Valuenet and Clear Capital; along with any other BF hucksters calling their products USPAP compliant appraisal reports.

Does anyone remember the Wall Street Journal article a year or so ago about the Pakistani company that was writing up (& signing) appraisals including adjustments for $8.00 a pop? BILLIONS in private party or private equity-financed transactions supported by this garbage.

Don was this REAA of Northern CA or REVAA? IF REAA then as a member I am extremely concerned.

Appraisers do not and cannot ‘prove’ their adjustments. All we can do is support them as being credible. There is a huge difference. Any reviewer that believes they are ‘facts to be proven’ doesn’t know their ass from a hole in the wall.

Your credibly supported adjustments may not match my own credibly supported adjustments. Unless new textbooks have tossed aside over 70 years of accepted appraisal practice there has always been the recognition that variance among appraiser’s interpretation of data is expected and normal; and that claims of exact measurements of imperfect market reactions are pure hubris.

Those that think the art part of appraising is dead are grossly mistaken. The science part cannot accurately account for imperfect market conditions by imperfect market participants where we then try to apply market reactions to a hypothetical most probable buyer.

THAT requires more art and skill than a science.

There is real benefit to some groups of people… A post I made from today:

http://appraisersblogs.com/are-appraisers-n-realtors-becoming-obsolete-like-cows/#comment-29158

Requesting ASC data and filtration options on the ASC Find An Appraiser search screen; for appraisers licensed in 3 or more states. One understands 2 states may be common place, especially for towns near state borders. Licensing in 3, 4, 5, or more states? Obvious is obvious.

Requesting that EO providers develop new risk rating and associated insurance fee tables to better mitigate and distribute costs of risk. Requesting specific questions if appraisers perform hybrids, if appraisers outsource any developmental tasks (with specific additional forms with detailed checkbox options if yes), and requesting insurers require answering of how many appraisals a specific appraiser completed in that past year. Insurers could mitigate this right now without any government intervention, or perhaps they don’t see any risk to evals? What else explains their inaction?

Guys whom flip dozens a day should pay for more for insurance than appraisers whom flip a mere few a week. I really don’t care what the other guy does. It is when I am on the hook for that liability of no fault of my own that it becomes an issue. Now well over a decade claim free but yet my insurance keeps rising by the 25, the 50, even a 100 a year sometimes.

Thanks Mike, Things are changing rapidly. Went to an REAA meeting last after noon, diminishing attendance, across table discussions (if you don’t do it their way you won’t get work) this from the reviewers, who are not appraisers. CE was about “proving your adjustment”, the agreements were to use the stuff on your soft ware, and not bother with Excel. What about Knowing and understanding, does the patented software publish the ALGORITHMS?.

Excel can do all the MC work, make it absolutely custom to the subject just thru sorting,& counting. Graphing will illustrate all of the simple stuff.

I agree with you Cotton, but unfortunately many appraisers outsource even the bifurcation process (Philippines anybody), in an attempt to turn a profit, or at a minimum they do them to remain active on the AMC’s general appraisal panel.

Seek the truth.

Don-ultimately it depends on the state. Basically ONLY the signing appraiser bears responsibility.

Technically the AMC has responsibility under state law to provide USPAP compliant reports when they claim that is what they are doing or in covered transactions. The lenders have direct accountability to the feds for assuring appraisal reports they submit in support of loans are USPAP compliant.

The problem is that BAD WORK still needs to be turned in by someone. Harder to do on bifurcated since most of them are cloud-based reports that don’t filter out into the appraiser community as often as other work has.

I don’t know that he had any specific influence on these particular low fees. Certainly, his past efforts at the suppression of C&R fees has contributed to the overall belief among AMCs that they don’t have to pay any attention to the Federal Law set by the Dodd-Frank Act to pay reasonable and customary fees.

About as much attention as they pay to appraiser independence. Whereas before we had commission loan officers asserting undue influence, now we have corporate-owned AMCs that can’t afford to lose million-dollar month plus clients doing the undue influence exerting for them.

Amc’s are the catalyst for all manner of fraud. That’s because individuals working at amc’s are not individually licensed or individually regulated. It’s a great cover.

Does BIFURCATION mean that; ALL share liability, does regular E&O cover the issues of the totals and/ or the separated parts of splitting of the values to various entities.

When a demo contractor gives an appraiser a written sum and the appraiser uses that sum as a part of his estimate, both have some liability, how much, limited to their inputs?? all arguable by different insurers?

I think the same Danny Wiley who thinks he is a god on the appraiser forum, very condescending individual

Well said, Mike. $50.00 -$75.00 laughable. Wonder if Danny Wiley had a say in these prices. The former price-fixing guru from Service link still hasn’t paid for his crimes.

It wont die easily…not without being replaced by something just as cheap. FreddieMac reached out to some AMCs this past week trying in desperation to find an AMC willing and able to do 500 desktop appraisals per day at a gross fee of $150 each.

They will not give up on the idea of pre priced unreasonably low fee products. AMCs will demand $75 to 100 per order leaving only $50 to $75 per order for the desktop appraisal.

They DO NOT CARE that even desktop appraisals still take 2 to 4 hours to comply with SR1 and SR2.

Although its important Jeff for professionals to disclose such toxic practices among ourselves, being in a room with like minded, or perhaps should be like minded people, at times serve a limited purpose.

In my example from yesterday, what happens when 50,000 appraisers, do 50,000 inspections a day (or 4 to 9), and meet 50,000 strangers who know nothing of the negative underbelly of the appraisal world (tell them people)?

#50,000

I’ve learned more from those who disagree with me, than from those who agree with me (Bill Johnson / 2015).

Seek the truth.

On a side note Mark, be sure to check those past due AMC invoices.

“InHouse Solutions, the AMC division of Get Connexions Inc. is closing for business effective Feb 28,2020. Concurrent with ceasing to carry on its AMC operations, Solutions will eliminate its appraiser panel entirely. All appraisers will be removed from the InHouse Solutions panel effective Feb 28, 2020. Portal access will continue to be available for the following 90 days in case of conditions or clarification on previously completed orders. Invoicing and payment will follow the regular process for completed orders. Thank you for your past business and support. We wish you all the best for continued success in your future endeavors! For any additional questions or concerns please contact appraisers@Inhouseusa.com“.

Seek the truth, tell the truth, spread the truth, and ignore others who want to shoot the messenger. Bill Johnson approved this message.