Vendor agreements with "hold harmless"

[DWiley]

It's way past time for ALL appraisers with a functioning brain to NOT sign any vendor agreements that contain "hold harmless" language!!!!!

Alamode's terms of use for web services contain indemnification and hold harmless language as well.

You will indemnify, defend and hold harmless ALM and its officers, directors, employees and agents (each, an "Indemnified Party") from and against any and all claims, demands, losses, costs, expenses, liabilities and damages of any kind or nature whatsoever (collectively, "Damages") incurred ...
​

Do you recommend not agreeing to Alamode's vendor agreements either?

 

[peturner]

Hmmmmmm...to my knowledge a la mode doesnt DELIVER finished reports in an unsecure format..under contract by that lender to do so...the jig is up...guess what?!?!?!? The lenders did not know anything about this until last week.....now they are all questioniing this themselves...I had NUMEROOUS conversations with lenders utilizing services such as these....they did not know ANYTHING about E & O invalidations, etc......they are now looking into USPAP and FNMA and Freddie Mac requirements for delivery...The DO understand that THEY have to guarantee an UNADULTERATED report....HMMMMM????? So NOW they have some liability for agreeing to conversions, alterations, etc. and they DO NOT like it.....either.
We have been divided too long.......not just divided....segregrated from each other is more like it.....and that is where the power has fallen into place.

 

[DWiley]

Hmmmmmm...to my knowledge a la mode doesnt DELIVER finished reports in an unsecure format..

One of the featured benefits of an Xsite is the ability to use the site to communicate with clients. This includes delivery of reports. From a techincal standpoint, using an Xsite as a web portal to deliver a PDF report to a client is no different than using AP, Encompass, RIMS, etc.

Several people have recommended not agreeing to hold harmless language, particularly when dealing with a company providing Interent report delivery. I just wanted to know if the same advice applied to Alamode's Xsites.

Many have speculated about AppraisalPort's motivation for the hold harmless/indemnification language. Would anyone care to speculate about Alamode's motives for having such language?

 

[Jonsey]

I'll take you one better. I would 100% support a petition requiring use of real digital signatures applied to reports completed in the appraisers software of choice and delivered directly to the underwriting department of the lender, in pdf format, bypassing any and all 3rd party vendors, portals, AMC's, conversion programs, loan officers or processors. Then, and only then, will the lenders get exactly what was written - and they will have FULL responsibility for it. At that point, if they choose to slice it and dice it - fine - they have the full report, untouched by anyone and they can then do as they please with it. Put that one forth and you will have my complete support. THAT is my personal agenda - that the lender gets exactly what I wrote, how I wrote it, in the software in which I wrote it and in the format I wrote it - with no interference from anyone. I think you will find that is everyone's agenda in this matter.

Bear, u only made one mistake....not putting your post in Bold. Wouldn't want it to be "overlooked" or go without additional comment.

 

[Maverick]

One of the featured benefits of an Xsite is the ability to use the site to communicate with clients. This includes delivery of reports. From a techincal standpoint, using an Xsite as a web portal to deliver a PDF report to a client is no different than using AP, Encompass, RIMS, etc.

Several people have recommended not agreeing to hold harmless language, particularly when dealing with a company providing Interent report delivery. I just wanted to know if the same advice applied to Alamode's Xsites.

Many have speculated about AppraisalPort's motivation for the hold harmless/indemnification language. Would anyone care to speculate about Alamode's motives for having such language?

All,

Please consider the LIA letter to Mark White at this link: http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/files/Mark_White_VCC_AI.doc

That settles this dispute for me!

Respectfully,

Maverick

 

[Doug Meyer]

With all due respects Mr Wiley, do you approve of these hold harmless clauses that appraisers are being forced to sign and what did the foundation and ASC have to say about these matters?

 

[Carnivore]

Several people have recommended not agreeing to hold harmless language, particularly when dealing with a company providing Interent report delivery. I just wanted to know if the same advice applied to Alamode's Xsites.

Danny,

Thats a fair question. The answer is maybe. So far we absolutely know that FNC portal changes and re-sorts the finished product to something the appraiser did not intend. So its good reasson to be concerned. Plus, apparently it voids any protection we may have as far as E&O.

Alamodes xsite on the other hand does not do anythng to the report except deliver it to the entity we designate in the form and content we intended. That calms any concerns I may have.

The only definite answer would come once someones E&O reviewed Alamodes Hold Harmless agreement.

Again, you have made a fair point. Lets take it a little further. We know from Florida Court records that First American/Eappraiseit can not be trusted. They openly admitted in court that they modified-changed reports without the appraisers knowledge or permission. That sends a strong message to appraisers that it would be foolish to agree to any Hold Harmless Eape comes up with.

Its not just what is said in the hold harmless clause but also the past actions of the company sending these out. Obviously, FNC thinks they have a problem so they strengthened there hold harmless agreement. Probably because it had some holes in it.

I am confused on why you seem to oppose any discussion that appraisers at this forum about reducing their own risk. Think about it, you dont seem to disagree with hold harmless agreements until its the individual apprasisers wanting a little Hold Harmless for themselves.

 

[Mr Rex]

Maybe this will be the beginning of many changes related to the way AMC's and portals are regulated. Msybe the state of VA will make it illegal for any entity that handles appraisals to be held harmless in the protection of the integrity of the report as sent by the appraiser.

 

[DWiley]

With all due respects Mr Wiley, do you approve of these hold harmless clauses that appraisers are being forced to sign and what did the foundation and ASC have to say about these matters?

Mr. Meyer,

As a business owner, I never prefer language that might increase my risk. However, whether I approve or disapprove of such clauses is irrelevant. They exist, and we must all make a business decision with regard to agreeing to them.

It does seem that some (many) have agreed to such clauses in the past but may not been aware of it. How else does one explain the uproar over the AP agreement and the silence over the clauses in other agreements?

On a side note, as stated in the letter that was posted, my E&O policy has always covered only me; it has never covered my client or any party outside my company. My clients have never been covered by my E&O, regardless of how I deliver the report.

As for the Foundation and the ASC, if you want their opinion you need to contact someone affiliated with one of those groups. I am not, and I cannot speak for them.

DW

 

[Workbox]

Plus, a big difference, we were not forced to use AlaMode in a coerce manner, when compared to ACI, Lighthouse and AP. When all the time PDF was sufficient. These companies, other than Alamode, created this environment and they are trying to get out of it. What is so wrong with us trying to protect ourselves? If we are not going to be covered, why even bother paying for E&O?