Whoever believes the days of value and other forms of pressure are behind appraisers, thanks to the Home Valuation Code of Conduct (HVCC) and its focus on appraiser independence, ought to talk to appraiser David Smith in San Diego- if they do they’ll get an earful.
Appraiser abuse is apparently alive and well but the good news is that state AMC laws may provide some relief- here’s how.
What Did I Do Wrong?
The story begins with appraiser Smith (wishes to remain anonymous), appraising 25 years, being notified by an appraisal management company (AMC) that he was suspended from their roster after being put on “review status” by a lender. As of this writing, three months have elapsed and Smith still doesn’t know why.
“Review status” means that, by order of the lender, any appraisal Smith does must be accompanied by a field review ($250). This added expense imposed on the AMC means no more work for Smith from one of his largest vendors. Smith says at the time of his suspension he was a “level one” appraiser with the AMC- the highest ranking.
The AMC, that provided Smith with a very significant volume of work, told him that any appraiser put on a review status is suspended until the status is lifted by the lender. “I asked the AMC the reason for the suspension and they said the lender wouldn’t tell them,” Smith said. “I was given a number to fax the lender, which I did within an hour. I waited a week and called to follow up and was told it could take up to 30 days to get a response. I asked to speak to a supervisor and was refused.”