Housing Notes: AMCs Running Out of Appraisers
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- Bias in Automated Valuation Models - February 28, 2022
Housing Notes on Appraiser Shortage, Coester AMC Lawsuit…
In a recent article, Jonathan Miller, author of Housing Notes, points out several key factors in the appraisal world today. Pat Turner, President of VaCAP, reached out to Jonathan about sharing his information. Here is what Jonathan had to say…
“This is a great moment to expand insights on what is really happening. AMCs have run out of appraisers to work for half the market rate. And those that might take less of our fee are still costing us another 30% of lost productivity with ever expanding scope creep. Brexit has pushed rates lower and refis are booming, creating heavy demand for appraisers.”
To read Jonathan Miller’s Housing Notes, click here. Please share the article with agents, appraisers, consumers and most definitely lenders. Recent events have shed some light on a few AMCs that may not be operating with the utmost of honesty. The lenders need to know who they are partnering with! The more we share what is happening in our profession, the better protection for the consumer.
Housing Notes: Is There An Appraiser Shortage?
Nope (sorry, just going for drama here). Check out the Appraiserville section below for lots of discussion about appraisal management companies, the entities (AMCs) that are perpetuating this rumor for their own survival.
Rob Chrisman’s column in Mortgage News Daily provided his own stream of consciousness within the middle (in bold) of quoting and paraphrasing how the current NAR president sees the appraisal industry:
The president of the National Association of Realtors (NAR) Tom Salone discussed appraisals recently. (Forget the fact that an appraiser can “only” do 2-3 a day, they don’t want to work 7 days a week, they seem to receive about 10 requests a day, few want to train their future competitor who will eventually undercut their price, and all are usually pressured by real estate agents to deliver on price.) Mr. Salome stated, “…in addition to affordability concerns, an issue seen earlier in the housing recovery may be reemerging. Realtors are indicating that appraisal complications are appearing more frequently as the reason why some home sales settlements are being delayed…
“Appraisal-related contract issues have notably risen over the past year, and were the root cause of over a quarter of contract delays in the past three months…This is likely a combination of sharply growing home prices in some areas, the uptick in home sales this year, and the strong refinance market overworking the already reduced number of practicing appraisers. Realtors are carefully monitoring this trend…”
The NAR president demonstrated what is a common lack of understanding on the state of the appraisal industry right now, despite that the problem is clearly impacting his members. The appraisal industry needs to convey to NAR what is actually going on. There is no shortage of appraisers. There is a shortage of appraisers willing to work for half the market rate. Forget the Appraisal Institute in this regard, they are mired in their own internal politics and have long flirted with being pro-AMC.
Remember, when you (AMC) take nearly half of someone’s income overnight, it changes the quality of new applicants entering the appraisal profession. This would be true with any profession. The experienced appraisers are penalized because they were properly trained and know better than to take shortcuts. Experienced appraisers don’t see their profession as one of a form-filler.
The Coester AMC Lawsuit in Maryland
Here is an incredible and essential read for all appraisers. Ask yourself after you read the following documents whether you want to be associated with an AMC like this? I remember seeing a quote on an appraisal a long time ago from the adversary’s appraisal (the one competent thing in their report) in a litigation: “An appraiser is measured by the clients they serve.”
Follow this link to read Jonathan Miller’s Housing Notes.
A Link to Jonathan Miller’s Housing Notes is now on the Appraiser Resource Page of VaCAP’s website.
While we are sharing… Check out the American Guild of Appraisers (AGA). The American Guild of Appraisers, like many other appraisal organizations is a friend of VaCAP. The AGA has presented Virginia appraisers a fantastic offer that is well worth considering.
Check it out here.
There are many benefits to the AGA:
Strength in numbers – AFL-CIO / OPEIU / AGA – 13 Million strong, Independent appraiser support, Coalition support, Competent Peer Review, Board representation
Fight for member injustice, Support AGA members, Death benefits, AD&D benefits, Product Discounts, Travel Discounts
Fight for member injustice, Support OPEIU & AGA, Insurance, Towing, Auto roadside assistance, Scholarships, Legislative representation
For more information on the AGA contact: Jan Bellas at 301-220-4100, firstname.lastname@example.org
Scheer vs Coester Amended Lawsuit July 29 2016