Valuation Connect Demands Licenses, Denies Fair Pay
This firm hasn’t awarded us work in about two years, and they only hire us when they are in a jam, and we require the local market rate. Immediately after asking for our driver’s licenses, which we didn’t provide, we got a request for a hybrid appraisal in Manhattan, the most expensive housing market in the U.S., for a whopping $220 (sarcastically).
They plan to have an unlicensed inspector walk into a Manhattan co-op apartment building rather than have us inspect it ourselves. We would base our appraisal report on their inspector’s information for that non-market rate fee. We have no idea about their inspector’s expertise level, nor is that “industry” regulated, and no standards have ever been established.
Based on the local market appraisal fee, Valuation Connect values the “appraisal expertise” component of a hybrid appraisal at 18% of what the consumer pays for an appraisal.
How does the hybrid model even begin to work in a specialized location like Manhattan?
Nope.
As a part of our ongoing efforts to maintain accurate vendor profiles, we are asking all vendors to provide an updated copy of your valid driver’s license. We are requesting that you provide your driver’s license between today and July 1st 2024.
We appreciate your assistance in maintaining the most current information in your profile. Please email a copy/photo of your driver’s license to credentials@valuationconnect.com.
Thank you for your partnership.
The Valuation Connect Team
- Valuation Connect Demands Licenses, Denies Fair Pay - April 9, 2024
- Appraisal Reviews for $3 – The Devaluation of Appraisers - January 16, 2024
- FNMA Continued Effort to Get Rid of Appraisers - September 29, 2023
Considering my city is the most expensive place to live in the U.S
https://realestate.usnews.com/places/rankings/most-expensive-places-to-live
good luck to those appraisers saying yes to those $55 Stewart Valuation Intelligence / Proteck hybrid offers. No offense Johnathan, but at $220 you would be paid four times more than what is being offered to many appraisers in my area. Of note, the property below is reflected at 1.7 million in Zillow.
We have a new APPRAISAL order for you! Please accept our invitation for case located at the following address:
Subject Property
xxxxx
San Diego, CA 92129
Type: Desktop Appraisal
Lender: Flyhomes Mortgage, LLC
Due Date: 04/01/2023
Fee: $55.00
Seek the truth.
Oh wow, you’re getting jipped. They offer me $75.00. All of their emails are now set to go directly to spam.
Screw ‘em!!
We as appraisers are our own worst enemy period! I have two AMC clients (15+ years) and just the other day an order came in for a 1004 at $300 typically $550-$600. I bid $325 just to see what would happen (if came to me at that price I would have canceled anyway) and it went to someone else. Now I’m not suggesting we collude, but come on man.
Appraisers should use every means to collude and break the backs of AMCs.
Like NAR? LOL! Nah, I’m gonna let the younger appraisers deal with that mess. I’m keeping my attention on retiring.
What could they possibly do to make this a less profitable profession? Revoke everyone’s license that coordinated a fee strike? They would be doing everyone a huge favor if they took such action.
I don’t understand this conversation. Why would any licensed appraiser lend their hard earned signature to the Lyle Rieke FANNIE hybrid nonsense. Please, please remember without your signature or some sell out licensed AMC owned supervisor, they are DEAD in the water. Seriously, as Nancy said – “Just say no”!
I’m not suggesting appraisers should collude on pricing…. But if appraisers went out of office for the entire month of June for just their AMC clients, lenders would quickly get the message about the benefits of a direct engagment panel.
What if every appraiser only quoted Dodd Frank compliant fees (ie. VA panel fees)… no collusion, just demanding AMCs obey the law.
What is a DF C&R compliant fee for a hybridized third and fourth party reliant work product which was never in existence prior to that rule? For a product which only exists within the amc space?
Missing the IVPI Proposal yet?
https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf
Ask for their data retention policies regarding the drivers license. Companies are required to furnish their own data retention policies upon request of some ones personally identifying information. The radical changes to the appraisal industry may have further reaching consequences than just restructuring appraisers engagements. They have walked the line between treating appraisers as independent contractors, vs being employees. One may argue the hybridization program, which restricts the appraisers access to the working space, nullifies current engagement contracts. They are demanding duties of an employee, not that of a free trade independent contractor.
It’s going to be up to the remaining appraisers and lenders whom have not capitulated to the amc companies to test them in court, otherwise there is no opposing force and they will continue to effect future industry trajectory and policy, unabated and unrestricted. Fun fact; IRS employee definition and local jurisdictional rules supersedes the agreements that appraisers sign. But only through legal challenges, something these companies are counting on appraisers never actually looking into. There are so few appraisers whom understand the rule of law still active in this industry, even fewer with resources or motivation to counter the runaway amc industry that continues to exploit consumers and vendors alike at every possible turn.
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined
I dropped all amc’s 10 years ago when I got on the VA panel. Now I quote my VA fee to everyone that requests a fee. If a veteran pays that, everyone else will too!
For those keeping score at home, as a follow up to my prior post, please note the following.
San Diego families need an income of nearly $275,000 a year to afford a mortgage on a home, which is nearly double what it was before the pandemic, according to a new report from the real estate website Zillow. Mar 14, 2024.
Assuming a 40% cost to run your appraisal business, how many $55 dollar hybrid appraisals would one need to complete in San Diego before you could afford to buy a house? If you need $385,000 to net $275,000 how about 7,000 hybrid appraisals.
I think the appraiser coach used to claim he completes up to 8 full appraisals a day, but is anyone aware if he has a system to complete 19 hybrid assignments a day 7 days a week ($385,000).
Seek the truth.
Fannie stated; ‘The hybrid programs will help appraisers earn more money!’ This comes from FHFA tying GSE executives compensation and bonuses to their ability to incrementally eliminate the full service appraiser from the process.
https://singlefamily.fanniemae.com/media/38446/display
Page 5. Code word; I do not think it means what they think it means. Intimidating appraisers works, and works well. An over 90% success rate so far.
The AMC business model has been corrupted beyond belief and we are screwed until someone in DC starts to pay attention. CFPB ????!!!! If anyone in this country is owed reparations it is the Independent Fee Appraiser being screwed by Dudd-Fwank and it’s “unintended consequences”. Time to pay up 😉
My work has slowed to a crawl due to the so called “better, faster, cheaper” hybrid and desktop assignments (which I turn down), but some jamoke appraisers are accepting these to keep money coming in, and I feel sorry for them that they have to prostitute themselves to these unethical AMC’s; there is absolutely NO ONE fighting for us, the AI just dreams up new USPOOP material we all have to abide by or else. When will this madness stop? In about 5 years when the **it hits the fan again…maybe, just maybe then the Feds will wake up and see that Fannie & Freddie have been lying all along, oh well, just pass another trillion dollars worth of losses on the American taxpayer. Between the hybrids, desktops and appraisal waivers we appraisers will have very few assignments.
Collusion: secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others.
Why can law enforcement, health care workers, teachers, fast food workers, airline pilots, fire fighters, medical doctors, athletes, elected officials, movie stars, Et.al all talk about their income and fair pay……….yet when an appraiser or a REALTOR talks about compensation…….some !@# always yells “COLLUSION”?
Wake up.
This is the one of the biggest reasons I’m retiring. Everyone has their hands in our pockets.
Regulators and rule makers could give two **its and a damn about appraisers! The bottom line is it should be illegal for an AMC to maintain 82 percent of a fee paid by a consumer. Truth be told, it should be illegal for an AMC to maintain ANY monies paid by the consumer. If the closing document states the appraiser received $600, then the appraiser should receive $600, period! The AMC should be charging the lender, their client, for their services, NOT the appraiser.
I for one WILL NOT accept bull **it fees. Unfortunately, there are many that do in my area. Between high interest rates and low-ball appraisal bids, my company did 75% less business than normal in 2023. Luckly, the wife and I have six retirements between us, so appraising is not a necessity to survive.
While many organizations talk the talk, none walk the walk. AMC’s and Appraisal Fees have been an issue since Dodd-Frank became law some 14 year ago. Yet here we are. Appraisers continue to get screwed, and regulators continue to let it happen.
Same happened to me in 2023, but I had backup plans also. I have less than 2 years before I retire and believe me we can’t wait until that happens. Time to travel abroad. Not even paying attention to the emails talking about the new forms supposably coming out in 2025. Good Luck ya’ll !
Just say no. If there is some moron out there willing to work for damn near free, God Bless his or her dumb @$$. I am not. The fastest way to go broke is running around thinking that you are making money when you are not. It takes far longer to go broke being still than it does spinning your wheels.
This response isn’t good enough sorry.. The corrupt AMC business model and lack of disclosure to the borrower and lender of fees MUST be exposed and fixed.
Just today UWM and their appraisal direct system sent out a notice saying starting Mon that a new $29 lender QC fee will be charged on every full order. This is on top of a $16 platform fee, and a $19.30 processing fee. In total, the appraiser is on the hook for $64 and or locally 12% of the gross fee of $505.
Seek the truth.
UMW?
Sorry, United Wholesale Mortgage (UWM).
Considering UWM is the largest lender in the US where’ are Joe Biden’s handlers to address the junk fees being added to the appraisal? Sorry, if you charge the borrower such fees its junk, but if you charge the appraiser its just a Friday.
On a side note, considering UWM in part has an appraisal direct platform that is not an AMC, I would love to know what they pay other appraisers throughout the US.
In San Diego County (3 + million population) they pay $505 minus $64 staring the 15th of April. Considering San Diego is the most expensive city to live in the US they could careless if their fee is in line with the cost of living.
Seek the truth.
Why not just add it onto your bid? $569 – $64 = $505 But anyhoo that’s why I said earlier we are are own worst enemies.
As an appraiser, we should all know math pretty well. The appraisers that are accepting assignments for pennies on the dollar need to have their state give them a hard look into their competency and possibly have their license revoked. Any appraiser worth their salt on the earth wouldn’t dare give away their time, education and experience for near free. These bottom feeding appraisers obviously don’t understand or know math. Otherwise, they wouldn’t accept these assignments. So a task force needs to be started to weed out these math illiterate appraisers, or further train, to stop these nonsense $50 appraisals from happening! End of story. I know we all start from the bottom, but let’s be realistic. There will always be AMCs so let’s end appraisers that don’t understand math at all, and if it’s the AMC training them, then AMCs need to take responsibility. Doesn’t take a rocket scientist to figure out that appraisers are being exploited and taken advantage of during these times.