Howard, I’m with everyone in defense of the appraisal profession. The amc’s appear to be the predominant abusers of the system tools. Constantly disregarding the guidance which you had posted, in pursuit of more profit and efficiency. The lengthy paragraph was simply copy paste from this particular amc’s website material.

Was doing unrelated research on ‘tax agents’ and appraisal. Ran across a Class web link so I started the day looking at that. Apparently this is what the CO group is focusing on, the alternative income streams. They’re apparently unwilling to tackle the elephant in the room that if not for the ongoing abusive labor practices of the amc industry, the ongoing failure of appraisal trade groups to advocate for independent small businesses, there would be an adequate work supply for everyone. A coincidental tie in to your post. Hope that helps.

https://www.classvaluation.com/about-us/leadership/

Count the number of appraisers.

What would happen to their licenses if Class was involved in a class action suit similar to ocwen, rocket, and clear capital?

Let’s play the management skills word cut up game, in reverse order.

How to utilize insider connections to dominate a formerly vital independent appraisal industry previously focused around small American businesses. Turn an entire industry into a corporate exploit, bypass any and all regulatory restrictions. Leverage inside connections to steer the industry, silence opposition, crush small businesses and independents which stand in your way.

Ladies and gentlemen hold on to your hats, buckle up tight, keep your arms and legs inside your compartment at all times. We are not liable if you get hurt on this ride. Here…. We…. Gooooo!!!!!

she’s involved with appraiser organizations and actively combats valuation bias. Class Valuation promotes appraiser diversity / serves on various industry boards, / holds credentials as a Certified Residential Appraiser in 12 states and is a Registered Property Tax Agent / serves as a Qualifying and Continuing Education Instructor for / former President of both the National Association of Appraisers (NAA) and the Coalition of Arizona Appraisers / leadership extends to several board positions, including the Arizona Board of Manufactured Housing, the Phoenix Village Planning Committee / Her career spans prominent roles with major regulated U.S. lenders and appraisal management companies / collaborating with industry stakeholders to improve outdated processes and bring equality and diversity into the industry. / has served on multiple boards, including the Florida Real Estate Appraisal Board (FREAB), acting as Chairwoman / focuses on technology and processes that support the modernization of valuation and collateral risk assessment / served as Fannie Mae’s manager of Collateral Strategy and Innovation, where he helped design and roll out Collateral Underwriter, Fannie Mae Connect collateral reporting, and Appraisal Process Modernization / worked six years in appraisal review and collateral underwriting. / have helped to re-engineer our approach, / and introduce new initiatives to the industry. / He has a proven track record of driving revenue growth, / career includes key leadership roles at LERETA, LLC, First American Mortgage Solutions, and CoreLogic, / leads the company’s digital transformation efforts with tech modernization, / is responsible for all legal activities, legal strategy, regulatory compliance, and licensing matters related to / overseeing legal matters around employment and HR, contractual negotiations, intellectual property / policies and procedures, and licensing requirements both from a Federal and State level. / primary focus is planning and leading the company’s growth initiatives. / Class’s Sales & Marketing Team helped the company grow by over 250% since the start of 2016 / and his team are planning for even bigger growth and success in the years to come. / served as Chief Financial Officer for global businesses in the aviation, biotech, and technology industries. / also brings significant experience in the private equity domain / has held senior leadership positions at several major companies, including Valuation Connect, Solidifi, and Chase / helping the company to continue to grow through innovation and exceptional service.

The amc industry bypasses multitudes of regulatory restrictions which are supposed to be imposed on lenders. By making the appraisers pay for their own management service. Dismissing existing rules the amc functions as unaccountable agent of the lenders, circumventing multiple layers of oversight.

Whom exactly is providing meaningful and attentive oversight to the amc industry? Top people from throughout the lending industry including those responsible for appraisal modernization and the Collateral Underwriters development and implementation are involved. I think we can answer the question of why the CU system failed to identify systemic deficiencies in the industry as 85% or more of all origination data from appraisals was fed into the system by amc’s for well over a decade. How amc’s captured nearly the entire lending industry, destroyed tens of thousands of small businesses and working positions, limiting promotion and working opportunity only to like minded advocates of lenders. Play ball!

No conflicts of interest here. Move along, move along.

‘Appraiser independence’. ‘Appraisal modernization’.

Oh how ironic this is! Our profession in final stage for sure.

Found this online earlier, and could not help but to save the image.

‘Life cycle of a bureaucracy.’ Remind you of anything? We appear to be in the final stage cycle.

THE above parties ARE NOT THE APPRAISER! This is the tail wagging the dog! Where is their license and continuing education to show that they have a clue as to what the value should be for their home. Why do people not get the fact that the lender, the Realtor and the Borrower all have financial vested interests in the deal closing. WE Don’t! YET everyone is letting them dictate how things are done. I hate this for Appraisers. Why do we let them do this to us??? WE are the only profession that allows everyone who are Not our Peers to dictate what we should do and worse yet allow them to SUE us if they don’t like our numbers using BIAS as the reason for attacking what we do. WE are so F…’d it is depressing. Used to be proud to be a Real Estate Appraiser…..not any more!

The truth of the matter is that with all forms of commission based sales and lending, there will be a ‘preference bias’ with everyone involved. This is where the appraiser comes into play as the only non advocate in the process. The only party whom gets paid for the work, irregardless of the outcome. Everyone else is advocating with a financial interest in making deals work, irregardless if the deals are appropriately aligned with market values. Hence the appraisers mantra; ‘Price is not the same thing as value.’

To routinely issue ROV requests whenever appraisers signal the agents did not line up deals in fair alignment with existing market values is a clear indicator that whomever is issuing the ROV request either does not understand the appraisers appropriate position as a check to the balance, an independent party, or alternatively does not respect the concept and importance of non advocacy and the concept of appraiser independence.

This is the saving grace of the VA model, they take control of assignment trends and do not allow lenders or appraisal management companies to send disproportionate volume to only a limited set of appraisers. This also highlights the failure of the technical industry and even the FHFA conservator, to understand the core nature of why a full service human appraiser is vital to the process of checks and balances. How everyone involved on the lending side, be that amc personnel, to salesmen, to avm automation system programmers, will be subjected to the forces of operational bias and preference falsification, most through the fact they are employees or franchisee subscribers, rather than true independents.

The GSE’s collectively have the financial security of this country in their hands, they handle hundreds of billions of loan volume annually. Now with CRT’s! The lid will eventually blow off.

The entire body of regulated lending could have gone with something similar to the VA model or IVPI proposal. Instead we’re still talking about answering to commission based agencies, still pushing and pressuring the appraisers around two decades later.

Marjorie, it’s a complicated network. Many people have this idea that there is some sort of dedicated agreement between lenders and amc’s. Not the case. Lenders whom use amc’s often do so opportunistically, drop and replace amc’s on a moments notice, all replaceable. The whip never stops cracking in the amc world.

Research keywords; approved amc list wholesale /
https://ease.uwm.com/Lending/Appraisals/Index
https://www.newrezwholesale.com/media/1560448/approved-amc-list.pdf
https://www.carringtonwholesale.com/partner-center/credit-vendors/appraisal-management-companies/
This one is interesting. A three column list of lenders which one singular amc has engaged with. Highlighting how many lenders an amc may eventually acquire access to.
https://www.nationwideamc.com/resources/approved-wholesale-lenders
https://assets-global.website-files.com/61a4ed5ee5650951c5639aab/65ba8a188e65f7696a3d8c34_Approved_Wholesale_Lender_List%20(1-30).pdf
Then take note of the bottom block. That’s the escape to direct assignment, complete with reference to which assignment platform they’re using.

Escaping amc’s is as simple as marketing to lenders directly. Where as if lenders determine those appraisers are subscribing to the amc model, the lenders choice is clear that offloading the cost to the appraiser via the amc model can continue.

Appraisers collectively are the primary market force, because only licensed appraisers can complete the assignments. Enter substitutions, waivers, value acceptance, property data collectors, and disproportionate assignment volume to only a limited set of appraisers, as well as hiring amc staff appraisers, as the amc industries and amc industry preferring lenders, desperate side step to get ahead of the dramatic reduction of appraisers still willing to accept the amc model.

(XLS file viewer online, in case you don’t buy Word products)
https://products.aspose.app/cells/viewer/xlsx

Missing the IVPI proposal yet?
https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf

Ok, I’ll accept that!

But I do think there is a higher potential for an ROV request when the assignment goes to the cheapest and fastest.

Lastly, we should all know that AMC’s are a puppet of the lender, meaning they are never going to vet the ROV request but rather they are the ones who just put the pressure on.

https://benefits.va.gov/RODENVER/docs/ReconsiderationofValueRequestSOP.pdf

Seek the truth.

I would say DKG that YOU are the local professional expert and thus YOU are the industry accepted source. That being said, see link below for VA ROV.

For those clients who really get it, if you include such comments in advance and have a tight report, most often their hands will be tied in supplying you with better sales (No ROV requests).

For those parties who don’t care (most), do not be afraid to push back post receipt of the ROV. I ask for the best three sales, a line-by-line analysis, and a final reconciliation.

From a VA perspective, please note the following ROV requirements.

https://benefits.va.gov/RODENVER/docs/ReconsiderationofValueRequestSOP.pdf

Seek the truth.

A half rate fee. Split in half again. Driving the competition out of the market space. Bragging about disproportionate income, calling those impoverished by your approach to gaming the system as dumb and entitled. Hubris? If so, where is the hero?

Let’s start with the obvious question; Do you get equivalent compensation for amc orders as you do for non amc orders, on a consistent basis?

https://www.merriam-webster.com/dictionary/hubris

Bottom feeders? Really? What hubris! Although I have a diverse array of clients, I also accept assignments from AMC’s. I have four appraisers to feed, and the work comes from multiple sources. This “bottom feeder” made $200k last year (a down year I admit,) so I’m not sure where you get your high and mighty attitude. You sound very dumb and entitled.

ROV of what essentially? The answer is not the listing agents pricing strategy and the buyers agents buying strategy. The lender will go through the appraisal with a microscope, while ignoring the fact the initial BPO and CMA which led to the listed price the contract was formed around; inadequate.
.
The amc’s primary purpose is to provide a control mechanism to pressure the appraiser, as they have no control upstream of the valuation analysis process to effect price listings or negotiation strategy.

The lender and the amc could have applied that veto to the sales agents. They choose not to, rather bow to pressure from the commission based interests. The amc’s goal is to flip volume for increased and sustained lender patronage.

Sorting appraisers is simple; The pliable appraisers willing to provide a thing of value do so in the form of a discounted fee. That’s step one. Among those appraisers whom signal they are willing to provide a thing of value, any appraiser whom does not play ball with hitting the numbers is cut off and loses volume assignments. That’s step two. Who’s still buying this?

Reconsideration of value. When the appraisal comes in below/above either contract price or the value the owner believes the property is worth,

Not always a compliance problem on the appraisers end. As one comment earlier said it is more of an educational or understanding of the process versus compliance. Not all requests that come through on the letter of engagement or the define scope of work fall within or comply with guidelines set by GSE’s or USPAP. Sometimes ROVs are issued from the AMC because they are acting as an advocate. Additionally, this type of practice is part of the AMC, believing that they are truly doing their job.

What it means: ROV?

Bill Johnson:

Thanks for the follow up. What I am trying to support is that the entity asking for the consideration of alternative comparable sales is……”the entity requesting the consideration of alternative or additional sales [MUST PROVIDE THE APPRAISER WITH EXPLANATION AS TO WHY THE REQUESTER FEELS THE SUGGESTED SALES ARE AT LEAST AS / MORE COMPARABLE THAN THOSE ALREADY IN THE ORIGINALLY SUBMITTED REPORT] “. It would seem HUGE to be able to quote an industry accepted source that agrees that the client MUST PROVIDE the appraiser with explanation if they honestly expect the appraiser to include sales already considered and rejected, or that are NOT otherwise as comparable as those in the submitted report, at no charge within hours of the request…… without any reasonable explanation. Can’t seem to glean that from the Fannie Mae excerpt you sent. Any assistance?

EXACTLY!!!