Waiting for the Platform to Fall…
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When Dodd Frank was implemented lenders started using appraisal management companies, eliminating appraisers relationships basically overnight. Appraisers embraced the change reluctantly and started accepting assignments from appraisal management companies.
Over the years appraisal management companies showed their true colors and lowered fees, required appraisers to pay upload fees and forced many appraisers to pay for unnecessary back ground checks. Some have hired staff appraisers, completely disregarding the intent of Dodd Frank in an attempt to lower operating costs. Today, most AMC’s blast out bid requests for fee and turn time wasting significant time for appraisers. Clearly amcs are searching for the fastest and cheapest, completely ignoring experience and competency of the appraiser. The quality of the appraisals reflect this. I am not going to even discuss the absurd revision requests common with amcs.
Sadly, appraisal management companies have failed to get the message that they can not exist without appraisers. They call appraisers partners, but the reality is their actions show they think of us as their employee/subordinate. Attempts at Bifurcation have completely failed and the abuses have continued.
Appraisers, on the other hand have moved on from the abuses of the appraisal management companies. Most appraisers truly believe there is no benefit for these companies to exist. Appraisers have always had the control over their own business and the abuses of the appraisal management company are no longer being tolerated. Appraisers are terminating the one sided relationships with amcs and focusing their business on more profitable and satisfying business.
The impact of the appraiser shift is being felt by amcs. Orders are being blasted numerous times with verbiage of desperation. Some amcs are accepting ridiculously higher fees just to get the appraisal assigned to salvage their relationship with the lender. Of course they continue to shop for a lower fee while it is already assigned.
Lenders, on the other hand have no loyalty to the amc. They too are feeling the impact of the appraiser shift and are sending appraisal orders to multiple amcs to get the order assigned. Some amcs are randomly assigning the orders in hope the appraiser will just accept.
Well, none of these “tricks” are working. Appraisers are just laughing at the amcs. Don’t believe me? Just read the posts in the appraisal groups.
Appraisal management companies could have been a great experience for appraisers. Lack of respect, greed and complete incompetence by the amcs chartered a very different path. Amcs not only built the platform, hung the rope and tied the noose, they are sitting there, noose around their neck just waiting for the platform to fall… because you know they hired the fastest and cheapest guy to build it!
By Advocate. The author is a Certified Residential Appraiser and has chosen to use the pen name Advocate to protect their identity. Many famous people including Benjamin Franklin, Agatha Christie, and Steven King have written under a pen name for various reasons. Just Google pen names used by famous authors, there are only 45,700,000 results to choose from.