Appraisal Industry - Appraisers Blogs

The AMC Industry Won’t Be Toppled by Code

Guest Author — Wed, 02 Jul 2025 12:30:23 +0000

Call me when AI stops summarizing and starts suing, because until it drags the AMC industry into court, raids their coffers, and rewires the entire system they broke, it’s just another overhyped spectator in the plunder parade. We’ve entered an era where more people are giving AI broader directives, asking bigger questions, and expecting deeper responses, only to receive yet another AI-generated summary. But what, exactly, is AI doing in response? That’s the real limitation of the tech. Right now, millions are spinning their wheels in digital circles, posing complex problems to a machine built to mimic intelligence. And when...

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ARCC Discussion Exposes GSEs Agenda to Reduce Appraisal “Friction”

AppraisersBlogs — Fri, 22 Nov 2024 13:30:11 +0000

Mark Calabria’s discussion with ARCC revealed the GSEs’ agenda to reduce “appraisal friction” by eliminating the role of professional appraisers and the appraisal process altogether. The recent discussion hosted by the Appraisal Regulation Compliance Council (ARCC) with Mark Calabria, the former Director of the Federal Housing Finance Agency (FHFA), offered a rare and illuminating glimpse into the inner workings and mindset of the nation’s housing finance regulators. During the engaging conversation led by ARCC Chair Josh Tucker, Dr. Calabria shared his expert perspective on FHFA’s controversial decision to significantly increase the use of appraisal waivers, which allow mortgage lenders to...

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The Great Debate on Appraisal Fees

Isaac Peck — Mon, 28 Oct 2024 12:30:09 +0000

She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee paid by the borrower, which prompted her to stop working with AMCs because of the lack of transparency. The appraisal industry is abuzz with a discussion about appraisal fees. The Consumer Financial Protection Bureau (CFPB) recently issued a Request for Information Regarding Fees Imposed in Residential Mortgage Transactions [Docket No. CFPB-2024-0021] in which it solicited feedback from the public and industry stakeholders on the fees charged to consumers by mortgage providers and related settlement services. The CFPB framed it as...

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Lack of Evidence, Appraiser Challenges Discrimination Claims

AppraisersBlogs — Thu, 24 Oct 2024 12:30:29 +0000

The next morning I went to my trusted AI program and asked if there was any evidence of bias. “Where is the evidence?” The issue of perceived bias and discrimination in the appraisal industry has become a highly contentious and polarizing topic in recent years, sparking intense debate and controversy. At the heart of this complex issue lies a fundamental tension between the appraisal profession’s commitment to objectivity and impartiality, and the persistent allegations of systemic racism and unfair practices that have plagued the industry. As exemplified in the response from Maryland Certified General Appraiser William Turner to an article...

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NFHA’s False Narrative Undermines the Appraisal Industry

AppraisersBlogs — Fri, 18 Oct 2024 12:30:59 +0000

A barrage of billboards, magazine ads, and TV/radio public service announcements is being used to amplify and spread this false narrative. The latest attack on the appraisal industry is being spearheaded by the National Fair Housing Alliance (NFHA) and the Department of Housing and Urban Development (HUD), who are aggressively pushing a false narrative of widespread appraisal bias against Black and Latino homeowners. Through a relentless media campaign employing emotive messaging, vivid anecdotes, and dubious statistics, these entities are painting a picture of widespread, systemic bias among appraisers against Black and Latino homeowners. However, the reality is that not a...

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VaCAP Supports Shane Lanham’s Legal Fight

VaCAP Board — Tue, 10 Sep 2024 12:30:48 +0000

The outcome of this case will undoubtedly have far-reaching implications for the future of the appraisal industry, making Shane Lanham’s fight one that concerns us all. A fellow appraiser is in need of your assistance. Many of you may have heard of a Maryland Appraiser, Shane Lanham, the defendant in a lawsuit for a “low opinion of value based on the race of the homeowner.” Shane is counter suing the accuser for defamation as this has been a very publicized story. Let’s be clear, he is not just fighting for himself, he is fighting for each and every appraiser. As...

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Fight Unfair AMC Practices – Leverage State Authorities

AppraisersBlogs — Wed, 14 Aug 2024 12:30:38 +0000

Alarmed by predatory practices among AMCs, a peer has drafted letters urging appraisers to call on state authorities to address unfair AMC conduct and potential regulatory violations. As appraisers, we have faced an ongoing challenge with Appraisal Management Companies (AMCs) offering fees that are well below the customary and reasonable rates for standard appraisal assignments. This practice has created a troubling trend of “bid wars” where AMCs pit appraisers against one another, driving down fees to unacceptably low levels. In response to this issue, a peer has provided two draft letters that can be easily modified and used by other...

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Insights from CFPB’s Public Comment Period

AppraisersBlogs — Tue, 13 Aug 2024 12:30:20 +0000

The comment period on the Consumer Financial Protection Bureau’s (CFPB) “Request for Information Regarding Fees Imposed in Residential Mortgage Transactions” concluded on August 2, 2024, with a total of 959 comments received. Upon reviewing some of these submissions, several noteworthy perspectives emerged regarding appraisal fees and the role of Appraisal Management Companies (AMCs). The National Association of REALTORS® (NAR) highlighted the lack of transparency surrounding AMC fees, which are often bundled together with the actual appraisal fee on the Closing Disclosure (CD). This opaque structure prevents consumers from understanding the true cost of the appraisal service and hinders their ability...

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Lack of Fee Transparency: Exposing the AMC Exploitation

Desiree Mehbod — Wed, 31 Jul 2024 12:30:07 +0000

By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge exorbitant prices and pocket the difference (as shown in Figures 1 through 10), exploiting the consumer’s lack of knowledge. Thank you for the opportunity to comment on the Consumer Financial Protection Bureau’s Request for Information on Fees Imposed in Residential Mortgage Transactions. The growth of Appraisal Management Companies (AMCs) in the wake of the 2008 financial crisis was driven by a well-intentioned but ultimately misguided belief that they could help “ensure the integrity and independence” of property valuations. The reasoning...

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The One-Mile Rule: Prudent Policy or Modern Day Redlining?

Dallas T. Kiedrowski, MNAA — Thu, 18 Apr 2024 12:30:24 +0000

…whether through redlined maps or implicit “one-mile rule,” the result can be undervalued properties in historically marginalized neighborhoods. Throughout the history of mortgage banking and lending in the United States, underwriting policies have significantly influenced the appraisal process for home purchases and refinances. Appraisers must follow underwriter appraisal review guidelines meticulously to ensure their appraisal reports are accepted by the lender. Unfortunately, in the past, these policies became the basis for redlining, wherein certain communities were systematically denied access to mortgage credit. In this article, we delve into the historical context of underwriting policies and their influence on the appraisal...

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Recap of the 4th ASC Appraisal Bias Hearing

AppraisersBlogs — Wed, 28 Feb 2024 13:30:47 +0000

On February 13th, 2024, the fourth ASC appraisal bias hearing took place. For those who were unable to attend, the video of the hearing has been included below. The hearing was a crucial event for the appraisal industry, and it is important for all appraisers to be aware of the discussions and topics addressed. The panel of witnesses included: David Bunton, President, The Appraisal Foundation E.C. Neelly IV, Executive Director, Mississippi Real Estate Appraisal Board Maureen Sweeney, Principal, Maureen Sweeney, Real Estate Appraiser Ltd. Melissa Tran, Director, Texas Appraiser Licensing and Certification Board Jillian White, Chief Executive Officer, Appraisal Insights...

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How Many Fees Are Needed for One Appraisal Order?

Guest Author — Mon, 05 Feb 2024 13:30:38 +0000

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...

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Biden’s Remark on Home Values Sparks Backlash

AppraisersBlogs — Wed, 10 Jan 2024 13:30:55 +0000

President Biden’s recent comment about the discrepancy in home values between Black and white families has sparked backlash on social media, with many accusing him of being a “divider”. During a campaign speech at Charleston Church in South Carolina, Biden stated that homes owned by Black families are often valued at less than those owned by white families, even if they are built by the same builder. “Today, a home owned by a Black family on one side of a highway, built by the same builder on the other side of the highway & a white guy living in it,...

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Fighting for Consumer Protection & the Appraisal Industry

Guest Author — Mon, 24 Jul 2023 12:30:42 +0000

I’m just an Average Joe, surrounded by some really smart people, and we are fighting back. I often wonder if Certified General, MAI or SRA appraisers sitting in their ivory towers often chuckle to themselves and say HA, data collectors will never impact commercial. Who cares about the residential appraiser. Well, it looks like it’s time for you all to care. Copied from a Real Estate Forum Post: “Good morning, My name is Kevin Graham, and I am with Beacon Property Data Collection Services. You had recently signed up to become a panel member and we have an assignment for...

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And Why Is the Second Appraisal Always the “Correct Value?”

Jonathan Miller — Fri, 09 Jun 2023 12:30:06 +0000

On Friday morning, May 19, I was one of five expert witnesses (and the only as an appraiser) to testify on the topic of appraisal bias in front of the Appraisal Subcommittee (ASC). During the first hour of testimony, our fourth grandchild was born. My wife was in the audience and stepped out of the hearing (the nerve!) to take the call from my oldest son on the news of our new granddaughter. The Appraisal Subcommittee (ASC) held a second hearing on challenges facing the appraisal industry, including barriers to entering the profession and racial bias in home appraisals. The...

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No Appraisals Required. The End of Appraisers?

Hamp Thomas — Thu, 09 Mar 2023 13:30:37 +0000

No appraisal may be required in the future! Fannie Mae took a direct shot at appraisers with the announcement of changes in their Selling Guide. Two options for the future, both of which do great harm to the appraisal industry. First, “third party” inspections. Appraisal trainees aren’t good enough, so now we will have unlicensed inspectors going through the homes of unsuspecting homeowners. And, with this inspection a traditional appraisal is no longer a requirement for the mortgage loan. Secondly, the 3rd party inspection is sent to a licensed appraiser. Fannie Mae wants an appraiser’s signature so the appraiser can...

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Confusing Language for USPAP Ethics Rule Addition

Dave Towne — Fri, 17 Feb 2023 13:30:52 +0000

A proposed update of professional guidelines for property appraisals contains confusing language about what constitutes discrimination, and would even suggest appraisers could engage in “ethical” discrimination. Folks, the following article is in the ABA Banking Journal e-newsletter, posted on Wednesday, February 15, 2023. I’m really glad this has been released. Hopefully the Appraisal Standards Board will closely examine the concerns of the regulators. I read the USPAP 4th Exposure Draft. It contains so much new Ethics Rule “legaleze” language about conduct that it is, and can be, overwhelmingly confusing to a majority of appraisers. It’s written by lawyers in such...

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The Government Screwing Over an Entire Industry

Brian Stevens — Wed, 12 Oct 2022 12:30:13 +0000

The government wants to move to a fully automated appraisal format, and the more that they can dirty the narrative in their favor, the quicker they get to their objective… This just in: In a recent memo, the CFPB wants you to know that if you are buying a home, that you can contest your appraisal. By the way, anyone at any time can contest an appraisal for any reason. This isn’t new. Not at all. In fact the CFPB doesn’t really give two craps about your opinion of value or the Appraiser’s opinion of value. This has nothing to...

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Imagine Running the Lawn Mower Industry Like the Appraisal Industry

Guest Author — Wed, 20 Jul 2022 12:30:16 +0000

I’m on about lawn mowing lately. It’s my new full time passion. The appraisal industry should be as straight forward as lawn mowing, but due to the special interests pressures within the value industry, it has become convoluted and dysfunctional. Can you imagine if they ran the lawn mower industry like they try to run the appraisal industry? Like, we don’t care if that lawn is on slope or not, you can only use this mower and you’re not allowed to be versatile and use anything else. And you can’t request the lawn mowing servicer you want to use, you...

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Appraisers Should Closely Watch Probe of Departed Brookings Boss

Jeremy Bagott — Thu, 14 Jul 2022 12:30:16 +0000

The chief of the Brookings Institution, a retired four-star general, resigned last month under investigation of lobbying on behalf of a foreign government and then covering it up. If the allegations are true, it means the think tank, under the general’s watch, was secretly taking illicit cash from at least one outside interest group at a time it was engaged in research that irreparably damaged the reputation of the nation’s real estate appraisers. Astute appraisers wondered whether Brookings might have also been influenced by any well-placed donations from other groups, such as the powerful lobbies of the Realtors, home builders,...

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