Should AMCs Be Audited?
Why haven’t State Licensing Boards audited AMCs?
Things went a bit crazy, but in a very good way!
Monday April 29th, VaCAP launched a consumer protection campaign on WRVA 1140 AM News Radio. Our email and social media accounts were non stop. Many of our sister Coalitions in The Network of State Coalitions helped spread the word and shared our Press Release with their members, posted on their websites and on their social media pages. A huge thank you to all our Sister Coalitions for helping us spread the word.
In case you missed all the excitement, here is the Press Release and links to the recorded announcements.
On Saturday May 4, VaCAP President Pat Turner went live on The Home Show with Richard McKann as part of the Consumer Protection Campaign. Pat did an excellent job! You can listen to the recorded show below.
On Wednesday May 1, the Virginia Real Estate Appraisal Board met for their quarterly meeting. The Guidance Document concerning Hybrid Appraisals was a major topic of the discussion. The Board appeared to be split on the proposed Guidance Document and agreed to post it on Townhall for public comment. Once the document is posted, VaCAP will provide a link so everyone can review and provide comments.
Clarocity Back in the Spotlight:
On April 30th Clarocity had a walk out of the Board of Directors. According to the Globe Newswire, Clarocity announced the resignation of Jim Boyle, Shane Copeland, Willem Galle, Robert Gloer and Dave Guebert as directors and/or officers of CLY Canada effective April 30, 2019. Per the article, “There is no change to the management or continued operations of U.S. subsidiaries Clarocity Inc., Valuation Vision Inc. or Clarocity Valuation Services LLC.”
Then on May 1st, the Investment Industry Regulatory Organization of Canada (IRROC) halted the trading of Clarocity Shares on the TSX Exchange for “failure to maintain exchange requirements.” VaCAP doesn’t know exactly what triggered this action, but it may have something to do with the fact they did not file financials. Then again, they have no money, so what exactly is there to report?
From the numerous investor comments on the Stockhouse Bullboard, investors are pretty upset and angry. They suspect foul play. There is even a comment referencing CoreLogic has gone unpaid for a year. See the comment and a copy of an email from one of Clarocity’s Executives.
If you really dig into the comments and links, there is some pretty enlightening information to be found. But to put this in a nut shell, the very same people who ran Zaio into the ground, ran Clarocity into the ground and are going over to iLookabout to continue their destruction…
See VaCAP’s prior post for more information on what will happen to Clarocity Valuation Services.
Here’s a few questions to ponder: Should the state licensing boards investigate this fiasco? Have any states completed audits on Appraisal Management Companies? Would an audit of an AMC reveal bad business practices or violations of law? Why haven’t State Licensing Boards audited AMCs?
Appraiser Trainee Looking for a Supervisor:
VaCAP was contacted by two individuals last week looking for a supervisor to complete their training. Both of these individuals are in the Richmond area. If anyone is looking to take on a trainee, please shoot us an email and we will put you in touch with them.
Thank you for being a part of VaCAP!
- VaCAP Supports Shane Lanham’s Legal Fight - September 10, 2024
- It’s Just Responsible Journalism! - February 21, 2024
- Limitations for Damages Against Appraisers - January 9, 2024
Troll Alert: This comment/commenter was flagged as suspicious!
Be careful what you wish for on hybrid appraisals. If any state attempts to prohibit the use of hybrids, the alternative for the GSEs is increased use of property inspection waivers. State limitations on hybrids will NOT result in the GSEs resorting back to utilizing more traditional appraisals. Appraisers either get on the hybrid appraisal bus or get run over by it. That train has left the station. Plenty of appraisers, myself included, are prepared to embrace the hybrid concept. They will prosper and the others will be left sitting in the taxi line commiserating with the taxi drivers about technological advances.
You are selling your soul and your living. Why wont they let us use our own assistants….think !!! Its all a racket !!!
You are very naive thinking this is the case. This is not a new concept. In fact FIRREA was passed for exactly this type of activity. If you don’t know what FIRREA is look it up!
Resistance is futile. Join with the collective or perish. The world is what we make it and fortunately, you’re not in charge of the vast network of lenders and their risk management approaches.
For the ones whom loan their own money, are not backed by taxpayers, or have already dealt with substantial DOJ slaps, well, they’d be as foolish as the appraisers completing those products if they went with hybrids as a standard.
Hybrids, like bpo’s, but cheaper and without as many licensed workers!
Perhaps Hybrids are the wave of the future. Isn’t there an Ongoing Investigation regarding use of these products?
Hybrid “Fee & Turn Time”: IF/When agreeable to me, I would consider having to add this to my list of services to survive. Doubtful the Fee would be appropriate-sufficient to complete enough of them to Survive.
Waivers: abuse is: by offering TOO low of a Fee three times and poof it becomes a Waiver. THE AMC System is now more than ever BROKEN. Why would any Common Sensed person EVER desire to be an Appraiser?
Sky has been falling for years. We’ve heard that so often. Finally, they have figured out a way to get rid of enough of us …to kill the profession.
A meaningful array of checks and balances has always been a cornerstone in American Democracy. It’s one of those necessarily bureaucratic pursuits which our liberties are founded upon. The gse appraisers purpose is not to protect lenders. The gse appraisers purpose is to protect the viability of lending systems so citizens can pursue access to lending with dignity and fairness, to pursue the American dream. Dismantling the checks and balances industry certainly will have far reaching implications, extending much further than individual appraisers ‘jobs’.
Well said !!!
EXTERMINATED would be the better word.
Texas allows AMCs to complete their own audits. I completed Texas appraisal audits for Amrock Appraisal (Quicken Loans). I discovered that when I failed an appraisal due to USPAP violations, Amrock Appraisal Management would edit my review changing the review to a passing score while leaving my signature on the review. I reported this issue to TALCB but they refused to take any action unless I submitted a written complaint. Although I had supporting evidence I was advised by my state senator, the ASC appraiser hotline, and three attorneys that had experience with TALCB to avoid filing a complaint due to potential retaliation against me from TALCB and Amrock. I resigned from Amrock and retired after 35 years in the appraisal profession.
I am not sure why we all think things will change. I am ready to get to of this country, that I love….gonna live with nice people in another country, with low cost of living and a government that works for the betterment of their people. I will NEVER have to work again and live like a king. We the people have been taken over, its so obvious of what is happening in this country for 4 decades, where the will of the people is ignored by the uppers who are bought and paid for by the 1% I truly think the 1% want another great depression to “reset” everything again to their favor as the people raise up. Do you know who created the last great depression. It was the banks recalling millions of loans, at that time all you had was a 5 year balloon payment, which no one had, think about repeat customers every 5 years to make money on. The problem with the loans is that they came with a recall clause, which the banks did causing the great depression. And what they get from it, lowered wages to a nickle an hour and bought up business and everything else for pennies on the dollar. Does this sound familiar ??? Like 13 years ago ???
The problems we face in this country could easily be solved, they don’t want them to be solved, obviously, they want us fighting !!! Which is an understatement with what is happening today in our politics. We the people have been taken over !!!
Chris, While I appreciate your personal view, the happenings of today are nothing more than history repeating itself This has been going on since man first walked the earth. And if you think the issues are unique to this country, I suggest you tune into international news. Things are not perfect any where in the world. The glass maybe half empty, but it is also half full. Life is what you make of it!
You guys all could have just said audit the FED instead. Until the fed is audited, corporations will remain in control. The amc appraiser dilemma is a mirrored event of the first receivers of money argument regarding the fed and lenders, just on a smaller scale. Creating value out of thin air with nothing substantial to back it, because the money was placed in their hands first.
Advocate, so what you’re saying is nothing can be changed. that is basically what the silent majority thinks to themselves in our country, and they just sit around work their rear ends off and just say it’s just the way it is. Sad !!!
Chris, No what I am saying at all, I was referring to your comments about leaving this country and the grass being greener in another country. Things may not be perfect, but they are not perfect any where. You should always look for the positive. It is like when you think the worst is going to happen, then it does. Think positively and good things happen. Life is a perspective.
Advocate, Trust me, I have been to other countries. Our country does not help the 99%. Wait, I am wrong, they gave the 99% a $1,000 a year tax break, while giving the 1-2% 1.5 Trillion over 10 years, lowered the inheritance tax to create King ships in this country to control our country for the next 3 generations. You think there is nothing we can do, we can…VOTE for the right people who want to HELP the 99%, not the 1-2%. So you are right, there is really nothing we can do, until WE VOTE to put the right people in government, NOT the 1-2%
Other countries have the similar problems, not all of them, and the cost of living is way lower, and ours just continues to climb and climb and climb, The appraiser issues is just another example;e of nothing really getting done for us, The current AMC problem can be changed. With the right people in office. I say WE can change things ! You said WE can not. and just look at the glass half full. I look at it like its really half empty and let ALL try to get it all full !!! For The American working class. Not the 1-2%. BANKS, PHARA, BIG OIL ETC….
As long as you understand it’s not a red/blue issue and defining a party will not get you to the goals you seek. You’ll need to become an advocate for smaller sized government and financial accountability from the top down if your goal is to tip the balance of power back to the people and restore honest representative governance. Can it be done? Yes, in theory. That’s why I’m still glued to the Liberty Report all these years later and continue to vote the issue, not the party, and most importantly, vote with my wallet and operate on a cash basis outside of the debt structure whenever possible. The creature from Jekyll Island lives on.
!00% agreed. We Can fix our problems, Both parties can. But really rarely agree. SAD !!! To the detriment of the American hard working people. A lot of people say there is nothing they can do. SAD !!! They have given up. That is what I hear every time I hear it.
Every country, every nation, and every republic has an upper “1%.” Even in socialist countries, it is typically party members at the apex of the hierarchy who are the 1 percenters. It has ever been thus.
Obviously all amc’s nationally should be audited for C&R compliance, honesty in appraisal reporting relay auditing, as well as general GLB & similar compliance.
Monetize the problem because a class action against amc’s could possibly be the largest class action in history. Some accusations other appraisers have made about amc companies through the years; RICO. Collusion. Racketeering. Restriction of Trade. Dishonest business practices. Wire fraud. Mail fraud. Embezzlement. They’ve grown to be very well skilled at a lot more than just providing unauthorized review services. They rake so many additional hundreds of millions in unearned fees, they don’t know what to do with the money and just give it to charities while simultaneously purposefully dismantling a whole industry, colluding to put roughly 80,000 American appraisers out of work. Either way, as long as an amc is in use, the consumer does not save a dime.
Or like, hybrids are the inevitable evolution of such an honest lending program… One of those…
A few years ago Baggins I made the argument and provided some staggering numbers (my numbers) relating to the lack of C & R fee compliance, and what the fines would be if ever enforced. As Dodd Frank outlines and allows $10,000 a DAY fines for not paying C&R fees on a SINGLE appraisal, what could the fine be after 10 years on one report, how about $36,500,000. It gets very interesting when you multiply like numbers (fines) 10 of millions of times (completed appraisals). The numbers are staggering.
Seek the truth.
I have no clue what in hell is a Pingback but I can tell you that I think AMCs should be abolished! They have ruined our profession!