Appraisers on Timeout for Delays!
Early in January, Mortgage Financial Services (MFS) sent out a notice to the appraisers on their panel announcing changes in their turn time policy. In this communication, they state if appraisals are more than 48 hours late, the appraiser will be suspended for 10 business days with no new orders assigned. They also state that the appraiser must request for a longer due date prior to accepting the order, or to raise the appraisal fee for rushes. However, they add, “turn times and fees have to be realistic”.
Not long ago, a small number of our clients included penalty clauses in their engagement letter. For each appraisal assignment we received, we asked them to resend the request for the appraisal, with any fee reduction clauses omitted. They quickly reversed their policy to penalize when more and more appraisers refused to work with them. Soon after, we stopped seeing penalty clauses for good.
Turn time depends on complexity. And complexity cannot be determined until the inspection. They are times we find the task is more complex than we first expected. It is absolutely not necessary to compromise your fee, or to accept assignments with penalty clauses to maintain an adequate volume of work. We all need to discourage clients from returning to such practices.
Mortgage Financial Services Notice:
Dear Appraisers,
Happy New Year! Hope you all had a great holiday break. As we ease into this new year the appraisal team here at Mortgage Financial Services wanted to let you know some important changes. This is to better stream line our process and our ultimate goal is to improve on the communication and turn times between the appraisal team and our appraisers.If appraisals are more than 48 hours late a suspension will be put into effect for 10 business days with no new orders being assigned. We are paying a full 100% fee to you in order to get appraisals in on time and done professionally. We are very understanding that sometimes things get in the way, however there is a few ways to secure you can potentially get the order.
- Please let us know if you need a longer due date by accepting the order with a condition and letting us know your soonest available turn time. This also accounts for rural areas, or if you know comps will be tough ahead of accepting the order.
- Too much of a rush? Raise your fee only IF you can accommodate the turn time. Same for distance if that is the issue.
- Please pick up the phone and call either Sheri or Alex in order to discuss options. We try to leave assigned for a decent amount of time so you can login and accept, deny, or bid the order for a longer due date or turn time.
- We want to accommodate everybody with orders, but turn times and fees have to be realistic, and we expect great, quality service with turn times being met by 5pm on the day due.
Please know we have everyone’s best interest at heart. If any questions or concerns are ever needed, once again please contact Alex Gilbert or Sheri Mayers directly at Mortgage Financial Services. Our number is 225-293-6855.
Thank you all for everything you do and just know we are very appreciative of each and everyone of you.
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Just another generic no name mortgage company with an anonymous “about us” page.
The author of the letter:
Sheri Mayers was a Cosmetology Instructor up until 2018. On Linkedin she’s spells her job title as “Appraisel cordinator”. Alex Gilbert who has no experience, is obviously her snot nosed lackey.
Does the appraiser get to penalize/sanction MFS when their invoice check shows up 48 hours late?.
Do I get a free “hair removal waxing” if I make the deadline on time?
DUMP THESE LOSERS!
Fancy titles in mortgage lending don’t mean anything except to keep the employees feeling good. It is the license that matters. The last direct managers I had to part ways with included; an appraiser whom lost their license, an hr person, a freelance musician, and another whose primary working experience was at starbucks and entry level assignment desk positions. Can you fathom those people running the mortgage departments?
Yaassss!
AMC’s have destroyed the profession. When the market turns, there will be repercussions and huge law suits against the amcs for their actions. Just wait and see. Attorneys are gathering the evidence as we speak. Consumers, lenders and Fannie and Freddie will all go after them.
That’s direct dude. Shocking. I too wrote an amc quip but then gave it a quick online lookie. This mandate appears to be coming from an upcoming volume based direct assignment company out of TX. Hell, I printed out the contact for the solicitation to do stack w/ special note, verify engagement terms do not include penalties first.
The natural reaction from wise appraisers will be of course, to negotiate all due dates further out ahead of time before accepting orders. Policies like this are likely to have the exact opposite final performance effect, contrasted to the intention of the policy. There are no guarantees with rush and expedient services but we do our best.
Go over these peoples heads, and ask the senior mortgage persons and underwriters why they did not hire a qualified appraiser with an active license to run this panel instead.
Sounds like a job opportunity to me and like many lenders, they’re likely to learn the hard way that persons whom do not have active appraisers licenses in good standing are not adequate personnel choices to run in house appraisal panels. Appeal to management to get a qualified person whom has an active appraisers license in good standing in there and relay the updated SOW conditions to higher ups. That’s how it works with non accountable direct assignment managers, they run things how they see fit and it’s quite likely the qualified licensed individuals above them may be unaware how they’re mismanaging the panel. Nobody is quite a dangerous to an upcoming volume mortgage origination company as an unlicensed individual running their appraiser panel. They’re o.k. to run things, as long as an actual appraiser is there above them providing some oversight. Since when do companies like that employee unlicensed individuals to run their mortgage departments? One and the same in terms of process error and associated risks. Advocate for yourself, because nobody else will. That is in simple terms, an unacceptable assignment condition. We don’t maintain independent positions operating our businesses around a giant question mark. The appraiser needs surety same as the lender, it’s a two way street.
https://www.duplexesoftexas.com/investment/partners/mortgage-financial-services/
Sorry, but no AMC will determine how long I have to produce a credible report. It’s my license and reputation at stake. Sometimes you don’t know complexity until you actually go there. I would never work for people who disrespect what we do.
And no recess also.
The audacity!
If they are dictating that sounds like you are their employee not an independent contractor. when it gets crazy busy no one will work with these clowns! and no one ever died because they didn’t get their appraisal in 48 hours! Anyone working with theses guys charge a RUSH fee on every order just build it in as your PIA surcharge!
I live in Richmond Virginia and I want to get my appraisers license, any suggestions of how I can get the required hours fast? Also should I seek to work for an appraisal company or a bank to get the training and hours that I need?
Lee, often you have little choice starting out. The number 1 requirement you should have for any prospective employer/mentor is that they be honest. Some degree of competency would also be nice.
Whether you find that in a fee appraiser-trainee situation, or an appraiser-puppy mill or bank depends on your local area. Keep taking classes. Far more than you are required because when you are new, you have no experience to ‘sell’.
Contact (JOIN) VaCAP (Virginia Coalition of Appraisal Professionals). You have the oldest licensed appraiser in your state right in or adjacent to Richmond. He’s been around since they used to write appraisals on cave walls.
Also consider joining the American Guild of Appraisers (look it up) or click link to left of this page. We can’t promise you’ll find work, but we WILL provide you with unlimited mentorship/advice as part of your annual normal dues and help you avoid getting hauled before DPOR.
Lee. 30+ years in the profession and I would suggest you follow Mikes advice. As for the boots on the ground aspect of the job try and work with several appraisers. After you get several years under your belt try and get some review work. Reviewing appraisals from all over the United States has made me a much better appraiser. And profect your writing skills. I wish I had when I began. GREAT LUCK TO YOU!
Heres the thing Lee, I get this question about once a month from people who have already spent a bunch of money on an appraisal school or setting up an office. If you work for a bank or AMC you are basically signing up for a $12-$15 dollar an hour job and taking on personal liability for up to 100’s of thousands of dollars, depending on the area you’ll work in. Your employers goal is to get as many apprasials completed in as short a time as possible, and have the values come in at the amount needed to do the deal. So their rules, training and guidelines are based on that, which is contradictory to you doing a credible job based unpon USPAP – appraisal standards and guidelines. If you work with an appraisal firm, you may get a supervising appraiser that is trustworthy in allowing youto do what is needed to produce a credible report. So ultimately your getting the same pay as a grocery clerk, except you’re taking on extreme liablity and having to follow the instructions of someone else that is only concerned about meeting their profit margins.
In CA under AB5 Im pretty sure their turn around time requirement would bring them just one more step closer to being an employer rather than a contractor of other independent contractors.
SB’s research really says it all. None of us have a confidentiality obligation based on their solicitations. WHY NOT contact their lender client direct and question the ability of someone who was a cosmetology instructor just a year or two before, to be dictating special requirements likely to produce non-compliant appraisals?
It’s no longer enough to just say no. We need to push back against egregious dictates like this.
AMC’s should be held accountable. Personally I only work for 1 amc and its very seldom. After 30 years no one is going to push my turn time at the cost of my quality or reputation. If you can’t wait for my results go somewhere else.
Glad I retired
When I last visited my family doctor he was over an hour late in seeing me. I told the receptionist when I left I was going to deduct 15% off the fee he charged and was putting him on probation. lol….
Why is everyone else’s time so more valuable than we appraiser’s?
This can be seen as a USPAP violation as well. Performing an appraisal service for a designated fee for an anticipated event to happen. In other words, your fee is x if you get it to me by y or your fee is XX if you get it to me by YY. I know many see it as a “rush fee”, but I don’t do rush fees for that very nuance. Next, you will be telling me your fee is XX for ZZ outcome or your fee is XXX for ZZZ outcome. I don’t accept work with rush fees or penalty clauses.
I agree halfway-Rush is the fact that I exclude other work from slowing down order and I will donate my weekends and after hours for it. Even then it is clear that the desired due date is subject to the necessities of the assignment.
It is never a contingent fee condition. Especially so, since I collect my fees in advance. Recently I was a couple weeks past a desired due date (not a rush fee deal) but still a desired and estimated due date. I told the client why (need for more data was dictated). They wanted a discount because promises and contingencies THEY foolishly made to a seller included a previously non disclosed per diem penalty (allegedly). I told them they could ‘discount the entire balance of 40% due’ and I would keep the non-refundable retainer and the report. Magically they found more patience.
Point being charging for rush service is a business decision. Same as “promising” any specific due date is. By the simple expedient of working 16 hour days I can double my work week production time. In a pinch, I can squeeze another 32+- hours out of a weekend.
I CHARGE a LOT OF MONEY to do that. There is nothing the least bit unethical or impermissible in doing so. Nothing.
It’s simple to state its “a business decision” the fact remains that providing a desired outcome or result based on a fee is not in my line of thinking. Great point that some receive fees up front. That eliminates the influence aspect. Sometimes the product takes longer than they would like.