An Opportunity for More Work…
Work opportunity for $25… Opportunity?
A member of VaCAP forwarded this email from an AMC. VaCAP wanted to share.
“We have a new product which is a review of a BPO. You’ll need to log onto a site and complete a checklist. The pay is $25 per report with a 24-48 hour turn time. Most can be done in about 10-20 minutes. All work can be done from your desktop. Training will be provided.
Please let us know if you are interested. At this time, we are reaching out to garner interest. We’ll let you know the next steps as we do.
** these orders would be sent via Mercury Network”
Although we do not have any specific knowledge of this product, we can assume the scope of work is very limited. VaCAP wants you to understand what is involved.
You are being asked to complete a review of a Broker Price Opinion (BPO), not an appraisal. You will be compensated a gross of $25 per report and there may be a fee involved since the order is going through Mercury Network. Keep in mind an appraiser did not complete the BPO and when you mention matched pairs, they believe you are referring to a pair of matching socks.
Let’s break down what’s involved and the expenses:
Even though you will access a website and checkbox, you are a licensed professional appraiser and must comply with USPAP if you give an opinion of value or agree with an opinion of value. You must create the file (file folder, storage cabinet, labels, etc). In that file you must keep your research, data, analysis, and conclusions. How much time have you spent researching the subject, the neighborhood, looking at sales, narrowing the sales to determine the comparables. Don’t forget about your matched pairs analysis.
Now factor in your expenses of rent, utilities, internet access, software (you have these expenses even if you work from your kitchen table), cell phone, liability insurance, and E&O insurance. Does your E&O even cover this type of product? Factor in the cost of licensure, CE classes, and VaCAP and other professional organization dues. Let’s not forget Uncle Sam. He wants his share as well.
Now as yourself……How much money have I lost?
- We the People… - April 9, 2023
- Federal Valuation Agency Impact on Appraisers & the Public - July 22, 2022
- Is Georgia Going Rogue? - June 13, 2022
You reviewing a non-appraiser. What happens if you disagree, supposed to go out new comps and rewrite a BPO for $25. Bad enough they expect you to do a review and correct it for $100.
They keep pushing this crap to see what will stick and which appraiser will think it’s a rose..lol I can’t even keep my computer running for that fee and yes of course Mercury Network charges a fee.
“Making a living as a residential appraiser today can best be described as trying to dig your way out of a hole” ~ Retired Appraiser
Without a shovel!
When the state of VA has adopted VA loan scope of work requirements and lenders MUST pay EXTRA for the cost approach, ANY active or pending listings, or any 4th or 5th closed sale they demand upfront, etc., then such cheap products ($25 review) will push down these now a la carte items. If lenders can in essence have you agree or disagree with a value for $25, what will the market pay for active or pending listings ($5 each)? Will the cost approach be $2.50 on Mondays and Wednesdays? The lenders have and will only speed up the process of developing these one off products so as to give themselves a loophole in paying customary and reasonable fees. It took 7 years for the government regulators to get the first $10,000 fine for low pay, however it only takes the lenders days/weeks to develop a work around.
ACI is now touting how its automated reconciliation ‘feature’ now takes all the guesswork out of reconciliation within the sales comparison. It uses algorithms to weight each comparable sale BASED ON THE PERCENTAGE OF NET AND GROSS adjustments applied. Wow! What a handy feature for appraisers that don’t know their ass from a hole in the wall; and or those that cannot think of any more relevant way to “reconcile” within the sales comparison.
FNMA announced last year I think that they were abandoning the requirements or ‘guidelines’ to stay within 15% and 25% or any present net and gross adjustments since it appears appraisers are appraising to those guidelines rather than to market. Why would we then feel compelled to reconcile to, or based upon abandoned guidelines?
Mike Ford It appears that ACI is unaware of FNMAs telephone number, as well as not knowing THEIR collective arses from various and sundry holes in walls. Based on my 30+- years as an appraiser and eight years as a licensed real estate salesman may I be so bold as to suggest we ‘weight’ each comparable based upon it’s similarity to the subject as perceived by actual market participants and or overall validity as a valid indicator of market value for the specific assignment at hand, rather than one size fits all rote reconciliation. That is no more valid than rote GLA or room count adjustments would be!
If YOU believe the N&G adjustments are the best determinant for weighting then that is YOUR decision to make and defend given the specific assignment, NOT some self serving software provider owned by other player interests in the mortgage market!
FAR MORE IMPORTANT (call just received): FFIEC.Gov under EGRIPA (I could have those initials wrong) which is a function of the paperwork reduction act; is considering raising the deminimus lending level from $250,000 to $500,000 because the local community banks are complaining that they cannot find enough appraisers in rural America to handle the volume! If you do not write one other letter this year, THIS is one you should write.
We all know this has been a topic for discussion for over a year, but its coming to a head now.
The link to the agency is being sent to me soon. I’ll research it on my own as well but we only have DAYS to do this, not weeks. We need to write to them and point out the benefit/risk to CONSUMERS & taxpayers (they couldn’t care less about individual appraisers). THAT interest is appraiser competency versus the inability of Big Data or alternative products (evaluations or BPOS for example) to be a reliable alternative or substitute.
There is no shortage of appraisers as we have all noted. There is a shortage of appraisers willing to work for $25 a pop, for a BPO product review!
I would sign up but I am backlogged doing them for $10.00. LOL And by the way – If you see my Mom, don’t tell her I’m an appraiser – she thinks I play guitar in a strip club.
Tell me this is a joke! Is it April Fool’s day?
Appraisers are smarter than falling for this crap….right?
Ken, Sadly it is not.
We ALL have only seven more days to read, investigate and respond (in a CONSUMER benefit perspective) to the following: (It was sent to me by someone in one of our federal oversight agencies).
“… However, I thought it was important and did pass your email along to the banking agencies. Evaluations are a hot topic right now as the banking agencies consider raising the $250,000 appraisal threshold. I too have significant concerns about evaluations such as this Pace Pro product and evaluations in general. The agencies are accepting comments on this topic as part of the Economic Growth Reduction Paperwork Reduction Act (EGRPRA) process that takes place every 10 years. Comments can be submitted through the FFIEC website at http://egrpra.ffiec.gov. In fact, the agencies are considering comments on any aspect of federal banking regulations as they apply to appraisals. A list of those regs can also be found on the FFIEC website. I encourage you and others to submit comments prior to the March 22 deadline. Customary and reasonable fees is another important topic on which you can comment. If you have any questions please do not hesitate to ask.”
I only added the bold face type. What they are NOT kidding about is RAISING THE DEMINIMUS level through the actions of a committee to reduce the paperwork burden!
The above may be the most important blog post affecting appraisers this year. I don’t think it is exaggeration to say if something is not done, it really COULD lead to the end of ALL residential appraisals for federally regulated transactions under $500,001.
No joke. They use April Fools day to wheel out new forms. Remember the April 1st 1004MC. Talk about a joke…that form was the ultimate.
Don’t get me started on that one! 1004MC was a joke on us…
Limited product, limited pay, full liability! Yay where do I sign up?
Just who are the appraisers working for AMCs such as this? Reveal yourselves… traitors. And who is the AMC?
Sounds like Pro Teck!
**these orders would be sent via Mercury Network
Of course. I should have known…