engagement - Appraisers Blogs

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...

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…
Appraisal Regulation Compliance Council Exposes… The Appraisal Regulation Compliance Council published a detailed breakdown to the CFPB, which showed the median average AMC fee being…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…

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AMCs Billing Scheme, Hidden Profits & Deceptive Practices

Guest Author — Wed, 07 Feb 2024 13:30:29 +0000

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...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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AMC Engagement Letter: Appraisers Do Not Include Your Invoice

VaCAP Board — Fri, 28 Jul 2023 12:30:23 +0000

File the complaint against the AMC yourself OR Forward the engagement letter to VaCAP to file on your behalf. At the recent Virginia Appraisal Board Meeting on Wednesday June 28th, a discussion occurred about Appraisal Management Companies prohibiting appraisers from including their invoices with the appraisal report. The overall consensus of the Board Members was this practice could be a violation of Virginia Appraisal Management Company Statute § 54.1-2022 B. “B. The appraisal management company shall not prohibit an appraiser from disclosing in the appraisal report the actual fees charged by an appraiser for appraisal services, and shall otherwise comply...

Appraisers Not Signing Up with These AMCs Over the past few weeks VaCAP has been hearing from our members on some of the concerns they have with…
Insights from CFPB's Public Comment Period The comment period on the Consumer Financial Protection Bureau's (CFPB) "Request for Information Regarding Fees Imposed in Residential Mortgage Transactions"…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…

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Final When You’re Not the Original Appraiser

Dustin Harris — Fri, 28 Feb 2020 13:30:49 +0000

When You Complete a Final and Were Not the Original Appraiser First of all, let’s clear the air of any initial confusion that could be potentially floating around out there. It is absolutely okay for an appraiser to complete a final for a property when they were not the original appraiser on the original report. It is perhaps slightly more unusual, but completely ethical. However, there are a few issues that an appraiser could potentially run into if they are completing a final for a report where they were not the original appraiser. I am going to talk about one...

USPAP Appraisal Reviews in 15 Minutes? $15 USPAP Appraisal Reviews in 15 minutes? A VaCAP member shared with us something they read in an appraiser group…
AMC 1004D Update Shenanigans Why wasn't the original appraiser asked to do the 1004D Update? Here it is the new year, and the potential…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

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Class Valuation Did Me a Favor

Guest Author — Wed, 29 Jan 2020 13:30:24 +0000

My profile has been disabled from Class Valuation. They actually did me a favor. This does not bother me in the least as I have gotten nothing but bid requests from them. My resolution for 2020 is to change my focus and remove unwanted low-life companies from my business. Class Valuation fits squarely into the low life company category. I cannot call them a client as I have never received any work from them. Here is an email I received from them. Hello, Please note your profile is currently disabled with us pending a completed direct deposit form. The state...

Done Deal AMC Consolidaton - Class Valuation (formerly Class Appraisal) of Troy, MI is acquiring Landmark Network, of Van Nuys, CA. This…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

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Appraisers on Timeout for Delays!

AppraisersBlogs — Fri, 17 Jan 2020 13:30:15 +0000

Early in January, Mortgage Financial Services (MFS) sent out a notice to the appraisers on their panel announcing changes in their turn time policy. In this communication, they state if appraisals are more than 48 hours late, the appraiser will be suspended for 10 business days with no new orders assigned. They also state that the appraiser must request for a longer due date prior to accepting the order, or to raise the appraisal fee for rushes. However, they add, “turn times and fees have to be realistic”. Not long ago, a small number of our clients included penalty clauses...

It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
Look in the Mirror The phrase “take a look in the mirror” is a common idiom used to encourage self-reflection and introspection. It is…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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New CA Law Negative Effect for Appraisers

John Pratt — Fri, 08 Nov 2019 13:30:50 +0000

Some of you appraiser in California may not realize there is a new law, AB-5, which goes into effect on 1/1/2020, less than 60 days from now that will have a significant effect on the working relationship between appraisers and AMCs. Most appraisers work as Independent Contractors when working with AMCs. However, this will most likely change under this new law, AB-5, as of the first of the year. Most engagement letters or other instructions from AMCs to appraisers are in conflict with this new law as it pertains to the use of Independent Contractors. Under most of these agreements...

Take Control of the Appraisal Process If the appraisers want to take back their industry they need to come together... This new law in NY has…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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Appraisers Alarmed by USDA’s Poor Decision

Guest Author — Mon, 28 Oct 2019 12:30:40 +0000

Verdi Consulting has no business being involved with appraisals… they have fraud examiners that should have done some due diligence on Clarocity… Nope, not going to happen… I received an email from what appeared to be from USDA. As a long time USDA appraiser, I opened the email: Verdi Consulting, Inc. has been engaged by the United States Department of Agriculture, Rural Development Office as one of two vendors under a Blanket Purchase Agreement (“BPA”) for Nationwide Single-Family Housing Origination Appraisals. The USDA has provided your information as a preferred incumbent Vendor Appraiser. We would like to invite you to...

The Real Cause of the Home Value Gap Is the Income Gap Blaming appraisers for the income gap will never solve the real underlying problem... Blaming appraisers for the income gap is…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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Hybrid Inspectors Offering Appraisal Opinions

Mark Skapinetz — Mon, 17 Jun 2019 12:30:03 +0000

Clear Capital admission: This is an admission that inspector were previously offering appraisal opinions re Q&C. There remain many other areas in hybrids that also are appraisal opinion being provided by non appraisers. I have written many blog posts here, mainly for the consumer to read and understand what is actually happening in the world of Real Estate Valuations. My blogs range from being overcharged for appraisals so the middle man (the appraisal management company or AMC) can make money, lenders still pressuring appraisers to hit a value, and now having untrained and unlicensed people perform inspections (see my last...

Appraiser Imposters! AMC sends a "non-appraiser" to photograph, measure, sketch, and observe a property, it’s quality, condition, and surroundings instead of using…
What IS a “ClearVal Appraisal”? Clear Capital ClearVal... Value Not So ClearCut... I’ve finally had an opportunity to read a hybrid ‘appraisal’ start to finish.…
First Impressions of Clear Capital’s AVM An Appraiser’s First Impressions of Clear Capital’s AVM... It’s no secret the lending industry is aggressively pursuing alternatives to traditional…

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Different Properties on the Same Form?

Dustin Harris — Wed, 22 May 2019 12:30:59 +0000

Are you appraising the retail values of 10 sites to 10 different owners? Are you appraising the bulk or discounted market value of the 10 sites to a single purchaser? Can the Same Form Have More Than One Property on it? Lots of folks have asked me, “Dustin, can I appraise two different properties on the same appraisal report at the same time?”. Now understand I am not a USPAP instructor, I am an appraiser, so I’m going to answer this question as best I can. The question before us is legitimate, and one which I had to answer recently....

Should Adjustments Actually Be Done? How much credit should we give ourselves when it comes to making adjustments? Making adjustments is controversial. USPAP says nothing…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…

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Who ‘assists’ in Hybrid Appraisals

Guest Author — Wed, 17 Oct 2018 12:30:17 +0000

the appraiser shall identify any person who "assists" in the appraisal process… NCREAA recently submitted a letter to the North Carolina Appraisal Board regarding hybrid / desktop appraisal products. As a result of this letter, which highlights concerns raised by NC Appraisers, NCAB is forming an ad hoc committee to clarify, define and provide guidance on these hybrid / desktop products with respect to current North Carolina Appraisal Laws. Read the letter below: The North Carolina Real Estate Appraiser Association (NCREAA) has recently received requests/inquiries from our members regarding guidance on assignments for “hybrid/interior desktop” appraisals requests they have recently...

Proposal to Eliminate the VA Fee Panel VA Fee Panel - The Appraisal Institute does not believe that a move to a lender select program, such as…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…

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Paint a Picture with Words

Rachel Massey, SRA — Mon, 02 Jul 2018 12:30:50 +0000

The reconciliation is precisely the place we want to avoid any boilerplate… A common complaint among couples is a lack of communication. “He should have known I wanted that bracelet for my birthday” “She should have known I wanted to have sushi for dinner” “She should be more considerate of my feelings”, etc. How are we supposed to know these things? Are we mind-readers? It would be much easier if we would somehow communicate our wishes with our partners, without having to come right out and say something, but at the same time, it takes away from the spontaneity of...

I Am Not "JUST" a Residential Appraiser I am not "JUST" a residential appraiser! There is no doubt that moving to obtaining a certified general appraisal license…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
Security Bars Removal Law Debunks Alleged Racial… Complainant stated appraiser told them they should remove security bars from windows. Complainant stated this is evidence of "racist discrimination"...…

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Improper Direction to Appraisers

Michael Ford — Tue, 22 May 2018 12:30:59 +0000

…specific prohibited direction to appraisers involved in federally regulated transactions… Improper direction to appraisers as a new special lender condition Honorable Ladies and Gentlemen: The following article appeared in a recent online post at https://appraisersblogs.com/appraisers-asked-2-overlook-weed-cultivation (also copied to this letter following our inquiry). We consider the original author to be a credible source. Due to the serious implications of any appraisal management service giving such specific prohibited direction to appraisers involved in federally regulated transactions we believe it to be our duty to bring this to your collective attention. We respectfully request that each Federal Regulatory Agency review this issue...

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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AMCs Have Failed

Guest Author — Mon, 19 Feb 2018 13:30:57 +0000

…it will be the appraisal management companies that are going to be held to the fire, not the appraiser… In the spring of 2002 my wife and I bought our third house; an older cape cod in a great school system where our son would start kindergarten in the fall and his sister the year after. This house literally was 1970 inside. It had deep red shag carpet in the family room and sculptured avocado green carpet upstairs. Not to worry, it blended well with the sunshine yellow stove, bright orange counter top and turquoise and pink bathrooms. After 3...

The Reality There is no shortage of appraisers, only appraisers willing to work for Appraisal Management Companies, but there will be a…
Enough Already, Nobody is Listening AMC technology is not about efficiency of the appraisal process... I am very tired of reading all the articles from…
Lie - Ability Tax payers should not be LIE-ABLE for the actions of greedy bad players! Michael Simmons, Principal and founding Director of…

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The Reality

Guest Author — Fri, 12 Jan 2018 13:30:53 +0000

There is no shortage of appraisers, only appraisers willing to work for Appraisal Management Companies, but there will be a shortage if the current toxic business climate does not change. The AMC business model is based on lies that hurt the consumer and your constituents. There are many voices that have agendas to reduce the qualifications to become a Real Estate appraiser, whether it be a Licensed Appraiser, Certified Residential Appraiser or a Certified General Appraiser. There are also voices that would like the requirements of an appraisal by a person licensed by the state to be waived as there is a...

The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
The Illogical Reality of Mortgage Appraisal Reviews Reforming the appraisal review process is essential to maintaining the integrity of the real estate market and protecting consumers and…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

The post The Reality appeared on Appraisers Blogs.

Appraisers Pushing Back!

VaCAP Board — Thu, 21 Dec 2017 13:30:27 +0000

Solidifi has taken the disrespect to another level… Appraisers Pushing Back Against AMC Bad Behavior! Appraisers have finally had enough of bad behavior by AMCs. VaCAP received the following email from an appraiser, who by the way is not located in Virginia. VaCAP spoke to the author concerning the email and found out a few more details. First, the author does not do residential work as they are a Certified General nor do they work for AMCs and are not on any AMC roster. Somehow, this nonresidential appraiser received this email from Solidifi. VaCAP commends our colleague for stepping up...

The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
When Solidifi Tried to Silence Samnick David Samnick has spent years warning that the AMC model would eventually expose its own contradictions. He is a Georgia…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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Quit Doing This. Just Say NO!

Dave Towne — Mon, 17 Apr 2017 12:30:28 +0000

E&O coverage has nothing at all to do with underwriting mortgage loans… Do not include your E&O binder page in any appraisal report. Period. End of story. Especially if you are being ‘managed’ by an AMC who has that in their engagement agreement, claiming it’s a lender requirement. A while ago, I received a “correction notice” via a prominent AMC for a report I submitted: “Per lender requirements, evidence of E&O coverage must be included in the report.” My response to the AMC directly via email, not in the report, was this: “To: AMC rep Is there any way you...

Tell Them to Find Some Other Lesser Experienced Appraiser Tell them they are NOT needed in the report. The march of many appraisers who blindly comply with AMC &…
Amateur AMCs Amateur AMCs Misguided Requests & Unecessary Demands... Folks, I’ve written consistently over many years about the misguided request many lenders…
Appraiser Safety, Stalked by Homeowner Personal safety of appraisers I have several issues that focus on PERSONAL SAFETY of appraisers especially female appraisers that I…

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Appraisal Forms Designs & Purposes

Dave Towne — Wed, 08 Mar 2017 13:30:33 +0000

These forms were “designed” to be used for those specific purposes… Appraisers, Earlier this week, I discussed the following about some lenders requesting a type of property inspection to be completed on a form “Not Designed” for the specific property type: Original observation discussed earlier this week: Read the highlighted sentence. Read the highlighted sentence again. According to a regional bank in my area, via info from their AMC, “thousands” of Manufactured Home appraisals have been done on the 2055 form. Do you do that, just because someone – who just wants to “make a sale” – tells you to...

The 1004D for Disaster Inspections - Advice When Disaster Happens... Appraisers, The phrase "disasters happen" is, unfortunately, all too common. Fires, floods, vehicle accidents, wind storms, hurricanes,…
Executive Summary in Appraisal Reports Executive SummaryAppraisers, I spent two days last week at the Appraisal Summit and Expo in Las Vegas – which was…
Desirable, Rite or Rong? Desirable, banned or permitted? I was caught up in a minor ‘dispute’ last week when a review appraiser wacked my…

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Death Grip on Trainees Loosening

Dave Towne — Wed, 15 Feb 2017 13:30:39 +0000

Allowing associated trainee appraisers to complete unsupervised inspections… Appraisers, and others, A ‘significantly large’ nationwide AMC has notified it’s vendor appraisers that certain lenders contracted with this AMC will now accept appraisal reports signed by properly trained (and presumed properly approved by the State) Trainees as the ‘Appraiser.’ This follows the Jan. 31, 2017 FNMA announcement that they will accept reports signed by Trainees. So far, I have not seen any similar announcement from FrMAC, FHA, VA, or USDA, or any other specific lender. The AMC’s message to their appraiser panel is below. NOTE: This memo says the Trainee is...

Real Estate Appraisers...Who Are We? Appraisers...Who are we? With the current requirements to enter the profession of real estate appraisal, it is likely that who…
AQB Moving Like a Turtle Appraiser Qualification Board moving like a turtle in solving how to get more people into the appraisal profession. I recently…
Appraisal Alternatives Computers eliminating “boots on the ground” residential appraisers. An historian once quipped, “I cannot predict the future, but give me…

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Amateur AMCs

Dave Towne — Thu, 22 Dec 2016 13:30:20 +0000

Amateur AMCs Misguided Requests & Unecessary Demands… Folks, I’ve written consistently over many years about the misguided request many lenders and AMCs have about “requiring” appraisers to include a copy of their license and E&O binder page in reports. I have consistently suggested appraisers PUSH BACK whenever you encounter this demand when it is in the list of items to be included, shown in the AMC assignment engagement documents. I’m not the only one doing this. It is absolutely essential that you review these docs prior to accepting and doing any assignment for anyone, especially the multiple new amateur AMCs...

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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engagement - Appraisers Blogs

The Great Debate on Appraisal Fees

Related Posts:

AMCs Billing Scheme, Hidden Profits & Deceptive Practices

Related Posts:

AMC Engagement Letter: Appraisers Do Not Include Your Invoice

Related Posts:

Final When You’re Not the Original Appraiser

Related Posts:

Class Valuation Did Me a Favor

Related Posts:

Appraisers on Timeout for Delays!

Related Posts:

New CA Law Negative Effect for Appraisers

Related Posts:

Appraisers Alarmed by USDA’s Poor Decision

Related Posts:

Hybrid Inspectors Offering Appraisal Opinions

Related Posts:

Different Properties on the Same Form?

Related Posts:

Who ‘assists’ in Hybrid Appraisals

Related Posts:

Paint a Picture with Words

Related Posts:

Improper Direction to Appraisers

Related Posts:

AMCs Have Failed

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The Reality

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Appraisers Pushing Back!

Related Posts:

Quit Doing This. Just Say NO!

Related Posts:

Appraisal Forms Designs & Purposes

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Death Grip on Trainees Loosening

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Amateur AMCs

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