Indemnification Clauses - Appraisers Blogs

AMC Indemnification

IDFPR Board — Mon, 31 Oct 2016 12:30:25 +0000

Appraisers signing off catch-all certification… When we crafted the language in the AMC Act back in 2011-2012, we followed what most every other state included insofar as indemnification was concerned. (225 ILCS 459/165) Sec. 165. Prohibited activities. (8) Requiring an appraiser to sign any sort of indemnification agreement that would require the appraiser to defend and hold harmless the appraisal management company or any of its agents, employees, or independent contractors for any liability, damage, losses, or claims arising out of the services performed by the appraisal management company or its agents, employees, or independent contractors and not the services performed...

What's Wrong with Most Indemnification Clauses in… Objectionable indemnification clauses purport to shift 100% of the liability to individual appraisers... AMC independent contractor agreements are now receiving…
What Should an Appraiser Do? Burdensome indemnity language required by a lender or AMC Appraisers are often required to sign lengthy contracts to obtain assignments…
Appraiser's Response to LandSafe Appraisal Appraiser's Response to LandSafe Appraisal Services Agreement In April of 2011, LandSafe Appraisal Services, a wholly owned subsidiary of Bank…

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Vendor Agreement Controversies & Worst AMCs

AppraisersBlogs — Thu, 08 Sep 2016 12:30:27 +0000

AMC Vendor Agreement Controversies – Bad, Worst & Ugly AMCs And the winner is… According to a recent non-scientific survey conducted by AppraiserNews, the World’s Worst AMC Alive is Clear Capital. Honorable Mention goes to Coester VMS and Streetlinks. And the Worst Vampire AMC title goes to AppraiserLoft which is no longer operational. Excerpt: We’d also like to note the passion with which appraisers made their votes, describing the many ways that these AMCs deserved their titles! One final remark: It is sad that so many appraisers still hesitate to go public with their comments about AMCs, (justifiably) fearing that...

Coester Allegedly Engaged in Fraud Sued by Former Senior VP Mr. Coester Was the Party Engaging in Fraud Coester VMS, a Maryland based appraisal management company, and it's CEO, Brian…
What's Wrong with Most Indemnification Clauses in… Objectionable indemnification clauses purport to shift 100% of the liability to individual appraisers... AMC independent contractor agreements are now receiving…
Read That Agreement Before You Sign or Leap Having the most unfair agreement will cause the lender or AMC to lose those appraisers I recently ran across the…

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Claims, Complaints and E&O Insurance

David Brauner — Thu, 15 Oct 2015 12:30:04 +0000

E&O vs. General Liability First some background. Errors & Omissions (E&O) is malpractice insurance for mistakes in your report- say you measure square footage incorrectly. General Liability (GL) covers property damage and bodily injury while you’re at the premises and more. Examples of GL claims are, if during a walkthrough you knock over and break a vase (property damage), or back over and injure a homeowner as you exit the driveway (bodily injury). Business Owners Packages (BOPs) typically go beyond the job site, providing coverage for losses to your own business, such as a trip and fall at your office,...

Protect Yourself with a Limitation of Liability Clause Set Your Limits and Protect Yourself with a Limitation of Liability Clause In a recent case on the West Coast,…
"Fake" Appraiser E&O Insurance and Shady Things from… Outright Fake E&O For many appraisers and also some AMCs (appraisal management companies), the only reason they purchase professional liability…
Help I Got a Subpoena! If you are in business long enough, you will get subpoenaed by someone involved in a dispute that may not…

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What Should an Appraiser Do?

AppraisersBlogs — Thu, 14 May 2015 12:30:28 +0000

Burdensome indemnity language required by a lender or AMC Appraisers are often required to sign lengthy contracts to obtain assignments from lenders or Appraisal Management Companies. These contracts outline the scope of work, when the assignment is due, how to transmit reports and other items that require review and understanding. Once the contract is formalized, the appraiser is then legally required to comply with its’ provisions. One important and often troublesome requirement is the Indemnity Provision. The concept of indemnity means “security against hurt, loss or damage”. Through indemnity, one party can shift the responsibility of loss to another party...

It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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Some Good News…For a Change?

Guest Author — Thu, 27 Nov 2014 13:30:53 +0000

Some Good News…For a Change? – 2nd Annual List (A Work-In-Progress) Last year, around Thanksgiving, I had put together a list of some positive things going on for appraisers. It was/is all-too-rare that we hear positive news regarding the appraisal profession. There is an awful lot of complaining that goes on, most of it justifiable, but little good news that gets shared. Part of the problem is that there is no central source for information regarding our profession which appraisers might utilize in order to find out what is going on across the country and affecting our profession, and could be used to...

USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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Good News….For a Change?

Guest Author — Thu, 08 May 2014 12:30:16 +0000

Appraisers to be paid within… It is all-too-rare that we hear positive news regarding the appraisal profession. There is an awful lot of complaining that goes on, most of it justifiable, but little good news that gets shared. Part of the problem is that there is no central source for information regarding our profession which appraisers might utilize in order to find out what is going on across the country and affecting our profession, and could be used to enhance our industry and our citizens in our own state. From what I have seen, most of any good news is being...

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…

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Read That Agreement Before You Sign or Leap

Peter Christensen — Mon, 18 Feb 2013 12:30:01 +0000

Having the most unfair agreement will cause the lender or AMC to lose those appraisers I recently ran across the provision below in a new contractor agreement between an AMC and its panel appraisers, when one of LIA’s insured appraisers asked me to take a look at the agreement. The contract contained the average indemnification provision found in most unfair AMC contracts in which an appraiser promises to defend and reimburse the AMC for “any and all liabilities, damages, costs and expenses (including all legal fees) arising out of or relating to any claim, action, suit, complaint, liability, damage, or other...

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

The post Read That Agreement Before You Sign or Leap appeared on Appraisers Blogs.

Who Has Been Suing the Most Appraisers?

Peter Christensen — Wed, 17 Oct 2012 12:30:32 +0000

Two Names You Know. Two Names You’ve Probably Never Heard. These are four of the parties who have been suing the most appraisers in 2011-12. I suspect most appraisers won’t recognize two of the names, unless the appraisers are defendants in one of their cases. The parties are in no particular order, but the last one does file the most lawsuits. LSF6 Mercury REO Investments This is an investment fund of a private equity company named Lone Star. LSF6 bought discounted mortgage debt from bankrupt CIT Group in 2008. In late 2011, LSF6 began suing appraisers in New York as...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Racial Targeting Under the Heading of Diversity,… This time around, the racial targeting is masked as a virtue under the heading “Diversity, Equity and Inclusion,” or “DEI.”…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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Statement of Frank Gregoire (NAR) Before Appraisal Oversight Hearing

AppraisersBlogs — Thu, 28 Jun 2012 17:37:01 +0000

NAR believes that lenders should be prohibited from retaining the services of an AMC where the lender maintains any level of ownership. Frank Gregoire‘s written testimony to the United States House of Representatives Committee on Financial Services Subcommittee on Insurance, Housing and Community Opportunity before the Appraisal Oversight Hearing … APPRAISAL ISSUES AND CHALLENGES There are a myriad of circumstances and issues working to hinder the recovery of the nation’s housing market. Among them, and often overlooked, are those related to the credible valuation of real property. A credible valuation provided by a licensed or certified professional 1) ensures the...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…

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Time for an Appraiser Union?

Dustin Harris — Tue, 28 Feb 2012 12:00:46 +0000

Much talk has occurred lately on a variety of injustices incurred by appraisers through scope-creep, indemnification clauses, decreasing number of appraisers, lawsuit volume increases, and the like. Naturally, there are a whole lotta unhappy appraisers out there. Surely, there are many things to be concerned with, but there is a greater fear that overrides all other issues; the fear that there ain’t a dang thing we can do about it. The lack of ability to make changes to those things we view as wrong is a debilitating feeling. As small business owners, we are used to getting things done our...

USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

The post Time for an Appraiser Union? appeared on Appraisers Blogs.

Urge your Representative to Vote for Regulation of AMCs

VaCAP Board — Thu, 09 Feb 2012 13:00:34 +0000

Urge your Representative to Vote for HB 210 Regulation of AMCs Hello VaCAP! As you know, VaCAP leadership has been working hard with VAR and the VAR Appraisal Alliance to help draft and support an AMC regulation bill. This bill is currently in the Virginia House of Delegates, and will cross over to the Senate on February 15th. Since many local realtor associations now require appraisers to be full members in order to obtain access to their MLS systems, VaCAP has many members who are also members of VAR. If you are a member of VAR, your dues have helped...

West Virginia Appraisal Board Scheme The Doomed Quest to Reform a corrupt West Virginia Licensing Board “Board members earn money working for a law firm…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

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Valuation Support Services (VSS) Appraiser Panel Agreement

AppraisersBlogs — Mon, 07 Nov 2011 13:00:55 +0000

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...

'Clean-Slate' Laws, Bad Policy Could Dispatch More… The idea of unlicensed individuals being hired off the streets and paid a pittance to video and photograph the interiors…
ASC Data Breach Involving Social Security Numbers On October 13, 2022, the Appraisal Subcommittee discovered a data breach that occurred on the new ASC.gov website. The incident…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

The post Valuation Support Services (VSS) Appraiser Panel Agreement appeared on Appraisers Blogs.

Update on FDIC v. CLGX (CoreLogic – eAppraiseIT)

Peter Christensen — Sun, 18 Sep 2011 22:24:22 +0000

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...

The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

The post Update on FDIC v. CLGX (CoreLogic – eAppraiseIT) appeared on Appraisers Blogs.

What’s Wrong with Most Indemnification Clauses in AMC Contractor Agreements?

Peter Christensen — Thu, 25 Aug 2011 15:11:47 +0000

Objectionable indemnification clauses purport to shift 100% of the liability to individual appraisers… AMC independent contractor agreements are now receiving more attention. A key issue that many appraisers and regulators have focused on is that many AMC contractor agreements use very one-sided indemnification clauses to attempt to shift financial liability for the appraisals the AMCs manage to individual appraisers. NAR recently wrote to federal regulators expressing serious concern that such AMC clauses are interfering with appraiser independence and hurting appraisal accuracy and quality — i.e, if appraisers fear being sacked with unbearable liability based on an appraisal later being deemed...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

The post What’s Wrong with Most Indemnification Clauses in AMC Contractor Agreements? appeared on Appraisers Blogs.

NAR Letter to Regulators Regarding AMC Indemnification Clauses

AppraisersBlogs — Wed, 17 Aug 2011 01:00:18 +0000

Calling for a ban on the use of indemnification clauses used by AMCs On August 11, 2011, National Association of REALTORS® (NAR) President Ron Phipps sent a letter to federal regulators calling for a ban on the use of indemnification clauses used by appraisal management companies (AMCs). The letter was sent to Federal Financial Institutions Examination Council (FFIEC), the US Department of Housing and Urban Development, the Federal Housing Finance Agency, and the US Department of Veterans Affairs. Dear Secretary Donovan, Secretary Shinseki, Chairman Matz, and Acting Director DeMarco: I am writing on behalf of the 1.1 million members of...

Proposal to Eliminate the VA Fee Panel VA Fee Panel - The Appraisal Institute does not believe that a move to a lender select program, such as…
Top DEI Bosses Have a Problem - Diversity The ranks of the new DEI bosses at the financial institutions are no more diverse than the appraisers their institutions…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

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Appraiser’s Response to LandSafe Appraisal

VaCAP Board — Thu, 04 Aug 2011 22:55:51 +0000

Appraiser’s Response to LandSafe Appraisal Services Agreement In April of 2011, LandSafe Appraisal Services, a wholly owned subsidiary of Bank of America, released its “Appraisal Services Agreement” which included, among others, indemnifications of LandSafe Appraisal Services against any liability, and loss of intellectual rights. Many appraisers stood firm and refused to sign the agreement. Heather Fox, a Certified Residential Appraiser in Virginia, CEO of Cross Country Appraisal Inc. and President Elect of VaCAP, responded to LandSafe Appraisal Services with this letter: To: Landsafe Vendor Panel Management Team I will not be signing the appraiser agreement. I have known I would...

The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

The post Appraiser’s Response to LandSafe Appraisal appeared on Appraisers Blogs.

Appraisal Institute Warns Appraisers About Liabilities When Working with Some AMCs

AppraisersBlogs — Fri, 13 May 2011 14:10:30 +0000

CHICAGO (May 12, 2011) – The Appraisal Institute today cautioned real estate appraisers about signing agreements imposed by some appraisal management companies that seek to hold residential appraisers responsible for AMCs’ actions. Its president warned that consumers could be the ultimate losers. “Appraisers should be very careful about signing any agreement, especially one that makes them responsible for another party’s actions,” said Appraisal Institute President Joseph C. Magdziarz, MAI, SRA. “While there are some fine AMCs doing business today, many AMCs shift liability onto appraisers. For many professional appraisers, it’s simply not worth the risk.” Magdziarz, as president of the...

Desktop Appraisals: Has The Devil Infiltrated The… Are desktop appraisals with third-party inspectors protecting the public, or are these products about to destroy the very profession I…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
How to Destroy the Appraisal Profession Anytime the government gets involved in an issue, it tends to have more adverse effects than positive ones. It makes…

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Aren’t Appraisers the Gatekeepers of our Collective National Equity?

AppraisersBlogs — Tue, 26 Apr 2011 17:11:48 +0000

LandSafe Appraisal Services, a wholly owned subsidiary of Bank of America, recently released its latest “Appraisal Services Agreement” to its panel appraisers. The agreement includes, among others, indemnifications of LandSafe against any liability, and loss of intellectual rights. If this goes through and appraisers agree to sign this new agreement, other AMCs will follow LandSafe’s lead and produce their own version of Appraisal Services Agreements. LIA Insurance has reviewed the new LandSafe Appraisal Services Agreement. The review is available to LIA’s insured appraisers and READI members but others can also view it by registering with code 201700. The whole idea of appraisers as...

Promoting False "Racist Appraiser" Narrative Some Lenders promoting false "racist appraiser" narrative to optimize profits via AVMs Like most businesses lenders want to optimize their…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

The post Aren’t Appraisers the Gatekeepers of our Collective National Equity? appeared on Appraisers Blogs.

Indemnification Clauses - Appraisers Blogs

AMC Indemnification

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Vendor Agreement Controversies & Worst AMCs

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Claims, Complaints and E&O Insurance

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What Should an Appraiser Do?

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Some Good News…For a Change?

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Good News….For a Change?

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Read That Agreement Before You Sign or Leap

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Who Has Been Suing the Most Appraisers?

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Statement of Frank Gregoire (NAR) Before Appraisal Oversight Hearing

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Time for an Appraiser Union?

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Urge your Representative to Vote for Regulation of AMCs

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Valuation Support Services (VSS) Appraiser Panel Agreement

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Update on FDIC v. CLGX (CoreLogic – eAppraiseIT)

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What’s Wrong with Most Indemnification Clauses in AMC Contractor Agreements?

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NAR Letter to Regulators Regarding AMC Indemnification Clauses

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Appraiser’s Response to LandSafe Appraisal

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Appraisal Institute Warns Appraisers About Liabilities When Working with Some AMCs

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Aren’t Appraisers the Gatekeepers of our Collective National Equity?

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