Tagged: E&O

Amendments To Sales Contract - Contract Amendments - When? 5

Contract Amendments… When?

Amendments to Sales Contract & Updates to the Appraisal… Fannie Mae recently issued the following: Currently, we require the lender to provide the appraiser with all amendments made to a sales contract, including amendments that are made after completion of the appraisal. With this update, we have clarified when the appraiser must be provided with updates to the sales contract and circumstances that warrant updates to the appraisal. For example, if the contract is amended in a way that affects the description of the real property used by the appraiser, then the lender must provide the updated contract to the...

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

Forms Designed for Specific Purposes - Appraisal Forms Designs 8

Appraisal Forms Designs & Purposes

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...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

AMC Non Grata 13

AMC Non Grata

I’m coining the phrase AMC non grata… Appraisers, There’s an old, accepted diplomatic term being used by US government folks these days: “persona non grata‘. It refers to a diplomat or other approved foreign nation person being involuntarily removed from the host country, on very short notice. In the most recent case it applies to Russians being expelled from the US due to the alleged actions of their government in the last election. ‘Persona non grata’ got me to thinking. We have instances in our profession where AMC’s become expelled from our businesses. So I’m coining the phrase AMC non...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

Amateur AMCs Misguided Requests 12

Amateur AMCs

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...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

Wells Fargo & Inflated Appraisal Fees: The End of AMCs? 5

The End of AMCs?

Wells Fargo has agreed to a $50 million settlement over inflated appraisal fees. Think about this for a minute….. The people bringing the lawsuit (the “Plaintiffs”) claim that Wells Fargo violated Federal law by charging homeowners more than the amount Wells Fargo paid for Broker’s Price Opinions (“BPOs”) and improperly concealing these “marked-up” charges. So, Wells Fargo was charging customers more for BPO fees on defaulted loans than the actual fees charged by the vendor. Is this any different than the use of an AMC? From the case: “Wells Fargo does not identify any provision in any of the numerous...

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

Tell Them to Find Some Other Lesser Experienced Appraiser 16

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 & other lender ‘demands’ to INCLUDE YOUR E&O BINDER PAGE and FULL SIZE LICENSE COPY in every report. Inclusion of your E&O Binder in reports is the quickest and easiest way to have your report challenged, and for you to be sued. Why would you want to do that? Inclusion of your license copy is absurd. Your license info is already in every single report you submit, or hadn’t you noticed that tidbit of info? If AMC clerks tell you that...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / E&O

30

Appraisers Shortage? A Personal Story

Very large lender who treats appraisers poorly… I received an email from an AMC I have not worked for before at 2:15 PM. They were looking for an appraiser to complete a 1004 report for a very large lender who treats appraisers poorly. The property is in a suburban/rural area, on 5 acres, about 30 minutes from my office. I responded that I could do it, but not until early NOVEMBER, due to being fully booked until then. I requested the rep let me know if that would work for the AMC, and if so, I would then provide my...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisers News / Coester VMS

AMC Vendor Agreement Controversies - Bad, Worst & Ugly AMCs 43

Vendor Agreement Controversies & Worst AMCs

AMC Vendor Agreement Controversies – Bad, Worst & Ugly AMCs And the winner is… According to a recent non-scientific survey conducted by AppraiserNews, the World’s Worst AMC Alive is Clear Capital. Honorable Mention goes to Coester VMS and Streetlinks. And the Worst Vampire AMC title goes to AppraiserLoft which is no longer operational. Excerpt: We’d also like to note the passion with which appraisers made their votes, describing the many ways that these AMCs deserved their titles! One final remark: It is sad that so many appraisers still hesitate to go public with their comments about AMCs, (justifiably) fearing that...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / AppraiserLoft

Social Media & USPAP Confidentiality Requirement 35

Think It Through Before You Post!

Appraisers are Professionals, Social media is a fact of life. There are many appraisal industry social media outlets for appraisers to connect. These forums provide a great resource for appraisers to seek advice from other appraisers, voice their opinions on industry related issues, and sometimes just to vent a bit after a rough day. This is where we need to be careful….. We have all read comments on social media outlets that you just have to stop and think to yourself, “I can’t believe someone actually posted this”. Confidentiality is a requirement of the Uniform Standards of Professional Appraisal Practice....

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / E&O / Errors & Omissions

Appraiser Safety - Stalked by Homeowner 29

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 need to address. I had a recent event where a homeowner was not happy with the appraised value of his home. Four weeks after I had turned in the appraisal, the lender, Freedom Mortgage, proceeded to send five sales that were 16 to 29 months old, for my review. I responded via StreetLinks AMC communication log stating these were not within FNMA guidelines. A few weeks later StreetLinks sent me the following: Good afternoon, the lender has ordered a second...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisal Subcommittee

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