Illinois Appraisal Licensing Act

[Pat Butler]

I'm sorry- I meant relocation MANAGEMENT companies. Sometimes there's a fine distinction between a relo client who is a RMC and just orderig on their own behalf.

 

[Brian Weaver]

I'm sorry- I meant relocation MANAGEMENT companies. Sometimes there's a fine distinction between a relo client who is a RMC and just orderig on their own behalf.

Tell me how you define that.

 

[Brian Weaver]

Take for example, ReloDirect in Chicago. What are they?

 

[Pat Butler]

Where I get confused is that the relo companies offer a menu of different services. So one time they might be managing the appraisal process for their client and acting like an AMC for the relo industry. Their client is only using them for the appraisal process.

Other times they may be hired for the entire homesale process and actually be ordering an appraisal on THEIR behalf as the client, and not on behalf of another client in an AMC capacity. The order looks the same in both of these scenarios yet with the first situation being more like an AMC.

So I can see where it can be difficult with any one assignment to figure out what capacity they are operating under. As you are aware, many of the fine folks on the other side of the telephone rarely have all the details of why they are placing the order.

 

[Brian Weaver]

Where I get confused is that the relo companies offer a menu of different services. So one time they might be managing the appraisal process for their client and acting like an AMC for the relo industry. Their client is only using them for the appraisal process.

Other times they may be hired for the entire homesale process and actually be ordering an appraisal on THEIR behalf as the client, and not on behalf of another client in an AMC capacity. The order looks the same in both of these scenarios yet with the first situation being more like an AMC.

So I can see where it can be difficult with any one assignment to figure out what capacity they are operating under. As you are aware, many of the fine folks on the other side of the telephone rarely have all the details of why they are placing the order.

They can't be "a little bit pregnant". They're either an AMC or they are not. If they won't say...or can't say for sure...what do you think you should do?

 

[Pat Butler]

I'll obviously disclose the fee just be be sure to comply. Here's one of my many relo clients who offers a variety of services http://www.whrg.com/departure.aspx

Sometimes I'll be hired under their corporate buyout program where they are the client for their own interest because they've agreed to buy the transferee's house.

Other times I'll be hired by them on behalf of one of their corporate clients who have only opted for their appraisal management services and will end up conducting the homesale process themselves. That's clearly where they are operating more like an AMC.

Almost all of the relo companies nowdays offer all sorts of ala carte services so that only sometimes they are providing AMC like services while other times they are the direct client so that there is no AMC type relationship.

So with the same client, the relationship can be different depending on the circumstances.

 

[Mile High Trout]

I suspect some AMCs are not going to be very happy with the required disclosure of the Fee paid to appraiser in the appraisal report

Very good news. Bring back the peer standard!

 

[Tony V]

""" b) If a financial institution is identified as an additional intended user, the appraiser shall ascertain the relationship between the client/authorized agent and the financial institution by doing one of the following:

1) obtain a copy of the agreement between the client/authorized agent and the financial institution. This agreement shall set out the responsibilities and authority of the authorized agent.

2) obtain a letter written by the client/authorized agent in which the agent sets forth its level of responsibility and authority. If the client/authorized agent cannot provide the appraiser with documentation identifying them as a duly authorized agent for the financial institution, a statement must be included in the appraisal indicating that the report may not comply with the Interagency Appraisal and Evaluation Guidelines, adopted October 27, 1994 by the federal Office of the Controller of Currency (OCC), Federal Reserve Board (FRB), Federal Deposit Insurance Corporation (FDIC) and federal Office of Thrift Supervision (OTS).

3) directly communicate with the financial institution to determine the scope of the appraisal assignment."""

I would think that the above would have some of these AMC's upset...

 

[PL1957]

""" b) If a financial institution is identified as an additional intended user, the appraiser shall ascertain the relationship between the client/authorized agent and the financial institution by doing one of the following:

1) obtain a copy of the agreement between the client/authorized agent and the financial institution. This agreement shall set out the responsibilities and authority of the authorized agent.

2) obtain a letter written by the client/authorized agent in which the agent sets forth its level of responsibility and authority. If the client/authorized agent cannot provide the appraiser with documentation identifying them as a duly authorized agent for the financial institution, a statement must be included in the appraisal indicating that the report may not comply with the Interagency Appraisal and Evaluation Guidelines, adopted October 27, 1994 by the federal Office of the Controller of Currency (OCC), Federal Reserve Board (FRB), Federal Deposit Insurance Corporation (FDIC) and federal Office of Thrift Supervision (OTS).

3) directly communicate with the financial institution to determine the scope of the appraisal assignment."""

I would think that the above would have some of these AMC's upset...

Why? If I'm the AMC I simply send you a letter saying "yes, I have the authority to do what I want" and I continue on with my business.

These rules have zero impact on the AMC. They all pertain to the individual appraiser.

 

[Tony V]

Why? If I'm the AMC I simply send you a letter saying "yes, I have the authority to do what I want" and I continue on with my business.

These rules have zero impact on the AMC. They all pertain to the individual appraiser.

You are right that they pertain to the appraiser.....my point is that the AMC is going to have to generate this letter with each order..plus I don't think that they will be to happy about having the letter ""set out the responsibilities and authority of the authorized agent. "" being out in the streets...