Fannie Mae Aqm List

[Joe Flacco]

If we clean house of appraisers not complying with standards 1 and 2, there would be no supply and demand issue.

 

[Joe Flacco]

A Fannie/Freddie form with boilerplate attached does not comply with standard 2-2(a)(viii). Summarize the reasoning that supports the analysis, opinions, and conclusions.

What is the percentage of appraisal reports for mortgage purposes that are 1004/1073 with nothing but boilerplate attached? It is large.

 

[Eli]

A Fannie/Freddie form with boilerplate attached does not comply with standard 2-2(a)(viii). Summarize the reasoning that supports the analysis, opinions, and conclusions.

What is the percentage of appraisal reports for mortgage purposes that are 1004/1073 with nothing but boilerplate attached? It is large.

Fastest and cheapest in an oligopsony has its consequences.

 

[DWiley]

The AMC controls who gets what share, and who gets none, of the appraisal work in areas they operate in. Thus, the actions they take in appraiser selection can drive down fees, ...

I really wish you could sit in on an AMC audit sometime and see the scrutiny we are subjected to with regard to appraiser selection. The fastest way to fail an audit, and lose business, is to select appraisers by fee. Right now, we go through 40 to 50 audits every year. That includes client audits, state board audits, and audits by outside parties (I just had an audit by a big accounting firm last week who was doing a third party verification of our processes for a large lender). There is far more accountability than most appraisers know.

 

[J Grant]

Then how come , despite these audits, the reality is that whenever possible, the AMC's assign work only to those charging below X $?

I know this is the case because I've been on AMC panels; if I change my fee and lower it, I get a ton of work, If I raise it even a modest amount, an amount I know for a fact well below borrowers pay, I get NO work, or a token 2 a year to keep my name active. I have the same competence and offer the same turn time the day after I raised my fee as I did the day before, all of a sudden the spigot of work dries up the day fees are raised..

AMC's can use an appraiser declining assignments as part as the appraisers's quality score which impacts orders. So, if an appraiser declines too many orders due to low fees on order, the appraiser's quality score goes down and they get few/ no orders...and then AMC's state they have no part in driving fees down?.

I presume they pass an audit by insisting those appraisers who they assign to who charge below X$ fees are competent and were not chosen by fee alone and selected by by additional quality metrics.

 

[Joe Flacco]

It is because customary appraisal practice is accepted all up and down the chain rather than uniform standards of professional appraisal practice.

 

[Joe Flacco]

It is because customary appraisal practice is accepted all up and down the chain rather than uniform standards of professional appraisal practice.

Very damaging to public trust.

 

[DWiley]

I know this is the case because I've been on AMC panels; if I change my fee and lower it, I get a ton of work, If I raise it even a modest amount, an amount I know for a fact well below borrowers pay, I get NO work, or a token 2 a year to keep my name active. I have the same competence and offer the same turn time the day after I raised my fee as I did the day before, all of a sudden the spigot of work dries up the day fees are raised..
.

That is what you know. What you do not know are the fees and quality scores of other appraisers in your area. By definition, half of the working appraisers must do work that is below average, yet I have never met an appraiser who thinks that his/her work is below average. One appraiser was doing a lot of screaming on this forum about not working for us because of our fees. The truth was that he no longer works for us because we kicked him off our panel due to USPAP issues. Of course, that does not play as well on social media.

I also know that there are many appraisers who get on FB and on this forum and claim that they never work for AMCs and/or that they would never do an appraisal for less than $x. Yet, they are active on my panel, and when they enter the fees they want for an assignment (yes, that's how our system works), the enter a fee that is less than $X. I have not, and will not, ever "out" any of those folks, but I see it quite regularly.

One of the biggest complainers over on the FB group is a guy who has begging me for the past year to get back on our panel. Yet, he gets on FB and goes on and on about how bad we are. There have been times when I have been very tempted to post one of his emails begging for reinstatement along with a request to explain why he wants so badly to work for us if he thinks that we are so bad, but that would just be stooping down to his level.

 

[timd354]

I also have a case where a certified appraiser with over 20 years of experience sent someone else out to inspect the home, and admitted it, yet the state only issued an informal counseling letter.

In North Carolina, such behavior won't keep you from getting appointed to the state board a few years later.

 

[Terrel L. Shields]

you can't have your cake and eat it too.

Please don't confuse Eli with logic.

If we clean house of appraisers not complying with standards 1 and 2, there would be no supply and demand issue.

That's because fannie mae and others are in conflict with USPAP and USPAP itself isn't clear enough to be black and white. Shades of gray are hard to defend. (think the Wold decision in Alaska where the argument was basically made that the appraisal couldn't be right because the unique property that is was could not be bracketed.)

just check out the thread on fees to see