CoesterVMS in Bankruptcy?
…all payments on orders completed prior to 11/15/2018 cannot be paid…
Appraisers, there is a body of evidence being disseminated via various sources that CoesterVMS, the AMC based in Maryland started by appraiser Brian Coester, is in bankruptcy.
This message from CoesterVMS was circulated last week:
“Due to financial difficulties all payments on orders completed prior to 11/15/2018 cannot be paid at this time, our BK attorneys will be in contact with all creditors. Coester can guarantee payment next day on all orders completed on or after 11/16/2018. We apologize for any inconvenience.”
Does it make any logical sense to continue to do business with a company who cannot pay prior appraisal fees, but promises to pay current fees the ‘next day?’
Yes, apologies to you, Mr. Coester, and sorry for the inconvenience of not working for your company. You see, sir, it’s a trust thing. In short, you are not trusted because your past performance leads me to that conclusion.
Dave Towne on e-AppraisersDirectory.com
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One of the reason I don’t work for AMCs. Good luck on getting paid
Now I understand. I been in business 23 years and this is the first time I have been shystered by a crook. CoesterVMS will reap what they have sewn!! in the Name of Jesus!
Save it. You chose to work for amc’s knowing full well they provide nothing of value and are taking advantage of appraisers and often defrauding consumers.
They sold it. You bought it.
So True Jean….I accepted work from coester because work was slow. I have not been paid for work completed in July. Jesus tells us to forgive…Brian quotes Bible Verses….I wonder if He is aware of the verse that says it would be better to put a rock around your neck and cast yourself in to the sea…then to cause a Brother to stumble.
I Hope things work out for You and Me and all the other fellow appraisers 🙂
I am in the State of Georgia, the name of Coester’s Insurance bonding Company is: International Fidelity Insurance Company
I gave them all the information proving I did the work and they did pay me.
Their Bond No.: TXIFSU0726671
Did you get a 1099?
Ageed !!!
How can Coester VMS continued to order appraisals and haven’t paid the appraisers that have already completed appraisals for them? Only in America, they should not be allowed to continue to be in business at all! Brian Coester “You” will reap what you have sewn!
That’s the most ridiculous thing I’ve ever heard, guarantee payment. To me that means payment up front, not next day. I wonder why no states have suspended or revoked their AMC license yet.
“We apologize for any inconvenience”. Well, everything is honky dory then. Appraisers will tell that to their creditors. With the pittance Coester paid appraisers, the company’s principals must be living high on the hog and beyond their means.
This is his house.
It couldn’t have happened to a nicer scum bag. Rest assured however that he funneled the money elsewhere long ago (just like every bankrupt AMC owner does).
So after you get washed out of appraisal, don’t actually make it all the way to an appraisers license, or have some other inconsequential experience like knowing how to sit in a chair and answer a phone, there is always an appraisal ‘management’ amc job to look forward to.
Where do they turn to after they wash out of appraisal management? Underwriting?
like JVI if anyone can remember
I believe Wells Fargo made good on those appraisals. Thought I saw an article on it.
Did you see it? Was that a SpaceX Falcon heavy flying through the midnight sky, or Brian Coaster becoming a failing star after being named a rising star by Housingwire?
Its funny how these AMCs try and recruit appraisers (sign up here) by in essence telling us what ultimately is a benefit to their client the lender, but never truly what is done for us. Only when he needs appraisers post crises, is he willing to step up and make payment in a few hours or days.
The game is up.
Seek the truth.
https://youtu.be/0ai0mxQXrAA
We’re thankful that Karma finally came back to bite you on the BEEP.
It’s been many years since I dealt with bankruptcies at NFCU as Budgetary Counselor, BUT some things haven’t changed.
1. Until the debtor himself OR his attorney specifically state they are filing for or have already filed for bankruptcy, ALL collection efforts may continue. Folks, consider hiring a U.S. based debt collector located in Maryland. You may have to get a judgment in our home state first (small court claims?). Check with your state AMC regulatory Board – they should have the correct address and person to receive legal summons or service.
2. You have the right to ask when and where the case was filed and the case number. ASK when the Notice to Creditors will be sent out. If the information is coming from the debtor, you have the right to ask who the attorney is for confirmation. Ask whether it is Chapter 11, or 7 for the business or a 7 or 13 for him personally.
At that stage, you can make phone calls to the attorney but ALL communications should be followed up with phone written confirmation of discussions. IF he has filed, you can’t contact him for payment anymore.
IF it is either a Chapter 11 or 13 ask when and where the first meeting of creditors will take place. EXPECT one of his ‘debtors’ that may, in fact, be a business partner or affiliate to file the biggest claim in an effort to continue controlling his revenue. CONTEST that claim to the extent possible! (Research Mark Skapinetz v Coester VMS for background).
Consider joining with others people owed money by him, and decide if it is feasible to pool resources to hire your own attorney to challenge the BK. It may not be but then again, it may be.
A LOT of Chapter 13s and 11s are dismissed outright because the debtor fails to make the required payments to the reorganization or receivership program. Don’t count of the Trustee to notify you when that happens. You will have to be 100% proactive 100% of the time. No one will tell you anything they are not fully obligated to under the law.
I think the more interesting story will be to learn if the lenders any given amc worked with, if that amc has serious troubles or go under, if those lenders return to reason and move back to direct assignment or not. The absolutely most beneficial aspects of social networking for appraisers, is finding leads regarding which lenders have recently moved away from amcs and may be forming direct panels again. All the best appraisers will rush in and it will be like night turning into day as far as the lender’s ability to have quality appraisal help again.
FYI – I completed an appraisal for Coester on November 27th and was not paid within 24 hours “guaranteed”. It was an FHA appraisal that had a few inspection issues. I am scheduled to do the “final repair” inspection tomorrow, through Coester. Not going to happen, unless payment magically appears in my bank account. I will not be holding my breath. Glad it was only 1 non-payment.
Contact the LENDER on the order. The lender has been paid that appraisal fee and regardless of whether they use a 3rd party AMC or not, they are still responsible for ANY violations that the AMC commits under that deal. I am sure many will argue this, however I have tested this theory and got payment directly from the lender multiple times when the AMC refused or did not pay.
Concur. Jim Park has stated publicly that the ASC “sees no daylight between the lender and the AMC.” Specifically, the lenders can no longer use the AMCs as a shield or to insulate themselves from wrongdoing.
I don’t envision ASC becoming a collection agency for appraiser fees, but I can see lenders opting to enforce payments rather than respond to costly federal regulatory inquiries from their various regulators.
It’s only 1 order, don’t leave the borrower hanging in the wind. It’s not their fault the lender uses an amc. CO 30 day rule, you’re still in the green zone. C&R for finals outside of amc channels on lender fee schedules I review via direct are consistently 150 or better, so I land finals right there at the minimum.
Coestar VMS are the very company that has lobbied Washington for almost a decade to reduce or eliminate Appraiser education requirements so that uneducated, minimum wage type workers would flood the profession and drastically reduce fees, wildly increasing Coestar VMS profit margin due to these same type of uneducated worker also not knowing nor understanding the value or true cost associated with the fee. Coestar jacked up their profits by lobbying Washington (No more education requirements) and bottomed appraiser fees out, then packed up and left with everyone’s’ money, including mine. I wish appraisers had the nerve to go on strike just once.
Wendy, contrary to popular belief appraiser educational requirements were never ‘lowered’ below what they were when FIRREA was first passed and implemented.
A number of groups, including the American Guild of Appraisers, objected to the RAISING of the appraisal licensing and certification requirements to include a four-year degree. Elimination of that requirement for basic licensing has never caused appraisal deficiency.
The reason for that was that it had never been demonstrated or shown that a four-year degree (particularly in unrelated areas) was either necessary or specifically beneficial to being a highly proficient real estate appraiser. The purported claim at the time was that it was ‘necessary’ in order to be perceived by some as “true professionals”.
That claim ran counter to the presumed adequacy of all existing testing standards. Either the AQB developed course & testing requirements were appropriate, or they were not.
IF the official testing requirements were adequate measures of an appraisers knowledge and skills, then nothing is added by having a degree in basket weaving. If the AQB developed tests were not adequate, then no broadly repeatable four-year degree could reasonably make up for those tests deficiencies.
I’m no fan or supporter of Coester (see articles I wrote concerning his firms operating without valid licenses as far back as 2014). However, accusing him of actions that were equally supported by such groups as the William Fall Group (MAI owned and operated) as well as a host of other high volume, low fee appraisal factories simply misstates history and detracts from identification of the real problems professional appraisers face today.
One of the biggest causes of appraisal deficiency today is the ongoing erosion of generally accepted, sound appraisal practices by FNMA itself. Specifically, form development that encourages shoddy appraisal development (1004 and 1004 MC). Coupled with policies that permit as well as encourage improper treatment of unpermitted (ILLEGAL) structures or uses; inconsistent metrics for consideration of areas as living area, and development of a system of “absolute” property ratings under false pretenses. Remember their citing how consumers and appraisers alike were confused by such varied terms as average; average+, average to good etc.? Or, how they believed using a series of alphanumeric ratings that no one ever heard of before and which required two pages of definitions to be understood was supposed to make appraisals easier for consumers to understand?
Where were the college degreed individuals then? Those that failed to point out that property comparisons up until that point were always relative to the subject and NOT in absolutes?
Wendy, as a respected professional you must be aware that there are many causes for low fees. Not the least of these is presumed collusion between title company owned AMCs and national lending clients.
Another cause is the national impact of very large appraiser owned low ball firms such as PCV Murcor; William Fall Group and a host of other MAI owned or managed appraisal management shells that can only survive by paying ridiculously low, sub par fees to inexperienced appraisers. Some who rake off up to 50% of the net appraisal fees for their owners, PLUS an additional fee for the AMC function.
For what it’s worth, the appraiser population had steadily declined both before and after TAF/AQB revised their educational ‘standards.’ The flood you refer to doesn’t exist.
The deficient appraisers we may still find in our profession cannot be blamed on Coester any more than TAF; FNMA and inconsistent application or interpretation of USPAP over 50+ jurisdictions.
ALL are responsible for diminished quality.
The new education requirements have only recently been changed, therefore the effect on our profession is not yet known. ANY profession with no education requirements will by default be full of low educated individuals and I have never heard of a “Basket Weaving” degree anywhere. When you exaggerate to make your point like that it comes off as a lot less honest. College teaches the student how to learn, organize information, and critical thinking no matter what the concentration or major. It is blatantly obvious and evident that any profession to which has zero educational requirements will not only loose credibility, but also demand much less pay as the minimum wage jobs clearly show that now don’t they.
It is also evident that there are many factors that cause lower fees, however this does not negate the educational requirements as being one of those factors that will inevitably lower fees. It is only common sense that any profession that requires zero education will have lower pay and always has historically. In addition, it should be mandatory that all Certified Appraisers have some kind of formal education as a lot of appraisers had to go back to school in order to meet the then strict education requirements in order to advance their appraiser classification, therefore it is extremely unfair to those appraisers to now have all of that education mean nothing. Imagine if other fields such as doctors and lawyers flipped flopped every few years of educational requirements, and to the extent of either zero education required, or a BBA. Now, how unfair is it that all of those previous attorneys and doctors had to get into major student loan debt, sacrifice all of the time and effort only for it to mean nothing a few years later.
This only happens in our profession, it flip flops to major extreme ends of the spectrum every 5 years or so to the point where no one could keep up.
Also, you should do more research on the huge corporate AMC’s that keep getting bigger by acquiring each other and how they are non-stop lobbying to reduce and degrade the appraisal profession as they don’t want a certification in their way of being able to hire only the lowest fee, least qualified appraisers.
Wendy, the sun has not yet risen tomorrow so its effect on humanity is unknown…unless of course we are guided by past events and faith that certain events are likely to repeat.
Reducing practical experience and allowing basket weaver degrees to bypass credible experience will have some pretty predictable results. One is that those fast-tracked new degreed appraisers will not know how to handle many relatively minor appraisal complexities that most third-year fee appraisers can handle.
If you are confused by allegorical references, I can assist you with a link that will explain how and why they may be used. Send me an email.
Let’s talk about intellectual honesty and its counterpart for a minute. You stated that ” It is only common sense that any profession that requires zero education will have lower pay and always has historically.”
I won’t even quibble about trades where formal education is not required to earn over $250,000 a year (hammerhead crane operators for example) in most American international shipping ports. I will call you out on being intellectually dishonest in attempting to make your point(s).
NO ONE has ever suggested, stated or claimed that no education is needed to be a good or great appraiser. Just the opposite, in fact. Most appraisers I know believe strongly that appraisal related courses and ongoing education is critical. Education that is taken based on the appraiser’s needs and future appraiser goals as well as their current area of specialization.
Outside of TAF I know of no individual appraisers that advocate practicum courses in lieu of experience. None that will admit in public anyway. You know of course that attorneys in many states don’t have to incur student loan debt at all, don’t you? Particularly in states where no degree is required in order to take the bar exam.
Useless degrees do NOT only occur in our profession Wendy. Frankly, until Brenan was able to implement his long-sought goal or requiring a college degree for appraisal licensing we had no useless degree effect at all! None.
I haven’t seen a lot of recurring educational flip-flops in our profession. I’ve seen two: 1. Brenans proposed across the board degree requirements, and 2. Its subsequent modification after all the players realized there wouldn’t be any Indians left for the Chiefs to lead if the unnecessary elitism wasn’t curtailed.
What was that you said about exaggeration again?
Wendy, if you have ever read past articles here, you’d know I do considerable research into huge TITLE Companies (and anyone else) that buy out unrelated services such as AMCs; escrow companies, home inspection services, loan servicing companies, and appraisal software companies such as ACI and Corelamode. In fact, you’d already know that the source of our being manipulated grows from MISMO and all its participants.
If you did your own research, you’d also know the names of individual politicians from both sides of the aisle that continue to undermine our profession and protections for consumers and taxpayers alike. Politicians that we are forced to treat with great respect regardless of our personal opinions if we ever hope to effect positive changes.
Wendy, we know the problems adversely affecting appraisers today. Lack of education is not high on the list. Lack of unity and ability to work together is. Our penchant for being distracted by meaningless or distracting side argument is.
The time you and I have to spend writing our respective posts could have been spent proposing solutions to multiple unnecessary appraisal revisions; REAL reasons for less than C&R fees, and erosion of integrity among our regulators (some, not all).
As usual, well said !!!
Thank you Chris.
It was also clear that I was referring to Certification with the higher education requirements and not Entry level Registered or Licensed. However, it is already way too easy to become an appraiser as becoming a Realtor is much harder.
Surely you jest.
Are you on crack???
does anyone know who the BK attorney is
No. The wording makes me think there is no BK attorney. Back in my consumer finance days, it was a common ploy of people that did not, or could not file bankruptcy to waive it around as a temporary shield.
NO ONE is required to wait around until they hear from Coaster’s attorneys. UNLESS Coester provides the name and contact information for the firm handling his bankruptcy case; OR until you receive a Notice to Creditors from the court, he has NOT filed.
Also, Coester does not get to determine which creditors will or will not be paid, or when IF he had actually filed for bankruptcy protection. That particular decision is up to the bankruptcy Trustee or Receiver…AFTER the meeting of creditors, not Mr. Coester.
A good rule of thumb for anyone you intend to do work for that has even hinted they may file bankruptcy is to require cash payment in advance for all services. Otherwise, you just became another unsecured creditor.
(PS this is not legal advice. If you are owed significant amounts of money by this firm, you should contact your own legal advisors to see what recourse you may have).
I just got off the phone with the US Bankruptcy Court. They have no record of Coester VMS applying for bankruptcy as of this date.
Does anyone know if there is a class action lawsuit yet? If so, could you please post the attorney so I can join the lawsuit.
Justin, if you are asking about the one I posted invitation of interest on-nothing new yet. These don’t move very fast at all and I’ve been busy. Shortly we should know if research we did meets attorneys’ needs then we move on to the next step which is further analysis on their part. Then, we’ll all know more about where we stand. As soon as I have new information I’ll post it here via AB and 100% appraisers Group on Facebook.
Great, thank you for replying so quickly. I’ll keep an eye out for anything new down the road.
I have an FHA invoice due from 12/10/18, “guaranteed payment next day”. I sent an email to the borrower explaining the situation and demanded they, the lender and HUD will also be informed and are responsible for payment. They have already paid Coester the fee but Coester has not forwarded the payment. The borrower also states the appraisal was not given to them. Then I get a very short threatening call from the Mortgage company rep stating never call their client (borrower) again or they will black list me in the whole state and that Coester was the client. Any advise?
Contact Jim Park at jim@asc.gov then contact FinCEN (look it up) turn in both Coester and especially the mortgage “loan officer”. The client is the lender. Mortgage brokers are not (usually) lenders. They are middlemen. Coester is an AMC. The federal regulators see zero daylight between the lender-client who is the lender that funds loans for that mortgage company; and their agent-AMCs.
There is an extremely good chance that the loan officer that called you may not even be an NMLS licensed loan broker (as is required by law). IF he is not, then the mortgage company “got some ‘splainin’ to do” If he IS licensed then whoever regulates NMLS Brokers has someone they need to investigate. I’d love to see how that mortgage rep ‘defends’ his threatening to have you blacklisted simply for seeking payment due to you. Be interesting to hear WHY they did not assure the borrower received a copy of the appraisal that he paid for too.
IF the mortgage company was the actual lender (client) then they’re in an even worse position.
My understanding is NMLS is a national license but enforced at issuing state.
I would also immediately file a complaint with the HUD Regional Loan Center (FHA) and let them know about the threat from the mortgage company “rep.” Coester may or may not now be beyond everyone’s effective reach, but that mortgage company certainly isn’t.
Thank you. Will do
Isn’t paying in advance the only way to guarantee a payment? I don’t understand why appraisers are still falling for that. We know they aren’t paying appraisers and yet appraisers are still working for them. Stop giving them your money.
FNMA and GSE do not permit appraisers to collect the fee. THAT is something that MUST change asap!
I interpret that to mean in the normal course of business. I can’t collect directly from the borrower. Once the AMC defaults and goes under it’s game on.
I have two appraisals that I accomplished for these crooks on 11/12 & 11/15 that have not been paid. I have filed late payment complaints with our board and have filed a case against the bond. I am in Charlotte and these reports were accomplished for a mortgage broker [Hamilton Group Funding] whom is located in Florida and engaged me through Coester. I called the broker and had a conversation with them about whom is ultimately responsible for payment. The response I received from their legal department was that I would have to file a claim against Coesters Bond! I then re-contacted our board whom sent me this link https;//www.asc.gov/hotline.aspx. After a conversation with the ASC and Florida bank Commission, it was apparent that “mortgage broker” do not have to follow the same rules as a federally insured bank, therefore, it is going to be difficult to get paid via the broker.
I have sent the broker a letter stating that the two appraisals are now considered null and void and to be stolen property. I have yet to receive any response. Our board has informed us that they have not been able to get any response from Coester and all certified mailings have been returned. If anyone has any other ideas please let me know.
Put a mechanic’s lien on the properties oh, let the owners know.
Who was the LENDER? Not the broker. If it was for a federally regulated institution and a federally regulated transaction…whether a brokered loan or not, it seems to me THEY are still required to be responsible for all aspects of the appraiser. THEY are the ones that made a conscious decision to accept the brokered loan and thereby also accept responsibility for all USPAP compliance.
Otherwise, there’s a HUGE gap in our regulations and ALL regulators don’t give damn about it! When Hamilton Group Funding ordered the appraisal their LOE must have stipulated whether it was for a federally regulated transaction or not.
Maybe NO appraiser should accept ANY AMC work without written disclosure as to who the federally regulated and the responsible lender is.
OR maybe just throw USPAP AND FIRREA/Dodd-Frank into the dumpster and ignore them completely…just like state and federal regulators seem to be doing?
What are appraiser’s doing to take action on this?
I have 16 appraisals that haven’t been paid for. I filed a complaint with the RE Commission and in MD you have to get a judgement before you can put a lien on a property. So I have to file in 3 different counties naming both Coester and the Lender. If and after the judgement is given, then you can file the lien. I’m going to send each homeowner a cert. letter explaining the circumstances and telling them of my intention to place a lien on their property. They will be calling and threatening to sue their lenders. Maybe I’ll get paid.
I’d send a demand letter out to the lenders first. THEY were the client. ASC sees no daylight between them and their agent, the AMC. Maybe point out your alternative plan as an incentive and opportunity for them to avoid the bad PR.
This is really a huge issue nationally. The lender is responsible for assuring they use stable, competent vendors. Coester VMS has been in negative news articles for over 4 years now. Its inconceivable that they didn’t know what’s going on. Their continued use of his firm amounts to gross negligence. Even failure to assure THEY use competent appraisers (not directed at you), since CVMS main requirement appears to be willing to work for free rather than professional competency for a specific property. (side issue that may be a concern to lenders).
BY focusing attention on this issue you may cause banks and FNMA to rethink their no Collect at Door policy for appraisers. At a minimum maybe their regulators will require additional PROMINENT disclosure in loan docs that if bank selected vendors fail to pay their subcontractors or bank appraisers, that homeowners MAY be sued and MAY have liens placed on their property for the unpaid fees. Check with a local attorney to see what your liabilities are regardless of the option you choose. Good luck!
Just like I think the state may be culpable in that they gave this guy a license, having to know his record in VA. Is there negligence there?
That’s a question for attorneys. Heck, Virginia decided not to even prosecute him for operating without a license for so long.
My recollection is that Appraisers have been complaining about Coester for many years on multiple appraisal blogs. This is public knowledge and was widely disseminated. Why would anyone have been accepting assignments from them on credit, considering all the bad press and publicity for many years, including not getting paid, as an appraiser is simply an unsecured creditor. I do not ever remember hearing anything positive about Coester, ever.
Many are not members of Facebook or the Appraiser groups online. 🙁
I finally sent letters to the two homeowners explaining the situation about Coester and asking them to contact the mortgage broker concerning our non-payment issue. I also indicated that a lien would be placed on their new homes if we not paid by the broker. Today I received an email from the broker accusing me of being unprofessional and harassing the borrower’s due to me not contacting the client first. She went on to say that she would make sure I am removed from their approved appraisers list! I have sent her [the broker] the email evidence of my very courteous attempts to collect which started early 12/2018 which has not resulted in us being paid. I am now going to file complaints the FDIC, Appraisal Subcommittee, State of Florida Attorney General and the Consumer Finance Protection Bureau. The bottom line is the brokers and banks do not know the law and it is going to be a long fight to get paid.
@DonB: In CA mortgage brokers are also licensed by the State. Be sure to file a complaint against the mortgage broker with the state’s licensing agency, assuming they are licensed as such in Florida. Also, if they belong to an MLS, you can file a complaint with the MLS grievance committee. I am a member of our regional MLS grievance committee. Review MLS Rules and Ethics so you’ll be able to cite these in your complaint. And with any organizations they belong to. Many have a Code of Ethics. NAR has a code of ethics. File a complaint with NAR if a member.
Thanks Craig 🙂 It just baffles me that these brokers believe they are not liable for payment if their third party fails to pay the appraiser. The Lender/Client on page one of the URAR clearly indicates the broker. The broker utilized these reports, closed the deals and made money without paying a dime for the appraisals! As far as I’m concerned, the reports are stolen property until I am paid.
Here’s the response I received from the broker last night:
“Our Compliance Manager Tammy Scot has contacted both the North Carolina State Commission and the Appraisal Board and have been advised as long as the Borrower paid Coester and Coester is who contracted the Appraiser, Coester was responsible for issuing payment to Appraiser.
The Appraiser will need to seek payment from Coester or file a Complaint against Coester in order to recover payment . It appears as though the Appraiser is trying to use a scare tactic against the Borrower. When I read the message from the appraiser to the Borrower… he said he “WILL” place a lien against the Borrower’s property. Not that he did. In speaking with Tammy, she said in order for the appraiser to try to do so he would need to file a law suite against the Borrower… in which the Borrower has proof they fulfilled their obligation by showing the PAID invoice. The Appraiser was contracted by Coester and it is Coester whom they must seek recovery from.”
WHY on earth would you communicate this issue to the mortgage broker?
You invited them to take a contrary position. Also be extremely careful of the language used in telling a homeowner you MAY file legal actions for a lien. Check with your state re ability to do that, AND using language that is acceptable factual versus threatening.
IF the bank is taking that posture through their agent, then stop pussyfooting around and file a formal complaint against the bank with CFPB or whatever agency regulated them and bring in the misleading HUD 1 statements that would have been filed as well, where it says a certain amount was paid for an appraiser.
IF this was a FNMA transaction then the CLIENT was the lender and FNMA thinks they own the appraisal as a result of that client transaction.
MAYBE NCAB doesn’t care, but again WHY would you take some brokers word for it? Before doing anything else, it would be a good idea to reread Dodd-Frank on lenders responsibilities. It may still not be clear cut but the wording may give you some clues. Good luck
I call BS. The Lender is responsible fro the actions of their agents. These banks are just relying on the fact the the appraiser can’t compete in court. I am trying my damndest best to see that they get plenty of attention.
People, people, people. You can’t place a mechanic’s lien on someone’s property for non-payment of an appraisal!!! Who is your client? The borrower? NO!!! Just the same way you can’t disclose the appraisal assignment results to anyone other than your client and their assignees because they’re not your client. The homeowner did not hire you. The AMC, and the lender, did. They’re your recourse. Leave homeowners alone.
Jek, it really depends on the state you live in. Some states do allow it just like any other subcontractor recourse that does not get paid by the ‘general’ that directly hires them.
There is no violation of USPAP. The owner already knows THEY paid someone for the appraisal and if the lender declines to accept their responsibility, then any legally permissible method is fair game. USPAP is not designed to assist lenders and unscrupulous AMCs steal money.
Nothing other than an inquiry from a federal regulator will get a recalcitrant lenders attention quite so quickly as an irate homeowner threatening to sue them, in addition to offering to file a CFPB complaint about phony TRID disclosures showing appraiser fees were paid when they were not.
In the days when we were responsible for our own collections, we controlled the process. That has been removed from our hands. We can only work with the tools at our disposal.
I’ll concede it should not be done lightly. Certainly not before giving the lender an opportunity to be a responsible client.
In my instance, I have sent letters to the homeowners explaining the situation and explaining the steps already taken to get payment. I say that if their lender does not uphold their responsibility under both the TILA and Dodd-Frank Acts that we begin proceedings to place a lien on the property. I tell them to contact their lender an encourage them to honor my invoice(s).
Here’s the latest response from the Lender/Client:
employees regarding the attached reference invoice paid by our customer directly to Coaster for the appraisal. We as the Lender did not collect any monies from the consumer, the contractual agreement is between Coaster, the (AMC) and the appraisal company (you). Our borrower paid for the appraisal directly to the AMC (Coaster).
Our obligation as the lender is to ensure the AMC is in compliance with the appraiser independence policy as set fort by the agency guidelines. We received a certified letter from an attorney regarding Coaster financial trouble and immediately removed them as an approved AMC. However, we cannot be responsible for payment not made to you or any other clients of Coaster. Our consumer paid for the appraisal as required (please see attached receipt). You will need to file a complaint against Coaster with the NC State board and provide the attached receipt as proof of payment from the consumer to Coaster.
Your continuous threats against us as the lender and our consumer must be stop immediately. If you do not cease and desist the harassment, I will be forced to take appropriate legal action against you and will seek all available damage and remedies.
FILE a formal complaint against them with CFPB ASKING (not accusing) if they are not required under DF to assure payment for services they caused to be ordered for products THEY used to get a loan processed. Be sure to send copies of any communications they sent to you. Show that the consumer paid for the appraisal as well, to the BANKS AGENT.
This is the BEST reason for all appraisers to refuse to do AMC work if no one is going to be responsible. It is FNMA that set the policy prohibiting you from collecting at the door. It is the lender that selected the AMC to be used. The AMC was acting as THEIR agent.
Do not accept any checks, they were returned for insufficient funds. We just filed a complaint with MC Court that has been scheduled for April. Served home and business.
Apparently there is no more office as he held a yard sale at his office to sell all the office equipment this past weekend and there are some creditors involved. His girlfriend now apparently owns a gym they bought (used to be a golds gym and now is called MORFIT). I however have my settlement/Mediation hearing this Friday in DC for my lawsuit i have against them for the email hacking against the business and Brian personally.. We also just filed our Summary judgement with the Federal courts after 2 years and now having all the facts to prevail in the case.
I wish all that are owed money good luck. There is a long line forming. Many are filing against all bonds they had and many are getting exceeded. There are numerous filings in state courts for money not paid by them.
I hope you get five times the amount owed to you !!!
Jones,
I’d like to speak to you. I live in MD and not sure if I should go to Rockville PD since his office is in Rockville or go to MCPD.
If anyone wants to send Coester a message, he can be found on “Morgan Barnes” Facebook page. He has apparently been working very hard getting his girlfriends new MOFFIT gym up and running. You’re gonna love his joyous photos of him and his squeeze!
Lol. I wonder if he is going to do for gym’s what he did for AMCs? I mean health clubs and gyms have always had such sterling reputations to begin with. Going all the way back to Vic Tanny’s franchises.
…and be SURE to get the life time membership discounts! This is too funny.
It’s a Golds Gym, rebranded to fit the babe’s image MorFit Gym…..
The statement by Coaster, that ” Coester can guarantee payment next day on all orders completed on or after 11/16/2018″ appears as “BS”. I have two appraisals for Carrington Mortgage Services, LLC, ordered and done after said date, that I have not been paid for. Carrington Mortgage Services, LLC, should step-up to the plate and pay us appraisers. Is not that contributory negligence?
Send me an email with what you are owed. I have an on going tally going and it’s already absurd. Markskapapp@gmail.com. I know it won’t help you get paid but I’m trying to do something here and all info is relevant.
Yolande Jones – $4,075.00
Andrew Moon- $3105
Justin Shore $3,135
Send a certified letter to the mortgage companies regulator (look up their NMLS number too). ALLEGING that they failed to exercise due diligence in their selection of AMC and hired a known disreputable AMC which resulted in non-payment of fees THEY incurred for appraisals.
People we either have to stand up to ALL lenders that fail to ensure their appraisals are paid for, or it will never end. If CARRINGTON MORTGAGE refuses to pay then repost that refusal here and we can all spread the word. On the other hand if they DO pay, then also post here so that we can acknowledge their integrity in public.
Their reputation; Their choice
Liberty Home Mortgage paid and very quickly. If anyone is owed by Coester for any loans they did, contact KSaghafi@libertyhm.com
So, not only did one of the lenders that used Coester paid me for 3 appraisals, they also started sending me business at a much higher fee than Coester.
WINNING
I am in the State of Georgia, the name of Coester’s Insurance bonding Company is: International Fidelity Insurance Company
I gave them all the information proving I did the work and they did pay me.
Their Bond No.: TXIFSU0726671
I am in GA too and they owe me about $3,700. Can you send me contact information for Intl Fidelity?
IFIC Claims Analyst: Damitta Straughter 972-312-0029
Coester Bond No# TXIFSU0726671
They will ask for all your supporting documents.
I hope that helps you out. God Bless!!
Does anyone know their Bond number or who their insurance company is in Florida?
Just got my check from the bond company. PAID IN FULL
Good for you! Glad to hear it.
Call the Appraiser’s Board in Fl. they know who the bonding company is.
Just wan FYI.. Apparently Brian has a new Job working for his brothers Title insurance company CLA (http://www.clatitle.com/). Making money and working while his new gym he has is going as well.
Lol!! I met this clown Brian Coester with a group of appraisers at a dinner he put together. After a five minute conversation between he and two other Appraisers I left and stopped doing business with them. Immediate impression was this guy is a used car salesmen. Pure bullshit artist. As far as the article saying “company started by an Appraiser”. Lmao. That’s a real joke. It was either his father or Brian that was stripped of his VA license. Can’t remember for sure which. But the Appraiser that turned in the piss poor appraisal was the one who trained me. They treated the job like a numbers game and had no clue what he was doing. Saw this coming 4 years ago. Surprised it took this long. After I had been doing business with them for about six months and caught him owing me just over 8,000. I collected my money and cut them off. Sadly most AMC’s aren’t much better. Hopefully all will be gone soon and we can get control of our fees again.
Wondering if there are ANY bonds that haven’t been exhausted and if out of state appraiser’s can apply to them?
In Georgia there is still money
Does anyone know Coester’s Insurance Bond Company in Florida? I called the state board and they said they do not have that information.
Believe me they have the information. Call them back and ask to speak to a supervisor, and cry the blues like I did.
According to the FL appraisal board’s website application for AMC licensing, there doesn’t appear to be a requirement for a surety bond. That’s probably why they say they don’t have that information.