Appraisers Are Ghosting AMCs?
From The Chrisman Commentary (Rob is a mortgage broker but an essential source of information on the mortgage industry). You can subscribe here.
From Appraisals are near the top of any list of current lender and borrower complaints about the processing of mortgages.
This week I received this note from Mike Simmons, Co-President of AXIS AMC. “I’ve heard of something overhanging the appraisal industry. Namely, that appraisers are ghosting (abandoning) orders and are beyond accountability. Part of my responsibility at AXIS Appraisal Management Solutions is to attend lender conferences and talk about the appraisal industry, and addressing difficult topics centered around our industry. Despite the enjoyment of being together again in person, this year the energy at all the conferences felt more negative than usual. The voices were louder, and different. Not so much over new issues, because the issues really aren’t new, but there’s more anger now. And some of us in our industry share that frustration…
“I want to clarify something: while the issue causing most of the heartburn only involves a small percentage of appraisers, it’s spreading and eroding the public’s trust in all appraisers. The goal is to find ways to change the behavior of those few outliers that are causing all the noise.
“What some Regulators didn’t recognize, is that telling an AMC that it’s their choice not to engage an appraiser who has abandoned an order, or failed to deliver a report anywhere near an agreed upon timeline and without explanation, doesn’t constitute a solution. That policy will have no impact on that same appraiser getting orders from any of 100, or 200, or 300 other AMCs in that State and repeating that same behavior. Ok, so what. The ‘what’ is that failing to meet a contractual deadline, in a worst case, can cause a borrower (and Real Estate Agent & Mortgage Lender) to lose a purchase transaction.
I find it interesting that many AMCs are complaining about appraisers disappearing from assignments. They need to revisit their business relationship with appraisers. In my own observations, they often take a week to call around to get the lowest bid. What kind of business relationship does that establish with the appraiser?
- Appraisal Reviews for $3 – The Devaluation of Appraisers - January 16, 2024
- FNMA Continued Effort to Get Rid of Appraisers - September 29, 2023
- Beware of Bifurcated Appraisals - August 4, 2023