Appraisers, It's time to speak up

[NC Appraising]

Where have you been? There was just a ruling pertaining to this suit in the last week or few.

Class Action Over AMC Fees + Key Valuation Updates

www.appraisalinstitute.org

In my basement

 

[NC Appraising]

No one forcing someone in accepting the $145 fee.

But somone is forcing the buyer to over pay..for a so called an appraisal? They have no choice in the matter.

They were all about "saving borrowers money...reducing costs to borrowers".

That worked out well...the AMCs just kept it.


Give the overages to the borrower. Stop ripping them off.

 

[chad hampton]

If you could get 500 appraisers to show up at your board meeting, they would respond to that. Instead they bow to 1 random revaa guy that gets flown in. The only time I ever saw a state board realize they need to enforce laws was when it was a standing room only meeting. That woke them up.

Should have fought it 8 years ago like some of us were. Now it’s just a gig job. I don’t think state boards even care that the profession is about 5 years from going away. Not sure 1000 license holders in a state will be enough to the keep the board doors open.

 

[NC Appraising]

Well since we are not the borrowers we have no standing.

Candy is the rep with NAR.

Who do lenders rely on for business....realtors.

Realtors have the borrowers...

If a class action is dead or maybe they can start another one, maybe we can spread the word with NARs help on other issues.



The National Association of Realtors (NAR) is one of the largest lobbying forces in the United States, spending over $86 million on lobbying efforts in 2024 alone. This makes it the top individual lobbying spender that year, surpassing all other organizations. NAR's lobbying is focused on issues like homeownership, fair housing, and property rights at the federal, state, and local levels.

 

[djd09]

Appraiser/Whistleblower Wins $85 Million
By Isaac Peck, Editor

In what many see as a win for appraisers, as well as those lenders and appraisal management companies (AMCs) that do follow the law, Fifth Third Bank has agreed to pay nearly $85 million as part of a settlement with the U.S. Department of Justice (DOJ). The case deals primarily with fraudulent appraisal practices. The lead whistleblower in the case is George Mann, Fifth Third’s former chief appraiser.

The settlement is the latest in a string of appraiser whistleblower lawsuits that highlight unethical and fraudulent practices that violate appraiser independence and perpetuate appraisal fraud. Mann follows in the footsteps of Kyle Lagow, of Countrywide, who received $14 million in a whistleblower case that led to a $1 billion settlement between Bank of America (BoA) and the DOJ, and Robert Madsen, who received $56 million for his part in a $16.65 billion settlement, also with BoA. (See Interview: Appraiser Who Brought Down Countrywide, visit WorkingRE.com; click Library.)

Mann, and his co-claimant John Ferguson, will receive seven and one-half percent (7.5%) for their part in the Fifth Third suit as whistleblowers, which calculates to a tidy $6,368,326, before lawyers’ fees and taxes. The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which allows private parties to sue on behalf of the United States when they believe a company has submitted false claims for government funds.

Mann declined to comment for this story. Mann’s initial complaint was filed in June 2011, meaning that it took over four years to finally reach a settlement. Throughout the struggle, Mann writes that he often listened to Tom Petty’s song “I won’t back down,” advising appraisers to “give it a listen anytime someone wants you to compromise your ethics.”

Fraud, Pressure and Fees

The practices described in the suit reflect the worst of the industry’s abuses, echoing the same issues that appraisers continue to encounter and speak out about today: pressure to meet value, unreasonable turn times and low fees. According to the suit: “From 2004 through today, loan officers instructed, coerced, and/or intimidated staff into obtaining appraisals at below-market fees and with unrealistically short delivery times, which resulted in questionable valuations. In addition, lenders used the same methods of intimidation to pressure REVG staff and/or appraisers into raising values so loan conditions could be met.”

Appraiser/Whistleblower Wins $85 Million

The latest in a string of appraiser whistleblower lawsuits that highlight unethical and fraudulent practices that violate appraiser independence and perpetuate appraisal fraud.

www.workingre.com

...public trust they say

 

[Terrel L. Shields]

you feel better now ?

Stand up. Are you men or mice? Squeak up!

I never was good at jousting the windmills without falling off my horse.

 

[Sandra Koutsopoulos]

Over on the Fakebook forum someone posted a $145 hybrid URAR.

Then they posted the fee schedule from a AMC my state was 795.


What a freaking scam. Bunch of theives.

Consumers are getting ripped off from every direction these days, and they're beginning to notice. It's outrageous. Perhaps the time is ripe to blast this sort of info to the masses on news channels, social media etc. A friend of mine was absolutely shocked when I told her the appraisal fees we are asked to accept are nearly the same as 20 years ago. She said she's NEVER paid less than $500-$600 for an appraisal. I guess she thought I was the rich gal at dinner that night, but I set her straight. Initially it seems AMCs were taking 10%-15% out of the fee, and now the example above makes my head spin, and makes me angry too, because ppl think they are paying $795 to the appraiser for a professional, well considered appraisal, but really they're mostly paying the 'middleman his profit', while the appraiser faces financial and turnaround pressures, which aren't exactly conducive to serious in depth analysis. Borrowers are not getting the value for their money.

I think you've made a good case that consumers are not getting what they are paying for. And appraisers have lost financial incentive, and holders of mortgage securities often have superficial AI valuations without human eyes on their collateral, thereby making those valuations less reliable. Will the resulting loss of the majority of actual experienced appraisers happen? and will it even matter enough to lenders & borrowers to change the current system? Borrowers probably have the bigger hammer at this point.

 

[soucat]

The real problem is the borrower is paying the premium fee that they would pay direct to get a quality appraisal, and the AMC is trolling for the cheapest and fastest appraiser to pad their bottom line, who often produces a substandard product. It is unethical and degrades the quality of a key financial safeguard in mortgage lending.

 

[djd09]

Walitt Solutions Founder Joshua Walitt Appointed to the Appraisal Standards Board​

October 28, 2025 9:00 AM EDT | Source:​

Grand Junction, Colorado--(Newsfile Corp. - October 28, 2025) - Walitt Solutions today announced that its founder and principal consultant, Joshua Walitt, has been appointed to the Appraisal Standards Board (ASB) of The Appraisal Foundation, effective January 1, 2026.

The ASB is the body responsible for developing, interpreting, and amending the Uniform Standards of Professional Appraisal Practice (USPAP)—the national ethics and performance standards for the appraisal profession. Comprised of eight members appointed by The Appraisal Foundation's Board of Trustees, the ASB holds authority over the subject, style, and content of USPAP, as well as related guidance and communications.

https://www.newsfilecorp.com/release/271313/Walitt-Solutions-Founder-Joshua-Walitt-Appointed-to-the-Appraisal-Standards-Board

...there goes the neighborhood

 

[Fernando]

Walitt Solutions Founder Joshua Walitt Appointed to the Appraisal Standards Board​

October 28, 2025 9:00 AM EDT | Source:​

Grand Junction, Colorado--(Newsfile Corp. - October 28, 2025) - Walitt Solutions today announced that its founder and principal consultant, Joshua Walitt, has been appointed to the Appraisal Standards Board (ASB) of The Appraisal Foundation, effective January 1, 2026.

The ASB is the body responsible for developing, interpreting, and amending the Uniform Standards of Professional Appraisal Practice (USPAP)—the national ethics and performance standards for the appraisal profession. Comprised of eight members appointed by The Appraisal Foundation's Board of Trustees, the ASB holds authority over the subject, style, and content of USPAP, as well as related guidance and communications.

https://www.newsfilecorp.com/release/271313/Walitt-Solutions-Founder-Joshua-Walitt-Appointed-to-the-Appraisal-Standards-Board

...there goes the neighborhood

His credentials sound impressive. At least he is an appraiser and has a voice for us in ASB and can give practical advice in future changes to appraisal industry.