Readers Respond
Editor’s Note: The HVCC and FHA comments here are representative of many hundreds of similar sentiments expressed at the OREP/Working RE HVCC Appraiser Talkback Blog and Survey. To find a report from a “happy” AMC appraiser, see page Diary of a Happy (AMC) Appraiser.
HVCC
We watched revenue drop from $12,000 per month to around $300 per month
between May 1 (when HVCC was implemented) and August. We lost every bank client
and mortgage company except for one. We've been in the business for nearly 20
years but closed the appraisal department after giving HVCC a test run. Past
experiences told us that even if you receive a great deal of work today by
cutting fees you will be quickly dropped from their roster if someone newer and
cheaper comes along.
>>
My plan is to get
out of the business. I have been appraising for 12 years. I had built up a large
client base. All gone. Twelve years of work has been obliterated by a rule
without any legislative process. AMCs are squeezing the fees, demanding
ridiculous turn times, and expect me to work seven days a week. Since I have
another profession I can go into, that's what I'm going to do. The bottom line
is that good people will quit the business because of pay. You get what you pay
for. What bothers me is that there are appraisers who work for these
fees. Eventually they will realize the error of their ways. But it won't be
until the economy turns around. Right now any employment is good. But when the
economy turns around there is going to be a major bailing out of this business.
>>
I have been appraising for 22 years and have been very successful
with numerous clients. I have never worked with AMCs because I did not have to.
Now, after 22 years, I have no work. All the AMCs I applied with have not given
me a single job as of yet.
>>
I have now read virtually every comment at this (HVCC Talkback) blog. I want to
say that I appreciate the suggestions and comments, particularly by several
obviously experienced and well-read professionals. I am from a family of
appraisers, mostly on the commercial side. My father thought I was crazy to
want to be a residential appraiser- his comment to me was: "They (lenders and
government) step all over you. You have no lobby, no voice." Sadly, he has been
proven right. I love our line of work and have watched our profession be
hounded, beat up and railroaded in the past two years. We have to find a way,
state by state, nationally or both to unite as one. If we, as a profession,
would take some initiative and stop viewing each other as competition and
instead begin acting on each other’s behalf, I think we could all work at a
higher fee, make a better living and be our own advocates instead of taking
whatever is shoved down our throats. I think standardizing fees and/or forming a
union is an excellent start.
FHA
Any appraiser who
knows this business understands that licensed residential appraisers got the
shaft. I have been a Licensed Residential appraiser for 18 years and doing FHA
work for 12 years. Not only have I never had an infraction on my license, I have
a very solid reputation for being ethical and accurate. Seventy-five percent of
my work is FHA and this legislation has destroyed my livelihood. I am now 58
years old and out of a job. I guess this is our government’s way of saying,
‘thanks for a job well done.’
>>
So 81% of appraisers are in agreement with licensed-level appraisers not being
allowed to do FHA appraisals (as reported by the HVCC Appraiser Talkback
Survey)? It does not take a rocket scientist to understand why. It’s more
work for them. I have been a licensed appraiser for six years. I do not have a
two-year degree and cannot put my life on hold for two years to go back and get
one. I would put my work up against any Certified Appraiser in my area. Tell me
how this law makes sense? A new guy fresh out of appraiser school tomorrow can
now do FHA appraisals but my six years of experience makes my work of ‘less
quality’ than theirs?
Appraising for
Non-Lenders
I want you to know that I found your article on
appraising for non-lenders very helpful. I'm a State Licensed appraiser in
Michigan and I haven't been able to find any appraisal work within the past
four months. I've filled out applications for numerous AMCs but haven't received
any orders. After reading your article, I'm finding that maybe I need to put
more focus on non-lender clients. Your article was also helpful in letting me
know what I need to include in my report when doing this kind of appraisal.
Thanks again for the article. - Robert J. Magee
Setting Fees: How Much are you Worth?
Awesome article. I'm sending it to every appraiser I
know. - Rita Bradley