- Changes from Fannie Mae - February 3, 2022
- AMC Reviews of Appraisals - November 27, 2019
- New CA Law Negative Effect for Appraisers - November 8, 2019
Solidifi Agreement provides little or no protection for the appraiser…
Many appraisers have seen the Solidifi agreement that appraisers must agree to if they want to receive appraisal assignment from them. This 18-19 page agreement written by a lawyer which was paid by Solidifi provides lots of protection and power for Solidifi and little or no protection for the appraiser. Many of you might be on the fence, should I agree to this or should I not and know that I will lose some business. If Solidifi is your major provider of appraisal assignment they have just put you between a rock and hard place, sign the agreement or refuse to sign and go out of business. Not an easy decision that is for sure, but you have no one to blame except yourself. I know that it is very comfortable to have one or two major customer that supply a large amount of your assignment, you get to know them and they get to know you which make your life easier. You only need to remember back to Business 101 to know the pitfalls to having only 1 or 2 suppliers of most of your work. You are at their mercy, if they got out of business, you will take a big hit and may go out business along with them. What choice do you have if they notify you that they will be reducing the fee that they pay for appraisals by 50%? Hopefully you have a diversified clientele and could survive losing one of more of them.
Regardless if you are going to sign this agreement or not, I suggest that you contact an attorney, maybe your E & O Insurance attorney prior to making any decision. I would guess that the attorney will tell you that this is a business decision and you will have to decide that for yourself, however I would hope that he would provide you with some of the pitfalls of signing this type of agreement. It is my opinion that this agreement has lots of conditions that are not in the best interest of the appraiser and it would take too long to cover all of them. Some are how fees are determined for assignments, non-payment if they cancel the order, indemnity agreement, agreement governed by New York laws, continued liability of appraiser after terminating the agreement and the list goes on.
This type of agreements are not new and some other AMCs also require them however it is something new that the appraisal industry (AMC) has come up with in the last few years. Several years ago when you received an assignment from a lender or AMC there was no agreement that was required and the assignment was usually only one page.
Agreements between two business entities should be beneficial to both parties and promote a good business environment that encourages a harmonious working relationship which allow all parties to succeed. I have a hard time finding that in the Solidifi agreement or most other agreements that AMCs require. Business owners need to make sure that they do not put themselves into a situation where they have no choice but accept the demands of one or more of their clients to survive.
Appraisers can work with AMCs provided it is on a level playing field, unfortunately that is not the case as I see it at the present time.
I’ve done my last assignment for them
Julie Arnold Dunlap
Denise Wibberg Arnold I haven’t seen this “agreement”. A few things are false in this article; for instance, they do pay when an order is cancelled, that is their policy and I have experienced it myself. Hmmm…definitely something to look into
And they pay full fees
Yea…in some areas Appraisers consider a full Fee to be $250 for a 1004
hmmm not me.
They do not pay full fees if an order is cancelled. They pay a trip fee. I’ve completed over 300 appraisals for Solidifi.
Dumped them 3 yrs ago.
They tried , and I told them to KMA…
I dumped them 3 years ago also. Half price fees
Gee….We can solve their problem. Follow my lead…..NO ONE accept an assignment from Solidifi until I do! Of course that will be when HELL freezes over. Do you suppose they will still have an address for you to send them their Christmas card this year? Let’s just try it and see!
I dumped them about three years ago when it became apparent they had no concept that all property is not created equal. The very few times I asked for a higher fee on complex properties or needed more time, I got punished. They wanted me to go get permits for a property from city hall (min. 4 hours), for a standard appraisal fee. Last year they sent an invitation to their Xmas party to all approved appraisers across the county. The party was somewhere in the east and they were serving finger foods and punch!
Add Core Logic to the list too
Every single employment agreement ever written is designed to protect the employer – primarily.
The Solidifi agreement has a few paragraphs relating to Solidifi accommodating their appraiser panel members.
But it’s mostly filled with “thou shalt nots” toward the appraiser who works for Solidifi.
I got rid of them I hated their personnel
Seriously folks, why does anyone accept work from them? Unrealistic turn times, low fees and a generally very poor reputation with appraisers. Wayne is right about waiting until the frost hits the fire.
Coester VMS used to be a big fish in the pond…until his reputation caught up with him. How is Solidifi any different? Just read the articles posted in AB alone. If enough appraisers push back and decline their orders they will go the way of LSI; Ocwen, Coester and other has-been AMCs. Continue to post honest, reports of their activities and hopefully lenders and other users of AMCs will realize that the good appraisers are increasingly refusing to have anything to do with companies like Solidifi.
Let’s make some money, Join in with me and we will start a management company for heart surgeons. Google is your friend and if you search there are about 4,000 cardiothoracic surgeons in the U.S. We could get between the surgeons and their patients and demand that they they polish our boots, kiss our ass, accept payments six or eight months from now, etc. etc.
Our company will be a limited partnership with only 35 available slots. I will, of course will be the BMFIC of the group. All I need is for my 35 investors (pigeons) to send me certified checks for $50,000. each. I doubt it very much, but who knows….we may find some stupid heart surgeons that will sign up with our scam. If not, I do not care as I will have your investment money and live high and dry in another country! Heck we could even start a plumber or electrician management company!
Just wanted to add, anyone who wants to own an AMC has to know that because of its flawed business model, at best, your lucky to make a small profit. In order to maintain that small profit or increase it, is going to require you to take advantage of the very people you need to help provide the service to the banks! A person who wants to own a business, with this kind of business model I call a scumbag!
TBT a lot of appraisal owned AMCs were started simply as a legal means of maintaining their own original long term relationships with area banks and lenders. That sub category has largely failed because the big guys see it as cutting into “their” pie. That’s why the feds want SMALL AMCs to have to pay a per appraiser annual registration fee…yet larger multi states will get waivers.
The amc model and middle management distribution model in general attracts predatory minded people.
Those with upstanding ethic typically wash out or burn out, and there is a rather high employee turnover there.
Amc employment, and desk management employment for non appraisers is like end of the line could not get anything better sort of work.
A few yrs ago I received an order from them for an REO 2055 for a fee of $750. I immediately accepted it and jumped right to it and sent it in about 2 days later and they spent the next 2 weeks trying to get out of it but they ended up paying. Haven’t heard anything from them since. Must have been ordered by one of their “expert” staff.
Now and then the new guys confuse the total billing with what the appraiser is to be paid. That happened to me at RELS too once. Standard review, 900 dollars.
Tales from the appraiser crypt.
So true. With Solidifi, they went thru three different regional mgrs. within 16 months. The first was an appraiser who was trying to be fair. Then one day, out of the blue, he mentioned that “we appraisers are the low men on the totem pole, with all of the liability”. I never heard from him again. The next mgr. was very young. After several months it became apparent to her that she was working for Pimps! She disappeared after only four months.
Hey look , I appreciate the picking on the AMCs but mention them all that we need to boycott. Core Logic, etc. Oh and anything that has to do with WELLS F**KTO Fargo I mean.
Google is a friend (they say) Answer is 3007 counties in the United States…82,000+/- appraisers in the US…That equals less than 4 appraisers for each county. Let’s see, a few Realtards sold a house or two…Mrs. wife told her husband goodbye, the state wants to take your front yard, someone fell for the scam of a reverse mortgage, someone wants a home equity loan, your neighbor had a house fire, Joe died and the kids want to fight, Maybe the appraisal district decided that your home was worth more than the surface of the moon, etc. etc and dammit etc. Maybe we are needed….Really you do not need someone to donate blood….until you need blood!
Simply say no…
Your business and the choice is yours. They asked about 3 years ago, but their fees were disgraceful and I never accepted one then just dumped them.
OH CANADA! Amc’s who demand my social security number to complete a records check…
They’re just playing the game. In CO they were paying over 700 for appraisals. I’d bet they took it from the group pool and made appraisers elsewhere pay for it with pressed discounts.
Why pick on them individually, when defrauding consumers and anti competitive practices is a result of improperly co mingled fees. There is not a single amc I am aware of that does not engage in such practices.
Really my friends, there is more appraisal work out there than you now. If you have a licence you are restricted. if you have a residential certification…. one to four family… assignments will draw AMCs like flies to shit. A general certification will open a few more opportunities: floodplain, floodway, construction easement, slope easement, drainage easements, water line easements, sewer easements, electric power line easements, historic easements, How about commercial assignments… High rise office buildings, the office complex, the apartment complex. the poultry farm, the dairy farm, convenience store, gas station, WHORE HOUSE,etc… just too many to describe…Why work for an AMC?
Wayne, that is true. However we also have a need to protect the integrity of our profession. AMCs as well as huckster ‘appraisal platform & Product’ providers continue to undermine how we are perceived by the public. ZAIO; PACEPRO, MVP-CearVal, Clarocity and a host of others are always willing to con regular users of real appraisals that their garbage is a viable or meaningful valuation alternative alternative.
Mike, we do not have a profession, we have a joke. We have zero appraisal organizations (or union) that will educate the public about these bogus AMCs! EACH and every damn group wants to collect dues and “sell” pitiful designations to the most foolish of us making believe that “I am better than you crap” We just need one silly group of appraisers that will work to market our services without AMCs. Think about it….the lenders are told (APPRAISERS LOVE US) No cost to you….just order the appraisal from us and appraisers will jump up and down to work for us? REALLY?…join Angie’s list or whatever is the newest scam against appraisers! As a collective group we have NO brain!
Then we are asked to go to San Antonio to an appraisal BS conference where the AMCs will sponsor booths and we will be told about bitcoin bullshit, etc. What a waste of time and money! Gee the IQ level of our group just continues to drop! (Go see San Antonio as it is a great vacation spot…bring money!) LOL
Wayne. You are mistaken.
But Wayne is so efficient with words
Wayne is confusing San Antonio with the Vegas sausage crowd.
It seems every time they change management their fees go down and they expect us to work for next to nothing. This is not right.