Background checks again.

[Adios]

You can consider yourself whatever you want but if the sources that provide your work want a background check you'll either provide one or sit on the bench. That may work for you in your moms basement, but others have adult lives and ends to meet.

None of my direct clients, or any of the AMC I work with, have requested BC yet. When they do, if they do, I'll decide if they are worth it. If it is a trend and more and more want it, I'll have to do it. I won't pay for them though.

And as I indicated earlier in my 3M example, it's not just about employee/employer relationships. That R&D scientist is miles above your pay grade and his compensation from 3M as a sub contractor included being flown to CT., provided a private car and hotel accommodations for how ever many weeks/months the project/assignment lasted, and a great salary among other perks. But first he had to pass a background check. This was no skippy appraiser.

The background check train has left the station. Resistance is futile.

I do understand the angst. But appraisers must realize there is a lot of scrutiny on fee panel management policies, practices and procedures.

The biggest push back I get from clients is they want an easy button. Well they cannot have one. They actually must do the work. Due diligence is expensive and time consuming.

 

[Delta85]

The background check train has left the station. Resistance is futile.

I do understand the angst. But appraisers must realize there is a lot of scrutiny on fee panel management policies, practices and procedures.

The biggest push back I get from clients is they want an easy button. Well they cannot have one. They actually must do the work. Due diligence is expensive and time consuming.

The focus on background checks is a waste of time and a distraction. If clients want due diligence and good reports they should spend more time actually interviewing appraisers, analyzing resumes, and checking references or working with AMC that do this......AND pay full fee rates to the appraisers that pass this level of scrutiny.

 

[Evincere]

I knew it was you.

Joan. You are amusing, its true. Sometimes you even offer up profoundly stunning albeit idiotic logic. But you are not very smart.

That aside, no business woman with any modicum of professional acumen, diplomacy or discretion would come to an Appraisers forum peddling bc's, imply or try to give the impression that the majority of Appraisers are denizens of the dark trying to hide a colorful history, because they refuse to subject themselves to your buzzy body, untrustworthy business ventures.

Yes, it must be granted that you have stamina which does not necessarily equate to dignity, especially when it comes to what you will endure to bolster your profit margins.

 

[Meandering]

The background check train has left the station. Resistance is futile.

I do understand the angst. But appraisers must realize there is a lot of scrutiny on fee panel management policies, practices and procedures.

The biggest push back I get from clients is they want an easy button. Well they cannot have one. They actually must do the work. Due diligence is expensive and time consuming.

Joan,

Did you actually read the IG's report at:
http://fhfaoig.gov/Content/Files/AUD-2014-008.pdf ?

Nothing there about background checks.

Nope not there.

What appraisers need to realize is that they are NOT employees. They are supposed to be independent business people and as such, should conduct their business in a manner that reflects a business.

When you burn out the bottom feeders, the rest of us that recognize our personal information is valuable and is not to be given away to be sold over an over again like some defective product in a clearance box, will be very happy to repeat NO to you and your "clients" over and over. Those appraisers that run real businesses, understand that the credit and background check needs to be on the business that is expecting payment options and terms that are other than when services are rendered.

Of the 52,000+ appraisers that submitted appraisals through the UCDP in 2013, 2 of them had licenses that were suspended at the time the appraisal was uploaded to the UCDP, but no one is even sure if their licenses were valid at the time they did the appraisals.

However, in the same time frame,

About 4 AMCs closed up shop, most owing appraisers money.

But when you look at the numbers in the IG report, the average number of appraisals completed per person is like 3 a month.

Your "best of the best" clients pay between $200-$350 per appraisal, so we're talking about appraisers grossing $600-$1,050 per month, or$7,200- $12,600 a year.

In the real world, that's

$7,200-$12,600 annual income

Fixed Expenses
($750) E&O insurance
($550) MLS fees
($800) CE classes per year
($160) Annual License Renewal apportioned
($600) Internet Expense ~ ISP
($647) Annual Appraisal Software with flood maps
($1,440) Smart Cell phone with data plans - Annual
($350) Annual reserve for computer/printer/technology replacements

Sub total Fixed Expenses: ($5,297)

Variable Expenses (Discretionary)
($4,800) Gas Tires, Oil, Registration, Car Insurance, Repair Expense
($400) Office Supplies, paper, ink, folders, yada, yada,
($1,800) Annual reserves for auto replacement
($300) Portal Fees
($400) Deeds, Mortgages, Additional database fees
($1,000) Professional Organization Dues
($50) Clearbox

Subtotal Variable Expenses ($8,750)

Total All Expenses ($14,047)

Expected Net Income $0

Expected Net Losses ($-6,847-$1,447)

Pretty soon,

Inflation is going to catch up to those social security checks of the moms and dads that are supporting some appraisers, or,
The car is going to blow an engine or transmission and there will be no money to replace it.

Either way,

Those of us left, will be sad to see them go. But, our sorrow will be softened by watching you and your clients go right along with them.

.

 

[gregb]

The background check train has left the station. Resistance is futile.

I do understand the angst. But appraisers must realize there is a lot of scrutiny on fee panel management policies, practices and procedures.

The biggest push back I get from clients is they want an easy button. Well they cannot have one. They actually must do the work. Due diligence is expensive and time consuming.

NONE of my clients has asked for a background check. That train is in your imagination and pocket-book aspirations. No angst, you really need to get better bedside manners if you are going to doctor up. Fee panel management policies, practices and procedures and due diligence is more than clicking a clearbox box, it means lenders need to know their appraisers and their qualifications by spending time and knowing them...no easy button clearbox twiddle.

 

[SutnNC]

There is no distraction. All of those things are part of the due diligence process.

Why not just pick up the %^&^%$# phone or sit XYZ appraiser down for an interview? Layers upon layers of $%!] just adds up to a bigger pile of $%!]. How does a big honking pile of $%!] add up to due diligence?

Doesn't all the "stuff" just add up to a whole bunch of "pretend" and meaningless nonsense while avoiding a real solution; when a more meaningful result could be found with actually contacting the person, meeting them and interviewing them?

Does this make too much sense?

 

[Delta85]

If I were a lender I'd be more concerned with recruiting local, competent appraisers than the very small % that MIGHT have something criminal in their background.

But they don't want local, competent appraisers in the first place and the distraction of this BC marketing blitz is just enough smoke screen to make the powers that be feel cozy and warm enough that they are doing something proactive (but does not effect the fast and cheap they want).

And by the way, the real blame for fast and cheap are the lenders who hire the AMC, not so much the AMC themselves. They know what's going on, they don't attempt to change things or fire the AMC or demand they recruit quality local talent and pay them going rates. It's the old monkey thing....see no evil, speak no evil, hear no evil.

 

[The Warrior Monk]

FWIW, I very recently had a background check done by a potential major client. Guess who paid for it?






Hint: Not me!

 

[hastalavista]

FWIW, I very recently had a background check done by a potential major client. Guess who paid for it?
Hint: Not me!

This is/has been my position all along.
I think a client has the right to get a background check on a vendor it is considering using.
Likewise, I have the right to pass on the opportunity to work for that client.
But, if the client wants a background check, I think the client should pay for it.

Background checks are common in many industries, and prior to the age of megadata on the Internet, they were done as part of the interview process (i.e., calling references and confirming prior work history).
But when I apply to work for XYZ Corp., I don't have to pay their HR Department before I interview with them. And, if I pass the initial interview, I don't pay for any additional research before (or after) they decide to offer me a job.

I want to work for you.
You want a background check.
If I still want to work for you after you require a background check, I'll sign the authorization.
You pay for it.
It is that simple (for me).

 

[Eli]

Joan,

Did you actually read the IG's report at:
[URL]http://fhfaoig.gov/Content/Files/AUD-2014-008.pdf[/URL] ?

Nothing there about background checks.

Nope not there.

What appraisers need to realize is that they are NOT employees. They are supposed to be independent business people and as such, should conduct their business in a manner that reflects a business.

When you burn out the bottom feeders, the rest of us that recognize our personal information is valuable and is not to be given away to be sold over an over again like some defective product in a clearance box, will be very happy to repeat NO to you and your "clients" over and over. Those appraisers that run real businesses, understand that the credit and background check needs to be on the business that is expecting payment options and terms that are other than when services are rendered.

Of the 52,000+ appraisers that submitted appraisals through the UCDP in 2013, 2 of them had licenses that were suspended at the time the appraisal was uploaded to the UCDP, but no one is even sure if their licenses were valid at the time they did the appraisals.

However, in the same time frame,

About 4 AMCs closed up shop, most owing appraisers money.

But when you look at the numbers in the IG report, the average number of appraisals completed per person is like 3 a month.

Your "best of the best" clients pay between $200-$350 per appraisal, so we're talking about appraisers grossing $600-$1,050 per month, or$7,200- $12,600 a year.

In the real world, that's

$7,200-$12,600 annual income

Fixed Expenses
($750) E&O insurance
($550) MLS fees
($800) CE classes per year
($160) Annual License Renewal apportioned
($600) Internet Expense ~ ISP
($647) Annual Appraisal Software with flood maps
($1,440) Smart Cell phone with data plans - Annual
($350) Annual reserve for computer/printer/technology replacements

Sub total Fixed Expenses: ($5,297)

Variable Expenses (Discretionary)
($4,800) Gas Tires, Oil, Registration, Car Insurance, Repair Expense
($400) Office Supplies, paper, ink, folders, yada, yada,
($1,800) Annual reserves for auto replacement
($300) Portal Fees
($400) Deeds, Mortgages, Additional database fees
($1,000) Professional Organization Dues
($50) Clearbox

Subtotal Variable Expenses ($8,750)

Total All Expenses ($14,047)

Expected Net Income $0

Expected Net Losses ($-6,847-$1,447)

Pretty soon,

Inflation is going to catch up to those social security checks of the moms and dads that are supporting some appraisers, or,
The car is going to blow an engine or transmission and there will be no money to replace it.

Either way,

Those of us left, will be sad to see them go. But, our sorrow will be softened by watching you and your clients go right along with them.

.

Wow, very good post. That last part is a fact based on a typical 1004 with many AMC's, unless that appraiser cannot get a job anywhere else, which says a lot about them (idk though, maybe they are rich and just love low paying/commingling AMC's). I am not saying that is the case today, because I am sure that there are some very good appraisers still doing it, but it won't last. So, if your an appraiser working for one of these giant AMC's that is doing the fastest and cheapest thing with combined AMC/appraisal fees, I would say your job security is about as low as it gets in the short term. Especially with the regulatory environment changing.

Very good post Marion although I still don't think all taking the low fees are bad appraisers however I have no doubt that the credentials/qualifications/competency of the appraisers that are taking the low fees has been and is decreasing steadily in general or as a whole. Not good for that business at all with the state/federal government appearing to be watching closer. And I think this train is just now boarding....