Category: Appraisal Management Companies

Valuation Support Services (VSS) Appraiser Panel Agreement 2

Valuation Support Services (VSS) Appraiser Panel Agreement

Appraiser will indemnify and hold harmless VSS… Frank Gregoire, with Appraiser Active Blog, added a post yesterday about AMC Appraiser Indemnification. Valuation Support Services (VSS) Standards & Approval Documentation Requirements and their Appraiser Panel Agreement can be accessed in Frank’s post here. Here’s a snippet below: Page 4: Conviction of Crimes: VSS is unable to enter into associations with individuals, who have been convicted of or plead guilty to any crime involving dishonesty or breach of trust, or have been convicted of or plead guilty to any felony or misdemeanor. Appraiser warrants he/she has truthfully and accurately answered the “Additional...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Indemnification Clauses

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FDIC Suffers Setback Against LSI

The FDIC Suffers a Setback in Case Against Lender Processing Services and LSI Appraisal As reported in prior posts, the FDIC, as receiver for failed lender Washington Mutual, sued appraisal management company LSI Appraisal and its corporate parent Lender Processing Services for breach of contract and gross negligence on May 9, 2011 (see post here), and on July 22, LSI and LPS filed a motion to dismiss. In that motion, LSI argued that the FDIC’s gross negligence claim should be dimissed based on the economic loss rule, that the FDIC’s alter ego claims against LSI’s affiliated corporate entities (including LPS)...

Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / FDIC / Lender Processing Services

Interior photos picture this 0

Picture This…Or Not

Maybe you should ask the homeowner if it would be alright to take the picture at all. When a consumer calls the department in a rage and wants to know “what law says that an appraiser can take pictures inside of my house?”, Houston, we have a problem. Actually, not Houston…and not the department. You, the appraiser and the client who ordered it have the problem because we will make it your problem. Law? There is no law for interior photos. There are guidelines and stipulations cloaked as requirements. That’s it. But, we do have privacy laws, don’t we? Clients,...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisers News

Could New Surety Bond Laws Really Curb Problems with AMCs? 4

Could New Surety Bond Laws Really Curb Problems with AMCs?

Could new surety bond laws really curb problems with Appraisal Management Companies? Unfortunately, a fair share of real estate professionals don’t know much about the surety bond process and how it helps regulate the industry they work in. However, with the recent implementation of new surety bond requirements for appraisal management companies, understanding how surety bonds work should be a growing interest for a number of real estate professionals. 1. Appraisal Management Company bonds function as legally binding contracts. When Appraisal Management Companies purchase a surety bond, they’re entering into a legal contract. Each surety bond that’s executed binds three...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News

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AMC Oversight Bill Signed into Law in Illinois

New AMC Law in Illinois August 31, 2011 – Illinois became the 29th state to enact a law that provides for comprehensive oversight of appraisal management companies. Gov. Pat Quinn signed Senate Bill 1539 into law Aug. 26, and it took effect immediately. Under the new law, AMCs are required to register with the Illinois Department of Financial and Professional Regulation, which would have significant authority to “ascertain the qualifications and fitness of applicants for registration and pass upon the qualifications of applicants for registration” and allow AMCs to be disciplined for “professional incompetence” and “gross malpractice.” In addition, the...

AI / AMC / Appraisal / Appraisal Institute / Appraisal Management Companies / Appraisal News

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Appraisal Management Companies Create More Problems Than They Solve

When the final chapter on this housing crisis is written, I hope that I am still around to see those who were responsible for its cause and the feeble attempts to fix it held responsible. One of the worst fixes is the Home Valuation Code of Conduct. Enacted in 2009, HVCC was spearheaded by then New York Attorney General Andrew Cuomo. His objective was to rein in appraisal abuses by the lenders sending loans to Fannie Mae or Freddie Mac. A noble goal, but by the time this so-called fix went into action many of the worst offenders were either...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

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CHASEing USPAP

Chase has turned a lot of appraisers into state appraisal boards. They’ve been responsible for nearly 20% of the Illinois caseload since 2008. The volume ebbs and flows from one quarter to the next. Not all of their complaints are good. Then again, not all of them are bad, either. All of their complaints insist that the original appraisal was too high. In their complaint submissions to us, they generally include a letter to the original appraiser that predates the complaint by months. In Chase’s complaints to us they typically include an appraisal review of some type. The standard review is a form 2000 as completed by an Illinois appraiser. Sometimes those reviews...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisers News

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Unintended Consequences – Intended Use

Intended use must be clearly stated in the report. Unintended Consequences From USPAP: INTENDED USE: the use or uses of an appraiser’s reported appraisal, appraisal review, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment. There can be many intended uses for one appraisal. We all understand that. An appraiser can, theoretically, complete an appraisal on an REO to find a reasonable marketing price and that same report can, theoretically, be used for mortgage purposes. Great! Two birds; one stone. But, if you utilize the Fannie Mae 1004 you have only one intended use. From the 1004: INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

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Update on FDIC v. CLGX (CoreLogic – eAppraiseIT)

FDIC’s lawsuit against CoreLogic – eAppraiseIT… FDIC Reiterates Threat that Appraisers Are the Legal Agents of AMCs in a Late – Filed Brief CoreLogic, parent of the AMC formerly known as eAppraiseIT…The FDIC is now contending that independent contractor appraisers are the legal agents of appraisal management companies (AMCs) in both of its cases against LSI Appraisal and CoreLogic. Based on this contention, the FDIC asserts that the AMCs should be liable for all damages attributable to the alleged negligence of their panel appraisers. The FDIC first asserted this argument in a brief filed in its case against Lender Processing...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / CoreLogic Valuation Services

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DartAppraisal.com Offers Checklist for Uniform Appraisal Dataset (UAD) Compliance

TROY, MI — (Marketwire – Sep 7, 2011) – Residential appraisers seeking to fulfill requirements of the new Uniform Appraisal Dataset (UAD) will find the new UAD checklist available from DartAppraisal.com to be a helpful tool in compliance. The UAD checklist, available here, contains a quick reference of information required for UAD-complaint appraisals, including 38 specific line instructions and nearly 50 common abbreviations. Checklist categories include Timeframes, Location Factors, View Factors, Sale Type, Financing Type and more. DartAppraisal.com recently announced its full coordination of efforts in compliance of the UAD to properly manage appraisals (1004 URAR, 1073 Condo, 2055, and...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / DartAppraisal

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