Mile High Trout
Elite Member
- Joined
- Feb 13, 2008
- Professional Status
- Certified Residential Appraiser
- State
- Colorado
Killer article, thank you.
Shadow stock may very well be a much more prevalent issue than many initially dared to consider.
This would not have happened if people listened to the appraisers so many years ago in the first place. According to this article, the lenders are releasing LO held shadow stock on a 10 year time scale in some instances.
On topic: Now some lenders are not listening to appraisers all over again. They are setting the appraisers independent fee. Some lenders used to only work with the appraisers who could bring in pre set valuation figures. Now by way of AMC, they only work with appraisers who can maintain the most lender preferable stats and product price. A core fundamental of the appraiser, is that they are independent and should be able to provide professional discretion without fear of negative consequences.
Separate the AMC bill and the appraisers bill. They are clearly two distinct and separate services. The intermingling of these two bills detracts from the appraisers ability to be independent. Appraisers are almost forced to show advocacy for the clients, in accepting reduced fees. Without the benefit of reduced product costs savings being passed to the consumer, appraisers who take discount are basically showing advocacy towards the lender. They are willingly providing a less robust appraisal, at the potential risk of the residential consumer, even though the residential consumer has paid the same if not more for that reduced cost service.
