agents involved have any comparable data that you wish to have considered when I come out to inspect the property? To avoid delay, can you bring a copy of the contract or escrow instructions with you? The lender did not forward them. “Oh! You mean to tell me there IS a 1,200 SF PERMITTED addition and completely new near rebuild in the last three months that is not shown in public records? Thank you!” All my preliminary data was for smaller, 60 year old houses. That really saved a lot of wasted time. Don’t you miss the days when we actually communicated with principals or the agents involved in transactions?
Why even bother having a data source of verification source in the sales grid if they don’t trust us to talk to people without knowing how to avoid being “unduly influenced”? We ALL learned how to say “no” long ago. That or nothing.
Bottom line? Rotations or otherwise; any system that is not honestly and fairly applied has “heightened collateral risk” associated with the appraisal process.
Not really sure of the specific answer to the problem.
Except the blacklisting or refusal to add listings -JOIN AGA! (*G) http://www.appraisersguild.org
We are fighting that every week. Got a few good things in the works right now. Specifically thinking about over charging appraisers for really minor “offences”. Attorneys can make errors. Doctors can kill people, Accountants can lose your inheritance, Tax advisors can leave you liable for millions of debt yet it is APPRAISERS that have to get hung out to dry???
Will post more as soon as I’m given ok to.
Also, Planning to attend TAF meeting in Redondo Beach, CA 6/26/15. Anyone else going? If so, look for the fat old guy with a constant scowl and say hi! Seriously, I only LOOK grumpy.
oh, and your “Last item” comment Mike – dead on. the original purpose of the whole regulatory system the way i understand it, was to go after fraud and serious bigger issues. i had a bad feeling many years ago that as we saw the serious issues dwindle way down and the need grew to justify peoples existence, that the focus would then start moving in the direction of minor things, and i think that is what we are starting to see now. anyone besides me hearing rumors about prosecution quotas? well, there is only one way to accomplish that.
prosecuting appraisers for fraud and serious offences i can completely understand, but i know attempts that have been made to prosecute/fine and ruin the livelihood of appraisers and their families, because of differing opinions over minor issues and/or lack of a simple comment or two. i can tell you that it does happen, its scary, its ridiculous, and it is a partly to blame for what is driving our people away. and until it stops . . . . .
the bleeding continues . . . . .
Robin, There’s a guy named (Brian Knowlton Google him for his appraisers blog) who compiles a best AMC list book. He advertises through a magazine pub via Alamode software. One of his mentor associates gives a free online webinar I watched on how to get more non-lender work. ALL THE TIPS and TRICKS used on your webpage to get ranked on the top ot the Google search list no matter who’s pages are out there in your area. It includes things like get Ecard photos of your biz clients on your mobile, start pre scheduled mailer campaigns thanking the client, or marketing the CPA, Use creative funny marketing postcards people will keep, use video testimonial from your happy clients post it on your site, post a google map and a short video on your site, use google webmaster tools and reviews and so much more to receive the highest ranking possible so people find your page. He even builds proven websites for people with all that built in and shows how It works with others he’s done. Non lender work is key to staying busy and maintaining your sanity in this business.
In states which regulate amc’s, the list of state approved amc’s is available online as a public data resource, at your states regulatory website. You don’t have to pay for that. Appraiser populace is not keeping up with demand, and you’d better be ready for that volume if you move forward with that kind of web exposure.