Class Valuation

[jhornet88]

Forgot to add I probably lost $20,000 the following year because I was unprepared to fill the void when I unexpectedly lost 25% of my business in the blink of an eye . Not even a phone call or email explanation. Not one Thank you for 7 years of service . I had to find other clients and rebuild volume lost which can’t happen for several more years even in good times .

This is Class Appraisal . They don’t give AF.

 

[glenn walker]

Sorry for your plight but the same or similar happens to us all. Not just AMCs we had direct lenders pull the plug's with no advance notice.

The fact is that's why we mentored our guys that nobody's going to fall on a sword for them. This has always been feast or famine for many. Once you accept it your okay.

 

[chad hampton]

You don't know what your talking about
any AMC can have both employed in house appraisers on staff and also independent fee appraisers they send orders to.

Nothing illegal in Dodd Frank or Law. Not liking it is fine, but most large AMCs have both. Don't confuse not liking a business model as being illegal.

What’s the definition of a middle man? You argue just to argue. AMC legislation was written for there to be a 3rd party middleman. It’s a basic concept. You understand this.

They get away with it cause the most corrupt people in this profession lobby for them. So a blind eye is turned. And as I noted above, no one gives a **** about AMC laws. It’s only the appraiser that gets to suffer consequences at the hands of state boards.

 

[glenn walker]

Again your just ranting about your emotions and feelings and nothing of substance.

The LLC or Corporation has no feelings
and it has no morals or ethical reasons
to support you. Once you finally grow up and realize life's not fair then you can proceed forward and build a new viable business model that won't depend on living off the AMCs.

 

[glenn walker]

What’s the definition of a middle man? You argue just to argue. AMC legislation was written for there to be a 3rd party middleman. It’s a basic concept. You understand this.

They get away with it cause the most corrupt people in this profession lobby for them. So a blind eye is turned. And as I noted above, no one gives a **** about AMC laws. It’s only the appraiser that gets to suffer consequences at the hands of state boards.

Middle Men only applies to self employed fee appraisers ** not employed W-2 appraisers or ones in financial- direct lenders- bank staff etc. You can't have it both ways and if you want to be a self employed independent fee appraiser then you play by different rules. If the AMC orders the appraisal from you then they acted as the middleman for the lender or the client. If they opted to not use a independent fee appraiser they could use their own staff appraisers. How does that hurt you ? I'm confused about what your complaint is.

 

[chad hampton]

Then why didn’t they do it from day 1, 15 years ago?

15 years ago when they were created they had to play by the rules. Now They can’t find appraisers to work under the conditions they created, so what options do they have but to break the rules.

Same reason you speed. No one really stops you.

Again, this is a fairly basic concept of 3rd party middle men.

 

[DWiley]

Then why didn’t they do it from day 1, 15 years ago?

15 years ago when they were created they had to play by the rules. Now They can’t find appraisers to work under the conditions they created, so what options do they have but to break the rules.

Same reason you speed. No one really stops you.

Again, this is a fairly basic concept of 3rd party middle men.

AMCs have existed for much longer than 15 years. And some of them did have staff appraisers 15 years ago. I know that because that was my job when I moved to AMCland. Initially, I was not the Chief appraiser at the AMC. I was the Staff Appraiser Manager and the staff appraisers were set up as a separate company with its own balance sheet. So, from the AMCs perspective (and from a legal perspective), selecting an appraiser on the "staff team" was no different than selecting someone at any other firm. No one stopped that because it did not violate any rules.

 

[J Grant]

AMC's did exist pre-HVACC but had a small market share ( most of their income was title work with the appraisal order as a side service ), nd they kept only a small % of the appraisal fee. Taht changed overnight with the HVCC . As we all know. And a lender is allowed to own an AMC under an umbrella form ( a different name for it ) fo their captive orders. Those AMC;s tend to be better as tehy are typically cost plus and do not fee bid or fee compare for assignments unless complex. The other AMCs are various versions of bottom feeders shopping for low fees, not their fault as much as the system that permits it in the first place.

Hiring staff appraisers is legal.

 

[DWiley]

AMC's did exist pre-HVACC but had a small market share ( most of their income was title work with the appraisal order as a side service ), nd they kept only a small % of the appraisal fee. Taht changed overnight with the HVCC . As we all know. And a lender is allowed to own an AMC under an umbrella form ( a different name for it ) fo their captive orders. Those AMC;s tend to be better as tehy are typically cost plus and do not fee bid or fee compare for assignments unless complex. The other AMCs are various versions of bottom feeders shopping for low fees, not their fault as much as the system that permits it in the first place.

Hiring staff appraisers is legal.

When I was in AMCland we took a different approach. When an appraiser set up their profile part of that was entering their base fees. When an order was assigned, the fee offered initially was the base fee set by the appraiser. The fee could be changed if the property was complex.

We also had an objective way to score all appraisal reports. We created codes for every reason a report could be sent back for revision, and each code has points associated with it, with higher points for major errors and lower points for small things (e.g. 1 point deduction for a typo in the zip code). If a report could be sent to the lender with no revisions at all, it got 100 points. So, a report with just a typo in the zip code would get a 99. We could compare the scores and predict how much QC work would need to be done, and 2/3 of the assignment logic was based on the quality score. The other 1/3 was based on turn time.

An appraiser could set their fee at $100, but they still wouldn't get any work if there were available appraisers with higher scores. I know some resent having their work scored, but without some sort of ranking system there is no way to get work to the higher performing appraisers.

When we were audited by lenders they would often ask us to show how we picked an appraiser for a specific assignment, and we would have to go through all the scores for the available appraisers and show that we did not just pick the appraiser with the lowest fee. Even if the lenders did not audit, we would never have just picked the lowest fee because QC rejections cost money. On most orders, if we rejected a report more than twice, we were basically eating the profit. There was high motivation to assign to appraisers with high quality scores.

Bidding was only done for very complex and/or high end properties. I have long said that I do not know how any AMC assigning based solely on the lowest bid can claim compliance.

 

[chad hampton]

AMCs have existed for much longer than 15 years. And some of them did have staff appraisers 15 years ago. I know that because that was my job when I moved to AMCland. Initially, I was not the Chief appraiser at the AMC. I was the Staff Appraiser Manager and the staff appraisers were set up as a separate company with its own balance sheet. So, from the AMCs perspective (and from a legal perspective), selecting an appraiser on the "staff team" was no different than selecting someone at any other firm. No one stopped that because it did not violate any rules.

I’m not shocked a revaa spokesman would have this take.