Fast Connections AMC Fined $2.8 Million
Fast Connections USA, Inc. & its President, Towhindul Hussain, were found guilty of hundreds of violations…
Well it must be true what they say… Don’t mess with Texas!
The Texas Appraisal Licensing and Certification Board (TALCB) has issued a monetary fine of $2,801,500 against an appraisal management company. Fast Connections USA, Inc. and its President, Towhindul Hussain, were found guilty of hundreds of violations of Texas law and regulations.
TALCB found Fast Connections contracted 274 appraisals in Texas without proper registration. These violations have a mandatory fine of $10,000 each. TALCB also found Fast Connections USA failed to pay appraisers within 60 days as required under Texas law and some appraisers never received payment at all. Neither Fast Connection USA nor Towhindul Hussain responded to TALCB, which tacked on additinal penalties.
Most appraisers are independent businesses and VaCAP will not comment on how each of you operate your business. We will remind you that doing business with unlicensed / unregistered companies is extremely dangerous. The additional liability you take on both personally and professionally by doing so not only has financial consequences for you, but the appraisal profession is severely tarnished in the eyes of the public.
2. On or about May 3, 2019, complaint #19-287 was filed with the Board by a real estate appraiser. The complaint alleged that the Respondent failed to pay the Complainant certain appraisal fees for an appraisal assignment within 60 calendar days of completion of the assignment….
6. On 274 separate days during those calendar years, FCU contracted with an appraiser to perform an appraisal assignment and reimbursed appraisers for services performed on properties in the state of Texas. FCU is not currently registered in the state of Texas, and was not registered in Texas during any of the calendar years in question.
7. Respondent failed to pay appraisers for completion of appraisal assignments within 60 days where there was no breach of contract by the appraiser and performance by the appraiser was not substandard. The complainant submitted a report on January 8, 2019, and was not paid until May 19, 2019, a week after Respondents had been
informed of the complaint to TALCB. FCU engaged in similar conduct at least 20 other times. In addition, on a further 15 occasions, Respondents did not made
payment at all, even after receiving notice from TALCB staff that payment for completed reports was required within 60 calendar days…
See the complaint and order below.
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Another reason why we don’t need AMCs
or when you find a good one, be appreciative. It is a two way street right now and mutual respect is paramount when working with an AMC
I might take some heat for saying this (when has that stopped me), but often times I think its the greed of the appraiser or more specifically the greed of the appraisers who build out their business with such entities (AMC’s) that are the problem.
AMC’s are like welfare, meaning until such time one can stand on their own two feet (direct clients, VA, credit unions, etc.), then to build out your business, they have become a necessary evil for many.
But what happens when as individual appraisers we obtain all of the premium work we can handle? Do we continue to obtain premium work just for ourselves, and or do we hire a staff to assist? Or do we push through all of our the premium clients and revert back to obtaining AMC work to continually build out a company?
Knowing AMC’s are often the root of the problem (fill in the blank), its this “get mine” attitude in spite of this knowledge (the truth), that is the poison of the profession.
Seek the truth.
This seems to be a planned business model. Could it be considered bank fraud?
Maybe some jail time to go along with the fine will help.
2.8 million dollar fine? Very curious to see how that will play out. I hope everyone with accounts receivables with this company eventually gets paid…
I’m glad TALCB caught them.
But how about the lenders that hired them to be their agent and that failed to verify the agent was properly licensed OR had been paying appraisers? A fine that will never be collected is only a Pyrrhic victory.
The next step is that each and every one of those unpaid 274 appraisers needs to invoice the lenders that failed to assure their agents were legally licensed. indirectly violating FIRREA in the process.
CASE STUDY—JPMorgan Chase Not Liable FOR AMC FEES OWED TO APPRAISERS
JPMorgan Chase Not Liable for AMC Appraiser Fees
Appraisers and Agents File Class Action Suit Against Chase
By Isaac Peck, Associate Editor
A bad decision (and a limited one) in 2013 does not mean Chase is permanently off the hook. Read the judges decision related to a specific barring order. Plaintiffs simply failed to do their jobs! (Demonstrating control over AMC by Chase). “In approving the settlement agreement and the entry of the Bar Order, the court stated, “There is no evidence before the Court that Chase exercised, or had the right to exercise, control over Evaluation Solutions.”
A few subpoenas to chase demanding copies of their agreement with the AMC may have helped prove this. Similarly, ASC regulations concerning the absence of daylight between lender and AMC could have helped.
Im no attorney but even I know if you walk into court completely unprepared you are going to lose. Bankruptcy Trustees are not always the most honorable. Heck, I’ve testified in one case where the prior trustee (an attorney) had gone to jail for stealing the bankrupt estates money!
Anyone owed money should file their claims and if the amount is significant use an attorney to do so.
WORDS OF WISDOM
• Mike Ford, AGA, GAA, RAA, SCGREA, Realtor® February 16, 2019 at 10:54 am
OK, for the inexperienced folks out there not wanting to get stiffed on fees. A business bankruptcy one time is usually a result of incompetency. It should be a warning to ALL to stay away.
Even a hint of a possible pending second bankruptcy should set off all kinds of alarm bells. DO NOT WORK FOR PEOPLE ON CREDIT THAT MAY BE GOING INTO BANKRUPTCY! Require that they collect the fee up front AND pay you before you ever schedule the appointment! If they say no; you have just saved yourself from working a day for free.