Have AMCs Gone Dark?
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Clarocity May Have Gone Dark…
VaCAP has learned from one of our members the Appraisal Management Company, Clarocity Valuation Services, may have gone dark. The VaCAP member has invoices for their services over 30 days old and Clarocity has been unresponsive to numerous emails and phone calls over the past several weeks. Additionally, new orders are being assigned through their portal, Appraisal Scope.
Virginia passed a 30 day prompt payment law that went into effect July 1, 2017. The statute is very clear that an AMC must pay an appraiser within 30 days from the initial delivery of the report. VaCAP members initiated this legislation to protect appraisers from exactly this type of abuse. See the statute here. Clarocity may be in violation of Virginia Statute and we encourage all appraisers that have past due invoices to file a complaint with DPOR. This can be done here.
As an FYI, Valued Veterans merged with Clarocity recently and Valued Veterans was found to be operating in Virginia without proper licensure in May 2016. See the letter sent from DPOR to Valued Veterans below or here.
VaCAP has also learned Atlantic1 is past due on paying some appraisers. Atlantic1 could not be found on DPORs website as a licensed entity in Virginia, but with some research we learned the owner of this company has a history of not paying appraisers. Mathew Moore, the principal of Atlantic1, has operated AMC’s under the name Newtown Appraisal Management, LibertyOne, Maverick, Atlantic-West and Palm Beach Appraisal Management. Lots of information is found by simply Googling any of these names. There is a complaint on the website RipOff report for his operations. See it here.
VaCAP cannot encourage enough to do your due diligence before accepting work from anyone. There are numerous groups on Facebook that you can get peer feedback on everything and there is one group specifically designed for AMC feedback. Take advantage of these great resources.
“Appraisergate” Scandal Uncovered
All appraisers need to listen to the Voice of Appraisal E182. Phil discloses an “Appraisergate” Scandal. AMC’s have gotten caught adding appraisal requirements that the lender did not request, nor does the lender endorse; one of which is the use of Appraiser Trainees. It is time for appraisers to communicate directly with the lenders. The lenders are being blindsided by what is in the engagement letters of their AMCs and they are not tolerating this abuse. Listen to the show here.
Have You Heard About Prohibition?
AppraisersBlogs published an article on how an AMC prohibits the use of third parties. The article is rather humorous, but it does make a point of how clueless AMC s are in what appraisers actually do and the resources we use to provide valuation services. This may be related to the “Appraisalgate” Scandal talked about on Voice of Appraisal, but the article suggests talking to your legislators about what is going on and supporting your state coalitions, as they are gaining traction. See the article “Prohibition is Back!” here. There are lots of other great articles on Appraisersblogs as well.
Let’s Talk Fees!
The 1004D form is a dual purpose form. The first part of the form asks has the market value declined since the original appraisal report and the second part asked if the construction is complete/repairs have been completed. The scope of work for these two options are quite different. The first section requires market research, analysis and a new USPAP compliant work file. The second option is merely verifying the work has been completed and references the original appraisal.
A recent waive of these Appraisal Update Forms are asking for option 1; has the market value declined since the original appraisal report. Your fee for these assignments should correlate to the amount of work necessary for credible results. Many AMCs do not understand the difference and will attempt to low ball your fee to the option 2 fee.
If you receive a request for an Appraisal Update, option 1, verifying if the market value has declined and you were not the original appraiser, think long and hard before accepting that assignment. If you choose to accept it, make sure your fee correlates to the scope of work and your liability in putting your signature on that certification. By completing that assignment you are certifying you agree with the original appraiser and the value; AKA, an appraisal review with a complete USPAP compliant file and certifying to any change that may or may not have occurred.
The Virginia Coalition of Appraiser Professionals Participates in Giving Tuesday. We accept monetary donations as well as volunteer commitments. To volunteer your time, click here. To make a monetary donation, click here, or mail to:
P.O. Box 42314,
Richmond, VA 23242.
To join VaCAP, click here.
Thank you for supporting VaCAP