Our own Magna Carta

[Greenback]

...IF U GET INTO A "fee war" .....the fight is over before it begins.

I agree With Mr. Kennedy.


Sincerely,

 

[Greenback]

Mike-
I hear what you're saying.

Now, how do we mold that concept into something will benefit appraisers. How do we mold the Bank's Acceptance of Inferior Appraisals based on Fees & Turntimes into>>>>>>Better Fees and Turn-times for Appraisers ?

I want us to give the PAC a task.

Competency.

 

[DonRico]

Re: Appraiser Owned AMC

TJ- you answered your own question when you said "it would only work if we got enough appraisers to join "

I joined that NVS COOP months ago....still waiting for the first order.

I don't want appraisers to use the victim angle. I want the PAC to accentuate the "American Consumer is Being Hurt by Big Bank's Cutting Corners to Pad Their Profits' angle. Whatever it takes to bring some normalcy back to the process.

 

[Meandering]

Sure many banks own AMCs, fine, but was does that prove? or how should that diswade anyone from understanding that an AMC is an employment placement service, not an intended user of an appraisal report. Let the bank owned AMCs engage the appraiser. Nothing wrong there. What is wrong is that the banks hide behind the AMCs to conduct business as usual, skim profits from what used to be our fees for services performed, hire cheapest, fastest, number makers.

We all know the issues, too well,

The question is how to remove what used to be lender pressures and are now AMC pressures?


I maybe wrong, but I believe the answer can be found by removing the AMC from the process once a ready, willing and able appraiser has been located to perform the service.

 

[Mike Kennedy]

Mike,

THE ABOVE, with which I concur, requires a Federal Amendment to Title XI then the OCC Interagency Regulations based on the LAW - NOT the USPAP

USPAP definition of client: The party or parties that engage an appraiser in a specific assignment. definition of intended user: the client and any other party as identified....

Remove the AMCs as the client and we have a whole new ball game.

USPAP ETHICS RULE: The appraiser must protect the confidential nature of the appraier-client relationship.

The appraiser must act in good faith with regard to legitimate interests of the client
and on and on and on

But face it. AMCs should not be the client as they have no purpose to the intended use of the report except to f*** up our process.

FAQ 71. APPRAISAL MANAGEMENT COMPANY AS AUTHORIZED AGENT FOR A CLIENT​

Question: I accept assignments from an Appraisal Management Company (AMC) that has informed me they are an authorized agent for the lenders they represent. The AMC does not want me to list their name as the client, and asks that I only list the name of the lender they are representing. USPAP says the appraiser’s client is the party who engages the appraiser. Is it ethical to omit the AMC’s name as the client on my reports?
Response:​

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Yes. If the AMC is acting as a duly authorized agent for a lender, identifying only the lender as your client is acceptable.

The Bank CLIENT retains the sole responsibility for the actions of their AGENTS.​

 

[Meandering]

Don,
How about this angle,

Mr. buyer of real estate, an appraisal will be performed for the property you intend to purchase. The appraiser will gather financial information concerning the property and may contain details to your financing and financial arrangements concerning that property.

The appraiser will then transmit that information to a third party unregulated vendor who can strip all information from that report, to be sold elsewhere, this information stripping might include your confidential information, because the thrid party vendor is not bound by confidentiallity.

And who will buy that information??? We can assume only those parties that have or foresee and interest.

 

[fifteen]

The only way to force the bank to change their requirements for quality appraisals is for them to have liability for the loans they write. Right now, somehow, some perverse way, a continuation of "no liability" for the loans they write has been carried over from the boom and bust and the banks and AMC's are taking full advantage of it. This, against all common logic!!! HR 1728 AND the Kanjorski Amendment address this to some degree in that the banks must retain a 5% liability in the loans they write. The banks, of course, are fighting even 5%. Does anyone know of any business anywhere where you can sell something with absolutely no guarantees or obligations to the buyers after the sale? Investors are shying away from MBS's and CDO's - well, duh. It's only their money on the line - not the banks.

Appraisals are fully copywriteable and they should be, for our protection and the protection of the consumer. Companies should not be allowed to steal what they can pay for in the MLS. It's readily available there through above board legal means.

 

[Mike Kennedy]

Sure many banks own AMCs, fine, but was does that prove? or how should that diswade anyone from understanding that an AMC is an employment placement service, not an intended user of an appraisal report. Let the bank owned AMCs engage the appraiser. Nothing wrong there. What is wrong is that the banks hide behind the AMCs to conduct business as usual, skim profits from what used to be our fees for services performed, hire cheapest, fastest, number makers.

We all know the issues, too well,

The question is how to remove what used to be lender pressures and are now AMC pressures?


I maybe wrong, but I believe the answer can be found by removing the AMC from the process once a ready, willing and able appraiser has been located to perform the service.

See Title XI which authorizes Banks to order directly OR via 3rd Party Agents. See my post above re Amendment to Title XI.:icon_idea:

 

[Mike Kennedy]

Third Party Agents, under contract to Banks, are regulated under the same laws which Regulate Banks. So are Appraisers when hired directly. LACK OF ENFORCEMENT of existing Federal & State LAWS enables both parties to play the Monopoly Game the Banks OWN.

 

[Meandering]

Thank you MIKE!

LOVE IT,

Now the question as to AGENCY OF CLIENTS. CONFIDENTIALITY.