Major, I don’t think that’s very likely. Nothing actionable in his opinion statements. Impolite, but not actionable. AI has been a bit schizophrenic in their evaluations/ hybrids approach versus traditional standards for quite awhile. I was going to suggest scrolling up to my pdf MISMO attachment above but its too hard to read. Separate article on it coming out shortly. Bottom line is it shows MISMO intend to do away with BOTH residential and commercial appraisals after forcing a data mining system on commercial side first; then promoting hybrids initially, but with an ultimate end goal toward ending those and going fully automated.  That’s not opinion by the way its specifically stated in their (MISMO) collaborative objectives agenda above.

Respectfully, AI cannot believe that is a worthy or acceptable objective for MISMO, but its one that they are (inadvertently?) facilitating via their past promotion of alternative standards. Even that’s not needed anymore. Hybrid hucksters are claiming new SOW itself allows ignoring inconvenient standards.

Me thinks that Jonathan Miller is going to be roaming the halls of a court house very soon.

Link correction

http://www.mismo.org/Documents/MISMO/Documents/Miscellaneous/Opportunities%20for%20Collaboration%20_MISMO%20Booth%202018%20Results.pdf

Thank you. Appraisers need to learn more about this. You’ve educated me again today. Solutions?

“It” (AMC) started as major, national influence Title Insurance Companies. Pre 2009 it was largely LSI (Lenders Services) out of Coraopolis PA; and ATM out of San Diego, CA (Appraisal Title Management; as a rebellion against LSI by some of its original founders and dissatisfied leaders). THIS is where AMC pricing wars started circa 1993.

There are other AMCs claiming to have been around since the 1970’s but they were not widely known. Rels and Landsafe were considered ‘in-house divisions’ originally rather than AMCs.

My point, is most of these were NOT small, independent start ups. They were extremely deep pocket national corporations with the ability to capture (sometimes dictate) receipt of all of a major banks appraisal orders.

I was Chief Appraiser for one in the very early 1990’s (with only 5 years appraisal experience, so you get an idea of the limited expertise and background they typically hire).

The NUMBER ONE and overriding concern was net profitability. This was above ALL other considerations. Appraisal standards and accepted processes were something to be overcome or sidestepped whenever they impacted profitability or speed of service.

Most title companies became disenchanted with owning their own appraisal divisions (for HELOCS) due to overhead. They started sub contracting to non appraiser ‘appraisal coordinators’ that were only marginally encumbered by standards.

By 2009 though Cuomo and (it is alleged) select title insurers, saw an opportunity to capture ALL appraisal business across America. Hence HVCC.

This is when and why all the ‘little guys’ like appraiser owner AMCs popped up. Initially in self preservation appraisers formed them to capture otherwise lost work.

Then came the inevitable business opportunists. People with great organizational and sales skills; no appraisal experience, limited morals, and suspect integrity. Appraisal fees and quality plummeted.

“With reasonable profit, comes healthy competition. With excessive profit, comes ruinous competition.” Enter the software hucksters.

Software con artists had sniffed around the periphery of appraisal for years. The ONLY thing stopping them from taking over completely with faster and cheaper services were those pesky  appraiser standards; and human imperfections that make real estate markets unique.

In this environment we also had the normal and natural desire of mortgage brokers to ‘get deals done.’ NAR wanted to get deals done. NAHB wanted to get deals done. Title insurance companies (that now owned damn near all aspects of a transaction from home warranty companies, to realtors, to escrow, to loan origination and even servicing companies) also wanted to ‘get deals done.’

The only thing stopping them was FIRREA and to a limited extent, Dodd-Frank; coupled with damned uncooperative appraisers.

Now is a great time to look at MISMO “opportunities for collaboration”  
(See end of article-editing issues)

Thought UAD was only for SFRs? Think again. See above. Next they want to demand reform to narratives to get rid of all those pesky graphs to facilitate data scraping. NOT my interpretation-its MISMOs opportunities list.

Again, look at MISMO Directors; The Appraisal Foundation Sponsors, & FNMA participation. Do you think changes in definitions of what appraisals are (were) was accidental or related to APPRAISER needs? Preservation of the public trust? TAF HAD to show a way that “Evaluations” could be USPAP compliant; then definitions had to be modified or at least clouded so that HYBRIDS could be slipped in as variants of evaluations which already had exceptions for lenders….which brings us to today where the fraudsters are claiming “Hybrids ARE appraisals.”

Some actually are the same fraudsters that used to tout ZAIO.

To get an idea of how far the tentacles of huge title companies reach look into First American (PACEPro), that used to be sisters with Corelamode. One bought ACI and the other bought alamode.

Baggs, merely calling them ‘middle men’ isn’t enough. They are the bookends AND the middle.

Appraisers: Its not paranoia when the bastards actually are out to get us (end us). They want and need to keep appraisals. Its just the  appraisers performing them that have become undesirable.

We are not going to overcome this at a state by state level folks.

http://www.mismo.org/Documents/MISMO/Documents/Miscellaneous/Opportunities%20for%20Collaboration%20_MISMO%20Booth%202018%20Results.pdf

Also just a tidbit point about my above initial response comment. “Best fee.” There seems to be some confusion about the term. Best to whom? How can a licensed appraiser held to a non advocacy position effectively negotiate with someone who presumes you’re their advocate? Marketing lenders is in the end, a much easier more effective way to go about it. Amc’s, the long arm of the lender.

Try with honest efforts as I might, I could not get any amc’s to answer one simple question, what their established minimum fees I could rely on were. It’s not that difficult of a question to answer, but they found a way. If there is no established number, the first one to say a number loses. Old fashioned sales techniques can still be relied on. These guys are so difficult to negotiate with in a consistent manner, I would be open to silver contracts or even trading barrels of whiskey. They seem to have a tough time understanding the value of cash.

Suggested reading. Bombshell information. Great leads, thank you.

Previously I posted a Liberty Report video, regarding first receivers of fed money. Not sure if I have time to find that right now. Daily Liberty Report vids keep me aware of much of the relevant financial content. A fresh but traditional perspective. We don’t need no stinking changes… The regulatory mechanisms are broken, revolving door, co opted federal government, generational moves away from local governance, etc, etc. Only informed consumers can save us now, they are the invisible hand we must rely on. That’s why I post here instead of other places, the ready availability of data via bot crawlers and search engines. AF no longer offers such realistic benefit to public researchers. Behind closed doors? Pass, I’m not going with the keep the appraisers over here in a dark silent place program. It’s all or nothing now, this is the precipice where we all somehow through collective effort, make it or break it. Myself, I vote with my wallet primarily. Think of all the disclosure on the AF kept under lock and key for a mere 20k a year site monetization…. Your presence is as always much appreciated, have a good one.

Not many do.

If they counter with they use an amc, just let them know that’s an unacceptable assignment condition and please save your email and flyer, you’ll be available when they are able to move away from amc’s.

This is awesome advice Bags.

You do know there is anti-competitive law that says competitors can not sign exclusionary contracts that reduce competition.

ghee, if only the FTC would get involved.

They pulled that page. Is this it?

Fannie Mae (FNMA): RELEASE the 11,000 SECRET FANNIE Mae PAPERS !!!

Oh yes, this is it. Shocker! Must watch!

https://youtu.be/qoMDYsB_H3o

The insider trading reference somehow relates to the use of avm and hybrid, flat rate, a general scoot of independents out of the way? “The same people whom are setting the terms for restructuring fannie and freddie are the same people whom are going to replace fannie and freddie in the private sector, and are going to make a killing doing this. This is the worst case of a good old boys club I have ever heard of in my life and it is entirely illegal. If taxpayers knew about this they would…”

“Ten years after they were placed in Conservatorship the GSEs have nothing more than a $3 billion capital buffer. FHFA’s capital rule calculates the GSEs need $154.1 billion of capital (excluding the deferred tax assets). For FHFA to ignore its clear responsibilities under HERA, and to leave taxpayers fully exposed to potential future losses of up to $154.1 billion is not only not prudent but it is an unsafe and unsound decision by a regulator who possesses all of the necessary authorities, in law, to require the GSEs to build larger capital buffers”

GF&Co – FHFA’s Proposed Capital Rule

Holy smokes, the beat skips on in the above link. Ron Paul called this, the fed promotes first receivers of money, first and foremost, first receivers money benefit more than anyone else. The stock payout and definition work arounds here despite being undercapitalized has got to be just the perfect example. I called this one a while back, they’re burying QE in real estate. Now we know why. They are first receivers of money from the fnma markets, via stock. Bombshells on the blog today. Thanks Marion.

I’ve opted out. Have not had but one or two amc orders in many many years. Made it 4 or 5 on reo, then ran the last 3 or 4 on direct assignment. It’s not rocket science, appraisers simply need to solicit to lenders. If they counter with they use an amc, just let them know that’s an unacceptable assignment condition and please save your email and flyer, you’ll be available when they are able to move away from amc’s. It’s an important action for perspective, when you speak to many mortgage bankers they don’t like using amc’s either. The most tangible difference is that amc’s seek to play appraisers against each other, always flex fees based on demand. If there is only 1 order should it only cost 1 dollar? If there are 10,000, should all appraisals cost 10,000. It’s such a simple market concept, if a lender pays consistent fees and appraisers can expect consistent work flow, that’s the obvious smart choice for a client. Appraisers whom sit in amc chairs are replaceable at a moments notice, the second the next guy adjusts his fee downward, their name populates first instead. That’s why some appraisers go rock bottom just to capture the work and keep it moving. There is a better way. If an assignment company does not have a firm minimum fee, they have failed in their obligations to implement the process fairly. What’s your fee and turn time? That’s an odd question, what’s yours? Easy simple negotiation methods. If a purveyor of a service or product seems apparently confused about the worth of their product, one takes pause. If they don’t understand C&R by now, I can’t help them. None of us can run a business around a question mark. In Colorado, at $550, some appraisers tell me I’m the discounter these days, va moved to $700. If $550 is a discount, call me the discounter. But I can not work with amc’s at all, knowing they ‘take losses’ and drive appraisers fees down elsewhere to cover the difference. These are not sustainable business models. Gum chewers.

See how well this works when appraisers connect all the dots and just drop out of the industry.

Good Afternoon,
Class Appraisal has an order in your area, if you are able to assist us with this assignment, we ask that you submit your turn time and fee. We understand the current market conditions and would appreciate any response.
Details on the order have been listed below for your convenience. If you have any questions regarding the assignment, please feel free to contact me directly at
____________

Hold on… If they understand the market, why do they need a quote? Another gem… One begins to understand how the model will never ever self correct, and why appraisers in some areas get pressured so much more than others. Also, all appraisal fee increases will be deemed temporary, all surplus must flow back to the management company, eventually. They brag about growing faster than any other appraisal management company. From an appraisers perspective that’s a very scary thing to hear. Picture included, and which one of you was my manager of the day again?

Your fees are pretty much in line with what we pay our appraisers right now. Our appraisers make their own fees and that is what we go by. I had also asked for your fee and best turn time in the email I sent out, not your best fee. We know the fees are a lot higher right now, and we are OK with that. We are here for our client’s and pay what is necessary to get these reports done (even when that means we are losing money). We also pay our appraisers in 48 hours after completion of each report. We do see the bigger picture and appreciate our appraisers very much. Without you guys, we have no client’s.

What you need is a copy of the written agency agreement between the AMC and the lender and NOT relying on the common law definition of agency in what the AMC is responsible to the lender for. Don’t rely on a misunderstanding of what common law agency entails and makes each party responsible for. That’s why sales agents have to get their agency agreements in writing.

Hey Bags,

You missed a lot of stuff, most of it in the IAEG, when coordinated with and USPAP, that credibility requires relevant evidence and logic for the intended use. You got any safe and sound lending requirement that says intended users (not just a specific client) find all those EAs concerning condition and inspection credible? You got a regulation that says this is an appropriate reporting format? Nope, and FIRREA required lending appraisal formats to be UNIFORMED that’s why USPAP is the UNIFORMED STANDARD Oh my. But there is lots within the IAEG that should be referenced, especially between the definition of credible Appraisal Assignment Results and USPAP’s definition of credible.

But if you are concerned how I price my products,

Obviously you don’t have the newest high tech appraisal C&R fee calculator

https://www.housingwire.com/articles/42874-hw-tech100-winner-class-appraisal

Yes, because one of the two ways to evidence C&R was not by a Fee Calculator, but, somebody thinks they are going to win an FTC case, because lemmings will accept less than 1990 fees for their work.

And let’s not even talk about “free market pricing”  or education and experience.

Of course, totally accurate. It’s a telecom out of the box business with rather high employee turnover. The amc is not a person, it’s a moving middle man target, populated with non licensed individuals whom have no mandate to be educated regarding these rules in the first place. We are literally being ‘managed’ by tech people who’s end goal is to put us out of business and replace our services with their own. Hows that for a breach of trust on the lenders behalf? You may not be aware of this, having insulated yourself from having to actually work with them, which is good. But now a days the language has changed. The amc language is ‘our new client’. That does not include the appraiser. In their minds, the lender is their client, we’re their employee. The entire industry is structured that way, so much even ‘direct’ assignment companies now operate much like amc’s, less the pay to play aspect of flexible fees. Individual licensing for every single amc worker or rescind separation from loan production rules. Since when was a coding programmer a qualified real property valuation consultant? I guess since they said so. Seems to be good enough for lenders.

In fact, Id want to see the AMCs written authorization from the client stating this is prohibited.

Seems the AMC has forgotten their role in the process AND the definition of who the actual client is. Yet more evidence that they have never read USPAP except to cite that the phony reports conform to it.

Clearly, the most logical position. We have a winner! Marion, you are as always, the best.

Hey, do you mind if I ask what your fee and turn time is? We have this awesome new fast product we’d like you to try out, they’re called hybrid reports. You’ll never have to leave the office! Also, it’s important you do not disclose your fee to the borrower on these ones, we don’t want them getting confused about fee distribution. Oh yes, and at the appraisal assignment desk, ran by non appraisers, direct communication with the lender by the appraiser is prohibited. So if you’d like to help us impress our new lending client, we’d love for you to fill out a panel application and complete an additional criminal records check. All appraisals must be completed within 48 hours of inspection or this could negatively affect your ability to get work in the future. Also, to help meet this demand, we recommend you use our appraisal report typing services.

Did I miss anything? That’s appraisal engagement in 2018 and I dare anyone to reconcile that with the above guidance rule. Every single point is easily verifiable by reviewing any given appraisers email.