Class Valuation

[J Grant]

oh really...and the definition of independent includes but not limited to 'not controlled by others'....im sure that concept floats right on by

I am stating what is legal wrt hiring staff, and it does not have anything to do with the independence of appraisers concept -
Regardless of opinion on that, when appraisers say it is illegal for an AMC to hire staff appraisers, it comes off as ignorant.

 

[J Grant]

Appraisal Mills can hire appraisers to work all over the country if they want. AMC’s obviously that’s a different story. They are managing the appraisal process, they are not performing appraisals. Again, fairly simple concept. Stay in your own lane and we might be able to coexist.

An AMC can also funct
ion as an appraisal mill, since the AMC;s are allowed to hire staff appraisers or run large panels of them and thus the AMCs can perform appraisals as well as manage the process.

There are no volume appraisal mills that compare since the law is that if an appraisal firm hires over 15 appraisers, they have to then form an AMC

 

[djd09]

I am stating what is legal wrt hiring staff, and it does not have anything to do with the independence of appraisers concept -
Regardless of opinion on that, when appraisers say it is illegal for an AMC to hire staff appraisers, it comes off as ignorant.

i imagine it works like the eappraisit panel of approved appraisers...

 

[djd09]

July 1, 2013 General

Countrywide Whistleblower Receives $14.5 Million in Mortgage Fraud Case​

After filing a 2009 qui tam lawsuit against Countrywide Financial on behalf of the United States government, whistleblower Kyle Lagow has learned that he will receive a relator’s share of $14.5 million. Lagow, who formerly worked as an appraiser with Countrywide subsidiary LandSafe Inc., accused the lender of fraudulently inflating appraisals on government-insured mortgage loans. Lagow’s whistleblower lawsuit was finally unsealed in 2012, when he was awarded a percentage of the government’s total $1 billion settlement.

The False Claims Act suit filed by Lagow was one of five whistleblower complaints that were settled as part of a $25 billion national mortgage settlement government officials reached with Bank of America and four other lenders in 2012. Countrywide, which was purchased by Bank of America in 2008, settled their suit with the government for $1 billion.

The Whistleblower’s Allegations​

Lagow worked for LandSafe Inc., a unit of Countrywide, in Plano, Texas, from June 2004 to November 2008. During his time there, Lagow claims he observed his employer participating in a “corrupt underwriting appraisal process.” In the official complaint, Lagow alleged that since at least 2003, Countrywide fraudulently inflated home appraisals in an effort to increase the value of the mortgage loans it sold on the secondary mortgage market. These falsely inflated appraisals caused “numerous” false claims for payment to be submitted to the government after the Federal Housing Administration (FHA) insured loans went into default.

In order for the mortgage fraud scheme to work properly, both Countrywide and LandSafe had to work in conjunction. Countrywide sent each of their home appraisals through LandSafe for evaluation. According to Lagow, LandSafe would provide the appraisal value at whatever price Countrywide requested. In some instances, appraisals were inflated by over $80,000 per property. As a result, the FHA ended up insuring home mortgages under false pretexts and the government was eventually forced to repay Countrywide at falsely inflated amounts when borrowers defaulted.

According to Lagow, Countrywide would put pressure on its home appraisers, encouraging them to over-inflate home values. This was allegedly done so Countrywide could obtain larger federal loans and rake in a larger overall profit. In return for participating in the mortgage fraud scheme, Countrywide would pay its appraisers above-market fees. Lagow also claimed the lender would highly reward those appraisers who produced upwards of 400 appraisals and reviews a month. In reality, when done properly and legally, an employee could never achieve such a high number of appraisals in a one month period.

hey jg...they called them staff appraisers

 

[chad hampton]

An AMC can also funcgion as an appraisal mill, since the AMC;s are allowed to hire staff appraisers or run large panels of them and thus the AMCs can perform appraisals as well as manage the process.

There are no volume appraisal mills that compare since the law is that if an appraisal firm hires over 15 appraisers, they have to then form an AMC

I bet in a few years class and clear capital will have loan officers employed in a lending department. You know, legally separated, of course. Let’s check back in five years and see if that’s the case. That is the next step.

 

[djd09]

i see how these unethical AMCs treat the independent appraiser....i cant imagine if they held your weekly paycheck

 

[glenn walker]

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.

Small market share in your market but in Los Angeles County of 10 million Bank America and Wells Fargo AMCs where extremely large 25 years ago. The biggest problem on AF is individual appraisers basing their opinions on their own one person shop or a market area that isn't representative of what's happening in the Major Cities and County's. Look beyond your own small backyard.