Category: Appraisal News

Simplicity is Genius 1

Simplicity is Genius

As the title states, simplicity is genius. Every once in a while I read reports where the appraiser wishes to blazon their diction; demonstrating their professional expertise and industry knowledge to such a degree that absolutely no one can understand their findings or opinions of value. Also what he said was “Simplicity is Genius”.It is at those times that I remember a very simple, humble man who taught me to appraise and to live and enjoy my life. He would say to me, ”Never look too sharp, or speak too wise.” Also what he said was “Simplicity is Genius”. In...

Appraisal / Appraisal News / Appraisers News

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Class Action Lawsuit Filed Against BPO and AMC Firms for Allegedly Unpaid Fees

Unpaid BPO Fees Class Action On December 2, 2013, three law firms in Florida, Washington and Colorado teamed together to file a class action complaint on behalf of real estate agents and others allegedly owed unpaid fees for broker price opinions ordered by BrokerPriceOpinion.com. The complaint also names three-related companies First Valuation, LLC, First Valuation Services, LLC, and First Valuation Technology, LLC as defendants on the basis that they are “alter egos” of BrokerPriceOpinion.com and do not have true corporate separateness in their operation. The lawsuit was filed in federal court in Colorado, where the defendants are based. The named plaintiff in...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

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Appraiser Confidentiality vs Common Courtesy

When reviewing complaints submitted to the Division, or when taking calls from people who are upset about an appraisal, I often observe that a good portion of the concern expressed is from a lack of response from the appraiser.   Specifically, this occurs when the appraiser will not address “issues” the person has with the appraisal and/or appraiser. Having a third party call to discuss an appraisal report creates a difficult dilemma for an appraiser. Under USPAP’s Ethics Rule – Confidentiality, the part relevant to this discussion states “[a]n appraiser must not disclose: (1) Confidential information; or (2) assignment results to...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Uniform Standards of Professional Appraisal Practice / USPAP

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Subpoenas and Other Things That Go Bump in the Night

First, it is gratifying to know you are actually reading what we write and release. We know this is true because a little over a year ago, we received very few questions about subpoenas and today, after writing a little warning piece on the now infamous FDIC subpoenas being issued to appraisers by a private law firm, we get lots of questions. In fact, we get so many we decided to put together a short follow-up piece on different kinds of subpoenas and how to handle them. These are presented in ascending order of concern with the final one being...

Appraisal / Appraisal News / Appraisers News / E&O / Errors & Omissions / FDIC

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Mortgage Fraud – Trends and Schemes

In last month’s edition of the AppraisalPort newsletter, I covered some of the appraisal guidelines that were discussed at the National AI Connect Conference in Indianapolis, July 23-25, 2013. This month, I want to discuss another session that dealt with mortgage fraud. I learned a lot about how people are trying to get rich through fraud in this very interesting breakout session. The session, “Residential Mortgage Fraud Enforcement: Trends and Identifying Schemes,” included presentations from Housing and Urban Development’s (HUD) Special Agent Eric Mascari, Interthinx’s Ann Fulmer, and Gary Crabtree, SRA, owner of Affiliated Appraisers. The session focused on the...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA / HUD

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Borrower’s Commonly Asked Questions and How an Appraiser Should Answer Them

One of the aspects I love most about appraising is that every day is different.  I inspect an average of 3.25 houses per day.  Since every house is different, every day is unique.  Despite the variety we enjoy, I have also recognized that, though the setting varies each time, there is some repetition.  Specifically, the questions we get from borrowers seem to be similar over and over again. One of the best lessons I have learned as a businessman is that, if there are any processes which are often repeated, developing a system for handling them will allow you to...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Business Development

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Appraisal Advisor Now Completely Free for Appraisers

Appraisal Advisor is completely free for appraisers from here on out. They will not be charging appraisers anything to rate and review clients, and appraisers won’t be charged to view other appraisers’ reviews either. The OCC is now requiring that lenders “assess the third party’s reputation, including history of customer complaints or litigation,” and “assess the third party’s financial condition.” What does this mean for appraisers? It means that lenders are required to listen to what you’re saying about AMCs based on your scores, the invoices, reviews, and fees

AMC / AMC Ratings / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Technology

Regulatory Claims Exclusion 0

Regulatory Claims Exclusion

Navigators Sues More Appraisers to Deny Coverage under “Regulatory Claims” Exclusion Last Thursday, November 14, Navigators Insurance Company sued two more appraisers to enforce “regulatory claims” exclusions in the E&O policies they purchased. These appraisers are in Nevada. Like the appraiser sued by Navigators in Florida on November 6, the Nevada appraisers are being sued by the FDIC for professional negligence in cases filed about a year ago. The objective of Navigators’ lawsuits is to seek court confirmation of Navigators’ legal position that there is no coverage under Navigators’ policy for damages awarded against the appraisers to the FDIC, which is demanding about $500,000...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

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OCC bulletin regarding AMCs, lenders, and Appraisal Advisor

On October 30, the OCC issued a bulletin to all national banks and savings associations entitled “Third-Party Relationships: Risk Management Guidance.” The bulletin, in a nutshell, outlines how lenders should manage and ensure compliance of their third party vendors. AMCs, third parties in the OCC bulletin, must be managed by specific guidelines in order for lenders to maintain compliance. Appraisal Advisor offers compliance with that regulation by providing lenders, AMCs, and appraisers with its ratings and reviews system. Appraisers’ constant scoring of AMCs on Appraisal Advisor is now, more than ever, THE key deciding factor in which AMCs lenders use....

AMC / AMC Ratings / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Technology

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AMC Background Checks: Fair or Not?

“I was just asked by an AMC to get a background check. Do I have to comply?” As risk management advisors for Appraisers and Inspectors, this is one of the questions we hear over and over again. Let’s face it — appraisal fees are lower than ever before. Essentially, AMCs are asking you to do the same amount of work for less pay. In some cases, they’re even asking you to do more work. Does it make sense then that you have to get a background check in order to work for a specific AMC? Unfortunately, the increased costs associated...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

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