Below are comments from the appraiser independence survey, all comments are anonymous.
>> Nothing has changed. When you don’t appraise per the contract value, even the AMC’s throw you under the bus without regard to USPAP. They seem to feel everyone in the process is an end-user, even the seller & their agents.
>> Fees are still an issue. Netting $10 an hour for a full residential appraisal report is not sustainable. Although i’ve been sustaining it for almost 10 yrs now. Making less now than I did 20 yrs ago in this business. Go figure.
>> It is my opinion that the value opinion should be a relative range; a close range but still relative and not an exact number. Exact numbers look like the appraisal process is an exact science and it simply is not. To value, a $1,000.00 for instance may not seem like much but to a borrower, lender, or loan function it may make a world of difference. Are appraisers really that good to say the value is $110,000.00 and NOT $111,000.00???
>> My only issues with AMC’s are that we have less control in workload. When I first started appraising about 23 years ago, I got my own business by going and meeting lenders. In the early 1990’s I did about 50-80 appraisals a month. Now with AMC’s I get about 20 per month.
>> HVCC has helped appraisers. Most don’t know how or how to use the sections to deal with AMCs
>> There is no such thing as reasonable and customary fees. 10 years ago I was being paid $350 to $400 an appraisal for 3 comps and 3 photos and was more if it was a jumbo. Now I am lucky if I get $250 and that’s for at least 3 comps, 2 active listings, market condition form. 6 exterior photos and at least 3 interior photos, sometimes much more interior photos. it takes so much time now to complete an appraisal and you get paid way less. the AMC says you set the fees not us, but if you raise your fee, they won’t send you work until your lower them back down (that’s not the appraiser setting the fees, that is them setting the fees). I raised my fee when the law went into affect to the independent survey that my software company provided and did not get work for a month and a half until I lowered them back down or went out of business and every time since that I have tried to raise my fee even $10 to $25 they won’t send work and I hold off as long as I can (usually about a month) and then I have to lower them back down to get work. Also if you ask for more money due to complexity they will just cancel immediately and try to find some one that will do it cheaper. I have all my order forms and dates when I asked for additional money and the AMC cancelled. Thanks to all that ruined this once great profession and as soon as I can find something else to do, I am done.
>> HVCC does a disservice to experienced appraisers by putting them on the same rotation as appraisers with little experience. (I have 30yrs appraisal experience) It also does a disservice to those wishing to gain entry into the business by making it not cost effective for supervising appraisers to take on trainee appraisers.
>>Agents come to appraisal with comps in tow, this IS influence before the appraisal is completed.
>>HVCC ruined by business. I hate working for AMC’s. They what you to contact borrower within 24 and return report 48 hrs after inspection. Lord help you if you don’t have a perfect report because that knocks down your rating to get any extra work. But they pay you in 30-60 days.
>> very selective about my AMC’s –with exception of 2 newer, have had others for over 15 years…diana
>> Pressure still exists; its less frequent and much more subtle, but its still there.
>> It will be a good time in America when the US NSA uses all of its current and historical metadata to investigete all of the circumstances and activities by banks, and Wall Street securities brokers that created the corrupt environment that is now modern US financial economics, with utter impunity.
>> The increased pressure is coming from the realtors
>> Scope of work creep is a big issue and the AMC’s review process is out of hand. Rejected an appraisal for putting commas in lot sizes today….said UAD compliance but this is the first I’ve heard of it since the UAD was implemented…..The reviewer’s are looking for anything they can find to reject an appraisal. Job security maybe.
>> The more the government interferes in our profession, the more steps we take backwords.
>> Nothing has really changed banks and lenders still do whatever the heck they want. They just have to go about it differently, I have been taking off of multiple list since HVCC and was never told about it and now Fannie and Freddie van tell lenders they won’t accept certain appraisers work, what has changed???
>> HVCC was the worst thing to ever happen!!!!!!!!
>> I offer a few reasons why the survey has not had much response. One, appraisers are working harder now than ever before, mostly because there are constant demands from AMC’s to produce updates about every little thing I am doing. I swear one of these days they are going to be calling to ask if I can give them an update on my bathroom habits. LEAVE ME ALONE! I knew how to do my job years before you came into the picture! Second, appraisers feel more and more “drained” by what is happen to the industry the past few years. Everyone talks about the need to do something, but with the political landscape the way it is and inability of appraisers to have powerful lobbyist to enact change, most of us see the fight as one that is already one, and we are not the victors.
>> Very few clients openly discuss value but there probably has been loss of clients from not hitting a targeted (internal to the client) number.
>> free enterprise would be good, quit regulating and start implementing and enforcing. Shorten the report.
>> Your first question is phrased wrong. I have always held myself beyond reproach – independent – and not swayed by the wishes of unscrupulous mortgage brokers, but I paid the price. I am still independent. So no change. But most of the bad guys have been weeded out, thank God.
>> Independent, one man appraiser shops, still have to feed their families and they are the ones driving the appraisal fees down. If they had more business sense, they would realize that with bigger fees one has to do fewer appraisals to make the same $$$$. Maybe someone should offer appraisal business courses for dummies, or at least a basic course in economics. The some real change might occur.
>> The pressure for value is not coming from the client, they have the home owners state a value that they need.
>> I do not do work for any AMC’s. My clients are mostly banks that want fair and accurate appraisals.
>> Real estate agents are the biggest problem and have no resistance to telling the loan rep or processor issues regarding the appraiser’s performance. He is to conservative, he wrote a below average condition on a report 4 years ago, or the appraiser was rude.. The problem is that, if lenders want my real estate business, they better not use this appraiser and the appraiser does not have any recourse. He who has the gold makes the rules.
>> with the amc monopoly, I feel like an old field mule out in that never ending field, pulling a plow, chasing a carrot tied to a stick. Since amc’s have taken over. updating office computer and personal healthcare have been nonexistant. RELS charges borrowers $600 and then cancel the request if I try to get from $260 to $280 to help with the additional gas of an out of county report. Nations Valuation Service broadcsts an order to everyone then waits for the race to accept. AMC’s have turned into profit centers that using their law given monopoly , exploit the appraiser and have ruined a profession.
>> My increased ‘independence is simply due to refusing to work for most AMCs. The BIG issue today is the same as it was two years ago-unreasonably low fees. A fully USPAP compliant, properly researched and prepared UAD compliant non complex URAR SHOULD take two days (16 hours)-I am including REAL highest and best use analysis; cost approach info and research, land comps, etc.. At $25 per hour that is only a gross income of $50,000 per year. Remember GROSS. Frankly I pay trainees $25 and hour-certified to general certified should earn between $50 and $100 per hour (though not necessarily working 8 hour days). My expert witness fees are $300 per hour with half day minimum. With all that is required, the typical non complex less than a million dollar transaction should be charged at $650 MINIMUM (to the appraiser). That is only $40.63 per hour GROSS. I still have to deduct 15% SSI from that, taxes, insurance (E&O, ACA, SDI); data services, software services and upload fees. I cannot afford to work for AMCs at $400 or even $450 anymore. I only do 1 or 2 two to four units a month so it does not cut into possible commercial work anymore; and I try NOT to do any condos or sfrs unless they have special fee justifications. BTW-IF you want meaningful discussions of appraisal issues keep offering comment boxes. Most appraisals I review today are seriously deficient in USPAP compliance-even when the values appear ‘reasonably accurate’. When is the last time you saw anything except boilerplate under highest and best use?
>> Thanks for re-posting this survey. I did not read the original Stearns Lending article.
>>We never know if we’re “dropped” or the AMC just doesn’t have work in our area. The Tidewater rule for VA appraisals requires that the appraiser contacts the realtor anytime the appraised value is below the sale price, and then wait two days for a response. The AMC’s never attempt to influence value.
>> A rise in pressure in property conditions changes or add statements which are not true or unknown
>> I deal with large commercial banks only and have felt no value influence since rules were made.
>> amc’s should be audited or disbanded.
>> I think that the laws enacted since 2009 have really improved the appraiser independence. I think that these laws and regulations were what was needed in the industry, and will improve the soundness of the financial services sector. It will be only violations of these laws or the intent of the laws that creates problems in the future.
>> I am retired. Prior to retiring, I limited my work to VA only so my answers do not apply to conventional or FHA. Prior to going VA only, answer 1 would not change, 2 would read “regularly” and 3 would be “occasionally”.
>> As long as lenders are allowed “exclusionary” lists appraiser independence is impossible
>> Just this week I was told by a broker and realtor they felt my appraisals were to low and they were calling the lender to have my name removed from the list..The Broker said “we cannot tell the lenders which appraiser to use but we can tell the lenders who not to use!” since several of their appraisals have been cancelled after receiving the order one can only assume this is happening.
>> have been dropped/ignored for failure to meet unreasonable turn times
>> I felt more pressure to bring in low appraisals 2 or 3 years ago. I am pressured constantly on the time issue and have “lost” one client….Don’t care!
>> You are missing the big picture. Banks can put whomever they choose on their AMC appraiser rotation, and they can exclude whomever they desire. I am in a town with roughly 10 mortgage lending institutions. I can only get on the list of three of those banks. I have 24 years of experience as a residential appraisal and have never been sued or settled in any kind of mortgage related situation and I have never been approached by or disciplined by the state, so I have excellent experience and a stellar reputation, but the banks don’t want someone who will not “work with them’ when it comes to a value that doesn’t meet the amount they need for their loan. They want EVERY deal to work, so they use appraisers who will make this happen. That is the big story here… The other big story is that the honest guys have to take the crumbs of these AMC’s and we have to deal with all the ignorant, inexperienced people hired off the street last week, and we are getting killed by low fees after they take their pound of flesh… THOSE ARE THE TWO BIG STORIES THAT HONEST APPRAISERS SEE THAT MOST FOLKS ARE NOT TALKING ABOUT.
>> I do very little work for AMCs.
>> Same old thing in the different disguise. If you don’t give them what they want, they just don’t call or use you, they hide behind email and its just an impersonal business decision. Same old, cheap and fast, as a reviewer I am appalled at the quality of and research or lack of in the reports, but what can you expect if there is no time and or because of the lack of time they just send it and take the chance.
>> The larger problem with AMCs is their continued addition of extraneous, time consuming assignment conditions which in worst case examples seek to convert the Summary Report requested into a Self Contained Narrative. No consideration is afforded for the extra time and expense incurred. If compensation is addressed, assuming anyone is available to converse with, the appraiser/client relationship abruptly ends. It is becoming more and more clear that the actual use of an appraisal is far removed from the identified purpose in a financial transaction and primarily facilitation of third party data mining, AVM development, etc. If there is no pressure or emphasis on value, it is because no one cares about that anymore. Collection & manipulation of data and containment of fees is all that matters.
>> The problem now is how fast and how cheap. Quality & due diligence is not an issue anymore. The young guns are talking all the work at a much lower fee and taking the volume, Walmart approach to valuation. Not good for the consumer or lender. Just my 2-cents.
>> I don’t typically work for AMC’s.
>> AMC’s are qetting the appraisals they deserve by compomising appraisers fees. Requirements for appraisers licensing keep increasing and income goes down. How can you tell someone they need a college degree to be certified, and that they can make a living in the appraisal field. All amc’s and most banks suck!
>> It is not so much with conditions/requests to influence value, however if your value is considered “too low” like say below the contract price I will not get any more orders from that client. They don’t tell you that you are excluded, they just stop sending you orders. Bottom line is there is just as much pressure, they are just better at it. I know this to be fact in at least 3 instances and believe it must be true in many others. The clients range from AMCs to local banks. Few (if any) lenders really care about valuing the collateral but rather making the deal work. Little has really changed and I have little faith it ever will. Which is probably the reason for the low response numbers for this survey. Everyone wants to talk about pressure but nothing gets done about it because the lenders will always get what they want/need.
>> The HVCC regulation implemented into the Dodd Frank is a complete disaster and an insult to the appraisal industry to say the least.
>> Many of my local lenders have found other avenues for ordering (Mercury Network, etc), I only work with two AMC’s now as a result. I think the movement shows the frustration of AMC on both sides, Lenders & Appraisers.
>> Everything has gotten worse and on top of it all, our fees are being stolen. They took our clients from us and now they are taking our money. It’s a shame the borrower doesn’t know where the money they pay for the appraisal is really going.
>> Some clients use a “bid” system for fees and then of course use the lowest fee.
>> Between reconsiderations of value, endless complaints from homeowners, sellers and/or realtors, I have had companies not send me anymore orders and/or the underwriters put me thru hell!
>> Even when doing REO appraisals for Fannie Mae, Fannie Mae reviewers expect the Appraiser to provide the “most optimistic” value on a property – and if they don’t they are delegated to the bottom of the Appraiser pool for future work!!!!
>> I have chosen to continue to work with lenders who already carry themselves with integrity, honesty and ethics in the community. I have been doing this for years prior to HVCC. In fact, I actually told the higher-pressure lenders to look elsewhere for appraisers if they planned to have involvement in the actual valuation process (pressuring for higher values). That’s not to say that I haven’t been “discontinued in use” by certain lenders shortly after not valuing properties at/above contract price. It’s interesting how 2-3 lenders, in particular, ceased sending me engagements upon receiving appraisals that were lower than they were hoping for (contract price).
>> I think all AMC’s care about is how cheap they can get an appraisal, which is a huge disservice to the lender and borrower.
>> I seldom have any problem with anyone attempting to influence, but I didn’t before either. Guess it depends on the client, my biggest problem is them pushing for time and if they get too pushy…. I fire them! Some don’t listen when you tell them a date and continue to send nasty emails on a daily basis. Fees are finally up and due to improving market fewer comps are required.
>> AMC’s rule the mortgage roost. They are inefficient and arbitrary. A top heavy business model. Expensive and prevent direct communication.
>> The appraisal business continues to be influenced by lenders, builders, and realtors.
>> Accuracy with proper documentation has not given me any problems with the lender.
>> Lost two clients because of values. Had worked for them for over 15 years each.
>> #3’s answer is really “I don’t know”. There will always be pressure on values until appraisers are on top of the food chain instead of the bottom.
>> Fees and turn times are issues today.
>> The lenders will give you work but when they don’t like the truth then they will stop sending you work and go on to the next appraiser. When they don’t like the truth from that appraiser then they go to the next. This process goes on and on. The lender ultimately finds the dishonest appraiser and gives them all the work. What do they have to lose when the government will bail them out when things go bad. NO RISK ! ALL THE REWARD! CAN I GET SOME OF THAT ACTION ?
>> not only value, but change the name is very common, do not report seller concessions, or for HUD do not report utilities were off when its new construction.
>> We Fire those that cross the line or come to close for comfort!
>> Lenders/AMC’s always have a way around any regulation. Look at the way regulations changed after the much more powerful lending institutions use their political clout! Your “Client” does not care about appraisal regulations.
>> Until every state requires a license of some type for amc’s, the system has failed. Currently in SC there is no control of amc’s. Realtor and Appraiser are both licensed.
>> If and AMC/Lender tries to influence my conclusion, they do not drop me, I drop them. Therefore, I do not have a problem with influence. My only problem is my fees and turn time.
>> Lenders control the AMCs.It’s subtle control on the surface. Underneath, AMCs exist because they get a fee from a Big Bank like BOA/Chase/Wells Fargo/5/3rd. When the Bank tells an AMC NOT to use an appraiser, they will oblige. Has happened to me 5+ times.
>> Amc’s still push us if we don’t get value. They allow realtors and clients to pressure us with constant “value reconsiderations” and even after you answer we get phone calls from realtors and even clients and borrowers complaining that we are running their loan. Things may have changed a little from broker days but pressure is still there. We h e even been removed from a few amc’s from simply not getting value on the purchase contracts. The so called staff appraiser at one company even went as far as to say that our percentage of not getting value for one of their clients is too high and they have asked that we no longer appraise their properties and subsequently we no longer received work from that AMC. I was told by another that the purchase contract I to be used as a value indicator for what appraisal should come in at. When I argued with him telling him that while I do review and take into consideration the contracts, I do not look at the purchase price as a ” target value” to hit as it is against USPAP guidelines to hit target values. After debate with this senior staff appraiser at a large AMC, I was removed from their list of approved appraisers. It doesn’t appear to always be value pressure, it is also turn around time and fee pressure. Most amc’s if you ask for even a $10 increase or one extra day turn around time, they all say “well let us see if we can get that approved and we will let you know”. Translation, we will keep looking until we find someone else that will do what we want. Needless to say the order is either removed from queue or never comes over at all. So to answer your question, yes pressure is still alive and well!
>> I remain optimistic that common sense will eventually prevail, no matter how much regulation exists.
>> I feel pressure to meet a target has decreased dramatically. I have still be dropped from an AMC for refusing to “reconsider” a file where the loan officer felt my appraisal was $75,000 less than his needed value. I guess he raised enough dust that I was placed on a do not use list. The irony is, when they had another appraisal done, the second one still came in much lower and the deal still died but I wasn’t reinstated. Overall though, I would say pressure in my job has decreased dramatically.
>> When I feel that they are trying to influence the appraisal outcome, the clients appear to be carefully wording their conversations with me. This is rare, since we don’t have conversations like we did in the past, but they attempt to influence my decisions in what they believe are more subtle ways. I have never, however, been threatened to have business removed and am busier now than I ever have been in 20 years.
>> HVCC and AMC’s are having an influence in reducing the numbers of appraisers. They have removed the personal contact that was the basis of many good appraisal businesses. The form is written for urban regions and completely ignores the rural areas and their unique situations.
>> Every day the appraiser “profession” is becoming less and less about its actual purpose, to obtain a real and accurate independant opinion of value, and more about a lender getting a paper that has a number as quickly as possible if not instantly. I would love to get every report done in 24 hours or less! But I can’t, it is rare I am able to meet 48 hours. Thats because I actually do the work and reaserch needed to get a real and accurate opinion of value. The new requirements for an appraiser are unrealistic. Why would anyone get a degree just to wait by there computer bidding on orders by email that require the lowest bid and lightning fast turn times resulting in cost to do business at or above the fee paid and and unrealistic turn time that insures mistakes errors and the inability to provide an accurate opinion of value that complies with USPAP. Anyone that says they can do a complete, accurate and USPAP compliant report in 24 hours or less consistently should be investigated immediately because it is not possible. Saying it can be done and advertising that fact give the public the impression, which would be accurate if it were true, that appraisers are nothing more than mouth breathing, form filling monkeys that should be replaced by a computer program.
>> In the past year or so, when I thought that an AMC was being unreasonable about turntime, wanted to pay low fees or revision requests that were not justified, I have just asked to be taken off their roster. It has given me a lot of control over who I work for because there are so many decent companies who are looking to add to their roster. I am contacted constantly. So, I am happy to just drop the guys whom I find to be stressful to deal with. At last, the freedom to say No!
>> The AMC’s are the death of this business. All they care about is how fast and how cheaply the report can be completed. And the lender’s also don’t seem to care either as long as they can get the deal done. A sad state of affairs. Retirement never looked so good!
>> The appraisal system is inherently broken since the insertion of AMCs. They are faceless middlemen that add little to no value to the process.
>> MAJOR legislation needed at Federal level to combat this abuse.
>> I am not having an influence issue with my AMC clients at this time.
>> My biggest complaint is that fees are still less then before and revision requests from AMC reviewers that appear to have very little appraisal knowledge.
>> We as appraisers have basically given up and are going with the flow. The banks want to control everything, even though there are stautes and laws that stop them, they are not enforced because somewhere down the line someone got everyone to believe in the addage that ”whoever has the gold , makes the rules” and that is exactly the opposite of how it should operate. I have past due fees going back to 07/2012 that I am playing hell to get, I cannot run my businees as I could before the uneccessary implementation of AMCs, I have suffered loss of business, loss of income due to the fees we appraisers must pay to use the AMC or other entity’s portal for orders and uploads, Fees are lower and more work is required foir each and every file If the appraiser is given the authority and has an actual, real time entity to register or lodge complaints as well as handle the everyday issues that surround the appraisal industry and have enforcement back-up as well as authority & capability as should be considering we are the police of any on-going deal we are involved with, then the industry would essentially straighten itself. lthough the predatorial nature, double-talking and blacklisting would be brought into the light and revoked which exposes the banks for the control mongering monopolies that they are.
>> IT STILL EXISTS. ITS JUST MORE SUBTLE THEN BEFORE. BUT EVEN THE MOST VIGILANT AMC LIKE RELS (WHICH TAKES FOREVER TO SEND A FILE) STILL TO THIS DAY ASKS WHY DIDN’T YOU USE THIS COMP OR THAT. OR OTHER COMPANIES THAT SAY OUR OTHER REPORT HAD A MUCH HIGHER VALUE AND WHY DON’T YOU CONSIDER USING THESE COMPS
>> The appraisal industry has become even more secretive as we do not have the contact with lenders to help them understand the report and educate them to our services. I really never had others affecting the value or condition of a dwelling as I had business boundaries for my company.
>> As a staff apprsiser, I cannot be dropped but… I have ruffled many feathers by being asked to do things that can mislead the reader, I.e. the borrower, which I state in the apprsisal frequently. .
>> Getting ready to leave the job. No longer an profession, just a form filler. Cannot recommend anybody become an appraiser based on new 2015 requirements. In the future the Govt will decide how much to lend on the house base on UAD information.
>> Sometimes the AMC will try to exert influence in an effort to have the opinion of mkt value changed
>> Mr. Braun, Some time back in the 70’s, I took my first (and only Psychology course), I remember an experiment by a guy named Seligman. It was to become the basis for what was called “learned helplessness”. Without a discourse on the matter, when people feel that they have no control over their situation, they may begin to behave in a helpless manner. This inaction can lead people to overlook opportunities for change. Sometimes, even when opportunities to make a difference are presented, this learned helplessness will prevent any action. O.K.! A little dramatic but the food scrapes fall from the top with the lender controlling the plate. (in mortgage work) You noted the article concerning Stearns Lending and Trimavin. I was (am?) on their panel, did not play nice with others and I have not seen an order in 10 months. I’m not blacked-listed, that would violate Arizona law, being they did not file a written notice on my short comings. I just seem to be out of rotation every month, week and day. I included a comment to provide some bad humor on being an appraiser dog. You can’t legislate ethical behavior or morality. Hey, it’s America.
>> I attempt to align myself with professionals. Those that I have developed a working respect of both their and my professionalism. Keeps us all in compliance with USPAP
>> I appraise as a staff appraiser for Landsafe, I have also began appraising independently as a result of BofA winding down Landsafe. I know, I have a non-compete with Landsafe, but the $50,000 salary isn’t why I joined. I joined because when I came on I was told there was an uncapped earning potential with Landsafe. So, here I am. In navigating back into the independent world, which I left shortly after the HVCC and regulatory changes, I have found that once on with AMCs, they are selective in the distribution of work. This selective process greatly hinges on my ability to hit flip sales in my market area. I have lost a couple of smaller AMCs which I have found to pay a reasonable fee ($375-$425 for a 1004 with the MC,) because I missed sales. The kunundrum I face is working for low fees from larger AMCs with greater report writing demands and tighter time constraints, or continue finding smaller AMCs with fair fees and getting axed after missing a couple of sales. I’m not talking about missing all sales maybe 1 in 15-20 always an investor flip situation. The model needs to change. Most of the smaller AMCs are good old boys and everyone in charge of the distribution of work is on the dole. There are no teeth in the regulation of these companies. There needs to be independent audits of random files completed by all appraisers quarterly. These random samples need to be audited by state licensing (OREA in CA for example.) If an appraiser is writing to value, or is just writing bad reports they need to be put on call. Similar to how HUD/FHA operates. If there is a pattern of flawed reports, the appraiser needs to be held accountable. Similarly, the AMCs need an audit system that hold the AMC responsible for patterns of flawed reports. There are just no teeth at this point to discourage an appraiser or an AMC from the selective distribution of assignments by lenders. Obviously, there is more to it than can be explained in a comment section of a survey, but this is where the conversation needs to go. I believe the lack of response to the surveys is a result of beaten down independent appraisers. That’s my 2 cents.
>> NOTHING has changed. The AMCs are now acting like the mortgage mafia of the bad old days.
>> Influence and pressure are more subtle now than in the past but AMC’s still take work away from those of us who do not arrive “at value” because their cleints want to make a loan and if the appraisal does not meet “value” they cannot make a loan. The AMC’s know they will lose work if they do not facilitate a loan taking place so they black-list those appraisers who are a stumbling block to the AMC’s making money. AMC’s do not care about appraisers, banks, the public or the loan process. They are only interested in making money which is still reflected in their fees. By the way, what ever happened to the concept of “reasonable and customary” fees? I still have AMC’s offering $275 for full UAD appraisals with the 1004MC form. Starting in 2014 California will require appraisers to have a Bechelors degree if they want to be granted a Certification license. Most AMC’s require that a certified appraiser do the appraisal. I do have a Bachelors degree but what young person who has earned a Bachelors degree wants to work in a profession where we are paid as little as we are???
>> Pressure is still alive and well. I had one lender (my biggest client) remove me from their rotation with no explanation. It can’t be a coincidence that this happened right after I had 3 jobs that came in below the offering price in a 6 week time frame, after working for them for more than 4 years….
>> The short sale market and “contractor pressures” to make the deal close quickly with outrageous estimates for repairs are making accurate apprasials of those properties impossible. Lenders want to rid their books of the properties and some FHA loans are more difficult to dispose of when an appraisal is written with a true market value. In addition, lenders are still pressuring “low” values and are hitting apprasiers with reviews with “over values” when this is not the case. I am really hating my job these days.
>> The very fact of AMCs is influence due the limited number of assignment sources. When I had a book of nearly 250 lenders or loan officers sending me a few orders a month it is easy to tell one of them no. When you only have a hand full of AMCs sending orders one must think long and hard about not doing as they ask. I still say no but it is scary.
>> Hard to get paid if the appraisal does not work for the client.
>> AMC suck..!!
>> Lenders are now trying to dictate the amounts of adjustments especially if removing is in favor of subjects value, trying to dictate what we call a full basement, question any adjustment against subject but not when in favor, suddenly being dropped when you stand behind your appraisal and adjustments, seems they are trying to influence value through the back door. They are forgetting who the appraiser is, it’s not them.
>> Independence has increased but relationships have been lost. My clients always backed me up because they were genuinely concerned about having a good portfolio. Now we have to deal with impersonal clients and where we had good relationships that translated into a feeling of security now with new clients you are always guessing if you are on good ground with them. For that, the designers of the HVCC owe us an apology.
>> Fannie Mae and AMC’s have ruined lender work. Work harder for less money. Scope creep has gotten incredible. Appraisers “Raise your fees”
>> Lots of ‘questions’ from Chase on their REO appraisals when value too low. AMCs won’t send orders if they don’t like the numbers; AMCs not paying promptly, I’m concerned lender’s won’t pay me for appraisals I’ve done if the AMC goes belly-up like Evalonline Solutions/ES Appraisals etc. Few reliable AMCs that actually pay on time.
>> I do no loan work because the work/reward ratio makes no sense.
>> Same game, different day. Been dropped by three lenders this year for low values.
>> I quoted $695 for a URAR when the Usual and Customary Fees survey went around several years ago. As a result, no AMC has bothered to call me. They must have heard I would not work for 1980’s wages. I never allow any client to pressure me on value, turn time or fee. I do not work for those who do. When I get a call to quote a fee, I tell them what the wait time to get into my queue is, when, I could start, how many weeks it will take to deliver a report. I tell them once an Advance Fee Replenishing Retainer has been received, we will place it into the work queue. The clock does not start until we see the money. So far, it seems to work, as I always have more work than I can do, and refer more work each month than I do.
>> I don’t work with any lenders that operate that way and do not do any AMC work, dumped them all in the first year, and many dumped me, would not pay the fees I charged my other clients. I will not work for less for one over another, if I were a lender and found out I would dump that appraiser.
>> Influence now comes from the borrower with the following statement “My loan officer wanted me to tell you I need this amount”. Or unethical requests from the AMC, typically because of a lack of knowledge, Or my favorite, The Listing Agent wants to meet you at the property to push value for client or bad mouth the property in a short sale scenario.
>> Independence has increased but fees have decreased and silly followup hassles have increased.
>> I hate the AMC setup. It takes days many times just to get a simple question answered. It seems that the AMC system is only in place to line the pockets of everyone but the appraiser. It’s rather obvious that some of the AMC’s are owned by the banks themselves.
>> If you don’t make the value you are harassed until there is no profit. It is subtle intimidation. The sales dept still has sway with underwriters.
>> You are right, they are getting more subtle in their tactics. The “reviewers” at these AMC’s are almost worse than the Lenders were. I don’t mind being reviewed but I do mind someone requesting revisions for something that if they had actually read the report would have known were already in there!
>> I work the large AMCs and major banks. My independence is most likely the reason I have never had local mortgage broker clients that seem to be more tied to the “more experienced local” appraiser’s in the area that know how to get things done. The smaller AMCs seem more concerned with fee and turn around time.
>> They don’t usually “drop” you, because they would have to legally notify & explained to you the reasons. They just don’t send you anymore work. I had one client that complained when I delivered two reports in a month period that were less that the sale price. This is a bank with a supposedly separate appraisal unit), whenever I call they tell me that I am still on their approved lists. They say that they just don’t have any work in my area, ( a lie, as I personally know several loan reps & R.E. agents that work with them).
>> I do not work for AMC’s and the lenders I work with want the true picture. If not I fire them.
>> Dodd Frank has not helped because no one has a clear direction of how to comply with it. As a result, eveyone errs on the side of caution.
>> The issue of independence is not so much about value, although “reconsideration of value” requests are very common. It is about pressure to meet unreasonable turntimes, constant nagging for pointless status updates, as well as unnecessary and most times incorrect “revision” requests. The main issue still affecting the industry is pressure to work for low fees and unreasonable turntimes. I have not been (to my knowledge) dropped by an AMC because of a value dispute, but I certainly have been for refusing to work for low fees, impossible turntimes or when I have refused requests which were flat out in violation of USPAP. Pressure is alive and well and it is severe when AMC’s can steal 30% – 40% of the appraisal fee from appraisers with impunity.
>> not so much “dropped” from a roster, its more like “not ever used” but still on the roster.
>> The reason may well be that Appraisers are afraid to voice their opinions in public. Or the general feeling about the uselessness of surveys. Remember the survey about normal and reasonable fees? Or how about the surveys that demand a fee to view the results? So sorry ………we all know the horse is dead. Thanks to the AI, Fannie and Cuomo, we are all heading to Kmart to work for minimum wage.
>> I mostly work for direct lenders and do only full fee appraisal work. They are a higher quality client and that is probably why I am not feeling pressure.
>> Nothing has changed, we appraisers are just fed up with the surveys that go nowhere and those appraisers whom except work below customary and reasonable fees. The only thing different is the AMC’s bread is buttered by the lender/mortgage. Due you really think AMC’s are looking after their appraiser’s, then I got a brigdge to sell you!
>> question #3 does not make sense the answers do not go with the questions
>> If you don’t accept there fee your out!
>> I just finished an appraisal and the underwriter asked me to support a conclusion based on an adjustment for condition. I have made similar adjustments for similar amounts for numerous appraisals for this company in the past and never had a question concerning the amount of the adjustment for condition. It just so happens that this time I did not make the dollar amount needed for the purchase. It seems I have a lot more needless, nick-picking questions concerning requests for additional comparables, justify adjustments, explain why the amount of finished basement space is inconsistent with the county appraiser’s amount by more than 5%, explain why the 1004MC varies from what your search parameters conclude, etc. I wonder if we would get these questions if the opinion of value was not included in the report that goes to the underwriter. Hmmmmmmm . . .
>> Actually when I became an appraiser more than 20 years ago it was to be an Independent Appraiser. Over the years I have made a policy of dropping clients who wanted something outside of the Box. As a result I was not affect by the recent Chase debacle or any of the other messes in recent years. My own self image as an upright person has always been more important. There are currently several of the major AMC’s and the banks they handle that I do not accept work from. Work is plentiful and the key word for me has always been Independence.
>> I think the HVCC was designed by lenders and AMC’s to mandate a middleman for nothing more than to gain control of appraisal fees and more control of the overall process including which appraiser’s to use. Many large lenders are building AMC’s, mandating the use of them and hiring in house appraiser’s, is that independence? Sounds like nothing more than “rent seeking” to me..
>> The biggest issue I have is with mortgage brokers. I rarely have issues with banks or other closely regulated
>> a mention of the “Top Five Questions Asked of an Appraiser and How to Answer” in several articles, but never mention what those are. In order to see if it worth while in taking Mr.Hagar’s class, it would be helpful to list those five.
>> I am in a small market with few “players”. I rarely, if ever get asked or pressured to meet a specific value.
>> If an AMC drops me it’s b/c my fee is “too high” for them.
>> The joke that is HVCC never ends. Prior to HVCC an appraisal firm was responsible for both sales and production. Post HVCC we have Appraisal Management Companies in charge of sales and the appraisal firm responsible for production. Since the sales side (AMC) only cares about revenue, and have no license to lose, there is nothing to stop them from seeking appraisers who make the number. They aren’t typically going to be be upfront about the pressure, you just don’t hear from them again. And with so many desperate appraisers accessible online, there is an endless supply of appraisers who they can test out.
>> Legitimate AMCs don’t drop appraisers for “true” values, but they will drop you for “the cheapest fee” and “fastest turn time”
>> I did not have pressure from the brokers I worked with before as I would not work with them if they did. Now, I have pressure for fees, for turn times, for conditions, for lender overlays. Definitely not better working conditions for me.
>> I didn’t respond the last time because I am so fed up with all the nonsense. I was never influenced or pushed beyond what we (my staff) thought what was reasonable and acceptable. We didn’t deal with “those” clients. Easy enough. So the government destroys my business model, I struggle to survive and we still talk about nonsense in my opinion. We have laws, if someone breaks them, punish them, take their license, whatever, but we all accept that our business was destroyed and most of us never did anything wrong. Working with AMC’s is a joke. Never know how much work you will get (if any), fees are lower and if you don’t hear from them for a month you have no idea why. You cant’ hire any trainees because they won’t accept the work and you can’t ever gauge your work flow. So you work 7 days a week trying to make 1/2 what you used to and support my family. Our US of A government destroyed my business and we talk about lender pressure. Lender pressure was never a problem for “real” appraisers and pressure IS a part of every business model, deal with it. After 30yrs I can’t believe what we let happen to our industry and small business across the country. We are pathetic. No system is perfect but do you destroy peoples lives in the process. Bet you’re sorry I answered this time:)
>> I have no problem telling my clients how they have or are close to crossing any lines regarding my independence.
>> Appraisal Independence has been a fantasy since the advent of computers and AMC’s. Lip service has been paid to the concept by legislators, regulators and enforcement officials. Laudable earnest comments and promises from all, but in the end, what? No hotline. No recourse. Blatant blacklisting. No investigatory efforts. No oversight. A lot of puffery and dog and pony shows. And of course, the ones who can do the most about these challenges continue to back-stab and undermine their peers, themselves and otherwise cave, to wit: APPRAISERS THEMSELVES !! If appraisers don’t step up…don’t expect anyone else to. Except for FNMA. They’ll change the forms and require more frivolous junk input from practitioners to “correct” the problems. Works every time, don’t it?
>> I have only had two companies over the past year provide me with alternate comps that were out of the subject’s area and inappropriate. I rejected them and was never given another order by either company – but I only did one order for each company
>> HVCC is best thing to come along in some time — now, if we can figure out how to fend off inexperienced appraisers working outside of the geographical sphere of competency and undercutting fees of more experienced appraisers. Lenders+Realtors+Appraisers=Recession when there is a lack of separation and influence.
>> More often I’m still getting calls from RE agents and underwriters looking for ways to influence the value – many don’t seem to be aware of Dodd-Franke and the partition between lenders and appraisers.
>> The first time a value is not met, there usually is a great deal of squawking and, often, a request for reconsideration along with a host of non-comparable sales pulled from public records. The second time, it has been my experience that no more assignments will be forthcoming. Generally, these are not clients which will be missed. Recently, however, I note the problem is occurring with major AMCs (who should and do know better). This, together with relaxed lending requirements and prices rising yet again to unrealistic, unsupportable levels, is most likely to return the market to chaos.
>> I lost a $400.00 an assignment credit union client for disclosing info on an FHA appraisal…What a bummer….
>> The AMC/Lender methodology for removing appraiser’s who fail to meet value expectations is to have them removed from the panel citing poor customer service. Missed your deadline by 3 minutes, failed to update multiple times in the course of the assignment, failed to meet any of the artificial deadline metrics created to measure appraiser performance and you are gone, but only if you also pissed of the LO by not supporting value.
>> Certainly, independence for appraisers has INCREASED when you talk about lender coercion to produce “a value.” However, independence in terms of defining fees has DECREASED dramatically in the wake of AMCs. It’s either accept their “customary and reasonable” fees or no work. We hear frequently from friends who just had an appraisal done and paid anywhere from $475 to $650 for said appraisal. Did they go through an AMC? Yes. And from an AMC, the appraiser is paid a reasonable and customary fee of $315 – $375 from this amount, dependent on the AMC Land Safe in particular, exhibits a very good example of keeping your fees in repression. They penalize you if you ask for a fee increase for ANY reason. And they are particularly ruthless in an instance where no appraiser will accept a job on the open “advertised orders” (these are usually VERY HARD jobs, so of course, no appraiser is signing up to perform). Then comes the personal call from a LandSafe employee ‘asking’ you to please take on this particular (very hard) job and you quote them a fee for doing it (oh, and by the way, it is a rush job as well). We have responded twice to these calls, quoted a fee, explained why, then had the fee accepted. Only later, after the job has been turned in and gone through quality review, they penalized us heavily on our tier rating with them as a result. Then it takes three or four hours to explain in writing why this fee was justified, and even then, the negative tier rating was dropped in only one instance. So as far as appraiser independence, it is a double-edged sword. Yes, we are left alone in terms of coercing us to arrive at a value, but we are more than harassed in terms of our fees. We cannot quote our own fees and still stay on the panel. . What’s wrong with this picture? Yes, it does dovetail right back into the fee issue.
>> I lost a major credit union account for not “working with the borrowers.” The loan officers would have the borrowers call to have their value increased without any new information that could be used to legitimately alter the value opinion, I.e. new sales, mistakes on the appraisal, etc.
>> This profession is going down the drain. Government unwilling to support appraisers; USPAP book being thrown at appraisers; there is no justification for actions; no protection to appraisers; I am not sure, if I am an appraiser or a home inspector? Where we draw the line? USPAP can only dictate us what to do, cant protect that we are paid, USPAP is one sided book to throw on appraisers.
>> The AMC now operates as the brokers once did. The requests no longer are delivered in writing. The request are made by phone every time to prevent getting caught. Problem, no enforcement agency to monitor the AMC’s.
>> I was actually removed from a list from Ameriplex mortgage here in Albuquerque, NM. I asked why I was being removed and they said “Your turn time has always been good. The quality of your appraisals have typically been good. However, there have been issues that have arisen over the past year that have made you more difficult to work with as compared to other appraisers on our list. ”
>> Out of the 10 AMC’s I belonged to, I was dropped by 4, and was never paid for the reports with 2 of the AMCs. There is still a continuing problem with AMCs. If the value is not met, some don’t pay for the report. Seeking legal action to collect the fee, which I have not, but know of local appraisers that have, results in payment, but also black listing. Value pressure is slightly less for the appraiser now, only because most of the pressure now has been transferred to the AMCs. If an AMC is not producing appraisals “that work”, they lose their clients/banks/lenders, thus business & income. They need the appraisals that “work”. In the past 5 years since, HVCC, I have probably been dropped from about 15 AMCs, when my values were not making the grade. A few even admitted it to me. Appraiser value pressure will always be present.
>> LOW FEES ARE MOER OF A PROBLEM, I HAVE T ACCEPT FEES THAT ARE ABOUT 50% OF WHAT I USED TO GET & ON HIGH VALUE PROPERTIES IT IS DOWN ABOUT 60%. I DO NOT CARE WHAT THE ASK THE GET WHAT I GIVEN THEM.
>> More pressure to accept low fees from the large AMC’s like Corelogic as well as quick turn times.
>> The AMC has not improved the appraisal industry. The pressures are even greater than doing appraisals directly for the loan officers. AMC’s are dictating fees, inspection time, turn around time, how to fill out the URAR, and which appraiser actually gets the appraisal assignment. At the same time, if an appraisal comes in low, the Loan Officer can still complain/influence the value. If an appraiser happens to receive several appraisal orders were the home owner has over value their property and the appraiser comes in low (which would be the market value), the appraiser may not receive additional orders from the AMC. The AMC system is a joke. Only stupid appraisers do not know how to deal with Loan Officers and explain why the value is lower than what they wanted. Before AMC’s I kept clients for well over 15 years (and had many low appraisal values). Now I go through an AMC about every 2 years – I have to continually build my business. Before AMC, I could talk with the Loan Officer and explain why values vary. Now it is a black box. The appraisal industry has gone down hill. I have seen many bad appraisals because of AMC’s. Appraisers now are more likely to appraise to the URAR/UAD Form/Format (Form Fillers) instead of using the URAR to demonstrate value (Real Appraising). I have been appraising for 30 years and can not wait to retire. Just like everything else – the government has screwed up appraising.
>> I was told by a friend who is a loan officer that I have been labeled within his office as “troublesome” and “most conservative appraiser” (which is funny since I don’t think my values are conservative at all), and the LO’s try to get the AMC not to use me. I still get orders from them, but it is noticeably less than it used to me. That seems to happen a lot; bust a few deals, see less orders from the AMC.
>>Sometimes it is hard to fire a customer but necessary. Best not to be involved with customers pushing for value. Call them like you see them and be satisfied that you are ethical and doing your job.
>> Fees are the big thing. I believe many lenders go to the lowest fee guy who has an idea of what they need and avoidsthe more experienced hirer fee appraiser. This is a subtle way that circumvents value pressure
>> There is no doubt that there is still undue influence placed on appraisers from various sources.
>> The bigger issue is I get dropped because my fees are to high. Perhaps there are less appraisers around to even take the survey!?
>> AMC’s and their associates know less about appraisal regulations, Fannie Mae, Freddie Mac, USPAP, etc., than a fifth grader.
>> It is very rare if ever that a lender has contacted me regarding raising a property valuation since HVCC implemented. Lower fees are the real issue as too many appraisers are willing to take below standard industry fees. .
>> AMC’S rule the day. They have control of our fees, the banks that send orders (the banks own part of the AMC”S) us orders on work with AMC’S that do what they say. Customary and reasonable fees are gone and the entire industry is in disarray. I have crappy fees, unreasonable turn times and just as much lender/ AMC pressure to hit numbers for the loan or add or delete things off of my report…I will I could leave the industry but I am 56 what else am I going to do….?
>> AMC’s are a middle man that take up to 50% of my income. Some pay full fees… but only a few. I wish we could go back to the old days of the Lender ordering the appraisals. Each bank could set up their own appraisal dept. & run it their way.
>> I had one incident where a lender was really pushing for a change in the description of an converted garage (used as living space) to a working 2 car garage. There were several separate phone calls made to me by the lender trying to influence me and “I” dropped the client! I don’t need to work for people like that. It has only helped my business.
>> Question 1 may be misleading. We have always maintained our appraiser independence in accordance with professional and ethical practice. However, lender involvement in the appraisal process has decreased so for this reason I answered Question 1 to reflect this.
>> The “pressure” felt most in my office is that of turn-time. AMC’s demanding the report to be delivered 24 or 48 hours after the inspection.
>> Its time the banking industry admits that they wrote loans to FAIL from the moment they went on paper – creating b.s. loans to sell and not caring what happened to them after they were package up and sent away and filled their pockets. Inflating market values due to putting people into the market for homes they couldn’t and would never be able to afford – Simple Economics – “supply & demand” caused by bogus loan products which are still out a great part of the inventory and will be for quite some time. It is really time to get off the appraiser’s back – stop acting like we were even party to what went on and bring some dignity to the professionals who never gave in to the demands for value, even when it cost them “so called new clients”. Where are those clients today? – Should be in jail, but of course, that will never happen – move the blame to the appraiser. Its a repeat story of FIRREA – and then it wasn’t even the Residential Appraiser’s involved in the Hill Financial Demise – but… they sure were the only one’s who got regulated.
>> The pressure amount received before the HVCC versus now is exactly the same for me. It was and has always been minimal. I align myself with clients who have integrity. The HVCC was a good thought but extremely poor execution, it wrecked my business and my income. $350 and appraisal down to $155 and now up to $245 is pathetic for the quality and time of my report.
>> I am actually a fan of the amc movement, less calls and pressure from loan officers. i just wish i could get paid a reasonable fee, and get paid on time.
>> I have been dropped from many AMCs because I am not willing to drop my fee.
>> I feel although we lost nearly 50% of appraisers where i live i am probably going to have to get another job outside of real estate. When you come in below sales contract price AND support it you no longer get work from that company, i am now down to two companies that give me work. I can no longer support my self. At one time my client list had 357 and I’m now down to 2.
>> I feel the banks are more in control today then they ever have been before!!! Now if the value don’t come in they just drop you as an appraiser. Before they could talk the appraiser, now everything goes thru these appraisal managment companies that are just stealing the appraisers money. I have had it with AMC. They always come up with some kind of crap on reports that you need to do. I think they do that so the appraiser gets pissed off and tells them where to go and they feel well now I don’t have to pay for the report. I feel they keep my appraisal fee hostage. AMC are the worst thing that ever happened in this business!!!
>> AMC’s will use and abuse you until you come in under a value. Then they will send over up to 20 comparables and ask if you considered these comparables. If you say no to any of those comparables, they will ask you to grid all of them. If not, no more work. The AMC’s will put appraisers out of business.
>> ALL THE’ BIG BLUE ‘TYPE APPRAISAL VERIFICATION SOFTWARE VS THE HUMAN- APPRAISER- ‘PENCIL PUSHER OR NOTE-BOOK ‘ BOX CLICKER, ARE NO MATCH FOR THE LATER. STAYING ‘COMPLAINANT’ IN 2013 IS MORE TIME CONSUMING AND GLICHES CLEANING – OCCASIONAL 2-4 HRS EXTRA TO UPLOAD AN APPRAISAL REPORT VIA XML OR ENV FORMATS, ETC. BEFORE ALL, THE OPEN FOR BIDDING STARTING AT $200.00 FOR BANKS LIKE CHASE, ETC WHICH BY THE END ARE MORE COMPLEX AND IN MANY CASES IS KNOWN TO BE OVER 1 MILLION OR MORE EVEN ON A ‘2055- EXTERIOR’ HMMM…. IN MANY CASES, THE AMC DOES NOT EVEN KNOW HOW MANY FAMILIES OR COMMERCIAL UNITS ARE – ORDER IS STILL TO BE DONE ON A ‘2055’ WHICH LATER ON YOU ‘LL DISCOVER THAT CHASE KNOWS ABOUT HOW MANY TIME YOU ASKED TOO RECEIVE THE UNIQUE SECTION/ BOROUGH/ BLOCK/ LOT, WHEN THE STREET ADDRESS IS NOT BE LOCATED ALL APPLICATION FOR LOANS OR REFI OR PREVIEWS HAVE THESE NUMBER- UNIQUE TO A PROPERTY ANY TIME, AAAREA.NET
>> I do feel that we have lost a few clients because we stand our ground on the original opinion of value we have determined. That is because we take the time (the 1st time) we do analysis and report those findings. When that happens, the AMC/Lender just doesn’t order any more reports and they don’t let you know the reason why.
>> My business has been destroyed since the AMC’s have taken over. They want fees lower than I have ever done appraisals and want them fast. Good quality work is not done cheap and fast. I just do not bow to AMC’s.
>> It is apparant to me that the lending higher ups still think of appraisers as a whole as a ends to a means and not a professional tool as we should be. This is primarily due to the lack of any respect between managing appraisers and underlings who are still professionally treated worse than fast food workers who at least expect their postions to be a starter position. Add the fact that a mojority of the AMC’s are no better than a split fee shop because they have the ability to hold the attention of the lenders. And frequently let you know it.
>> The influence I have received, is when I interview a home owner and they tell me “I purchased my property for XXX and now I know I need XXX.” or along those lines. I have even heard from home owners that “my loan officer told me to tell you that I need XXX..” or along those lines.
>> Appraisers are suppose to be professionals however we are still treated like civil service workers, especially by state governing agencies (orea in California)
>> LOW PAY AND FAST TURN TIME RESULTS IN LESS THAN FULLY PROFESSIONALS WORK AND THAT CONSTITUTES APPRAISER PRESSURE OF THE MOST INSIDIOUS KIND. I HAVE BEEN DROPPED FOR TURN TIMES WITH 100% QUALITY RATINGS~!~!~!~!!!!!!1
>> It is not just pressure for value. Scope Creep is also a reason AMC’s are dropping us. Items like including E&O in the report, providing copies of MLS sheets, and refusing to address comparables not used in the report. Lets not forget about the AMC that stopped using me because I kept calling after 30 days asking to be paid. (I actually received an email from the owner telling me to he would not be utilizing me any longer as I did not accept their payment terms. We are no better off than we were before Dodd Frank.
>> Many AMC’s advocate for their lender/clients who give them lists of appraisers to use for their assignments.
>> It is not better overall
>> Recently I was dropped from an approved list for not being willing to utilize comparables from a superior builder and put most weight on them, not the subject builder comps. So much for appraiser independence!
>> I am a commercial appraiser so much of what happens on the residential side does not impact us, or do so in the same way. Though I have noticed a slight increase in the use of AMCs on the commercial side, however the bidding process seems to be about the same as with the banks directly.
>> Most of the issues tend to be through meaningless requests to examine other comparables & requiring statements of why they were not used, needless revision requests requiring commentary on whether the request has an impact on value, Numerous requests for revisions obviously not from anyone familiar with appraisal practices meaningless to the report. This is why I am moving my business away from accepting most AMC assignments. Much less complicated & less trouble with out them & I really can’t see they this has helped the industry in any real meaningful way other than independence. The industry should really prevent them from reviewing any work because they simply do not seem to understand what really makes a meaningful report (More sales / listing data does not necessarily equate to a better report.). They cannot try to take the appraisers judgement & specific commentary out of a report, make it generic, and then expect there not to be unintended consequences.
>> I find that trying to find new clients is more difficult now. Lenders use AMC’s that will put you on their “list”, but never send you work because you either “have no work history” with them therefore you are not on their rotation schedule, or they go with the lowest bid on the fee (which generally is well below the “reasonable and customery fees” for my area, and have no idea who can work and survive for such a low amount. I no longer can have any personal business contact with who assigns appraisals or any type of contacts for sales of my services. Appraiser independence and the rules that were implemented to improve our independence are a joke. I still get requests to review “comparables that were not used in the appraisal report”, but will admit that USUALLY they are random sales in the area that were obtained from Zillow and generally don’t have any aspects that are similar to the subject and are a waste of my time to review. Occasionally I will be asked to review sales that I know are given to try to hit a number, and then a response is warranted explaining in detail (at the request of the lender) why they weren’t used. Again another waste of my time explaining, that using these sales would be on the borderline of fraud. i have not been dropped by any lenders in the last year, but I have been “punished”. Meaning I did not receive any work for a month or so. Lenders do not care that there will be a shortage of appraisers in the future because they don’t want to have to use them. My son graduated college two years ago. He asked if being an appraiser was a good career path. I told him no. Not only is there no appraiser independence, there is no stability in the industry to actually make a living.
>> The AMC puts the same preasure on the appraiser as the lender did and sometimes more.
>> How can there be any shred of “independence” when a majority of good, qualified appraisers are at the mercy of AMC’s? The term “independence” was tossed into the garbage when HVCC was put into effect. Appraisers, such as myself, that had a sound and professional relationship with numerous clients, was raped of my decades of hard work.
>> 27 years in this industry and I don’t believe they have solved any problems. But then again any time you bet a bunch of government people involved not much ever improves
>> Lenders choose the AMC. Their number one criteria in choosing a AMC is how effectively they (lenders) retain their ability to insert themselves into the appraisal process or the willingness of the AMC’s to do it in their behalf using subtle various manipulating ploys to obtain a given change to the appraiser’s report . There needs to be more transparency into what info the lender provides the AMC. In my experience increased corrupt practices are most apparent in AMCs owned by the lender and those AMC that employ “in house” appraisers. Also, those AMC appraisal checkers that are most likely to ask for revision requests that appear to question the quality of the appraiser’s report. It is illegal in my State for the AMC to ask for such revisions where the reviewer is not licensed in the State in which the appraisal occurred yet AMC and lenders constantly ignore this requirement.
>> it happened…
>> the threat of no future work is very strong
>> There is no one to regulate appraiser pressure. The “Hotline” implimented by the Frank-Dodd act is only a forwarding service. The local agencies do nothing and I have yet to see the Consumer Financial Protection Agency do anything as well. I firmly believe that this will be an ever growing trend due to teh complete lack of regulation.
>> A big part of the problem are real estate sales people who pressure mortgage companies not to use an appraiser, if in their minds he killed their deal. Not all, but some bank loan originators will pressue the bank not to use certain appraiser’s and in some cases they get their way. But thet is not the reason taht will be given if you stop receiving orders.
>> I don’t get any pressure. Even in ‘the old days’ I never listened to it. I’m the appraiser not them. Perhaps the problem is weak people that can’t stand up for themselves. I’ve always made a good living and have never compromised what’s right. Question 2 should have ‘never’ as an option. My answer to 4 was not due to pressure but a clients head appraiser didn’t agree with my management of statistical data and we parted ways.
>> Here’s the bottom line. Let’s get real. Let’s stop the BS. and the tap dancing around the issues. You guys are a bunch of tap dancers. Period. You are unwilling to make the call. I am fed up!!! This has happened to me more than once. Lenders on the back end may not have been able to close deals because of what they see as “low appraisals” Hence they tell the AMC to not use this particular appraiser. If you do not think this is happening you are living on another planet. It is almost impossible to prove. IT IS HAPPENING!!!! STOP THE BS. Anthony R Krankeola ARK Appraisal Services. call ME AT 314-968-4452 IF YOU WOULD LIKE SPECIFIC ADDITIONAL INFO.
>> The pressure now comes from the homeowner who will blurt out the value they need even after you expressly told them you do not want to hear an amount. RE Agents sometimes do the same on purchases but will be subtle by pushing certain comps. AMC’s associated with mortgage companies directly have dropped me if it is an unusual appraisal (ie: legal non-conforming), as they cannot sell the loan on the secondary market & do not wish to keep them in-house.
>> AMC’s provide no useful function for appraisers. They skim fees & pressure is far worse than before HVCC.
>> each client has its own challenges. I work with the large banks, Rels, LS, Fremont Bank, US Bank. They are all tight regarding undue influences.
>> Some clients are more blatant than others. Generally it’s remained the same. We have to be careful not to blow the whistle on bad actors or get on do not use listings. Resulting in serious financial problems for us. Especially as the same big players are still in the business even bigger now like Chase for instance. ..
>> In my opinion, the lenders are controlling the appraisal industry through sutble, but repeated revisions.
>> I did not come in on a value and I was dropped from an amc. Also I was dropped becuase the homeowner emailed me that he had a river in his front yard. This was an exterior drive by.
>> The direct attempt to require the appraiser to change value has all but disappeared…BUT the trend has changed to making the appraiser explain why they didn’t use those higher priced sales from Zillow or Realist. No reqard to comparability & no explanation as to why the client might think properties already rejected are better than those selected by the live appraiser….just a mandated explanation why we didn’t use the property(s) in our analysis. Problem got so bad that we now charge $150 a piece to include properties already rejected as comparable….and the problem is rapidly going away, along with an AMC or two. I’m just sayin.
>> We lose clients all the time for being HONEST. The lender is influencing the AMC on who to use and who not to use. Nothing is changed and god forbid if you come up short on something. You will eventually find yourself without work!!!!!!!
>> Things have changed and gotten better since loan originators can’t contact me directly. This is good. However the loan originators seem to have passed the baton to the Realtors in many cases, advising them to sell us on their deal/sales price. I believe they are used to getting bad appraisals on a regular basis and are feeling like this is necessary in order to keep their deals together. There are just enough appraisers out there that don’t do fair valuations or low quality work to give us all a bad name. But this is pretty much true for all of business as a whole and many other industries as well. Just a sign of the times I guess….
>> The HVCC and other regulations have taken my best clients from me and ruined my business. I have never been sued or sanctioned but I have had by business brought to it’s knees. There is little justice for appraisers just scavengers picking our bones for the most part. After 3 decades of appraising I am nearly broke and angry.
>> HVCC allowed my client base to grow, but I have lost control of my fees. I have the choice to not accept low fees, or go out of business.
>> Very heavy pressure from certain AMC’s. Especially those that claim you are speaking with an appraiser advocate when you have a concern. (They are advocates, for the client – their comments not mine). Some AMC’s using QC people that insist the appraiser change comments (mostly because of lack of training). However, this is a not so subtle way to influence an appraiser that is not strong enough to believe in his or her product.
>> There are a few AMC’s, lenders and mortgage brokers out there that have hand selected their limited appraiser list based on if the appraiser will play ball so to speak meaning accept the fee below customary and reasonable and provide a minimum of 6 comps in a 2-3 day turn time after appraisal inspection. I’m a long time VA appraiser and I also was on the FHA appraiser panel prior to them disbanding it and I’m still on the FHA appraiser roster. So I do VA business with some of these lenders and mortgage brokers with the VA appraisal orders I get but when I inquired about doing FHA and or conventional business they say were all set unless one of our appraisers screws up. Plus they want to pay invoices 30-45 days after submitting the appraisal report and that time frame seems to be getting longer as rates are on the rise and business drys up. VA fees are set at $350 and the VA only wants a minimum of 3 settled aka sold comparable sales. Please note the VA allows the appraiser to charge for any work above and beyond what VA requires. So most of the time these lenders that want 6+- comps for there FHA and or conventional appraisals don’t want to pay extra for more comps on VA appraisals so that request goes away fast when we mention that they have to pay extra for extra comps. I really feel its the same old same old with the uneducated lenders. They think they can treat appraisers as doormats. So I pick and choose who I want to work for. Hopefully with more regulation the bad AMC’s, lenders and mortgage brokers will go out of business but I don’t think much has changed and the borrower today seems to be paying more than they ever have for most appraisals except VA with the AMC’s getting a cut of the fee and the appraiser getting paid what they did prior to HVCC if their lucky. I know its a business decision if you want to work for less but it costs more today than it ever has to be in business and then lets talk about turn around times. Most appraisers are pretty independent business people and should know what day it is and don’t want or need AMC’s and their staff to micro manage our business. I’m waiting for the order that requests yesterday on turn time. So is it really any better or different? Depends who your dealing with is the answer to that question.
>> HVCC has helped by letting lenders be informed and understand that appraisers are supposed to be unbiased and that their opinions of value are not based on any client needs.
>> I only feel pressure by the large banks. My independence however is practically gone. I have had to completely change the way I do business and its not a good thing. The implementation of HVCC has been the worst thing for appraisers in my opinion in my almost 22 year career. If I knew how to do anything else, I would get out and every day I’m looking for a way out. I would never recommend anyone enter this “profession” as it stands today. I used to love being an appraiser….now its a means to an end.
>> Fox still guarding the hen house.
>> Appraisal requests will continue to be concentrated among the AMC’s controlled, directly or indirectly, by lenders, ‘loan bundlers’, and/or their affiliates. There has to be some federal level action regulation regarding the assignment process, especially when these ‘loan bundlers’ are strictly middlemen passing on the loans to other parties and having no skin in the game.
>> Although “hitting a number” doesn’t come up as often, the requests of making an appraisal conform to the amc’s regulations is overwhelming. These include house number photos, equipment photos, basement sketches, additional comps to cover all amenities. A 1470sf house with all but one comp with a gla over 1470 and one comp of 1471sf is not good enough for a comp with a smaller gla. Ugh!!!
>>#2 – most lender clients/AMC’s understand the implications of the Dodd-Frank law. Private clients do not, and so the appraiser has to be careful when dealing with them in terms of the desired outcome. #3 – Even though vendor panel appraisers are not suppose to be dropped without being told why, I think it happens in the background by lender appraisal departments and AMC’s who segregate appraisers into those who willingly comply vs those who stand their ground.
>> AMC’s should be regulated into oblivion.
>> There is small panels everywhere and then the big banks have panels and then their “panels”. I have had lenders tell me exactly what the need. Just yesterday the borrower told me and I turned the order back in. If they don’t like your work they complain and now there is a hotline to always be threatened with. There is so much negative press about appraisers that all of our work is a constant challenge. From borrower, lenders, and banks. The times now, suck.
>> The whole system has become a joke and the appraisers are the punch-line.
>> BANKS ARE JUST PRESSURING AMC’S TO USE THEIR “APPROVED APPRAISER FEE PANEL” SO THEY CAN CONTROL THE APPRAISER. THEN IF THE AMC PUTS AN APPRAISER ON THE LENDERS LIST BECAUSE THE AMC LIKES THE APPRAISER, WHEN A VALUE DOES NOT COME IN, THEY SAY “USE OUR ROTATION LIST OF APPROVED APPRAISERS”. SAME STORY, SAME PAGE, JUST DIFFERENT FOOTNOTE. THE AMC DOES NOT WANT TO LOSE THE LENDERS BUSINESS SO THEY REMOVE THE APPRAISER FROM THAT LENDERS APPROVED LIST. THAT WAY THE LENDER IS NOT SHOWN AS HAVING REMOVED AN APPRAISER FROM THEIR LIST.
>> The borrower or homeowner now gives us the pressure. They tell us what number “they need” and if we do not get the number they complain to the loan officer and in some cases make up items about the Appraiser saying “unprofessional” or “does not know my neighborhood” and “you should never use them again, I will never use you again”…. this makes the loan officer complain to whomever ordered the Appraisal and …. we get kicked off the “list” even if we have completed 100-900 Appraisals for the lender in the past!!!!! The only way to stop this is to have us get paid AT the door our “fair and reasonable” fee and let us talk openly and honestly with the borrower or homeowner, so they will not be surprised “if” the value does not make it to what they need.
>> The reason for my answers, is because I typically refuse to do mortgage finance transactions.
>> I believe appraiser independence has gotten better. While the changes in law have improved some areas of residential appraisal practice, it has also created new problems (amc’s/lower fees/ect.) However, I would suggest a survey be conducted on lender required turn times and lender pressure to accept ALL assignments sent. Many lenders are now “tracking or rating” appraisers based upon the percentage of assignments accepted by the appraiser and subsequent turn times. Many are penalizing appraisers for just simply saying “no” to a particular assignment(s). In other words, many appraisers have been removed from lists or relegated to the back of the line (fewer assignments…if any…but still on the “approved list”) for not accepting all orders. Unfortunately, many appraisers are not even aware that this has happened to them…and the lender will not send the appraiser any written notice. Lenders need to understand that appraisers turn down appraisal requests for many good reasons (too busy/not qualified to appraise a particular assignment/out of area of coverage/vacation…ect). I wish there was a law with which lenders could not consider nor penalize good appraisers (many of which have more work than they can complete within a 5 business day period) for saying “no”. While I believe the market corrects many things without needed regulation, good quality appraisals should be more important than how quickly a report is rendered…and that the appraiser accepts any and all assignments sent by the lender. While I’m not a VA appraiser, it is my understanding the VA gives the appraiser 10 business days or 2 weeks to complete an assignment. This is a more reasonable time frame (when we’re busy) than the current standard 5 business days many lenders now require. Just a thought.
>> Influence is still around and have been dropped from lenders due to not meeting values….
>> The main issue with the AMC’s is not meeting conditions, it is they shop around to find seriously low fee’s.
>> The pressure is still there, it just comes from the AMC now. The mortgage companies push them and AMCs push us. They remove you from their panels if you do not cave to the pressure. Then, the AMCs ignore the reasonable and customary provision of Dodd Frank and take most of the appraisal fee (usually paying the appraiser less than half what was R & C) and do none of the work accept pressure us. They need to charge their own separate fee and keep their greedy, grubby hands off ours. They don’t write appraisals, they manipulate appraisals with pressure. “Conform or be cast out”. They are the reason 40% of the appraisers left the profession. They are creating a shortage shortage and environment were there is little incentive for new appraisers to replace the old. AMCs are the devil. They straight lie when they go in front congressional committees too. Great job, Cuomo, Dodd and Frank.
>> Dropped by one for not accepting their (erroneous ) comps and not working 24/7 on public holiday, while they were closed.
>> We need to get rid of the AMCs and come down on BofA for sending work out of the country.
>> seems like all”we” gained was an additional expensive tier of unnecessary management taking a huge cut of the fee for being a phone operator and passing the request which delays the process and is another unnecessary cost gouging the borrower at a very stressful time….thank you Frank/Dodd, Cuomo and all of the other politicians that gained from this legislation from the special interest groups.
>> Many of our clients allow realtors/builders/homeowners to submit a “reconsideration of value” request, which includes the “comps” they feel should’ve been used (“comps” that are far less comparable than those utilized in the report–often ridiculously so–but of course have sold higher). Providing the required written rebuttals can take hours, and clients don’t compensate us for the rebuttals. If we refuse to respond, we don’t get paid for the appraisal at all.
>> HVCC, Dodd-Frank are both a waste of time. Both were developed by politicians the founders of the good ole boy network. A network that is alive and well today. Without the illumination of this network all will remain the same.
>> The system is unfair and stacked against the appraiser. Not to mention that we are not treated or paid like the professionals we are. How about a living wage? How about we Strike and Unionize?
>> The AMC situation has destroyed this profession. There will be a lack of new appraisers due to the way AMC’s treat appraisers. Everything from low fees to scope creep, it’s a mess.
>> Stipulated scope of work mandated often violates Appraiser Indendence and USPAP.
>> While the AMCs rarely try to influence my values,the Lenders are asking for more and more worthless explanations for minor adjustments. I am very conservative on my contributory adjustments, and I literally write a small book of addenda for each report.
>> Although not influenced from the beginning regarding value conclusion, after the fact with numerous ridiculous sales presented to try to come to an increased value conclusion. Properly researched and commented on, then few to no orders with that management company. When calling AMC’s about it, they are able to just say that their work load has dropped, etc.
>> Lenders and relators always think a contract price establishes market value by definition but, some buyers are not typically motivated, they are highly motivated by competitive bidding in contracts with an Escalation Clause or, the buyer and or sell may not be well informed or well advised and may pay below or above the market value. Unfortunately some lenders still think the market always will support a willing buyer and seller contract price, but that is not always the case. Some lenders still would rather have a value that makes the deal than a value that is supported by the market. Maybe some things will never change; there was a saying that you cannot legislate morality so, maybe you cannot legislate ethics either. Both only come from people of character who answer to a higher power.
>> I work for three local banks and one AMC.There is never any pressure on values.All have a firm policy
>> The whole question for the viability of appraising as a profession lies with fees. Requirements are going up, scope of work is creeping up, fees have been decimated! Who will join such an underpaid profession?
>> like the song says…meet the “new” boss….same as the old boss……..
>> Life if good, started my 36th year of residential appraisal work.
>> Pressure and undue influence are alive and well. Nothing has changed with all the additional regulation except the pressure is more subtle. Now it’s called “Reconsideration of Value”. No one actually respects and appreciates the appraiser’s professional independent opinion. Every one has an opinion and think they know the value including the realtor’s, loan officers, mortgage brokers, homeowners.
>> Appraisers have (reluctantly) adjusted to the New World Order. The dynamic is unchanged. Lenders want to make loans. Loan officer compensation is dependent on making loans. AMCs work for and are hired by lenders. AMCs assign lender work to appraisers. The dynamic has not changed because our government intervened to fix a problem by adding an additional layer to the problem.
>> Most of my work has been as independant fee appraiser with very little AMC work. I work with one AMC and they don’t question my appraisal very much. If they did I would not work for them.
>> The appraisal independence regulation has accomplished the opposite effect and has in fact, given greater authority to the banks to bound the appraiser. This is accomplished by the on going threat of losing an entire bank as a opposed to the past of losing one LO . AMC’s primary goal is to serve the bank they are owned by or are contracted with (nothing new). The reason there is little responce from appraisers regarding this subject, in my opinion, is due to appraisers accepting this as the new face of the industry. Personally, I’m fed up with time wasted on complaining, writing letters, blogs, phone calls made, etc. to find all efforts falling on deaf ears. I have a family to feed. I find all the time I’m spending being angry is taking away from providing for my family. Then one adds on the reduction in fee to the insult, appraisers have to work three times as hard for 75% of a fee that has not increased in 17 years. There is no time nor no choice than to conform. I have to move forward and accept this as the new “norm”. Especially when we see this mortage finance industry having such a tight grip on the entire country and world. What is a small and unorganized industry going to accomplish against this titan.
>> This regulation is a big joke and after a number of yrs. I soon hope to leave the industry. It is no longer what it once was and I feel robbed of my job. This is one bad joke and I really mean what I say. But I do not know why I am even bothering to tell anyone because I am certain no one cares. This abuse is beyond what I am willing to take. Read between the lines…..my fellow professionals know what I mean. I will not be abused.
>> Since the implementation of the HVCC I have not been pestered with phone calls/emails for ‘comp checks’. I believe most of my clients finally understand that an appraisal is the best answer. Those that do not understand stand that process I have fired or they are no longer in the business.
>> The AMC Companies are worse than the Mortgage Brokers ever were!
>> Making law that are not enforced by the powers that be on the banks and allowing the banks and real estate brokers and government agencies/corporations dictate to us how and why we are going to do something only so it fits there own little world or try’s to discredit our profession does not make matters better. Get rid of all the red tape for appraisers and let us do our job. go point the finger at those wanting the data.
>> Because I work directly for a lender/AMC, I have not had the same interaction with other lenders/AMCs that I had prior to HVCC and Dodd-Frank but with the “reconsideration” process of reviewing “comparable” sales provided by the client (that are always above the appraised value), influence is still an issue.
>> The bigger AMC’s still enforce questionable conditions as a way of circumventing the rules. Things have not really changed.
>> I believe that there are also some other influences at work. Since the market fell off in 2005/06 a lot of people left the field and I see a shortage of appraisers and less mortgage brokers. With license requirements tougher for the appraisal field less are getting into appraising field and a good appraiser is harder to find that can meet the demand for banks, mortgage companies, and AMC’s. Lenders would rather cut their losses and move on to the next transaction rather than lose a good appraiser these days. I find most pressure used to come from mortgage brokers/companies (less since HVCC) and people that think they are above the law and are connected to people of influence (like presidents of lending institutions). If things go back to the way they were, lenders will go right back to the way they were.
>> Our firm of 11 appraisers lost two very large clients due to pressure from loan officers and realtors. It was more important to make the loan than to have a credible appraisal. On one we complained through the CFPB to the FDIC and heard from no one.
>> AMC seem to be here to stay. Not sure about appraisers. Job instability seems to be the normal pattern as along with AMCs client/vendor relationships are like a catalog number more often than not.
>> The pressure is more subtle but still there. Besides value issues they also want reports written with additional verbiage having nothing to do with scope of work in order to avoid investor of their loan forcing them to later buy the loan back.
>> influence is more than asking point blank for something that crosses the line. Paying sub-standard fees and demanding turn times that don’t allow proper analysis work hand in hand with the paper pusher middle men. The kind of value pressure I see is being met at the door by the borrower who has been briefed and supplied with comparable sales “suggested” by the lender or agent. They are also not shy about pointing out their loan rep says “we need $XXX,XXX to make our loan”
>> Only real influence I have received has been from borrowers. 2 of those I refused to perform an appraisal.
>> Lost a good banking lender due to loan officer not liking my honest market values.
>> AMC’s have gotten more sophisticated; Now it’s we want you to ‘revisit’ your adjustments’ or ‘we feel that road is a neighborhood barrier’ I wish that Oregon could find some claws in their rule that you have to be Oregon Licensed/Certified to review Oregon Appraisals. Our very rural area is close to being REDLINED by the AMC rules.
>> Don’t do any AMC work. Do a lot of private party work and they all try to influence value!!
>> I do not get pressured up front, but I have seen clients just stop ordering. I may still be active on their roster, but I get NO work.
>> AMCs now influence the appraisal process in addition to the lender. What’s worse is the AMC has cost the homeowner more money in ‘appraisal fees’ while the appraiser is making less than fees from 12 years ago.
>> disagreeing with a review request leaves our fee hostage, if we dont comply, it is clear I will not be paid. This is not being very independent, we answer to others every step of the way. Reconsideration requests are the Go To plan for so many AMCs
>> AMC were created to out source lenders bad habits
>> I work for 2 banks and 1 AMC and I generally do not feel pressure from them.
>> Special thanks to wall street participants, bankers of all stripes, the NY~AG, Dodd-Frank, and all the other know nothings that helped kill an otherwise successful occupation. At 64, I’ll never recover from lost income.
>> Most everything at the root is still the same with regard to pressure however, the move to “national based lending” and “appraisal/er management” has made it easier for lenders/amcs to mask the approved list; in other words, if an lender/amc doesn’t “like” the performance of an appraiser (i.e., not playing ball), they simply do not use them but do not remove them from the list (by certified mail, electronic mail, etc., as required). It has turned into a more diluted process whereas, it’s easier to avoid using an appraiser and more difficult for the real issue to be realized and reconciled for all interested parties. In the past, tangible relationships could be nurtured whereas now, these “virtual relationships” are only worth the digital space they occupy. My feeling is that the attempts to fix these problems has only made the process much less transparent with the necessary due diligence of the lender/amc going beyond the back seat and on to the third row seat (i.e., more “fluff”). FNMA and FHLMC guidelines are not a blueprint for RE appraising, they are guidelines and the pressure to conform to those guidelines IS one of the biggest issues (one form of pressure); amcs (and many lenders/underwriters) believe that these guidelines “are appraising” and put that pressure on the appraiser to “conform”. The system IS broken and one of the best ways to fix it is NOT to change the appraisal process but to hold these lenders responsible in the form of “hard money” and not the “virtual guarantees” that do not hold the risk that THEY actually create and profit from. If this were the case, the process would right itself in the first 6 to 18 months. Bottom line: stop all this “pretending”. You can’t force/govern an individual into compliance or create a person with integrity that has none; they must be sought. That is not happening in any way, shape or form for the insured mortgage market because the risk costs much less than the reward with the bulk of that risk being off-loaded on the American people. In summary, the pressure has been successfully redirected and hidden much better than it had been before all these “fixes” – Adam Connolly, CDA
>> My work is almost exclusively for the VA. I work on;y infrequently with any AMC’s. Pressure mainly comes on refi’s from the home owners.
>> System is still horribly corrupt. Independence has not been achieved and basically what has happened is a middle entity with little to no added value and no liability (and often partially owned and controlled by the banks themselves) are taking half of our fees.
>> I can always tell when I did not meet the expected value. I get asked nonrelated questions for weeks and sometimes months after the report is finished. Like I have to pay for not meeting their expectations in value!!
>> Have turned down many requests to do appraisals that would not have been accurate.
>> AMCs don’t do anything for appraiser independence, all they care about is volume and turn time. To AMCs appraisal reports are a commodity, and if an appraiser doesn’t give the AMC a commodity it can use, that appraiser is dropped. The system wasn’t perfect before, but at least appraisers could market themselves, now if your name gets around to AMCs as a deal killer, you’re done. The AMC cure is worse than the mortgage broker/loan officer disease.
>> AIR violations are alive and well. Defending neutrality is a constant in the profession. I’ve concluded it will never go away; it’s a dynamic caused by commission based structures as well as AMCs who misrepresent their purpose to the public. Big banks have only gotten bigger and more powerful since Dodd-Frank. The LO interference is a major and serious concern.
>> Not a lot of difference. Don’t talk them nowhere as much.
>> C&F…cheap and fast. you get what you ask for which under those parameters are bottom dwellers masquerading as appraisers and the inability to verify/document the facts for a quality value opinion.
>> I think I was dropped due to a low opinion of value two times this past year. While they did ask for more information and consider other comparables, the pressure was so little compared to before and not using me again is okay because I do not fit the profile if you want a numbers hitter.
>> The appraiser’s time and cost associated with the production of a quality appraisal is all but absent from this Appraiser Independence Discussion.
>> I “dropped” the AMC’s myself for stupid revision requests.
>> The real answer to Question #3 is “Not that I know of”
>> I think progress was being made however I am starting to see some of the old lending practices and players come back into the picture which concerns me so I wouldnt be surprised if the issue starts to rear it’s ugly head again.
>> The primary reason the survey has had low participation is due to high work loads/no time by
>> I have never been removed from a panel, but I certainly see a decrease in business as soon as I am under the sales price. This happens with both AMCs and lenders. There is never an explanation, just a sharp reduction in orders.
>> AMC and Clients shielded by AMC’s are asking for ridiculous amounts of non-existent data after report have been completed. It’s criminal what they are asking for but hopefully not getting from honest appraisers.
>> AMC’s put more pressure on accepting a order based on fee, time frames and then pressured to reconsider value based on “their” comps that they provide. Less money, more pressure to being structured to AMC’s rules verse USPAP & Independence!
>> The AMCs have a business to run. The Lenders, whether they desire good and defensible appraisals is not the issue. The AMC vies the Lender as a business partner and rather than ruffle some feathers they will push the appraiser to do things they should not be doing.
>> We start loosing bisiness to stuff appraisers.
>> At this point, I find that Independence is ‘limited’ when client/lenders request post delivery consideration of lists of sales and want appraiser comment on each.
>> The appraisers are kidnapped by AMC’s. The unlicensed reviewers of AMC’s are dictating endless revisions with low fees.
>> Unfortunately, I never know if I am dropped or why. The orders just stop coming from that company. Usually due to fees, I am guessing.
>> The real scam is that the lenders can have a “panel” from which to rotate while only including the appraisers willing to hit the numbers or skew the results in other ways. I.e the lenders/AMC’s are using almost exclusively those appraisers who violate USPAP. Appraiser independence is a JOPKE!
>> I am a staff appraiser for a large appraisal company, not an AMC, so my answers reflect that employment.
>> Lenders still control AMC appraiser panels. If an appraiser does not hit “the value” needed to close a loan, the loan officer, the realtor’s, and everyone who has an interest in the deal is upset. The lender, who sends the AMC its business can then influence them not to use a certain appraiser, even if that appraiser is well qualified and doing a good job. Realtors have great influence over the loan officers they refer business to as well, and therefore also have influence over appraiser panels.
>> When I am pressured to meet a contract price, the pressure tend to come more from the Realtors. However, lenders are also still pressuring, but are being very subtle about it. Considering that Realtors still have a very big influence on who a lender uses to do their appraisals (or they – the Realtors – won’t direct their purchasers to their lending institution) I think that is where closer examination should be taking place.
>> Have not had any undue pressure from AMCs or Lenders. Everybody seems to be playing “nice”.
>> The pressure was almost removed from a direct contact to the appraiser and is now with the AMC. If your not making value with the AMC then they no longer send you work and ride off in the sunset. Clearly they are getting the pressure from the lender to only work with the appraisers that can make it happen. Just recently were were working with a direct lender and about 80% of their deals were not supported. We contacted them with the concern. They let it ride a few months and then questioned us. As it turns out their panel only kills 20% of the deals when we killed 80%. The odd thing is that this lender was the only one that we have that problem with so we know it’s not us. This just happens to be a lender that prefers to work with the bad appraisers. The reason why so few people took your survey is that too many appraisers are, well, bad at what they do. Just a sad fact.
>> We are not in a free market. Appraisers state they are getting better fees. I don’t think that’s accurate. Loan apps down 30%. watch those gains in fees disappear.
>> The most pressure I receive is from Realtors with little evidence to support their findings. They push more than anyone
>> Its still there,not as blunt.New one is the Lender can’t call and harass but somehow magically the “Seller,buyer,or out of town realtor” has your private cell number and is calling and asking/demanding answers.
>> I find that not meeting unreasonable turn times is more of an issue in being dropped from and AMC than not meeting conditions/requests.
>> The influences are still there they have just shifted. The lenders are using the AMC’S to apply the pressure now.
>> amcs think they can tell the appraiser how to fill out a report. i have a lender that i have been doing business with for many years. there have been 6 amcs that order appraisals for this lender over the years. no issues with 5 of them w regards to revisions. the 6th amc constantly wants revision requests for many different issues including extra sales. stating its the lenders request when i know that it is not. i refuse to make the revisions and i no longer get work from them.
>> I no longer see this issue as one at the fore front. Customary and reasonable fees continue to be a struggle.
>> I am a sole proprietor, but I feel that I lost one of my long-standing clients because one of the AMC’s other lenders was not satisfied
>> HVCC IS A CRIME AND ONLY GOOD FOR AMCS.
>> I receive at least three to four turn time & fee requests per day. Some fees are as low as $225 for a full assignment. Some request I will receive again a week later. How is this system of fee shopping to generate revenue for the AMC at the expense of the Appraiser in the best interest of the Client? I have been dropped from AMC/Lender rosters after refusing low fees. The current AMC system is counter productive. Answering numerous phone calls and updating websites for work never assigned is just plain foolish.
>> Appraisers are being dropped still because Loan Officers are requesting that to happen. They still have “power”.
>> They micro manage us to death, so many restrictions that the out come is almost pre determined.
>> I do almost no work for AMC’s and like it that way.
>> What HVCC never fixed was giving appraisers who were unjustly blacklisted prior to implementation of HVCC an opportunity to clear their names. The Chases and BofAs still maintain blacklists or “review list” that stop lenders from using appraisers and these lists were taken from Wamu in Chase’s case or Landsafe in BofA’s case where it has been identified that appraisers were removed for not hitting values. This information is out there, but these appraisers still can’t clear their names.
>> I have a total of 5 1/2 years as an appraiser, 4 as an assistant. As an Assistant I completed over 1200 appraisals and took all required classes. My education includes a Bachelors degree and Masters degree in Finance. When I passed the Certified Residential Real Estate test in New York I applied with RELS (amongst other) AMC’s, was approved, did 3 appraisals very quickly with excellent ratings, and then was dropped because I did not have 2 full years experience as a Certified Appraiser???? With the dwindling appraiser base you just have to wonder what is wrong with these companies. Please pass the story along.