Payment Trouble – Another AMC Failing?
If you don’t demand payment, you work for free.
Folks,
I learned from two different appraisers, that an AMC/Appraiser Company may be on the verge of failing. The AMC is based here in Washington State not far from Seattle. It has 4 initials in its name. First initial starts with “W”.
This company operates as an Appraiser Company with W-2 employee staff appraisers, and as an AMC with vendor appraisers in those areas where their staff appraisers don’t work.
The situation came to light today in an email sent out to their appraisers. They admitted they do not have the resources presently to fully pay their appraisers, and asked them if they would consider converting the non-paid amounts to ‘company stock shares.’
Here’s a portion of the message (I have added the ###’s):
“What we are purposing, is to transfer a portion of W### company stock to each appraiser in exchange for the balance W### shows you have invoiced as of 2/8/15. This would mean that you would become a part owner in W### with dividends and decision making capabilities moving forward. The only way we will be able to make this happen and ensure that W### lives on and continues to be fully appraiser owned & operated, we must get all of our appraisers’ with outstanding balances to agree.”
This, of course, is an incredibly bad idea for the appraiser, but good for the company who still probably will fail in the long run. I would strongly urge any appraiser caught up in this mess to demand payment now. Cancel any pending assignments. And delay finishing any reports for properties already inspected. You might also want to call the Lender directly, ask for the manager of the appraisal ordering department, and tell that person about this.
Secondly, as an AMC, the company is licensed in WA State and under our law, they are REQUIRED to pay appraisers for submitted reports within 45 days of receiving the report. There are procedures in place to derive payment from their $100,000 bond, but the appraiser has to contact the regulatory agency first. To save you time, here’s the phone number: (360) 664-6504
Those W-2 staff appraisers unfortunately don’t fall under that requirement (as far as I know), and basically are twisting in the wind at the moment.
I hate to say this, but this does not look good for appraisers who have outstanding unpaid balances for completed submitted reports.
Also, I hate to rag on my peers, but to be frank, it’s appraisers’ own fault for not monitoring their accounts receivables closely, and cutting off non-paying clients (like this one) long before the balance due becomes excessive.
When appraisers don’t demand that companies like this operate properly, the appraisers take it on the chin (and elsewhere)… time after time. If you don’t demand payment, you work for free. “FREE” doesn’t buy any top ramen, or the filet mignon you love on the grill a few times a year.
PAY ATTENTION TO YOUR ACCOUNTS RECEIVABLES.
Dave Towne on e-AppraisersDirectory.com
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Why are they afraid to say the name of the failing AMC?
Oh come on, say the name of the AMC! Why protect them when they are hurting us?
Two minute Google search and you’ll see the name..lol Learned my lesson the hard way to keep track of payments. Making sure it don’t happen again. I have no problem cutting them off. Hopefully that 100 grand will cover everybody.
It’s gotta be this one http://web.archive.org/web/20150919131434/http://www.wcci.biz:80/about-us/
this is another reason in a sane environment, the middleman gets erased from the equation, not added into.
if this AMC cant pay its bills now, it wont be long till its “stock” is completely worthless too. something wrong is going on somewhere.
the bleeding continues . . . . .
The money should be held in an escrow account for appraisers. Sure that won’t happen.
Yes! How is that part of the process so unregulated?!?
Because most amc s are owned by banks.
Just got paid from an AMC in PA. Took over 60 days. No more working for them. Just
divorce and Superior Court work from now on.
Why have they not been turned in to CFPB?
I would ALSO immediately file claims (send bills) to THEIR lender clients. They ARE an agent of the bank as far as ASC is concerned.
The proposal they had IS novel and interesting, but the real problem is that if they do not already have a profitable model then the stock is worthless. Also, doesn’t this count as a regulated stock offering under SECC rules?
Prospectus; disclosures, that sort of thing?
Two companies were referenced but only one discussed? If you are warning your peers please make it a meaningful warning.
Thanks
interesting… years ago I did alot of work for this AMC, fee’s low, and had to follow up on payment more than once. However I liked working for a local company, and enjoyed their staff. Still a couple times a year I receive requests from them, but have not accepted due to low fees paid. However just today (haven’t had a request in at least 6 months) I received 3 new order request from them.