AMC Appraisers--seriously?

[Bearslide]

While Stacey may be a Mortgage Broker, that should not condemn her to instant death. There are a few good ones - granted - few. Sounds to me like she has the smarts to understand an appraisal to some degree and has picked up on some flaws in the report. The photo thing is inexcusable. So is the spelling - no excuse. The language is less than professional and does not belong in an appraisal report.

I'm glad to hear Stacey has complained to the AMC - but I think the lender also needs to know about the complaint. I highly doubt the AMC will forward it on. Are you kidding me? Let a lender know they hired an incompetent idiot? Isn't the AMC mantra "equally qualified" and those of us who refuse those low fees because we know the quality of the work we produce are now "irrelevant"? Isn't that the song and dance being played in two other threads? The AMC's have - and will continue - to cover up their mistakes so they can keep that greed machine rolling.

Mike K is correct - the responsibility lies at the TOP.

IMO, Stacey has merely given us a real life example of what we have been saying all along - the lenders are getting exactly what the AMC's are paying for.

 

[Kevin Mc]

Furthermore there is a thing called spell check which would eliminate many mistakes. Most of us "professional appraisers" use this feature. Makes me wonder.

The lack of using spell check would not eliminate most of the "mistakes" of the reports I am reviewing of late. Poor spelling is the least of the problems.

 

[PropertyEconomics]

Its not just occurring in SFRs either. Many commercial reports today are written very poorly. We seem to have a wave of bad work all of the sudden across our industry.

 

[GCJim]

Stacey,
As you can see, there is much anger and frustration out there, I believe primarily due to the HVCC and many (if not most) of the AMCs' modus operandi. As you can also see, something or things is/are broken out there in mortgage lending land.

I think we would all have to be very naive to think that the current 'rules' of the game (so to speak), are EXACTLY as bankers planned it. (Greedy is one thing, but stupid and unsophistcated they are not). For all we know, the bank you work for might be a major owner of the AMC you describe.

YES, there are incompetent appraisers, no matter what their license level or designation. No excuses there whatsoever! The system right now, however, is set up to reward the 'fastest & cheapest'. (I have enough proof of this to last many lifetimes).

There is an old saying, some might say from 'business 101', that seems to apply to many products and services across the board. I personally think this is one of those universal 'laws' in business (almost like a law of physics, if you will):

'High Quality, Low Price, Fast Service-------PICK ANY TWO.' (OR, 'you get what you pay for'.) I believe that, as hard as people try to violate this little ditty, it is very difficult to pull off. When it IS violated, things go wrong. I think AMC's were basically designed to try to violate this principle, and to profit off the backs of appraisers. Something will definitely GIVE at some point.

Just a couple of questions:
1.) What type of employees / workers are most attracted to a 'fastest & cheapest' model? [I think I know the answer.]
2.) Do you now believe many (if not most) of the AMCs' basic sales pitch to potential clients (basically, 'quality appraisals within a very short time frame')? [I don't].
3.) Do you think you got what you paid for? (Careful now-----for this you have to look to see what YOU paid the AMC, and then you need to look at what the AMC paid the appraiser. You don't have to tell US, just take a look and examine your own thoughts. Odds are, someone may be misleading you.......)

 

[staceyuw]

I am amazed that this Underwriter is under attack. The way I read it, the appraiser didn't use the best comps, and knew it, so he was trying to cover his hindquarters with the fruit salad comment.

Everything in this post is confirming what the forum has been warning about for years regarding AMCs. Why do appraisers treat everyone and everything like the enemy, and then wonder why we are always left out in the cold with no political say in the process? We have all the outsiders finally agreeing with us about AMCs, and instead of joining forces to eliminate them, we throw them under the bus to defend the AMCs.

I don't get it.

All agents are crooks, all lenders are crooks, all brokers are crooks, all underwriters are stupid and/or in on the fix, most appraisers are incompentent and/or crooks except for the chosen few of the forum. No wonder we have the politcal power we do and the state of our profession is in what it is. The way any non-appraiser is treated when they dare post on the forum can be down right embarassing at times, and this is one of them. It sure would be interesting to hear more from underwriters, loan officers, agents, to get perspective from all sides and to maybe educate them better of the process, but we chase them all away.

**My knight in shining armor. Thank You! Let me clarify. I underwrite conventional loans for the bank, we keep a small portion in our portfolio. I also process loans for my loan officer at the bank and those loans go to investors who underwrite those loans -- some FHA some conventional.

When the loan goes to the investor I have to order the appraisal thru that particular investor's AMC. The 2 I have used is LSI and Landsafe. When I have my processor hat on and the underwriter is requiring changes to the appraisal then I contact the AMC and submit the request for the changes. Sometimes the revisions are ridiculous, sometimes they are not. But I have noticed a huge increase in the revisions they want now then when we ordered the appraisals ourselves. Which was the point of my original post. For me, the system was working just fine prior to the HVCC.
And let me repeat I haven't had ANY problems with the value's I have received from either my regular appraisers OR the appraisers from the AMC.

 

[NC Appraising]

Stacy,

Thanks for the insight, and please keep posting here. :blush:

 

[Bearslide]

Ditto to NC - we need to hear from the other side. And thanks, TJ - you said it right.

There is a lot of anger here, Stacey - but it shouldn't be directed at you. I too hope you will keep posting.

 

[Mike Kennedy]

to those who think because he gave low values I called him incompetent. NO!@, not at all. It is because he can't properly fill out the 1004MC, there are always 50 typos in every report, he has taken pictures of the wrong subject property more than once. ** it seems the appraisers on this site have such a chip on their shoulders towards brokers. When in fact, this broker has never attempted to influence value, and has a great working relationship with a number of the best appraisers in my city!

Stacey, my comments targeted the "powers that be" who insist on supplying that (a)ppraiser with assignments to the exclusion of Competent & Ethical Appraisers. They were not meant as a slight, "dig", or sarcasm regarding your personal or professional competency nor ethics. They were aimed at the "system" and those WITH the legal obligation for Appraisal and Appraiser Selection.

Re the (a)ppraiser:

See USPAP Standards Rule 1(c)

(c) not render appraisal services in a careless or negligent manner, such as by making a series of errors that, although individually might not significantly affect the results of an appraisal, in the aggregate affects the credibility of those results.​

Should my earlier posts have been misconstrued - you have my apology.

Please DO continue to participate actively on the Forum - and invite some Colleagues of your ilk. Thanks.

 

[GCJim]

Stacey,
I agree with the posters who feel that the forums here can be rather harsh on those not considered to be 'insiders' around here.
I, also, was not intending any personal 'digs' toward you, but rather, toward the new 'system' we all find ourselves forced, more or less, to work under.
Many of us are simply extremely frustrated, and many have grown increasingly cycnical as we all watch what is happening to our end of the residential lending industry. Many of us obviously believe that the appraisal is a critical aspect of the process, and that the problems and solutions are (or should be) rather obvious to anyone willing to take a look at what is really happening.
Your insights are very valuable. Please, stick around and continue to share your thoughts and observations. We will undoubtedly learn from you and your perspective.
Cheers!

 

[staceyuw]

Here is a fun comparison. This is a underwriters revision request (whether or not it is a valid revision request is not the point here folks!!) from before HVCC--- When I was ordering the appraisal myself from one of our 15 appraiser list in town:

1. Appraiser to provide at least 1 comp with the same age as the subject property.


Now, here is a revision request from the underwriter on the appraisal that was ordered from their AMC AFTER hvcc:
Need appraiser to review and supply additional information and comments: Comps used are too distant- For suburban properties, need to be located within same market within 1-3 miles with supportive explanation Differences in square footage / basement and site size, have caused excessive adjustments There are recent sales located within 3 miles of subject, similar in square footage and site size and age, that should be considered, which do not support this value. 2.09 miles - 1152 Bumpus Mills Road sold 5/20/09 for $ 71,500 1517 sf 1 acre 2.13 miles - 543 HIckman Mills Road sold 11/17/08 for $ 120,000 1360 sf 1.09 acre 1.4 miles - 440 Hickman Shores Road sold 11/17/08 for $ 159,900 1920 sf .24 acre 1.47 miles - 871 Center Point Road sold 10/10/08 for $ 129,000 1344 sf 2 acres Appraiser to provide supportive sale with finished basement / additional 2 bedroom sale to support market acceptance and lack of room adjustments Re-verify date on sale # 2 (this is over 12 months old) Public records shows sale on 10/31/08. Predominant value is $ 90,000 - Need to comment as to what affect value exceeding predominant value has on the marketability.

EVERY single one of my appraisals ordered thru the lender forced AMC has a ton of revisions compared to the "old" way.