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Borrower's Still Suffering At The Hands Of The AMC

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Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
I have posted many threads on this topic of late.

I got a call from a large lender (directly) that I had done high end work for some time ago but hadn't received a call for a year or so.

They had a very high end property they needed an appraisal on. I told him I hadn't heard from them for some time. The clerk responded that they had gone into contract with an AMC to order there work, but they couldn't get this one handled. I told them to direct it and I'd take a look at it.

I called the borrower--the gal is in tears. The first appraiser showed up and said I don't do this kind of work and left. 3 weeks past and the next appraisers sets an appointment 3 weeks out and never shows. The AMC gives the borrower the next appraiser's phone number..............and the appraiser never returns the call.

Now, we all know the problem. The AMC is seeking a bargain basement appraisal fee (so they can make their margin--fair margin or not) on a property that very few appraisers even entertain. This assignment is a "5 assignment fee". Why would anyone do it for less? when you can do 5 assignments instead?

And who suffers----the borrowers.

After spending 6 hours on site, I sat down to a cup of fresh, hot coffee, and some fresh chocolate cookies. We talked about the war and spring to come. I told her the assignment would get handled professionally and expediently as possible.......................................................................and headed out to look at sales.

I have seen alot of this sort of thing lately, and frankly I am concerned for the borrowers on the streets of America.

But concerned or not, half of my personal residential business lately is from people calling with their kneepads ons.
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Verne, personally, I would have told the client to jump in the lake. They made their bed w' AMC's, now lie in it. I guess if you enjoy doing big hard ones, then fine, so long as you get paid well, and I'm sure you did. But I would have made them promise more work, before I did them any favor. Let them wait another 6 weeks. I do pity the borrower, as it is not their fault. But that borrower should go to a local bank that offers real service and expects real service from their appraisers.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Originally posted by William Robinson@Mar 31 2003, 01:31 PM
I do pity the borrower, as it is not their fault. But that borrower should go to a local bank that offers real service and expects real service from their appraisers.
William,
How is the average, uneducated homeowner going to know the difference?
Certainly the lender isn't going to tell them. :angry:
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Dee Dee, I agree. However after a 6 week wait, your average "uneducated" borrower, will now be educated and know the difference, having gone through the school of hard knocks.

It is not our job to hold their hand, and take the time to explain to them how big lending institutions maximize the economic theory of economy of scale and us, being the unecomical self employeed small biz, don't fit into the equation. Don't get me wrong, I try to help borrowers all the time.

I know it is a fine line of serving a client and helping a good old "uneducated" fellow human being. I have to bite my tongue often, because I never know which internet mortgage company is good and which one will take the "uneducated " borrowers $800 application fee and pocket it, never closing the loan. I had a friend become educated, after fighting for months for his $800 app fee, that he had given, and never got his loan closed. I told him to go to xyz bank and they had him closed within 30 days.

A good local bank / mortgage company is normally the best choice. If I can ever tell someone, before they have made their decision, that is what I recommend. You can go down there and look them in the eyes, if they screw up.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Originally posted by William Robinson@Mar 31 2003, 03:50 PM
Dee Dee, I agree. However after a 6 week wait, your average "uneducated" borrower, will now be educated and know the difference, having gone through the school of hard knocks.

Ha! I wish that were true, but I've had more than a few times when AMC's have contacted me, agreed to my full fee (COD), and then when I call to set the inspection appointment the homeowner tells me that they've been waiting for me (the appraiser) to call for several weeks.

This starts the entire process off on the wrong foot, since I refuse to take the blame. I always set appointments within 24 hours of recieving the order, so it's obvious that either someone was slacking or they took that long to give up trying to find an appraiser that would cover my not-so-easy area for a discount. When I tell the homeowner the truth, then they know right away that they're working with jerks (most already had their suspicions).

I wonder how many homeowners don't tell me that they have been waiting for weeks to hear from 'the appraiser', only to find that their rates and terms change right before closing because they lost their locks. And I wonder how many think it's 'the appraiser's' fault. :angry:
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Dee Dee, I get the same thing. "We've been trying to close for 6 weeks now. :angry: "
Wait a minute.......... I'm no bodies whipping horse. I got this order today, and I'm calling today to set the appointment.

Had a call last week asking for my fees and turn time........ never called back, guess he didn't like paying more than $150. The same fellow called today, wanting an appraisal on the same property. Wonder if he remembers me?? I remember him, so I gave 'em my highest and best fee. B) Especially since I can already see what kind of client they will be. Someone is definitely :asleep: at the wheel.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
William ~

Most consumer do not have enough dots so they can't connect them in order to make any sense about what's goig on. You go to the local bank depot and they set you at a desk and give you an 800-number to call to make application.

BTW, I'm only aware of possibly two local banks that make loans for their portfolio. And, they too use AMCs to create their loans.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Originally posted by M Leggett@Mar 31 2003, 07:17 PM
Had a call last week asking for my fees and turn time........ never called back, guess he didn't like paying more than $150. The same fellow called today, wanting an appraisal on the same property. Wonder if he remembers me?? I remember him, so I gave 'em my highest and best fee. B) Especially since I can already see what kind of client they will be. Someone is definitely :asleep: at the wheel.

Mel,
What really slays me is that odds are the lender is charging the borrower full fee, regardless of what the appraiser is being paid.
No person with any business sense would spend weeks looking around for an appraiser who will discount their fees $100+ less than the standard fees when by doing so it could upset the homeowner/borrower enough to go shopping elsewhere. Since when is it worth $100 to lose (potentially) thousands of dollars in commission fees by p*ssing off the customer????
The concept of repeat business from satisfied customers doesn't seem like a consideration with some of these idiots.
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
Larry, we have some of that in my hometown. But we also have some good small town community banks, that seem to care, at least most of the time.

Of course I'm am in a small community, much smalller than St. Paul.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
As Mel does, I too always let the h/o know when I was notified by XYZ Mortgage to call and set appmt. ! I never let orders sit around. I determine if the property and the assignment fit the fee, or if I have to do it c.o.d., but I will always tell the h/o, as I speak to them the first time, just when I got my assignment. When I say the word "today" it is amazing to hear some say that they started their loan process several weeks ago, and if they don't tell me that, I will ask when they started. I also ask the h/o what the intended use of my report is and often find it differs from what is generically marked on the order. I also ask when their closing date is scheduled. Many times they know exactly when it is.......and yet the client's stated date on order is often not the same date (much sooner, i.e. rush !). I know, I know, they may need more time to order another appraisal if mine fails to satisfy. It's just the point that....it is not uncommon for us to be told a different story by those for whom we are working. I guess that's why we are investigators. I am certain that the home I visited yesterday IS a rented SFR, as my gut feeling says so quite strongly, but the borrower/owner arranged for a friend to get my access into the house, and both owner and his friend said "No" to my direct question about whether home is rented. So, I guess I mark "Owner-Occupied" and move on. (Should I share my gut-feeling with my client via a phone call before completion of report ?) It's very possible that I have been duped before in a rented/not-rented scenario.
 
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