PAREA Update

[jay trotta]

So it seems you're forgetting one very important aspect - AMC's don't just 'skim off the top' and count their money. They are engaged to perform specific functions - as are appraisers. And the users of AMC's pay them for said functions. Sometimes the fees are bundled, and sometimes they're not (as is the case in my world). Regardless - the AMC clients are paying the AMC's for specific services - not just for grabbing some of the fee and running to their castle to count the money.

So why are they deceiving the Public? No accountability?

 

[alebrewer]

Why should appraisers be subsidizing the service that benefits lenders, from our income?
Isn't that socialism and govt interference wrt you usually rail about...

If it were true - yes. The fact is, though (and it's been cited ad nauseum) - the appraiser is paid exactly what the appraiser agrees to perform the services for. In your example, the AMC's are stealing the appraiser's fee - which is simply not true - no matter how much you'd like it to be so.

 

[alebrewer]

So why are they deceiving the Public? No accountability?

Like en masse? Or just a few? How are they deceiving the public?

 

[J Grant]

If it were true - yes. The fact is, though (and it's been cited ad nauseum) - the appraiser is paid exactly what the appraiser agrees to perform the services for. In your example, the AMC's are stealing the appraiser's fee - which is simply not true - no matter how much you'd like it to be so.

REgardless of the corporate spin that the appraiser is paid exactly what the appraiser agrees to perform -WHICH IS NEARLY ALWAYS LESS/SUBSTANTIALLY LESS when an AMC orders because that amount a appraiser "agrees to" is a split of the Bundled fee, and appraisers make more$ for the exact same order lender direct with no AMC split

And stop putting words in my mouth -I did not say the AMC's are "Stealing " the appraiser's fees -I told the truth, AMC's get paid a portion of the split they keep out of the appraisal fee with the remainder going to the appraiser, which stinks even if the appraiser "agrees " to it - the only reason appraisers end up agreeing to being paid sub par is because of the huge market share the AMC;s hold , due, in a perfect loop , to the AMC tremendous competitive unfair advantage of being able to offer service to lenders which are free of actual cost out of pocket to the lender

Why are you even bothering to defend it any longer ? We all see through it, the goal has been accomplished, appraisers are marginalized , the stakeholders got their way a..

What the stakeholders can't do though is get idiots to do the littler mentorship left or be able to keep anyone around who was naive enough to be lured in by PAREA - who will be lining up for a "career" of being fed spin about why the fees are miniscule and work uneven and pressure intense - when individual appraisers can not compete against the third party presence due to the regs -the lesser amount of high value/complex/non AMC work will go to experienced appraisers already doing it so what is left for newbies ? Scraps and crumbs I feel sorry for them.

 

[alebrewer]

What the stakeholders can't do though is get idiots to do the littler mentorship left or be able to keep anyone around who was naive enough to be lured in by PAREA - who will be lining up for a "career" of being fed spin about why the fees are miniscule and work uneven and pressure intense - when individual appraisers can not compete against the third party presence due to the regs -the lesser amount of high value/complex/non AMC work will go to experienced appraisers already doing it so what is left for newbies ? Scraps and crumbs I feel sorry for them.

Question: If you were/are working a minimum wage job, and someone tells you that, because of a diversity initiative, you can get most to all of your schooling paid for (assuming you're a woman or person of color) in working toward an appraiser certification. And then they tell you that the sky's the limit, that you can set your own hours and fees, etc. Would you not be tempted to do exactly the same thing that you're busting on folks for doing?

 

[djd09]

What is an Appraisal Management Company (AMC)?​

An Appraisal Management Company (AMC) is a company that works independently as a middleman between real estate appraisers and lenders. In other words, they are a management company that will act on behalf of appraisal users. AMCs include a group of licensed or certified appraisers.

Why are Appraisal Management Companies Important?​

Appraisal management companies are important for several reasons, including:

1. Independent​

Firstly, since AMCs are an independent company in the situation, they can help with reducing any fraud situations or potential losses. To be explained further, it can reduce fraud because it separates the lending and appraisal process while providing an outsider’s opinion.


AMCs are important for removing forms of risk and possible collusions during the appraisal period. it is vital to the borrower that will be purchasing the property. Moreover, it can reduce costs in the long run as AMCs can become quite efficient in their service in comparison to a company taking on both the lending and appraising.

2. Prevents overpaying​

AMCs help prevent borrowers from overpaying for their property because they can acquire appropriate appraisals without any bias. They can protect the consumer by offering a service without any bias. They can be important for appraisers because they can provide them with work but also handle administrative tasks for them so they can focus on the actual task of appraising.

3. Qualified and compliant​

AMCs are important for borrowers and lenders because they can provide peace of mind since they ensure the appraisers possess proper qualifications and follow regulations.

https://corporatefinanceinstitute.c...real-estate/appraisal-management-company-AMC/

AMC's are like a virus, they need a host to survive...any mask or vaccine will not cure your ills

 

[J Grant]

Question: If you were/are working a minimum wage job, and someone tells you that, because of a diversity initiative, you can get most to all of your schooling paid for (assuming you're a woman or person of color) in working toward an appraiser certification. And then they tell you that the sky's the limit, that you can set your own hours and fees, etc. Would you not be tempted to do exactly the same thing that you're busting on folks for doing?

I am not "busting on folks" for doing it! (weird language ) I am not blaming young people/minorities whoever is drawn in by this offer of PAREA and being misled about the field.

I am saying they are being LIED to , or at best sold misleading spin, - I am busting the hypocrites using PAREA to lure minorities into a dead end profession which is to a large degree what the mortgage lending end has become.

The online schooling is paid for - so what? How is the min wage person supposed to pay for all the time off from work they need to devote to school? Even if they find a way to do that, the agencies ore entities telling them the sky's the limit -? Due to the AMC's you defend, there is sharply lower income potential, a grind in churn and burn volume if they hope to make even the basic sustainable wage, - set your own hours, yes but have to deliver under pressure - set your own fees - really? An appraiser can "set their own fee" with an AMC but then get no work, if they get underbid or fee compared to someone charging $20 less.

 

[alebrewer]

I am not "busting on folks" for doing it! (weird language ) I am not blaming young people/minorities whoever is drawn in by this offer of PAREA and being misled about the field.

I am saying they are being LIED to , or at best sold misleading spin, - I am busting the hypocrites using PAREA to lure minorities into a dead end profession which is to a large degree what the mortgage lending end has become.

The online schooling is paid for - so what? How is the min wage person supposed to pay for all the time off from work they need to devote to school? Even if they find a way to do that, the agencies ore entities telling them the sky's the limit -? Due to the AMC's you defend, there is sharply lower income potential, a grind in churn and burn volume if they hope to make even the basic sustainable wage, - set your own hours, yes but have to deliver under pressure - set your own fees - really? An appraiser can "set their own fee" with an AMC but then get no work, if they get underbid or fee compared to someone charging $20 less.

Not necessarily a lie, but I agree - a positive spin on the long term prospects of appraising in the lending world is Pollyannaish at best.

 

[djd09]

When will AI’s PAREA be ready?​

The AI PAREA program will be ready for participation no later than September 2023.

What is the cost to take the PAREA program?​

AI will provide the cost once it has been determined.

 

[djd09]

PAREA vs Traditional Appraisal training — which will help recruit new appraisers?​

CoreLogic
2.24K subscribers



442 views Apr 19, 2022
Craig Morley discusses PAREA, traditional appraiser training, and how to solve the issue of needing more trained appraisers.

shawn telford alalogic...there is a demand for the progam...but only got 442 views minus me