The real bad trend example is the one at http://appraisersblogs.com/pace-pro-form-beware-appraisers

Where First American ‘just wants a little old reconciliation’ of “data sets”, and oh yeah, appraiser must toss in a VALUE there as well! IF the appraiser thinks just maybe a teensy bit more work is required then they are certainly “welcome” to do so.

All for $70 BUCKS! In my state we don’t care what euphemism you label it with. Having an appraiser provide a value is an appraisal. They can call this a “proprietary report” all they want, but it does not allow them to side step prohibitions against appraisers providing misleading reports; OR the requirement that AMCs have to also assure that is not happening. I suspect THIS particular form is so misleading that it  would get it’s author in trouble even if their only training had been as a fast food clerk.

My personal opinion is that use of this form by an appraiser without also doing ALL the things required to develop and report an appraisal LEGALLY, goes far beyond being an encouragement to prepare a merely ‘misleading’ report.

$70 doesn’t even pay for the appraisers time to write all the required disclaimers; which would STILL not protect them! Go ahead! Tell me THIS is a customary or reasonable fee for an appraiser to develop a professional opinion and provide it in a written report.

Oh, and don’t forget to note the relationship between the owner of the software  company that produced the form, and the “Mortgage Solutions” provider. I could have sworn they used to be just a simple title insurance company.

That this type of “service” can even be advertised without causing a major investigation into Dodd Frank compliance and FIRREA adherence should have ALL appraisers up in arms!

No, you & I do NOT have to do this, however we DO lose real appraisal work because of it….and the integrity of our profession.

Several valid points Wayne. Wow, we are slightly lower in numbers than I thought (I had us at 80,000); near enough I suppose. I’m encouraged that so many are refusing low fee, AMC work but even that is not the solution anymore.

Like the MERS super virus plaguing hospitals today, the AMC business model is already morphing into something even more insidious. The new semi automated; bank “overseen” but AMC hosted automated management systems. Look at First American’s Model. These are coupled with a variety of ‘portal’ systems and other unique delivery systems that are also quite capable of stripping away whatever explanatory data an appraisal has, and forwarding only the value summaries to those making bulk securities purchasing decisions.

Anonymity is the key. Generic product advertising for the genre already suggests it is also being offered to enable lenders to pick there own selected appraiser ‘pool’. If orders suddenly stop, who does the appraiser contact to find out if there is a perceived problem with their work?

The last time the federal regulators looked at our banking system from top to bottom was before FIRREA pre 1989. Nearly 27 years ago. Even after TARP, no objective review was undertaken. Merely a series of stop gap “fixes” that have left it more screwed u than it was before the collapse and TARP! LOTS of money made by politicians though.

It is time to go back to FIRREA and start all over again. FIRREA II should be an honest analysis with the needs of ALL interested participants are considered; and the interests of American Taxpayers & public are put above all else. Somewhere in the process recognize whether the federal government still believes appraisers are needed. If so, then let’s have meaningful rules that are not subject to the ever changing whims of industry every six months; and other parasitic influences.

Wayne, I agree re fees but what is the alternative? No peer organizations at all? My Guild operates with about as low overhead as one can get. We have only two paid staffers. CaCAP operates with even less. Its 100% volunteer staffed.

The really big organizations have high dues for two reasons. (1) to pay their over priced lobbyists; and (2) operate their “other” appraisal related businesses. It would be nice if they would spend some time and effort to preserve the profession for ALL rather than a select few.

Thank you for the continued orders, Martin

Environmental Issues Expert
Corporation Approved Vendor

P.S. I wanted to thank you for the link to the EPA site. I was finally able to convince my brother-in-law that his wife didn’t cheat on him. That their kids were all the color of burnt toast with a little green tinge because his trailer is located on a super fund toxic waste site. Stupid, stupid, stupid!! To put it bluntly when his parents named him “dip stick” they were a lot wiser than people gave them credit for at the time.

Mike, here is my attempt to answer your question. Approximately 3% of the licensed/certified appraisers are moving out of this occupation each year for a variety of reasons. I believe that Appraisal Management Companies are one prominent reason many are leaving. The study conducted by the TX Real Estate Research Center concluded that 1/4 of appraisers refused to work with any AMC. The U.S. Valuation Profession Fact Sheet – December 2015 indicates a current total of 76,800 active appraisers with 31% being residential appraisers.

Based on this information it appears to me that the number of appraisers available to provide the massive profits for the AMCs are diminishing. Of course it is not just the AMC problem. The abuse is handed down by Fannie, Freddie, FHA, VA, etc. When you add to these AMC problems all of the additional parasites sucking on this occupation there is no wonder that our numbers continue to decrease. As an example consider all of the various appraisal organizations seeking membership dues, the subscription fees to newsletters, the Expos, etc. Because of all these parasites I believe the state should issue each of us a Flea Collar with our certification!