The implosion of the real estate bubble reverberated across the American landscape. Neither residential nor commercial markets were spared. This implosion not only had a very palpable effect on the economy, but on the political debate of this nation as well. That political debate—as it seems is often the case—has turned to finger-pointing. Those fingers have now curled up into a fist, and that fist is now knocking on the doors of appraisers across the country. In the aftermath of the economic downturn, many banks were taken over by the Federal Deposit Insurance Corporation (FDIC) after their balance sheets dived...
AMC should learn from the way the Veterans Administration treats their appraisers Let us begin with the obvious – the Veterans Administration (VA) is not an Appraisal Management Company (AMC). They are a non-profit, government entity that works under different rules, so making a direct comparison between the two is not entirely fair. However, there are some things I think every AMC should learn from the way the Veterans Adminstration treats their appraisers. Personally, I have been trying to get on the VA’s appraisal panel for over 6 years. They are a tough nut to crack. After much persistence, however,...
ESA Bankruptcy, Is Chase to Blame or a Victim? I find myself offering thoughts about many strange and unusual situations involving appraiser E&O and risk management in general, but today may be the strangest subject of all – why it appears Chase did nothing wrong in the ESA bankruptcy case. Don’t misunderstand this as meaning I like Chase in the slightest. I strongly disapprove of what Chase has done and continues to do to appraisers using blacklisting, strong-arming, and filing state licensing complaints to force its will on the appraisal profession. I find much of what Chase has done as...
Keeping a current appraisal customer (AMC, local bank, lawyer, real estate agent, etc.) should be a higher priority to you than digging up new ones. What are you doing to keep your current customers? Are you reaching out and ‘touching’ them often?
As a direct result of the recent financial failure of appraisal management companies like Evaluation Solutions and ES Appraisal, the State of Washington recently enacted a new law raising the state’s AMC bond requirement from $25,000 to $100,000. As of July 28, 2013, all AMCs registered in Washington will be required to carry a bond in the new amount. One of the purposes of the bond is to provide security for payments owed to appraisers by AMCs. If an AMC fails to pay an appraiser in accordance with Washington’s requirements, the appraiser then may have a claim against the AMC’s bond....
Overtime Lawsuits Continue to Spread Among Valuation-Related Companies — Interthinx Becomes the Latest Defendant First it was Integrated Asset Services. In February, I wrote here about three employee overtime class actions affecting the Colorado AMC filed on behalf of “timeline managers,” “valuation managers” and “quality reviewers.” Then it was LandSafe Appraisal. In April, I wrote an article about a newly filed overtime lawsuit by staff appraisers against that company. There is definitely now a small wave of overtime litigation unde the federal Fair Labor Standards Act (FLSA) affecting businesses in valuation-related fields. The industry has become an easy target for...
In April of 2013, Fannie Mae released its updated Selling Guide. “Appraiser Independence Requirements” and “Appraiser Selection” sections were updated…
If you were affected by the bankruptcy of ES Appraisal Solutions then this is a must for you. JP Morgan Chase is filing a request for entry of Bar order with the Florida Courts. What this means is that JP Morgan Chase is trying to settle for $2,316,000. They then would not be liable for any other lawsuits or claims against them in the future regarding any appraisals or BPOs completed. Which means we will NEVER see a dime from the money owed to us. The deadline to file this objection of the bar is
It has come to my attention that the attached settlement is being proposed to the BR Trustee in the ES Appraisal case and thought that it was important that the information be passed along to whomever might need it since many of our members have been affected. Please forward to whomever you believe might be owed fees in this case. I would recommend that anyone do their own research on this as I am only passing along information that was given to me third hand. It is the belief of others that this agreement will forgo millions of dollars in...
A common complaint among REALTORS® in virtually all of Michigan is that many residential deals are failing because the home will not appraise at a value that permits the buyers to finance the purchase and close on the home. Many REALTORS® take the position that many of these properties do not appraise because the appraiser is not “geographically competent.” In other words, the appraiser is from out-of-town, unacquainted with the area in which the appraised property is located; thus, fails to learn or uncover various factors that would substantially change the valuation of the property. The question is then posed...
