Appraisers Pressured to Inflate Values Based on Race

Baggins says:

Obviously needs a rewrite to catch up to the modern day events, the end was problem resolution specific for that specific point in time.

Yeah, round robin rotational. This was how nearly the entire industry worked pre amc management debacle.

1. Appraisers applied to be on lenders panel. If they was need they were added, if not, set on a waiting list.

2. Lenders distributed fairly among all panel appraisers. If you were good enough to be on the lenders panel, you were guaranteed a fair share of work. The sooner you got an order turned in, the faster you got back in line for the next one. There was no discriminatory effect like there is now, 24 hour turn time expectations which elderly and disabled appraisers are unable to accommodate. There was flexibility for life, and sometimes appraisers worked harder for more volume, other times they had that allowance to run out to due dates and there was no performance grading or cart and carrot routine which penalized appraisers for taking time to form reliable reports.

3. Lenders every few years would survey appraisers for their fees, and the fees indicated by the majority of appraisers, became the standard compensation all panel appraisers enjoyed. Lenders surveyed with true free market principals in an honest manner, to identify the most common fees all appraisers would accept. Appraisers whom entered lower figures got a raise, and appraisers whom entered higher figures had to take it or leave it. This was the ‘peer standard’ for appraisal fees.

4. Appraisal management companies came in requesting fee surveys which appraisers were familiar with filling out. And like the dirty slimy predatory bastards whom were attracted to free ride amc management companies, immediately assigned the lions share of all orders to the absolutely lowest priced appraiser, cut every other appraiser out except for challenging work, continued to charge consumers full fees, and pocketed the difference. Engaging in concerted restraint of trade and racketeering for the past decade and a half if not more. The volume discount theory no longer applied, because although appraisers discounted service fees for increased volume, consumers never saved a single dime anymore from the appraisers reduced fees. Therefore; appraisers whom discounted for amc’s were enticed to bribe the amc company for more work, via providing a lower fee, then accepting a thing of value in the form of unfair work load distribution to be the preferred selectee in violation of the management rule in the appraisers uniform standards of professional practice ethics book. The amc industry simply overlooked federal registry guidance that appraisers are supposed to be selected on merit and qualification, not fee. Additionally this allowed a new type and new level of pressure applied to appraisers never before seen, pressure to produce reports faster cheaper and quicker. Appraisers whom failed to comply were graded by the amc’s as being poor performers and further de prioritized from fair work load distribution. Prior to these events, lenders would pay rush fees to appraisers for anything under a week. Standard turn times were 4-6 weeks prior to the amc industry. Fees to this day have still not recovered to pre amc levels for most appraisers. Amc’s utilized appraisers submitted lender references to poach 85% of all lending work in this country, falsely selling fear to lenders that utilizing an amc was the only avenue of updated regulatory compliance. The amc’s then to this day continue to secretly trade do not use lists and black lists which due to consolidation and compartmentalization, appraisers are no longer aware of. Instead of mutual accountability; a licensed appraiser dealing with a licensed mortgage banker, instead licensed appraiser held under thumb subject to the whims of unregulated persons without individual licensing, at appraisal management companies. Predatory lending never went away, only shifted it’s methods to fee raking and pilfering the appraisal community as retribution for appraisers having played a key role in redirecting accountability for the 2008 meltdown back to predatory lenders. Appraiser Independence! Who wants to help the poor?