Truer words are not often spoken. Bad clients may get mad and leave, but those that remain in the business often (usually) come back when they get tired of other’s consistently poor quality affecting all their deals.

I learned that from my mentor “MJV” (name voluntarily omitted because I’ve embarrassed him enough with my political views, and tilting at windmills for years. To his credit he never held it against me).

No one can prevent any and all complaints . How they are dealt with determines your reputation though. USPAP does not require perfection. IF you make a mistake understand it; accept it & correct it. If you did not make a mistake then do not let anyone attribute the alleged deficiency to you no matter what it takes. A reputation can be ruined overnight. It takes many years to establish one.

The problem with trid is that amc’s and some lenders are using it as an illusionary line in the sand.  They say it’s impossible to allow any fee movement because they already stated to customer.  They could adjust the standard consumer disclosure numbers up if they chose to do so.  The catch play is that most lenders have a range of appraisal service fees disclosure, not just a singular number.  Call into the lender like a customer, ask what the maximum figure is per standard disclosure, and that’s your ready to go peak number which can be approved without any paperwork shuffling or simple terms re disclosure.  If you have a friendly desk manager in a direct scenario they’ll probably tell you and you could negotiate a permanent right there.  It’s an easy way to identify where your position could be, without having to even engage with the distribution people.  Or alternatively to strike a better deal after you’ve been recognized as being premier or sufficiently reliable, etc.  Coming prepared and well researched with a targeted individual sales approach usually brings better results in less time compared to mass solicitation.  But either way, all appraisers need to do is keep their options open.  The hard part is finding the client, then selling a permanent deal.  That’s how to hop on the gravy train and ride the tracks longer.  Bidding per diem is to build your business around a question mark.  Appraiser vendor management is a misnomer.  I manage my own engagements.

Me also Diana. I think that means they are dishonest from the beginning. Best to be straightforward and honest, as you know, from the beginning.

Dave I wish that were true. I have lost clients because of being honest, but I would rather sleep at night. 🙂

Aloha Mr. Johnson,

My appraisal business was located on Wilshire near downtown. Having 35 appraisers plus clerical staff drove me to Hawaii. Good appraisers are able to find employment anywhere if they truly are qualified.

After arriving on Kauai, I flew to Honolulu for interviews with chief appraisers at the major banks. I was approved, and they are still my major clients.

Ignore that jerk Chrisman, he’s just an unqualified fool who should be a salesman.

Dave Kennedy

Good one Bill. You still bother to watch them? Mortgage News Daily language update: Work Smarter Not Harder.

Unless you’re an appraiser, in which case, just work harder and never ever see an income increase for the rest of your life.

Cheers. Mortgage news daily management. They blocked comments for me years ago, never went back. There is no greater way to discredit yourself than to censor free speech.

A few quick points.

Mr. Chrisman refers to passing AN EXAM, however depending on your license level; four exams may need to be passed. He refers to an internship of 2,500 to 3,000 hours and then goes on to indicate 75 weeks – without a vacation, however in my state (CA) the 2,500 hours (Certified) must be completed over NO LESS than 2.5 years. His lack of understanding as it relates specifically to my state and requirements, underestimates the trainee time commitment by over a year.

Mr. Chrisman makes mention of HVCC – and says “which Fannie and Freddie must use”, however his misuse of that term (sunset 2010?), perhaps shows his lack of current understanding. In my opinion, his reference to “the old days” and on the low end $250 appraisal fees, may also show his lack of understanding (my fees were $450 in 2008/09). Are $250 appraisal fees from the 1980’s? Mr. Chrisman also indicates “borrowers are being RIPPED OFF to get an appraisal in a reasonable amount of time”. As independent business owners, how when offering a fee and turn time (accept or decline Mr. lender), is the appraiser ripping anyone off?

Mr. Chrisman makes reference to a reported 80,000 licensed appraisers, but does he understand many of the issues he speaks of are not license related? The collateral underwriter has given each individual appraiser a specific number to monitor their work (think social security #), and the results appear to show that roughly only 50% are actually practicing. The issue Mr. Chrisman is not to lower standards to increase the supply, but to address the 40,000 who are licensed and not working under the current environment.

Other issues discussed included BPO’s, AVM’s, etc.

The scary part about Mr. Chrisman and his thoughts, is that per AppraisalBuzz (Rob Chrisman discusses lender barriers to appraisal reform) he will join other industry stakeholders at the Valuation Expo in Las Vegas (Nov 11th), IN GIVING THE KEYNOTE ADDRESS. Although my opinion can’t be offered by way of comments on his site (blocked), I would suggest as many people as possible provide input there before he takes the floor on Nov 11th.

Many lenders and attorneys have attempted to have me change the value. If you can afford it, the most important thing is to stand behind your value. Your reputation for honesty will spread, and you definitely will get more work.

No substitute for honesty.

Dave Kennedy

This is the cash out of pocket vs borrowed monies argument. When a person has cash, they are free to spend and drive the markets as they so choose in a pure free market. When a person must leverage or take on a debt commitment in order to purchase, they are including additional parties in their risk management decisions. Buyers are appropriately restricted to common participatory standards. Buyers still have the option of selecting a regulated loan from an insured lender or one from a hard money lender, or their neighbor, or their mother, or the payday loan center, etc.

It is not a lenders responsibility to extend funds so a buyer can secure the purchase opportunity ahead of competition. The legitimate mechanism by which price and value climb in is by cash contribution. Anything other than a low risk loan would be unacceptable and unethical business practice under the umbrella of taxpayer backed fdic insured mortgage loans. 

Sounds like this particular agent has a buyer with no cash on hand. Perhaps he should cultivate stronger personal money and risk management understanding with his clients. Colorado is feverish and we have a sellers market. With a dozen offers at a time and constantly climbing prices, many buyers are eventually priced out if they do not secure a buy. The rising price is driven by the buyer whom has the cash contribution to secure the purchase opportunity ahead of others. Credit does not drive free markets. Cash drives free markets. When I flip my silver dollar coin, it still reads as a dollar on the other side. Not sure what ‘coin’ Newman is talking about here. If I could flip a coin and make it worth more on the other side… Dang Newman, have an extra one of those to spare for me!?

Now you also have a board that won’t do SHIT about AMCS. Here In GA. They like their AMCS and I’m sure the board president doesn’t want to lose work from them either by pissing them off with fines etc. (ga needs a new board president)

back to appraisers rubber stamping. It runs wild in Atlanta. AMCS shop the appraisal orders to find the lowest fee.  Guys who don’t know the area are are inexperienced. Companies that will do anything the AMC or lender wants. Appraisers are in bed with the builders and preferred lenders to make value. Hell I can show you where we and other fellow peers have done appraisals for lenders that didn’t appraise for contract and yet somehow 2-3 weeks later it appraised for contract and sold.

Again welcome to Atlanta. The city that will once again lead the nation in fraud, overpriced homes, and foreclosures when the market tanks.