Dave’s article raised valid points, though an EIN us NOT required to be a sole proprietor; and you are allowed to use your SSN.

The AI is seeking to amend the law by lobbying. Its better than doing nothing, though I question if lobbying is more cost effective than a suit. Its their money, and their choice. Kudos for doing something.

For my part I see most NORMAL AMCs relationship with us as exempt (compliant with the three assumptions).

Exceptions may be the bifurcators; online proprietary form dictators, and 48 hour turn around time micro-managers.

Pete Christiansen has a free webinar 1/31/20 dealing with this. AB has the article and links.

Lets not fear AB5 or be panicked into ridiculous new AMC requirements. Read the law and exceptions for yourselves.

Compliance shouldn’t be that difficult.

I think you are right that this will wind up in court. Realtors are exempt because they are licensed under CA Business and Professions Code (like appraisers and attorneys) instead of Ca Labor Code like Uber and Lyft who the law was directed at.

Dave’s article raised valid points, though an EIN us NOT required to be a sole proprietor; and you are allowed to use your SSN.

The AI is seeking to amend the law by lobbying. Its better than doing nothing, though I question if lobbying is more cost effective than a suit. Its their money, and their choice. Kudos for doing something.

For my part I see most NORMAL AMCs relationship with us as exempt (compliant with the three assumptions).

Exceptions may be the bifurcators; online proprietary form dictators, and 48 hour turn around time micro-managers.

Pete Christiansen has a free webinar 1/31/20 dealing with this. AB has the article and links.

Lets not fear AB5 or be panicked into ridiculous new AMC requirements. Read the law and exceptions for yourselves.

Compliance shouldn’t be that difficult.

My bad. Will focus on staying on topic. Thank you.

1) This blog is about AB5, a new law in California that has wide ranging employment implications including for appraisers. It’s not about default rates or individual funding programs.

2) The AMCs, and lenders, current practices are an obvious violation of the new law as written.

3) Appraisers follow USPAP, not some underwriters whims.

4) Appraisers don’t cause defaults, unless they are approving unreasonably high values. Predator loans, overzealous lenders and greedy realtors cause many more defaults than appraisers.

5) VA is a federal agency and unlikely to be concerned with a state employment law.

6) Again, appraisers do not have any obligations to conform to this law unless they themselves are paying independent contractors. The obligation and liability all belong to the employer. i.e. AMCs and lenders.

Mr Dave Towne is not an amc hack. He is an experienced appraisal educator with active experience in the fields he writes about. His intention and purpose in writing articles is to educate and converse about a wide variety of interesting industry focused topic matters.

The purpose of those specific requirements you mention is that those aspects of real property compliance with local code and regulation are an integral part of valuation service within mortgage lending. When dealing with FRT’s, the loans are saleable, bundled into larger mortgage backed securities. There is a constant default rate for all types of mortgage loans, I think FHA has the highest, posting twice if not more the comparative volume of defaults against other funding programs.

So when a default happens, forensic review ensues and in the litigation world, non compliance with real property local requirements is seen as a valid justification to force a loan repurchase. Also loans can become compromised if borrowers are subject to tear down or compliance issues with the local jurisdiction so those are typically for everyone’s benefit. So yeah, the apparently minor details matter and for your own protection from liability and state licensing boards, it’s good form to embrace the requested additional sow overlays and do so consistently. It’s also as you mention round about, important to distinguish from unnecessary time draining purposeless sow add ons. A good way to judge that is to know the FRT rules up and down, referring to the various handbooks because that is the base source for sow structures, as well as knowing localized rules. Beyond that individual lenders and middle managers often form additional requirements based on the specific litigation and repurchase penalties they may have dealt with in the past. If it happens once, all future originations are likely to be subject to new scope of work safeguards intended to deflect future repurchase litigation.

I’m thinking this law may affect VA appraisers, with their permission to go inactive status forms and all, the inability to say no to any given specific assignment. Even if I could claim employee status with so many clients it’s doubtful I’d find value in pursuing that. Unless they’re writing the checks for my insurance, ce, licensing, internet, hardware, software, and all of that, I’ll be writing those off to reduce my effective tax rate. If you can set yourself to vacation without any permission necessary, you’re an independent.

Be careful what you wish for SB. Under common employee agreements and non disclosure contracts you would have just departed from a dozen company standards. Charge enough to make it worth your time or press the easy button and actually go pursue those benefits. I miss punching and and punching out, fair workload distribution, being part of a team. Us younger generation of appraisers did not have the stepping stones the older appraisers had, we will fall off in much greater numbers and won’t be able to weather the storm and hold on until retirement when there is nothing left to fund a retirement package. Frozen fees and grossly imbalanced volume of request distribution trends have a long term influence which has not yet been fully realized, give it time.

The client doesn’t give you a form to fill out, we have the form in OUR software. They tell you statements to include though, how many sales and listings to use, demand continual updates and make you use their interactive software to upload reports. How about demand for photos of water heaters and CO detectors? What’s that got to do with an appraisal?

Also, the intent of the law is not to collect employment taxes, those are already collected on an individual basis. The intent of the law is to protect workers from predatory employers and help restore the middle class. It’s stated in the preamble to AB5.

I certainly don’t want to be an employee of an AMC but I am tired of being micromanaged and constantly threatened with being kicked off panels, holds, cancellations and reduced payments if I don’t meet requirements and revisions exactly as detailed.

If we had a true business to business relationship the AMCs would not be able to shove these one sided agreements down our throat. Anybody try to make changes to the latest agreements? They won’t let you. Anybody out there believe we are free to perform the work without their direct management? Anybody believe they are in a different business than us? Anybody believe we aren’t required to use their tools (websites and software).

If you ask me AB5 clearly and directly applies to the lender/appraiser relationship. Unless the state backs down this will end up in court and the relationship will be redefined. Hopefully the appraisers can get out from under the AMCs direct supervision and gain some true independence.

Where’s my overtime?????
Where’s my health benefits????
Where’s my 2 weeks vacation????
Where’s my XMAS bonus???
Where the F is my 401k????????????

Biggest RIP OFF EVER.