Appraisal Delays Study
Contract Date / Acceptance Date Study expanded.
VaCAP did a sample study this past winter to determine the number of days from contact ratification to appraiser acceptance from both amcs and lenders. The results were a 9 day difference with amc’s taking 18 days and lenders only 9 days to assign the appraisal.
We have just asked our sister coalitions to complete this survey as well. for a larger data pool and are asking every appraiser to once again participate to help our industry. This information will be used to counter the narrative the appraisal is taking too long.
Below is the email sent nationwide to our sister coalitions by Pat Turner, VaCAP President:
It’s a brilliant idea, and will go far in support of our relevance. Don’t forget Freddie just announced last week that no appraisals of Condos will save 7 to 14 days. We can honestly and objectively dispute that assertion with our members’ honest reporting of actual data.
We did this in Virginia in the winter (November, December, and January). Granted, a slow time of year, but we felt we might get more participation now.
VaCap’s study indicated a 9 day time lapse from direct lenders as opposed to an 18 day lapse utilizing AMCs AND so-called “portals”.
Here are the parameters to a fair report.
- Determine the date the contract was fully ratified (finalized).
- For your (our) information record the name of the lender.
- Record the AMC by name.
- Record the date of final contract ratification.
- Record the date appraisal was ACCEPTED.
- Record the passage of time in days.
Let’s agree to distribute to our members ASAP and ask for results ending September 30. This will give us time to compile and fully report to the AARO conference and other publicly interested entities.
This is an important undertaking, and can go far in support of insuring the safety and soundness of our financial systems, especially under current and pending issues!
Please pledge support and get this done.
Any questions may be directed to firstname.lastname@example.org
Download the SpreadSheet with samples here.
The Northern Colorado Association of Real Estate Appraisers has asked us to pass along an educational opportunity they are sponsoring March 24-31, 2019 on an Eastern Caribbean Cruise. See the flyer here.
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“The results were a 9 day difference with amc’s taking 18 days and lenders only 9 days to assign the appraisal.”
Twice as long for amcs to assign? That’s the best case scenario based on my experience.
Whenever someone says don’t discuss fees you have to know there is something going on. What happened to transparency!
I only complete AMC work to fill in the gaps but only on my terms!
The insightful statistic will be the diversity of vendors and count of vendors supplying the service among amc vs direct non amc appraisers completing reports. The amc’s take longer because they deal with substantial limitations in vendors willing to provide discounted services in order to receive those orders. The lions share to the appraisers who pay to play, benching all appraisers who do not.
On an additional related note, after a month or so of reflection I have figured out why the FNMA paper on appraisal quality for amc vs direct chose the specific mid range selection of only using appraisers who complete both amc and non amc work. The reason they did not use a diverse selection of appraisers whom either did or did not complete amc work as the majority of the submitted appraisals to fnma was because they already know there is a clear quality difference. Why? Because typically only the appraisers whom have already cut corners and adopted outsourcing methods are able to stay in business and manage completing those requests at such steeply discounted fees.
Even if you get ahead on terms, the amc merely reduces the fees of an appraiser elsewhere in order to facilitate the higher than projected appraisal fee. Picking up those rare orders where they can ‘meet your terms’ merely allows the amc to continue to provide coverage for all those simple profitable orders and never miss a single placement. It’s when they miss those singles they develop client retention issues. So if you cover for them even once, appraisers have done amc’s a business saving favor and kept them in business. Say goodbye to all the simple work.