Category: Appraisal

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“Fake” Appraiser E&O Insurance and Shady Things from AMCs Too

Outright Fake E&O For many appraisers and also some AMCs (appraisal management companies), the only reason they purchase professional liability insurance (E&O) is because a client requires them to show coverage in order to receive work.  The fact that some appraisers and AMCs only look at insurance as an “E&O ticket” leads to some unfortunate examples of fraud, which appraisers, firms, AMCs and clients should be aware of. Before I get to the fakery, however, I’ll explain that our purpose in providing E&O, and also the reason that most of our insureds purchase it, is because E&O first serves the insured by providing...

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

Welcome to Life as an Appraiser in 2014 - Imagecredit Flickr - Nathan 9

Welcome to Life as an Appraiser in 2014

I  want  to meet the lucky appraiser these days who is getting all of the easy appraisals. Welcome  to  life  as  an  appraiser  in  2014.  It  seems every  appraisal  has  time  constraints,  distance constraints  and  knowledge  constraints.  I  want  to meet the lucky appraiser these days who is getting all of the easy appraisals. Surely it can’t be lenders just getting an AVM. If lenders are using AVMs, the lack of quality comparables out there would lead to lenders just  fooling  themselves  and  relying  on  loss  ratios again.   You  would  think  someone  would  say:  been there, done that and got hammered....

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Automated Valuation Models / AVM

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NJ Governor Vetoes BPO Legislation…Again

Legislation that would have significantly expanded the ability of New Jersey real estate brokers and salespersons to offer broker price opinion services did not become law because of a Jan. 21 “pocket veto” by Gov. Chris Christie. This is the second time Christie has vetoed BPO legislation. The legislation (S. 3058) was passed by both houses of the New Jersey legislature Jan. 6, and was presented to Christie for his consideration. However, because the bill was passed by the legislature during the last 10 days of the 2012-13 legislative session (which ended Jan. 14), the governor only had seven days...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisers News

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Difference Between an Employee, a Subcontractor, & an Independent Contractor

What is the Difference Between an Employee, a Subcontractor, and an Independent Contractor? In helping real estate professionals find the right professional liability (E&O) insurance policy, one of the most common issues we come across is whether someone you hire to help with your intermittent workload is an employee, a subcontractor, or an independent contractor. The IRS perspective vs. the insurance perspective This is often confusing because what you intended to do may not be what you actually end up doing. There are a number of reasons for this. First and foremost is the fact the IRS will view this...

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

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New Appraisal Requirements for REOs

The U.S. Department of Housing and Urban Development will require new appraisals on some real estate-owned properties financed by the Federal Housing Administration, Mortgage Daily reported Dec. 10. Historically, when buyers of REO properties utilized FHA financing they had been able to use the appraisal originally ordered by HUD. However, the updated requirements will require new appraisals in situations where a direct endorsement underwriter decides there is a material deficiency in the original HUD REO appraisal. HUD also will require new appraisals in the instance of an “as-repaired” appraisal being used when a borrower is applying for a 203(l) loan....

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisers News

Assigning Blame 0

Assigning Blame

Even though the redirection of blame is an ancient approach to avoid taking responsibility for ones one actions, this seemingly innocuous tactic has become the leading downfall to the financial industry today. Consider, the consequences of shifting blame: The actual party who has made poor lending decisions escapes taking responsibility, and often times will even get promoted. Thus the initial behavior does not change. Since the poor decision has not been corrected, the pattern will continue. Redirecting the blame combined with the continuation of the faulty decisions expands the direction of investigation, because now a larger pool of appraisers appear...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Political Action

Sales ratio 2

Sales Ratio & Adjustments

Three sales, if you chose wisely, bracketed your subject neatly. There was a time when appraisers popped three sales onto a grid, made adjustments, concluded an opinion of value then moved on to the next assignment. Today, appraisers routinely include five or six closed sales, plus a couple of listings or more. There was something to be said for the old Goldilocks approach. Three sales, if you chose wisely, bracketed your subject neatly. Even if you had six closed sales, you could still bracket pretty cleanly. But listings. What to do with them? Some appraisers will actually toss them on...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / IDFPR / Illinois Department of Financial & Professional Regulation

Fannie Mae Lender Letter 0

A New Year, a New Fannie Mae Letter

New Fannie Mae Lender Letter I get it, appraising, especially residential-mortgage-use appraising, can be a thankless job. If you understand all that goes into properly developed reporting, it is hard to compete with the appraisers that perform poor due diligence and in turn, charge much less than the rest of us. They are great at checking boxes and making minimal commentary. They are rewarded for cutting corners, and appraisers that do the quality work are left at the margins. The new Fannie Mae Lender Letter may be a step in changing this. Our costs to keep our licenses with the continuing education, the...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisal Quality Monitoring

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Appraisal Advisor Ceases Operations

It’s with deep sadness that I’m informing you that Appraisal Advisor (www.AppraisalAdvisor.com) is ceasing operations on February 1st. We began with a simple goal of providing transparency to the industry regarding client quality, and tools for appraisers to collect from non-paying clients. The transparency benefited all parties: appraisers, good AMC clients, lenders, and regulators. Unfortunately, the lifeblood of Appraisal Advisor – appraisers submitting client reviews – fell prey to the age-old “80/20” rule. Over 79% of our many thousands of ASC-verified appraiser members submitted zero reviews, while only 3% submitted more than 5 reviews. That was far below what we...

a la mode / AMC / AMC Ratings / Appraisal / Appraisal Management Companies / Appraisal News

Why do appraisers need a college degree? 10

College Degree for Appraisers?

Why Do Appraisers Need a College Degree? Let me begin by stating that I hold both a Bachelor’s degree and a Master’s degree. I do not state that to get the adulations of the reader, but to qualify myself as one who can speak with at least a small degree of authority on this subject. Let me also be fair in stating that I loathed school. Do not misunderstand, I love and cherish education, I just hate school. I am a lifelong learner. I enjoy reading, researching, and experiencing new things. I love furthering my education. However, I am not one that fits very...

Appraisal / Appraisal News / Appraisers News / Business Development

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