Comments on: What Should an Appraiser Do?

By: Baggins

Baggins — Wed, 27 May 2015 22:13:25 +0000

Close but no cigar. Keep on reading. The lenders have been officially notified via various FNMA and registry notices, that they are ultimately responsible for all of the decisions they make regarding lending decisions. That includes appraiser selection. Utilizing an amc does not absolve the lender of their responsibilities regarding due process and proper quality verification. So you’re close but no cigar. Lenders are liable, but they continue to select unscrupulous middle managers. Why that’s happening should be your main focus. One might presume it has something to do with being backed by the taxpayer…

By: Mike Ford, CA AG, SCREA, AGA, GAA, RAA

Mike Ford, CA AG, SCREA, AGA, GAA, RAA — Sun, 17 May 2015 01:35:54 +0000

Baggins and Bubba jay are 100% correct. DO NOT SIGN APPRAISAL INDEMNITY AGREEMENTS. PERIOD!

I also agree with Baggins re insurance E&O. I used to refuse them until a friend I WANETED to work for required it. I’ve since stopped putting it in.

Placing E&O with a million or two million dollar coverage ceiling in a report is an invitation for someone looking for deep pockets to sue us!

All of us need to insert language (as further limiting conditions) in our text that “notwithstanding the content of any boilerplate service agreements or engagement ‘letters’ transmitted after assignments have already been agreed to or accepted; or pre-printed appraisal form sections seeking to extend appraisal liability shall not be binding on the signing appraiser. The appraiser is not obligated to third parties not specifically named herein for any purpose; nor shall the appraiser be obligated to indemnify any party relying on this appraisal for any purpose. Management companies are agents for the client. The appraiser will not indemnify them for any purpose. Use of this appraisal report for any purpose constitutes acceptance of this/these condition(s).

The numbers of appraisers are declining. We are approaching a point where we can resist unfair treatment.

By: Appraisermorons

Appraisermorons — Fri, 15 May 2015 02:09:19 +0000

The states can change that. If the AMCs were held liable for the product they provide their customers maybe they wouldn’t pick the cheapest appraiser anymore.

By: bubba jay

bubba jay — Fri, 15 May 2015 01:20:35 +0000

i wont sign any agreement that opens me up to more liability, but some appraisers do, and i am guessing its because they are fairly new and naive. being extorted to sign such an agreement only destroys this profession even further, and is another reason why many appraisers have gotten fed up with all the BS and are getting out. unfortunately, nobody cares, and thats why . . . . .

the bleeding continues . . . . .

By: Baggins

Baggins — Thu, 14 May 2015 17:03:27 +0000

Great article. As this issue relates to matters of legal engagement under the regulatory umbrella of the state, I think there should be a set of ready made or acceptable forms to select from, just like what happens with realty approved contract forms. Insurers and state regulators need to jump on in the deep end of this issue, and put forth acceptable examples or ready made forms. Sometimes I feel like the only appraiser left who refuses to include a copy of my EO insurance document into every report. My insurance does not even remotely assist a borrower or an amc, so I think it’s a misleading report action to include that document within the report itself. Amc’s are officially running ‘right out of the box’, like ready made franchise businesses for purchase. You can always spot the ones who don’t understand their position well, by their over reaching engagements, requirements for EO within the report, and improper indemnity agreements. CO has a rule against such activity.
You can read it here: https://legiscan.com/CO/text/HB1110/id/643699 /That would be page 12, section B (pg 13 if you click the pdf page number).