AMC’s Shutdown Excuse for Late Payments
Clarocity cites possible upcoming government shutdown as excuse to delay payments to appraiser.
From our Sister Coalition in Mississippi:
“BEWARE if you accept any orders from Clarocity. I got a call from one of our members today telling me that Clarocity is citing the upcoming government shutdown as a reason appraisers may not get paid timely on the orders they are currently sending out.
The scope of work and terms of the orders indicate that the appraisals for USDA may not get paid within the 60 day period if the government shuts down. This is really no excuse but if appraisers sign and accept the appraisal order they are accepting those terms.
Mississippi law on timely payment from AMC’s mandates no more than 60 days unless the agreement between the appraiser and the AMC cites different terms. Clarocity is putting you on notice, so just know if you accept the orders, you are also accepting those terms and will not have a basis to complain if your payments are more than 60 days out.”
Is this FAKE NEWS?
Well maybe it is. The financials of Clarocity tell a very different story.
- This news story, tells of a current default on a $20,050,000 debt.
- This news story states their number one investor StableView Assets is disposing of their stock.
- This news story states of a pending sale of all of Clarocity’s assets.
- Maybe it is their public financial statements showing major losses for many years
- Or Maybe it is their current stock prices that are $0.005 Canadian dollars ($0 .00375 US Dollars)
Clarocity Stock May 31, 2002 through February 8, 2019
Regardless of the reason Clarocity states payments may be late to appraisers, VaCAP has been warning appraisers about the financial stability of Clarocity for a while. If you choose to do business with Clarocity, we encourage you to take whatever precautions necessary to ensure payment within 30 days as our state law requires.
Oral Arguments LREAB vs FTC: As you are aware, the oral arguments in the Louisiana vs FTC case were held on February 7, 2019. The audio of the proceedings has been posted for public listening. You can listen to the content below.
- VaCAP Supports Shane Lanham’s Legal Fight - September 10, 2024
- It’s Just Responsible Journalism! - February 21, 2024
- Limitations for Damages Against Appraisers - January 9, 2024
I can tell you I was having trouble getting paid way before any shutdown.
Did you ever get paid?
Appraisers are really not this stupid!. This statement speaks volumes of how completely clueless those at Clarocity are. And they don’t understand why no one wants their garbage products… SMH
Would it be legal for an appraiser to offer a public offering stock for their individual company? How would rules change, what additional regulatory parameters would be applicable. Logical fault.
Will this nonsense ever stop !!! We need to have a national union….END of story !!! We need to stick together !!! I said this 15 years ago !! Nothing has changed, has it !!! Again, the nude models who pose for art classes unionized !!! If they can come together, why can we NOT !!!
Look exactly two inches to the left of this post, scroll down slightly. Voluntary unions are quite different than mandatory ones.
In volatile industries, especially over regulated ones where performance measurement is so entirely subjective like with appraisal, it’s fully acceptable and important to be able to simply fire people. I proverbially fire clients all the dang time and could only imagine the headaches of mandatory unions and not being able to deny service to clients whom participated in such. Be careful what you wish for.
Our Union, our ways !!! We wouldnt have no good clients after we get done with them !!!
No disrespect intended Chris, but that isn’t how most unions work, and it certainly isn’t how AGA (A Guild) works. Quite some time ago we (AGA), and myself pointed out deficiencies in the Clarocity product and business model. Specifically the fact that their stock was valued so low and that it is not legally allowed to be offered for sale or trade in the United States; and we considered that to be a telling sign of risk.
An appraisal is still considered by most to be an operation of the Free Enterprise system in America, though admittedly that takes a bit of stretching the definition. In any event, effective unions don’t dictate. Where possible, they negotiate with rational and fair give and take.
Frankly, we never noted anything particularly rational or fair in the Clarocity/Appraiser relationship. Still, it is the individual appraisers right to accept work from those with little likelihood of paying them the full amount due.
Have they paid anyone for work completed last year?
I will send the report when the check clears.
OK, FIRST of all, Clarocity is a failing business. It’s hardly a secret. Recent publications indicate that hoped-for bailout funding never came through. Their stock is so worthless that it never was allowed to be offered for sale in the USA.
http://appraisersblogs.com/clarocity-record-low-stock-prices
There is much more current data than the linked article above.
Their post or claim/blame for expected future late payments being related to a shut down that has not yet happened is pure misdirection. Not a whole lot of difference between this claim and others like Coester blaming accounting or bank errors for their non-payment.
You can’t write off unpaid fees as charitable donations on your taxes. So why make them to a company like this? A company that has been undermining real, professional appraisers efforts for credible work product for years? ANY work an appraiser does for them now must be considered as working for free. That’s what it is when you have agreements to do work for companies that have no conceivable way (or intent) to pay.
We often hear appraisers lamenting after an AMC failure that they had no idea the company was so financially flakey. WELL, NOW YOU KNOW in ADVANCE!!!
There is NOTHING about this company that would warrant sensible appraisers doing ONE MORE CREDIT assignment for them. NOT ONE! There are a lot of allegations that the company has been operated as a long-running ponzi scheme; spending far more than it earns, and using ongoing loans to pay normal operating expenses; salaries and appraiser fees.
Not unlike the revolving refinance market in American housing in the run-up to the Great Recession, they have reached the end of their ability to bedazzle reputable would be investors. There is no demonstrable way (legal anyway) to repay what they already owe. Don’t forget, this is the same outfit that wanted appraisers to take shares in the company for payment long ago. ALL appraisers should have cut them off back then.
IF USDA is still allowing them to arrange appraisals (or anything else) for USDA loans, then THEIR REGULATORS need to take a much closer look and ask “Why?”
The stench emanating from this company’s operating practices would make the most potent skunk envious.
Oh come on.
Clarocity defaulted.
Clarocity is unable to repay the debentures and is seeking forbearance from debentureholders from enforcing the security held over all of Clarocity’s assets.
https://globenewswire.com/news-release/2019/01/29/1707252/0/en/Debentures-in-Default-on-Maturity-Forbearance-Sought-and-Debt-Repayment-Proposed.html
They entered into a non-binding agreement to borrow money from I Look About who could acquire the assets.
https://globenewswire.com/news-release/2018/11/16/1653107/0/en/iLOOKABOUT-Enters-Into-Non-Binding-Term-Sheet-for-the-Purchase-of-Assets-of-Clarocity-Corporation.html
Jordon Ross of I Look About, made a youtube video, they are taking over the assets of Clarocity. You people owed money are not assets anyone is buying.
Pond scum is still pond scum no matter who is operating it. We are now suddenly supposed to start believing all the marketing hype that Clarocity has been vomiting for years? ALL iLookabout is doing is tarnishing their own brand, by answering the question “How on earth did clarocity get away with their cams for so long?”
The foreign enablers are confessing in public, it seems.
Oh come on. You know that the Jordon Ross above, started with Real Matters, which, is the parent company of Solidify, and, Solidify bought a bank, right? Lender, AMC, AVM, title all in one nifty box.
Head down
Just keep accepting orders.
At some point appraisers have to stop this hiding under the desk, and run credit and background checks on the companies perpetuating frauds that no one ever prosecutes.
I still have ES Appraisal emails for $600 drive-by assignments two weeks before their announcements were made.
Anyone going to court? I’ll forward them, I never accepted any work from them, so I have never had a need to keep them, except in the hope that someone would ask for the evidence of the fraud.
Marion, you should write a complete article on that. Amc’s willingly offering C&R fees? Think twice. On this date, repeat offers. On this date default. It’s a repeating cycle.
And follow up with an article on; When the law is convenient for lenders, only then do they follow the rules.
Nobody goes to jail. Nobody is prosecuted individually. 50 state AG coalitions brought a pittance $2k to defrauded homeowners 10 years later. Ocwen is still in business after like a billion or something in fines.
People willingly refinancing and not racing for the exits to the mortgage loan game are risking everything.
All so they can what, get a mortgage interest deduction? The ship of fools keeps sailing.
There is talk of an investigation for Insider Trading going among those con artists at Clarocity.
https://stockhouse.com/companies/bullboard?symbol=v.cly&postid=29657154
Canadian talk. They were never allowed to offer or sell their stock in USA.