• Welcome to AppraisersForum.com, the premier online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

CFPB Crackdown: Unfair Practices Hurting Consumers

Status
Not open for further replies.
the unethical stakeholders skimming off appraisers backs ever since crooked coumo and fannie slithered into some dingy white room to confirm their biases against independent appraisers with the unconstitutional hvcc... :ROFLMAO:
 
and what does TAF do about appraisers fees for public trust...nothing...i could fix that with a pen :rof: :rof: :rof:
 
my 6 year old nephew ask me why appraisers don't collect their fee at the door...and we laugh and laugh and laugh :rof: :rof: :rof:
 
...there is no 60 day invoice at the dmv :ROFLMAO:
 
Kudos to Cindy Chance for finally speaking up about the atrocities against the public trust that are committed by AMCs and Lenders. Kelly Queen of Davids should take note.


From Cindy's desk​

Last week I hit a nerve with some comments about the value of appraisers and predatory AMCs not respecting their value. I got many notes from appraisers who were supportive and a few from AMCs, one of which was downright upset. And here I thought they would agree with me! I was thinking I was careful to call out predatory AMCs only, but apparently the number with ethical, transparent practices may be smaller than I imagined.

How did AMCs become such a powerful market player, and how have they affected real property valuation?

AMCs or “appraisal management companies” function as an intermediary between banks and appraisers to “ensure the integrity and independence” of the appraisal process. The use of AMCs by lenders grew greatly following the financial crisis of 2008 and Andrew Cuomo’s overreaching attempt to universally apply his “Home Valuation Code of Conduct.” The theory was that AMCs would streamline the process, and ensure quality control and compliance. What has actually happened? AMCs have created a race to the bottom in terms of fees paid to professionals and time spent on appraisals. Why? Because there was money to be made in being in the middle and there was nothing to stop AMCs from raising their fees while they reduced the fees they paid to appraisers. The public is not aware of this because AMCs do not need to disclose their fees—something the Appraisal Institute has long supported. The regulatory oversight of AMCs appears inconsistent and lacking in protections for the consumer.

Any market requires transparency to remain healthy and thrive. Appraisers are highly trained professionals – essential to our real estate markets – and very capable of thriving in a fair, competitive market. When they are “managed” by AMCs, a lack of transparency regarding the value they produce for the fees the appraiser earns is a risk to a healthy market. A healthy market is transparent and competitive, with oversight that protects and respects the consumer and the public trust.

In today’s world, many AMCs bid out work, sometimes by sending a text notification of an appraisal assignment, and then quickly awarding the appraisal to the lowest bidder. (I was shocked this fall to see some appraisers jumping to bid for these jobs.) Appraisers who know what it takes to do a quality appraisal are often left shaking their heads, asking who would take a job at that price and with such a short turn-around time. AMCs are also increasing the use of property data collectors to inspect the subject property (also called a home), to “increase efficiency.” The public should be concerned that management companies who were supposed to help protect them from another financial crisis have been reducing the fees paid to appraisers through these means, and increasing their take of the consumer’s dollar – with no serious response from banks or the government.

I am certain that there are ethical AMCs who apply best practices and work to ensure high quality appraisals. I want to hear from them! If you are an ethical, consumer focused AMC, your work is getting a bad name based on the practices of predatory AMCs, bad actors who are harming the system they were created to protect. Stand up and tell us how you ensure excellence by upholding high ethics, professional standards, and by protecting the consumer.
To residential appraisers, please join the Appraisal Institute. We will fight for what is right, and there is strength in numbers. Tell us your stories so that we can help the public to understand what is happening. Together, we can make a difference. Your work has value and you need to be paid fairly for the time it takes to do it well.

We are committed to getting the message to consumers that appraisers perform an essential function in our economic system, and anything that interferes with the professionalism and quality of an appraisal is a risk to the public. It is sad indeed that many AMCs, put in place to ensure quality in appraisals, are doing just the opposite

Cindy Chance, CEO
 
I am betting many lenders are inaccurately classifying PDR/PDC fees as Appraisal Fees on the borrower's closing statement.
 
Mejappz said:
Kudos to Cindy Chance for finally speaking up about the atrocities against the public trust that are committed by AMCs and Lenders. Kelly Queen of Davids should take note.


​
​

From Cindy's desk​

​
​
​
Last week I hit a nerve with some comments about the value of appraisers and predatory AMCs not respecting their value. I got many notes from appraisers who were supportive and a few from AMCs, one of which was downright upset. And here I thought they would agree with me! I was thinking I was careful to call out predatory AMCs only, but apparently the number with ethical, transparent practices may be smaller than I imagined.

How did AMCs become such a powerful market player, and how have they affected real property valuation?

AMCs or “appraisal management companies” function as an intermediary between banks and appraisers to “ensure the integrity and independence” of the appraisal process. The use of AMCs by lenders grew greatly following the financial crisis of 2008 and Andrew Cuomo’s overreaching attempt to universally apply his “Home Valuation Code of Conduct.” The theory was that AMCs would streamline the process, and ensure quality control and compliance. What has actually happened? AMCs have created a race to the bottom in terms of fees paid to professionals and time spent on appraisals. Why? Because there was money to be made in being in the middle and there was nothing to stop AMCs from raising their fees while they reduced the fees they paid to appraisers. The public is not aware of this because AMCs do not need to disclose their fees—something the Appraisal Institute has long supported. The regulatory oversight of AMCs appears inconsistent and lacking in protections for the consumer.

Any market requires transparency to remain healthy and thrive. Appraisers are highly trained professionals – essential to our real estate markets – and very capable of thriving in a fair, competitive market. When they are “managed” by AMCs, a lack of transparency regarding the value they produce for the fees the appraiser earns is a risk to a healthy market. A healthy market is transparent and competitive, with oversight that protects and respects the consumer and the public trust.

In today’s world, many AMCs bid out work, sometimes by sending a text notification of an appraisal assignment, and then quickly awarding the appraisal to the lowest bidder. (I was shocked this fall to see some appraisers jumping to bid for these jobs.) Appraisers who know what it takes to do a quality appraisal are often left shaking their heads, asking who would take a job at that price and with such a short turn-around time. AMCs are also increasing the use of property data collectors to inspect the subject property (also called a home), to “increase efficiency.” The public should be concerned that management companies who were supposed to help protect them from another financial crisis have been reducing the fees paid to appraisers through these means, and increasing their take of the consumer’s dollar – with no serious response from banks or the government.

I am certain that there are ethical AMCs who apply best practices and work to ensure high quality appraisals. I want to hear from them! If you are an ethical, consumer focused AMC, your work is getting a bad name based on the practices of predatory AMCs, bad actors who are harming the system they were created to protect. Stand up and tell us how you ensure excellence by upholding high ethics, professional standards, and by protecting the consumer.
To residential appraisers, please join the Appraisal Institute. We will fight for what is right, and there is strength in numbers. Tell us your stories so that we can help the public to understand what is happening. Together, we can make a difference. Your work has value and you need to be paid fairly for the time it takes to do it well.

We are committed to getting the message to consumers that appraisers perform an essential function in our economic system, and anything that interferes with the professionalism and quality of an appraisal is a risk to the public. It is sad indeed that many AMCs, put in place to ensure quality in appraisals, are doing just the opposite

Cindy Chance, CEO
Click to expand...
Side note regarding the Appraisal Institute. Was a member from 1989 to 2008. Decided in 2009 it was more a club for commercial appraisers - residential appraisers were just there to "pay the bills". To show their complete disregard for the residential appraiser, I have NEVER been contacted by the Institute to reconsider or ask to rejoin. That is 14 years of not caring by the Appraisal Institute. It is what it is...and what it is... is more than clear. Hope the new CEO can make a difference.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com
Back
Top