How to Fight AMC Abuse of Appraisers

[J Grant]

Agreed. Further - I don't think most elected officials have any idea what is going on - it's just not on their radar. The question is, what would incentivize elected officials into becoming interested? And it seems to me our 'advocacy groups' for the most part do little more than have happy hours and CE training. Data is what will drive change and there is absolutely no doubt that the GSE's are actively spinning their data to support their narrative - anyone would. Those elected officials somehow need to be exposed to data that disputes that narrative (if it exists).

Thank you for making this thread, see my post #10 for what might have a chance to impact elected officials.

 

[chad hampton]

The issue isn't what to do, it's will it really make a difference? The ball's in their court. The UHC CEO had plenty of chances to listen and do the right thing. He chose not to.

The AI had a chance to do the right thing, but they fired the only person in that organization that's ever been worth a damn when she started making comments that might help working appraisers but might hurt the old guard friend's bottom line. Make your choices. Choices some with consequences.

 

[George Hatch]

Agreed. Further - I don't think most elected officials have any idea what is going on - it's just not on their radar. The question is, what would incentivize elected officials into becoming interested? And it seems to me our 'advocacy groups' for the most part do little more than have happy hours and CE training. Data is what will drive change and there is absolutely no doubt that the GSE's are actively spinning their data to support their narrative - anyone would. Those elected officials somehow need to be exposed to data that disputes that narrative (if it exists).

It's already been like this for the last 13+ years. At this point I don't think these appraisers have anything to lose. It can't hurt. What I think could hurt them is if they continue to commingle some of the untruths in with the legitimate points of their arguments.

The Appraiser's Petition was of effect on this situation precisely because those arguments were both legitimate in nature AND were based on IRL facts. They didn't gild the lily, and none of the opposition could find contradictions to exploit. The truth is easier to sell than an untruth. The subsequent unintended consequences that people now complain about is a separate consideration That doesn't diminish the point that it didn't cost appraisers a dime for the salient points of their complaints to prevail.

And the WAY those complaints prevailed was based on their appeal in support of the legitimate interests of public and the general economy. The appraisers weren't asking for an improvement to their own economic interests.

 

[J Grant]

A tactic on the individual level is for each appraiser who currently accepts work from AMC to raise their fee to C and R, or at least up a healthy amount to ONE , or if they can manage it, TWO of their AMC's at a time. Which would mean they could continue to low hid the others if that is how they get work. But if each of those approaches did that, it would, over time, have results.

Imo, the fees are so bad at AMC;s and teh work so sparse anyway, with many saying the have side hustles or do it part-time they don't; have much to lose by raising their fees to all thei rAMC clients, but that is up to them

 

[alebrewer]

A tactic on the individual level is for each appraiser who currently accepts work from AMC to raise their fee to C and R

First - please don't think in terms of C&R - it's a unicorn. Doesn't exist. Second - I don't disagree in theory, but reality is that if that AMC order is the only order I get all week, I'm gonna take it. Family and bills trump equitable fees, so that is never going to work - unless, of course, someone or some group was able to garner enough appraisers to do a 'walk out', but even then, I'd guess it would take maybe half the active residential appraisers out there? That's around 25k appraisers. Strikes work, but only if the majority are willing to strike.

 

[George Hatch]

First - please don't think in terms of C&R - it's a unicorn. Doesn't exist. Second - I don't disagree in theory, but reality is that if that AMC order is the only order I get all week, I'm gonna take it. Family and bills trump equitable fees, so that is never going to work - unless, of course, someone or some group was able to garner enough appraisers to do a 'walk out', but even then, I'd guess it would take maybe half the active residential appraisers out there? That's around 25k appraisers. Strikes work, but only if the majority are willing to strike.

The only way strikes DO work is if the members have enough leverage over their peers to penalize them for non-compliance. Motivating someone to put the long term interests of the group ahead of the immediate well-being of their own household is a huge ask. That usually only works via coercion, whether that coercion is social, economic or physical in nature.

In a low volume market almost everyone would have to comply before the AMC business could be brought to their knees.

Meanwhile and on the opposing side...
If you were a lender AMC and were having problems getting 1004s you might consider advising the lender you're working for to divert some of that demand to hybrids or allowing/encouraging appraisers to countersign "did not inspect" for appraiser trainees for some assignments. Almost anything to prevent AMC splits to increase beyond $400.

 

[NC Appraising]

I'm coming at this from a different point of view.

1. Jobs. I do not like major corporations taking jobs just for profit or for company benefits. I do not see a difference between tech taking jobs and jobs being sent to China or Mexico.

Corporations, venture capitalist, private equity are evil greedy pos.

2. Yes, AVMs, waivers OK. Yeah I read the data and I understand the risk...investors.not disagreeing.


My thing is protecting the public. I realize appraisals are not for this. We are the checks and balances. On other forums, re agents new favorite term is get a waiver.

Remove appraiser from most of the transactions it becomes the wild west. At least we were always in back of the agents head during negotiations...it may not appraise. Kept them in line.

Now, those over priced homes become comps....


As for lobbying, I would keep the narrative to protect the public..

 

[Tim Hicks (Texas)]

The hardest thing for many appraisers to do: Don't work for AMCs.

 

[George Hatch]

As for lobbying, I would keep the narrative to protect the public..

That's what worked before.

 

[J Grant]

First - please don't think in terms of C&R - it's a unicorn. Doesn't exist. Second - I don't disagree in theory, but reality is that if that AMC order is the only order I get all week, I'm gonna take it. Family and bills trump equitable fees, so that is never going to work - unless, of course, someone or some group was able to garner enough appraisers to do a 'walk out', but even then, I'd guess it would take maybe half the active residential appraisers out there? That's around 25k appraisers. Strikes work, but only if the majority are willing to strike.

I did not say strike, I suggested each individual appraiser raise their fees to the AMC, either one AMC at a time, or two, or all of them at once.