The New Appraisal Industry

[George Hatch]

You think there’s some mountaintop with men of high ethics and morals that work as “lenders”? The better the salesman, the higher up you go.

Not at all. It's not about implying the lenders are categorically more honest or more ethical than the sales types. It's about limiting the control and the accountability to the people are actually using the appraisals for their stated usage.

The salesmen use appraisals as advertising for their deals, not to make any lending decisions. They're not making decisions about the employment or the credit history or the income or the LTV. It's not their money that's going out the door or is being represented to the secondary market investors. That's why the salesmen's idea of what a good appraisal is or how good the appraiser is will be limited to whether or not they can make the deal.

 

[ZZGAMAZZ]

The people you are calling "lenders" are not lenders. Stop calling them that. They're sales people, just like the people who sell cars and homes and vacuums and solar.

They have no legitimate business even touching an appraisal report until after the (actual) lender makes their decision and distributes the borrower's copy to them. .

Don't they work for entities that issue the mortgage even if the ordering function must be segregated from the decision-making unit?

 

[Non Sequitur]

Another example of the "new" appraisal industry (posted on LinkedIn):

 

[djd09]

You think there’s some mountaintop with men of high ethics and morals that work as “lenders”? The better the salesman, the higher up you go.

they still think the mb has been cut out of the loop...

 

[Surf Cat]

Another example of the "new" appraisal industry (posted on LinkedIn):

So....."meaningful". It's hard to believe that a licensed, certified, appraiser is only worth $115 to write up a full 1004 sans inspection.... which actually makes it harder.

The appraisers accepting these have very little self-worth.

 

[chad hampton]

they still think the mb has been cut out of the loop...

I wonder if I had been involved back then and been one of these appraisers who fought so hard to hand their business over to AMC‘s if I would still be hanging onto that logic and defending it or if I would be one to just admit that I ****ed up and beg appraisers for forgiveness

Dealing with the occasional pressure from a lone wolf mortgage broker seems like a small problem compared to today’s dumpster fire of a profession.

 

[chad hampton]

I read today about an appraiser who was just sent a 2055 from class for $180

And I thought the 250 I was doing them for 20 years ago seemed a little low.

 

[djd09]

I wonder if I had been involved back then and been one of these appraisers who fought so hard to hand their business over to AMC‘s if I would still be hanging onto that logic and defending it or if I would be one to just admit that I ****ed up and beg appraisers for forgiveness

Dealing with the occasional pressure from a lone wolf mortgage broker seems like a small problem compared to today’s dumpster fire of a profession.

...coester used to say they are not in the business to kill deals

 

[djd09]

I read today about an appraiser who was just sent a 2055 from class for $180

And I thought the 250 I was doing them for 20 years ago seemed a little low.

i used to collect 350 at the door in 1999....hello parea

 

[chad hampton]

Imagine that, just like every other business in the world you collect at the time the service is provided. These guys are such scam artists. I remember when it became clear they were handing the entire profession over to these new companies. I assumed we would still be collecting at the door and AMC would be getting their fee from the lender who was now being told they had to use them. That would have made too much sense. They have to do their business in the shadows, can’t have that sort of transparency.

Once I saw how the model was being set up, I knew what was coming.

I wonder if they ever got together at the breakfast club and threw around the idea of the appraiser being the one to collect the check from the borrower and then once a month sending the AMC a portion of it?