Tagged: AMCs

Class Valuation Maximizing ROV Conversion Rates 47

Class Valuation Maximizing ROV Conversion Rates

It’s truly mind-boggling that a company would brag about their higher ROV conversion rates for the ROV process as if it’s some kind of badge of honor. Recently, Class Valuation took to social media to boast about their Reconsideration of Value’s process (ROVs), claiming higher conversion rates and urging clients to choose them for a confident closing. Any company that is touting they have the highest ROV conversion rates should raise some red flags. The process of ROVs is meant to be a last resort when there are legitimate concerns or discrepancies in an appraisal report. It should not be...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

AMCs Billing Scheme, Hidden Profits & Deceptive Practices 82

AMCs Billing Scheme, Hidden Profits & Deceptive Practices

Appraisers who do not agree to their hidden billing methods are excluded from the majority of the GSE lending marketplace for appraisal orders.  Appraisal Management Companies (AMC’s) do not pass on cost savings for reduced appraisal services to consumers. Instead, they keep the savings for themselves without disclosing the amount to the consumer or the appraiser. What should have been cost savings for the consumer are pocketed by the AMC in secret. This is considered a junk fee or unearned fee billing scheme under current law. Appraisers who participate in this system are in violation of The Management Rule of...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

How Many Fees Are Needed for One Appraisal Order 66

How Many Fees Are Needed for One Appraisal Order?

Being beaten up about a fee increase request, new higher technology fees, or losing out to an order in a ridiculous bidding war and learning the AMC made more money than the appraiser on an order, or even having an order cancelled because someone else offered to take less compensation, are only a few of the issues the appraisal industry is facing.  After reflecting on 2023, from the position as an appraiser, experiencing the changes in volume of orders, the compensation being offered to the appraiser, the amount of waivers being given so no appraisal was required, and the roll...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Home Valuation Code of Conduct

AMCs Violating TILA and C&R Fee Clauses 91

AMCs Violating TILA and C&R Fee Clauses

Fellow Appraisers, the appraisal industry has been facing a major issue with AMCs violating the Truth in Lending Act (TILA) and the Customary and Reasonable fee clauses. This has not only caused harm to consumers but also to appraisers who are struggling to make a living. Despite efforts to bring this issue to light, it has been largely hidden from the public and regulators. However, it is time to change that and reveal the truth about what is really happening. To do so, we need to gather more data and evidence to establish a pattern of violations for these bids...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Customary & Reasonable Fees

Class Valuation Requests for Proposals 82

Class Valuation Requests for Proposals

It turns out they were actually rejecting your proposals and not your bids!  It’s time to grab your popcorn and settle in for another round of AMC shenanigans. Last week, Class Valuation, the esteemed AMC known for their impeccable reputation, sent out an email to appraisers claiming that they do not “bid for the cheapest and fastest appraisal.” Instead, they send out a request for proposal, because apparently, they are now a Fortune 500 company looking for fancy proposals from appraisers. Just imagine the appraisers scrambling to put together PowerPoint presentations and fancy graphs to impress Class Valuation. But hey,...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

The Elephant In the Room: Fannie's Modernization Program 35

The Elephant In the Room: Fannie’s Modernization Program

The Elephant I refer to is simply this: Fannie Mae’s modernization program is going to put a lot of appraisers out of business. It’s all “lender centric”. It’s all about better, faster, cheaper, appraisals (with lots more data) for lenders. As an appraiser, all I see are sticks… no carrots. Nobody wants to talk about the Elephant in The Room. Post COVID 19, business was excellent; fees were high and we profited. High interest rates killed the market and most all of us now are not profiting. Losing money is not sustainable for any business and waiting for the next...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Using Discrimination As a Bully Tactic 11

Using Discrimination As a Bully Tactic

As an appraiser who has been appraising in rural south for 20 years I have seen a few things. This wave of discrimination has gotten out of control. Sure, there has been some discrimination going on which is not the norm, but to accuse someone of discrimination because the value came in lower than an expected value is pure asinine. It is not our job to validate lenders and borrowers expected values. I have had very few borrowers get mad, that I am aware of, because my opinion of value was lower than their expected values. I can remember three...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News

Agent Management Company 10

Agent Management Company, a Familiar Ring

We will call it “AGENT MANAGEMENT COMPANY”. We will ensure that the use of runners is prohibited…  Public trust. It’s a real thing. It appears that this recent lawsuit that the NAR LOST has exposed antitrust, collusion and price fixing between agents. I am thinking about creating a new AMC. We will call it an “AGENT MANAGEMENT COMPANY”. We will create a buffer per say between the buyers agent and the sellers agent thereby protecting the buyer and seller. We will have a roster of approved agents nationwide. They will be thoroughly vetted. Routinely background checked. Ensure they are fully...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / NAR

Majority of Reviewers Had Very Limited Field Experience 22

Majority of Reviewers Had Very Limited Field Experience

It was my experience that the majority of reviewers, FNMA included, had very limited field experience. Which is painfully obvious when they request baseless revisions for “more or better comps”.  I’m a Certified General Appraiser that started appraising in 1984, almost 40 years ago! Spent the majority of my career appraising both residential and commercial properties in a major metropolitan market. I had my own appraisal firm for a number of years, prior to the AMC model which dissolved years of relationship building with clients large and small, almost overnight! Like most of you, I really enjoyed appraising and was...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Collateral Underwriter

Mortgage Application Volume Nearing Historic Low 32

Mortgage Application Volume Nearing Historic Low

Appraisers, I’m almost reluctant to distribute this article, but the reality is what it is. Per the Mortgage Bankers Association (MBA), the loan application volume is at another low point in our history. The article in Mortgage News Daily titled “Mortgage Application Volume at Lowest Levels Since 1996” in this link provides context. For a related perspective, the article contains a graph, which can be expanded to show mortgage rates and application volume for decades. The brown line in the graph shows 30 year mortgage rates – since early 1971. The light blue indicates the loan application volume, which corresponds...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Trending

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