It worked!
Below, I've posted their response and my response to their response. I eliminated the correspondents name as (s)he is not the company, merely the messenger.
---______________@sourceoneservices.com> wrote:
> Hello Ruth!
>
> I received the letter that you sent over
> to us. I will go ahead and cancel the order with
> you. Here is a response to the letter that you sent.
>
>
> 1. When there is delay on an order that is beyond
> your control we take that in to consideration and we
> do not just cancel an order. We place that order on
> hold until the problem has been solved and we never
> reduce or withhold payments for appraisers.
> We have hundreds of appraisers a day that receive
> that same order form and never once have we received
> a complaint that the tone of this order is
> insulting.
> Also we are not asking you to violate your standards
> and ethics to please our turn time demands. If you
> could not complete the 2055 drive by appraisal in
> the turn time that you quoted because of something
> that was beyond your control then all you had to do
> was call. If you were having a problem locating a
> property we here at Source One Services would have
> been glad to help locate the property for you.
>
> 2. ...I would also like you to know that we are paying you
> $175.00 more than our normal fee for a 2055 drive-by
> appraisal so we hope that if you had to mail the
> hardcopies that an overnight fee would not be a
> problem. ... > (FYI - my fee was $300, which means they normally pay $125)
>
> Thank you for your time and understanding
MY RESPONSE
Hello _________!
The purpose of this letter is informational, not confrontational. I wish to improve the relationship between appraisers and their clients. Only frank discussion of conflicts can produce improvement.
1. The order form is a contract for services. It would be enforceable as written, not as intended. The order does not say we MAY reduce, delay or withhold payment for failure to complete or deliver as outlined WITHOUT CAUSE. It says, "Failure to complete and deliver results as outlined below WILL RESULT IN Reduction, Delay or Loss of Payment".
The contract should say what it means. I took it as it was stated.
SUGGESTION: If the company expects others to do business with them on a trust me unless I hurt you basis - it should offer the same trusting attitude back. This chastising statement presumes a problem, and creates an imbalance in the relationship. Good appraisers are highly educated, ethical and proud of their profession. Would the professional that I just described accept the demeaning terms that this order states? Food for thought.
2. I submit, that under the threat on the order form, the appraisers willing to subject themselves to those terms, especially while accepting the starvation level fees impressed on them, are unlikely to be performing USPAP compliant data gathering, verification and analysis on every report. If they are too timid to complain, can you expect that they are not likely to just get it out in time, regardless of standards?
3. I submit, that if the company has knowledge of what is required to produce an appraisal report (read the Limitations and Certifications pages carefully - then read the Fannie Mae Announcement sent to Lenders recently), they should realize that the regulated extensive research, verification and analysis is unlikely to be completed for $125 no matter how computerized the research data is. The processes required to develop a USPAP compliant opinion of value are the same, regardless of the form on which the opinion is delivered.
A "driveby" doesn't mean that you drive by and pull an educated guess at value out of the air. It merely limits the scope of the subject inspection. All of the processes must still be performed, and the documentation must be retained in the appraisers file. The 15 to 30 minutes that we do not spend measuring and documenting interior condition, are offset by typing the extra disclosures, and by research and trips to the Assessors office to ascertain the dimensions of the building.
I understand that a lack of understanding of the process of appraisal, and the acceptance by some of a fee that does not leave even minimum wage after business expenses are paid, leads you to believe that $125 is an adequate fee. I believe that it is the result of the ongoing financial assault on the appraisal profession. And that it has produced a set of appraisers so starved for business that they have forgotten, or never fully understood, their responsibilities under USPAP.
If the goal of the company is to obtain an ethical and compliant appraisal, put my theory to the test. Add this statement to your order form:
"By accepting this order, the appraiser verifies that they have read, understand, and will perform diligently, all processes as required by Fannie Mae and by USPAP, and as stated in the standard Limitations and Certifications statements attached to the appraisal form requested." See whether those thousands of appraisers balk at acknowledging acceptance of those terms for $125! By the way, all of the appraisers that I associate with would be happy to see that statement on every order that they get.
