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AMC stating appaisers must have authorization to complete.

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cmitchell

Thread Starter
Sophomore Member
Joined
Jul 17, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
All reports “as is”, except incomplete new construction, or properties with heath, safety, or habitability issues. For new
construction and health/safety/habitability issues, photos of any incomplete items, with a cost to cure. (Please make sure ****​
has given authorization for you to proceed before completing report with health, safety, habitability issues).

this was stated on a FHA order.



 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
All reports “as is”, except incomplete new construction, or properties with heath, safety, or habitability issues. For new​


construction and health/safety/habitability issues, photos of any incomplete items, with a cost to cure. (Please make sure ****
has given authorization for you to proceed before completing report with health, safety, habitability issues).

this was stated on a FHA order.




Report them to the HOC of FHA that covers your market(Philadelphia). Here is the link:

http://www.HUD.gov/offices/hsg/sfh/talk/addr_phi.cfm
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
It is one thing for a Lender to play stupid or not to be totally up to speed on Appraisal Guidelines and Procedures. But for an AMC to come out with a policy to blatantly go against FHA or Fannie guidelines, that is just plain FRAUD. Who regulates these clowns...... I know, nobody.
 

cmitchell

Thread Starter
Sophomore Member
Joined
Jul 17, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
An employee of the AMC just informed me that the lender makes a decision to proceed or not than takes an addendum from the appraiser regarding the issues and sends it to HUD and kindly pays a trip fee. He also stated that most are not cancelled but the lender wants the option plus the internal policy helps keep appraisers from over stating repairs or inspection.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
An employee of the AMC just informed me that the lender makes a decision to proceed or not than takes an addendum from the appraiser regarding the issues and sends it to HUD and kindly pays a trip fee. He also stated that most are not cancelled but the lender wants the option plus the internal policy helps keep appraisers from over stating repairs or inspection.

Under USPAP and various FHA and banking regulations, the lender does not get the option of making the appraisal order (and your fee) contingent on the outcome of the assignment. The lender also does not have the option of pressuring appraisers to ignore required repairs. Report both the lender and the AMC to the HOC.
 

Mike Phillips

Senior Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
Florida
It is one thing for a Lender to play stupid or not to be totally up to speed on Appraisal Guidelines and Procedures. But for an AMC to come out with a policy to blatantly go against FHA or Fannie guidelines, that is just plain FRAUD. Who regulates these clowns...... I know, nobody.

Disagree. It is just plain stupidity. They think they can "shape" FHA appraisal guidelines the same way they do with Conventional guidelines. I just hope FHA doesn't roll over and let them get away with it.

More, much more of this to come as more AMCs get involved. I can't wait to see how FUBAR the "AMCs mananging FHA appraisers" situation gets when the FHA ball really starts rolling. The AMCs aren't ready for FHA.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
All reports “as is”, except incomplete new construction, or properties with heath, safety, or habitability issues.

That's correct for HUD/FHA appraisals.

For new construction and health/safety/habitability issues, photos of any incomplete items, with a cost to cure.

The AMC's client want's to know what they're getting into so they can make some decisions. Nothing wrong here.

(Please make sure **** has given authorization for you to proceed before completing report with health, safety, habitability issues).

They have communicated their assignment conditions which is more than most clients/AMC's do.

What's the problem?
 

Mike Phillips

Senior Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
Florida
An employee of the AMC just informed me that the lender makes a decision to proceed or not than takes an addendum from the appraiser regarding the issues and sends it to HUD and kindly pays a trip fee. He also stated that most are not cancelled but the lender wants the option plus the internal policy helps keep appraisers from over stating repairs or inspection.

WOW. That sounds to me like the process of weeding out the FHA appraisers who follow FHA guidelines has already begun. There is already a push to force/influence the appraiser NOT to call for repairs in order to get paid. Not good.

My prediction? I see a major pizzing contest brewing. The factors are:

(1) The AMC attitude that they can push appraisers around and,

(2) The fact that some FHA appraisers will no longer be able to do FHA assignments in the near future, which will likely increase t-times and force fees upward.

The combination of the two is not good.

I'd be thinking long and hard before I started doing FHAs for an AMC.
 
Last edited:

Mike Phillips

Senior Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
Florida
What's the problem?

Did you catch "trip fee?"

What does (1) do the research, have the report ready to be delivered within 24 hours after inspection (2) in the event of required repairs "let us know ahead of time before proceeding" (3) "trip fee" and (4) "keep appraisers from over stating repairs or inspection" add up to in your world?

I miss something?
 
Last edited:

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
An employee of the AMC just informed me that the lender makes a decision to proceed or not than takes an addendum from the appraiser regarding the issues and sends it to HUD and kindly pays a trip fee. He also stated that most are not cancelled but the lender wants the option plus the internal policy helps keep appraisers from over stating repairs or inspection.

Sounds like a contingent fee appraisal to me. Full fee contingent on an "as is" appraisal. If not "as is", fee will be reduced to a trip charge. Cut, slice, reconfigure any way you want but it looks like a contingent fee to me.
 
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