LIA response to AP Agreement

[The Dog]

Went to a 4 hours seminar yesterday offered by LIA (Liability Insurance Administrators) in Tigard Oregon. One of the many aspects discussed was the the new AP agreement and were LIA stood. The official response from one of the largest E&O Insurance agencies is found at:

http://appraiserinsurance.blogspot.com/2008/11/fnc-has-just-announced-newly-revised.html

Summary: The agreement does not void any E&O insurance policy. E&O does not cover your actions with AP. You are hung out to dry by yourself if AP wants to go after you. There is very little difference between this agreement and the last proposed. E&O insurance cannot cover these additional liabilities that appraisers agree to assume to FNC and its suppliers in the user agreement. Question whether you are willing to go to Mississippi to defend yourself as well. Also, pay attention to the clause limiting your rights to go after FNC regarding damages which limit you to " “the amount actually paid by [you] to AppraisalPort hereunder within the most recent 12 month period.” If individual appraisers could do it, we’d love to see appraisers limit their liability to their clients to the amount that a client pays them for an appraisal."

I think the last part of the above sentence expresses best the total feeling of getting screwed by signing this agreement.

I hope that a bunch of appraisers will refuse to sign it. I know here in Southern Oregon of at least 6 appraisers that will refuse to work for AP when this agreement goes into effect.

 

[mopickled]

"I hope that a bunch of appraisers will refuse to sign it. I know here in Southern Oregon of at least 6 appraisers that will refuse to work for AP when this agreement goes into effect"

Biggest problem is that 6 educated professionals refuse to work - while 100 scared, broke kids and/or idgits will take the chance for $150 fee as long as their cars hold out and they aren't held accountable for their work anyway. So what if FNC sues these people - they ain't got nothin. Most of these people probably don't even carry EnO anyway - maybe "borrowed" their Skippy bosses declarations page and fixed it up and faxed it over .

This is not a "free market" this is Godzilla stomping on women and children.

Until the Feds and States come in to protect the public interest from this fraud and manipulation of the system, we as "professionals" are completely screwed - and so is the Public Trust and any other investor buying this "secured paper". It will not be worth .50 on the $ until
1. APPRAISERS ARE HELD ACCOUNTABLE FOR THEIR WORK AND EVERYBODY KNOWS IT
2. SO IS ANYONE THAT HIRES AND TRIES TO MANIPULATE THEM.

If you don't do #1 - we aren't worth anymore than we are being offered at this point - the whole system has become a joke. Blame the State boards and ASC for allowing this to happen - FNC is just working the system. Not that I condone that either.

 

[Oregon Doug]

Mr. Dog,

When I was a board member - I really couldn't say much about this whole AP mess (I couldn't "speak for the board" for legal reasons) nor was I able to get the other members to pay much attention to it.

Now that it dosen't matter anymore, I'm free to voice my opinion; Any appraiser that sends reports through that system is just plain NUTZZZ!

Oregon Doug

 

[Carnivore]

Its not the individual appraisers who have to be concerned. Seriously, not at all. I have nothng to defend them with! How many of you have anything to defend them with.

Now the Big AMC's got a real problem. They have some pockets to pick.

When Big Box bank comes after FNC and FNC comes to me for expenses, I just say: Sorry, I am broke!

What will FNC do? Imagine how bad it will be for them if they dont defend themselves.

Kirchmeyer, now he has a problem!