Background Check

[Nancy Heiss]

My 'best' client (until 2 months ago when they advertised for staff appraisers) called me today to see if I would be interested in going through a background check. I responded by telling her I hadn't gotten any appraisals from them recently (not entirely accurate, but 3 reviews and 1 full appraisal since April qualifies as nearly nothing) so I would be hesitant to bother. She apologized, but proceeded to tell me that State Farm Lending, Chase and Flagstar all required background checks. I mentioned I had (previously) done quite a bit of work for Flagstar, and she immediately jumped in, apologizing that she was wrong about them needing background checks. Makes me wonder if this is just another way to get an income stream.

 

[DWiley]

My 'best' client (until 2 months ago when they advertised for staff appraisers) called me today to see if I would be interested in going through a background check. I responded by telling her I hadn't gotten any appraisals from them recently (not entirely accurate, but 3 reviews and 1 full appraisal since April qualifies as nearly nothing) so I would be hesitant to bother. She apologized, but proceeded to tell me that State Farm Lending, Chase and Flagstar all required background checks. I mentioned I had (previously) done quite a bit of work for Flagstar, and she immediately jumped in, apologizing that she was wrong about them needing background checks. Makes me wonder if this is just another way to get an income stream.

In their contracts with AMCs many lenders do require background checks, and some also conduct random audits for compliance with that requirement. For us, the payment is made directly to the background check company. We have no mark up or kickback. Some might, but from a business standpoint it just isn't worth it.

 

[gregb]

My 'best' client (until 2 months ago when they advertised for staff appraisers) called me today to see if I would be interested in going through a background check. I responded by telling her I hadn't gotten any appraisals from them recently (not entirely accurate, but 3 reviews and 1 full appraisal since April qualifies as nearly nothing) so I would be hesitant to bother. She apologized, but proceeded to tell me that State Farm Lending, Chase and Flagstar all required background checks. I mentioned I had (previously) done quite a bit of work for Flagstar, and she immediately jumped in, apologizing that she was wrong about them needing background checks. Makes me wonder if this is just another way to get an income stream.

Flagstar does not require a background check.

 

[Michigan CG]

Flagstar and Chase do not require background checks. Just another lie.

 

[Nancy Heiss]

In their contracts with AMCs many lenders do require background checks, and some also conduct random audits for compliance with that requirement. For us, the payment is made directly to the background check company. We have no mark up or kickback. Some might, but from a business standpoint it just isn't worth it.

Well, from a business standpoint, I wouldn't think a lot of things AMC's do are 'worth it'. But that's just my 2 cents. (Not sure if you are an AMC DWiley, and if so, I'm not speaking to you specifically.) My main point was that I get no work any more from them, yet they want to spend my money on a background check. From MY business standpoint, it's just not worth it.

 

[DWiley]

I get no work any more from them, yet they want to spend my money on a background check. From MY business standpoint, it's just not worth it.

Hard to argue with that.

 

[bnmappraisal]

Well, from a business standpoint, I wouldn't think a lot of things AMC's do are 'worth it'. But that's just my 2 cents. (Not sure if you are an AMC DWiley, and if so, I'm not speaking to you specifically.) My main point was that I get no work any more from them, yet they want to spend my money on a background check. From MY business standpoint, it's just not worth it.

It definitely does come down to a business decision. I had a really good client (ULS, who got bought out earlier this year by Servicelink) require a BGC every 2 yrs. They also required that I got to pay for it! (ugh) BUT .. since they were around 25-30% of my book, the $30 or so dollars was worth it to stay on their panel. The fee was paid, by me, directly to the BGC company, so I agree with DWiley that probably most AMCs don't make anything off this requirement. (FWIW, ULS was the only client I've had over the past 8 yrs that had required this and I'm pretty sure it was a lender requirement thru the AMC)

 

[DWiley]

... I'm pretty sure it was a lender requirement thru the AMC)

Yep. That is a requirement in many lender-AMC contracts

 

[bnmappraisal]

Yep. That is a requirement in many lender-AMC contracts

And that's why it has to come down to a business decision.

I can see the OP going either way on it and I wouldn't blame her. If she thinks the client will be sending more work her way, it may be worth the few bucks. If not, like they have been this last month or two as she states, then maybe it's not worth the few bucks.

Again, in my situation, ULS was a great client and I MORE than made my BGC fee back. But I do remember sending a check to a BGC company, and they cashed it, and I never saw 1 order from that potential client (This is 8-10 yrs ago when I was first starting out).

 

[djd09]

Hold on, Chase does not require background check but will not allow you to bring a lawful weapon on an vacant home inspection. I thought it was about liability for them. Guess not.