Consumer protection - 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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Baghdad Bob of Freddie Mac Merits Mention As Mideast Erupts

Jeremy Bagott — Thu, 26 Jun 2025 12:30:32 +0000

In true Baghdad Bob fashion, Scott Reuter leads Freddie Mac’s effort to ensure that no inconvenient fact is left uncensored. For a brief time in April 2003, Saddam Hussein’s charismatic Information Minister, Mohammed Saeed al-Sahhaf, became a worldwide pop-culture icon. During the invasion of Iraq, al-Sahhaf faced reporters on the roof of a Baghdad hotel. All around him, columns of smoke billowed and sirens blared. Glide bombs shook the earth. American and British coalition forces poured into the city. Denying reality, al-Sahhaf insisted: “There are no American troops in Baghdad!” The next day, Baghdad fell. But al-Sahhaf’s gift for bombastic...

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A Cry from the Appraisal Trenches: The Fall of GSE Oversight

Guest Author — Fri, 25 Apr 2025 12:30:13 +0000

That could bring our best and brightest back to GSE lending, leveling the playing field with fairer work distribution. Picture this: a system built to protect homeowners, backed by taxpayer dollars, now teetering on the edge of betrayal. The regulatory framework governing Government-Sponsored Enterprises (GSEs) was once a fortress of consumer protection, transparency, and fairness. As an appraiser, I’ve watched this fortress crumble. The rules imposed on GSEs and their partners—our trade-off for their congressional charter—have been chipped away through years of cunning maneuvers by trade groups and stakeholder interests. What’s left is a hollow shell, far removed from the...

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Appraisal Industry Outlook Under Trump Administration

AppraisersBlogs — Mon, 06 Jan 2025 13:30:04 +0000

In a recent article, John D. Russell, JD explored the potential impact of the new Trump administration on the appraisal industry. With Republicans set to control the legislative process, Russell analyzed various documents and comments to distill expectations for how appraisal-related issues may be handled going forward. He noted that the Trump administration’s efforts will likely reflect much of the Project 2025 platform, and that its approach to the GSEs and FHFA in the first term could mirror that of the previous administration. Late first-term efforts on housing finance reform may also provide insight into second term priorities. Regarding the...

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County Assessors’ Standards | AVM Final Rule Guidance

Dallas T. Kiedrowski, MNAA — Fri, 23 Aug 2024 12:30:47 +0000

County Assessors have the advantage of being able to calibrate their models specifically for one market, allowing for a more tailored and precise approach. The OCC, FDIC, NCUA, CFPB, and FHFA (collectively, the Agencies) are adopting a final rule to implement AVM quality control standards mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The quality control standards apply to mortgage originators and secondary market investors in determining the value of a dwelling that is the collateral for mortgage financing. Under the final rule, institutions involved in specific credit decisions or securitization activities are required to...

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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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NAR Concerns & Survey on Property Data Collectors

AppraisersBlogs — Mon, 05 Jun 2023 12:30:58 +0000

NAR is conducting a survey and wants to know if you have any concerns regarding property data collectors, if the appraisal fees are higher since the involvement of data collectors, if borrowers are made aware of a fee for the appraisal and a separate AMC fee or were the fees bundled, if the property data collector gave the impression that they were the appraiser, whether you have any safety and privacy concerns with the data collection process, quality of data collected and whether they need to be licensed… In a letter to the Federal Housing Finance Agency (FHFA) regarding appraisal...

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Woke ‘Bounty’ Bill Will Chill Speech of New York Appraisers

Jeremy Bagott — Wed, 10 May 2023 11:45:10 +0000

A bill being crafted by the New York state Senate’s Finance Committee would, in effect, place a $2,000 bounty on the head of any heretical real estate appraiser in the Empire State who dares conclude a value that fails to satisfy a seller, serial refinancer or commissioned broker in a deal. Vulnerable buyers, who could be paying off inflated loans based on coerced values, would simply have to live with it. If enacted, the bill would authorize fines to be levied on appraisers for a new category of thoughtcrime – something called “appraisal discrimination.” Half the proceeds from the fines...

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We the People…

VaCAP Board — Sun, 09 Apr 2023 12:30:40 +0000

We the people need to redirect the mortgage lending direction… The time for every appraiser and consumer to step up is now. This country was founded on the principle of “We the people”. Please sign this petition and share it everywhere. Appraisers have been the target for blame for everything gone wrong in the mortgage lending world. We were blamed for the Savings and Loan collapse, the financial crisis of 2008, and appraisal bias and racial discrimination. Appraisers have even been the target on loans gone bad after several years on payments. Yep, we have been the target and have...

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ASA Concerned About the Expansion of FNMA Appraisal Waiver Program

AppraisersBlogs — Thu, 06 Apr 2023 12:30:48 +0000

In response to the Federal Housing Finance Agency’s (FHFA) decision to allow Fannie Mae to expand its appraisal waiver program, the American Society of Appraisers (ASA) has released an op-ed by ASA’s Strategic Partnership Officer, John D. Russell, JD, criticizing this move. ASA believes that by expanding the appraisal waiver program and relying on data and models for mortgage lending instead of human interaction, Fannie Mae is leaving behind two very important aspects: safety and soundness as well as consumer protection. The fear is that overvaluation may occur due to a reliance on models which always try to chase value...

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Eroding Consumer Protection

AppraisersBlogs — Wed, 29 Mar 2023 12:30:06 +0000

Waiving appraisal requirements on residential homes could erode consumer protection, stall attempts to create diversity in the profession… The recent announcement from Fannie Mae that they will waive the requirement for residential home appraisals has caused quite a stir in the industry. Fannie Mae’s decision to waive appraisals during this time of soon to come recession and bank liquidity issues is both surprising and concerning, and could have serious implications for both consumers and financial institutions alike. With falling values across many markets combined with rising mortgage rates putting even more pressure on borrowers’ wallets, this decision could potentially put...

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We Need a Lobbyist

Guest Author — Fri, 17 Mar 2023 12:30:29 +0000

Who is going to organize raising the funds and hiring the lobbyist? We are woefully behind the curve here. Myself and many others were organized in the early 1990s and managed to protect the appraisers’ interests for the most part at that time. Here in 2023, there does not appear to be any meaningful response other than the same old anecdotal war stories we pass along among ourselves. Yes, past markets crashed due to really bad mortgage products/underwriting, and banks failed due to really bad management decisions to go along with those mortgage schemes, but if Uncle Sam is going...

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Exactly How Are Property Data Collectors Professionally Trained?

Dave Towne — Fri, 03 Mar 2023 13:30:51 +0000

Somebody explain to me exactly how Property Data Collectors are “professionally trained” per Fannie Mae directives. The fact is, Fannie Mae is explicitly working toward the elimination of appraisers for real property valuations. This is in their latest Selling Guide Announcement SEL-2023-02 to the Fannie Mae Selling Guide: Value acceptance + property data is a new option that utilizes property data collection by a third party who conducts interior and exterior data collection on the subject property. To ensure consumer protections, the lender must verify and be able to demonstrate that data collectors are vetted through an annual background check,...

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Look in the Mirror

Mark Skapinetz — Mon, 27 Feb 2023 13:30:14 +0000

The phrase “take a look in the mirror” is a common idiom used to encourage self-reflection and introspection. It is a powerful statement that can evoke a range of emotions and reactions from individuals, from contemplation to defensiveness. At its core, the phrase is a call to examine oneself honestly and objectively. It asks us to step back from our assumptions, biases, and preconceptions and consider our behavior, choices, and beliefs in a critical light. When we take a look in the mirror, we are forced to confront our flaws and shortcomings, but also to recognize our strengths and achievements....

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Attorneys General Shady Business

Jeremy Bagott — Wed, 02 Nov 2022 12:30:51 +0000

Racket at Attorneys General Group Will Ring Familiar to Appraisers The nation’s licensed real property appraisers will recognize a scheme run by a nonprofit known as the National Association of Attorneys General. It will remind the former of the abuses visited on them by a tiny, free-spending 501(c)(3) publisher and its captured federal minder. The National Association of Attorneys General describes itself as a nonpartisan national forum for America’s state and territory attorneys general and their staff members. The group has close ties with trial lawyers, who bring tort cases on behalf of the states’ top law enforcement officers and...

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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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Federal Agency in Charge of Appraisers

Guest Author — Mon, 23 May 2022 12:30:12 +0000

Having a federal agency in charge of appraisers will be a NIGHTMARE. Leave it to the states as it is now. ALL appraisers should be SWAMPING their state representatives with calls & emails in OPPOSITION to newly introduced H.R. Bill entitled: Fair Appraisal and Inequity Reform Act of 2022. DO IT NOW. **Remind them all that the job of a Professional Real Estate Appraiser is to PROTECT THE PUBLIC TRUST. That’s what we are in place for! With all of the ridiculous changes proposed with “PAREA”, we know exactly where this is headed. Appraisers coming out of their “PAREA” certification...

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Honest Appraisers Who Risked Their Careers

Guest Author — Mon, 31 Aug 2020 12:30:37 +0000

Meet the Honest Appraisers Whose Warnings Should Have Prevented the Great Financial Crisis The honest appraisers’ warning was ideal. It was timely, blunt, courageous, and unambiguous. If the regulators had acted on the warning, there would have been no Great Financial Crisis (GFC). Unfortunately, the Presidents Clinton and Bush (II) appointed financial regulators because they were anti-regulators, so they ignored the appraisers’ warning. From 2000 to 2007, a coalition of appraisal organizations … delivered to Washington officials a public petition; signed by 11,000 appraisers… [I]t charged that lenders were pressuring appraisers to place artificially high prices on properties [and] “blacklisting...

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Could the CFPB Eliminate AMCs?

VaCAP Board — Mon, 24 Aug 2020 12:30:26 +0000

Will this be detrimental to appraisal management companies that operate under the fast and cheap mentality?… Let’s face it, the appraisal management company will not survive with quality appraisals at a reasonable and fair fee… The Consumer Financial Protection Bureau is seeking public comments on the proposed rules for a Qualified Mortgage. The proposed rules require the lender to season the mortgage for 36 months before they can sell it to Fannie or Freddie. What that means is the lender will own that loan for 3 years. Fast forward if the new rule goes into effect… The lender will be...

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Appraisal Fee Transparency Bill Falls Short

Michael Ford — Thu, 24 Oct 2019 12:30:33 +0000

No system that continues to allow (or limit) defining appraisal complexity to the lender or AMC will ever achieve reasonable, or fair compensation for the appraiser…. We need to do much better than “half a loaf” in our appraisal legislative efforts. Especially when that half loaf does no more than enshrine continued price-fixing by lenders; with the support & blessing of REVAA… WorkingRE published news of recent House of Representatives action. The Bill addresses consumer disclosure of AMC fees among other issues. While the American Guild of Appraisers applauds the efforts of those that worked in good faith on this,...

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