Eternal vigilance is the price of society, said my grandfather born in the 1880s. When we don’t rat out the bad the good gets worse.

When I was learning my bosses took on a portfolio review from Nevada State S&L, and later from the Feds. That was before FNMA & Freddie were active and the HOME Bank Board bore all the losses. That was in the late 60’s. That was a learning experience! about all kinds of cheating, fraud, payoffs, etc.

Now the insurance pay off and the lenders negotiate. Just the personalities have changed not the PRINCIPALS.

I also remember the merge between the AIREA and the Society, I was against it because it would mean less representation (fewer members) too lobby government). Many SRA’s and MAI’s were the same. The Institute had a hard on against the NAR and the many other well Honorable organizations. We lost and within three years the Institute filed BK, they worked it out later

In the 1980s I went to both AIREA and Society of RE Appraiser’s meetings in So Cal. Most fee appraisers were MAIs with the AIREA and they were against joining up with the SREA because most of them were lender, staff appraisers and most were residential. I was against the merger. We merged in 1990 and I got my MAI that year; I insisted I get the AIREA certificate; they sent me both. I like the green one, not the pyramid in burgundy, the AI- it has been downhill ever since. AIREA MAIs went to get CCIMs and FRICS, so they could distinguish themselves from the rest of the bunch. They lowered the requirements for the MAI; while I was working on mine from 1980 to 90, the bar was constantly being raised. It used to be an exclusive club; now they have ruined it and I am in favor of taking our education to colleges and universities; that is, if they don’t kill the profession altogether!

Dude! Commercial Appraiser, that document was rich and quite the gem to whip out 15 years later. In the hands of non qualified order management clerks and regular level mortgage bankers, the artificial neuron becomes a hedonistic neuron. Just saying, by observing results, we effect results, mostly because the various persons tinkering with parameters do not understand these advanced concepts or fundamental building blocks and operational guidelines of their own products and systems.

One imagines that if lenders and clerks had to pass basic testing demonstrating effective fundamental understanding of the core operational principals of their own software offerings, almost everyone industry wide would fail. The hubris of wannabe tech people daring to explain the value of their latest software and hardware which even they do not clearly understand, well, that’s been going around for some time now.

Meanwhile, the next telecom desk clerk is yet again, trying to educate me on the basic parameters of their gimmick software functions. “Yes, it’s only seems new to you, I’ve been using these systems for well over a decade now…” Having detailed conversations with them about logistics and compliance is truly a foreign language to them. “What’s your fee and turn time?”

Well said !!

1. SCOPE This standard is intended to provide guidance for both public sector CAMA and private sector AVM systems. This standard provides recommendations and guidelines on the design, preparation, interpretation, and use of automated valuation models (AVMs) for the appraisal of property. The standard presents market analysis based appraisal applications and aspects of such models. The principles addressed in this standard are considered applicable to all appraisals of real property, which are designed to estimate market value https://www.iaao.org/media/standards/AVM_STANDARD.pdf

It was like that in CO for many years. We stood up and said no more. I was not the only one whom solicited directly and de prioritized amc’s during a sustained market rush. Already though, amc’s are trying to drive raised fee schedules lower w/ no regard for tripled cost of living expenses. Amc’s are their own worst enemy. Right when they’re actually needed is when they are least effective. If appraisers want alternatives, all they need to do is market directly and learn to say no. If they don’t work, I have a tiny violin to play for them. I did not sacrifice over 5 years of full time marketing for part time work for nothing. I’ll find a new line of work before I turn back. Lessons learned.

Baggs, There are parts of the country where if you are an appraiser and do not do AMC work…you simply don’t work more than part-time.

I agree AMCs promote (at least passively) the kind of dishonesty we have been discussing. THAT was the whole point behind C&R fees. It is the underlying theme or rationale for opposition to cut-rate services that any competent appraiser KNOWS is going to be an exercise in sidestepping USPAP and hoping not to get caught.

Don’t think for a minute that the actions of bad appraisers (at AMCs or otherwise) cannot affect non AMC work. Out here the norm for any narrative pre 2008 was $4,500 minimum. Thanks largely to high volume bottom feeders like MAI owned PCV Murcor, the ability to command much more than $2500 to $3500 for those same appraisals in NON AMC C&I work has become far less frequent. An argument can be made that C&R is now only <$3,500 (at least as a probable base).

Thank you for the clarification of inside mortgage terms Don.

Appraisals v Evaluations was never a hybrid since BY LAW evaluations could never be called appraisals (PL 103 or FIRREA 1989).

AIREA has been AI since the late 1980’s I believe. I know it was AIREA when I took courses from them in ’86 and ’87 as a Candidate. It’s doubtful they foisted anything other than an appraisal on anyone back then. They were even opposed to simple comp checks, and especially desk appraisals back in the day.

Where you see the future of appraising and where appraisal professionals see it aren’t the same thing. If all RE issues were purely local, we would not have had the S&L crisis nor FIRREA. Both refute the validity of the local statements.

Skipping to E&O – it doesn’t defend at all – not meaningfully. It only covers against certain types of loss which THEY determine how to settle.

I’m very thankful to see this Mr Miller posting more articles here, Mr Ford, the dedicated team of licensed appraisers who run this site, and everyone else who is now more frequently participating. Thank you all again. Miracles can happen and just maybe we won’t all need a new career… All I request is two full orders full fee a week. It’s ridiculous when that does not happen. Like Mr Miller posted above, it takes time to see the big picture. I’m reminded of how far I’ve come when I have real world conversations and actually can answer all questions. Real estate is one of the most volatile financial landscapes available, upstarts have no business in the appraisal industry. If you can talk the language of real estate, you can write the language of real estate. Hybrids, evals, typing services, comps sharing, it’s all worthless if the goal is to provide competent informative valuation service.

When injustice becomes law resistance becomes duty.

Agree with the concept and if we can ever get these amc’s out of here, we’ll all be much more able to participate in effective regulatory activity and oversight.

As it stands now though, the amc appraiser is by proxy, protected by the amc in these scenarios. David vs Goliath. That’s why I post anonymously, surely I’m on lots of ‘lists’ by now.

Funny story, his runner lady showed up, but then got a call, threw the tape measure back in the trunk and drove away fast, then senior CG showed up half hour later. I can’t recreate the rate and for that reason, am hands tied and refuse(d) to move because it’s my home, my equity, my loan engagement. The culture within the appraisal industry promotes this activity. I played nice through that one. The lenders have promoted it by using amc’s. The amc’s promote this activity as standard engagement. Over half of all GSE appraisers (roughly 1/4 of all nationally licensed appraisers) do participate in that kind of working activity. Unethical engagement has become institutionalized at this point. That’s why I could care less about the struggles appraisers have because of their amc engagements. They got exactly what they asked for, and deserved.

Learned something new today.  Thank you Don.

Recourse Loan – Investopia

Signal out is the proper term for a lender to use in nonacceptance of a parts of a package. A lender or potential lender does negotiate the package for return rate, etc.

Appraisals v Evaluations is hybrid foisted on us by the AIREA in an conflict with Websters, Blacks Law, etc.

There is no discussion from me about working for an hourly fee, that ridiculous. Competing for business has more aspects than hourly costs. Many have discovered relying on insurance for work quality is UN-reliable with the advent of a lien for fraud. Reputation is developed and fees increased, is sign of  growing reputation.

I see the future of appraising changing from a letter of approval from an insurance co. back to recourse lending. That would return value decisions to local levels, not wall street projections.

Real estate had always been based on local issues, and Real Estate appraisers had local knowledge.

Fraud has always been with us and always will be, fraud only has solutions, not cures. A farmer can insure his is wheat crop against hail, and when it hails he can collect something of his loss.

E&O insurance won’t protect us against suing, only help in our defense.

Baggs, it’s not a case of anyone being a new sheriff or not. It is a case of applying the very same fundamental integrity that you correctly write about often.

Turning a liar, cheat and a thief into the state board is not ‘tattling’ or snitching over some minor issues. That illegitimate offspring with no morality or at best selective morality is cheating credit union members, and anyone else he worked for; undermining the integrity of the appraisal profession in the process.

Baggs a great deal of the volunteer time I expend on behalf of AGA members is trying to help members defend themselves against false charges. I don’t suggest turning anyone in frivolously or lightly. Repercussions are serious.

The ONLY exception to those I’m willing to help are ones that have clearly violated the most basic requirement of being an appraiser…by being dishonest. I don’t want them in my profession.

There is no greater offense an appraiser can commit. He’s a criminal just like any hit and run driver is; or a child molester or a bank robber. Turn him in.

You can’t make it up, the appraisal industry is the wild west of the lending world. I consider you the new sheriff in town, you’ll need a badge though…

Errr… Wait, they have two of them this year.

This is the one being discussed in the link, my bad.

As they’re both just clever marketing solicitations masquerading as white papers, well, it can be easy to confuse them. The author of course, is not an appraiser.

THE CASE FOR CHOOSING AVM ACCURACY AND SUITABILITY OVER THE TRADITIONAL AVM CASCADE

Here, and here. Stale reading. I just skimmed it, read it all before. I liked the FNC paper more because that was written before the amc industry and lending industry alike realized they could monetize those practices at levels far exceeding just skimming appraisal fees and kickbacks from amc engagements. Special treat, I found the white paper without needing to provide login. But you could always use an @mailinator.com address if you still hold true to the bugmenot mindset.

Interagency Appraisal & Evaluation Guidelines Insights into understanding and integrating the new guidance – Veros

EFFICIENT COLLATERAL VALUATION KEY TO SUCCESS IN 2018 – A Whitepaper

Wow.

Bill, it is absolutely NO different than the bifurcated appraisals we oppose. “Desktop appraisal with Inspection.” Think about that term for a minute.

I also take exception to their advertising claim that clients and regulators alike are all embracing this type of product. WHY are providers of this garbage continually finding it necessary to lie or mislead about what their so called products are?

“Pro Teck is a member of the Mortgage Bankers Association, Collateral Risk Network, Association of Appraisal Regulatory Officials and a founding member of the Real Estate Valuation Advocacy Association (REVAA).”

Oh! NOW I understand. Bill you said they pay $55 for these “USPAP Compliant” pony-loaf er products?

Because he was my appraiser for my 15, sourced from the trusted lowest rate credit union out there. Whom also just coincidentally used street links. I mentioned this before in other lighting. Same scenario where I tried to insist on the appraiser getting a full fee and the mortgage department was powerless to effect. Generally speaking, no, I never turn anyone into the state boards. I know someone else who did that for obviously egregious work, the state passed the other guy, being new, deserving lower uspap matrix table penalties, and the submitting appraiser was ran through the grinder of review work investigation and lawyers fees for at least the next year. If lenders are willing to allow defrauding of portfolio investors, that’s their business not mine. I only answer for myself, that’s why I have no help and use absolutely no outsourced services of any type what so ever.

Know your enemy.