Our own Magna Carta

[DonRico]

Mike-
It's possible to down-play the Fees & Turn-Times aspect of this and still establish a strong base for us to negotiate these items. Right now, we have no basis for negotiation. Not when there's some clown on the other side of the state that's willing to do it for a $150.

The focus is on a quality Estimate of Value, performed in a timely manner for a reasonable fee. Not a 24 hour shlock-job, done at a cut rate. The appraisal is a key document in a major transaction. Does the consumer really want to save a few bucks on the least expensive part of that ??

Marion-
Your point about AMC's being "retained for review purposes they must meet all state applicable licensing laws to provide that service, and must be separately compensated by those hiring them." is a good one.
I'd like to pursue that angle in these initiatives. Please develop the idea, and we'll add an Article 7.

 

[Meandering]

Agreed.
6. Any formerly independent contractor that is being managed by a third party entity is an employee as defined by federal labor laws, therefore the managing party is responsible for the application of federal labor laws for that contracted employee including but not limited to minimum wage, state, federal and local taxes, unemployment insurance and all other applicable labor laws.

 

[Meandering]

Back in another life I was an evil factory manager.
Boo hiss
But when the orders were mounting and we needed bodies on the line,
We hired, of all things, employment placement services to provide prescreened people to help get the work accomplished.

No other industry that uses employment agencies allow those agencies to medel in the work being performed.

Who the heck promoted AMCs above other employment placement services, I don't know. But I do know that in concept they are no different.
Let's face it. AMCs should not be intended users of reports, they have no business in the process other than providing a cushion between the lender and the appraiser.

 

[Mike Kennedy]

Mike-
It's possible to down-play the Fees & Turn-Times aspect of this and still establish a strong base for us to negotiate these items. Right now, we have no basis for negotiation. Not when there's some clown on the other side of the state that's willing to do it for a $150.

The focus is on a quality Estimate of Value, performed in a timely manner for a reasonable fee. Not a 24 hour shlock-job, done at a cut rate. The appraisal is a key document in a major transaction. Does the consumer really want to save a few bucks on the least expensive part of that??

Don, both fees & turntimes are a direct result of Banks authorizing and accepting reports from their contracted (and/or owned) AGENTS selecting (a)ppraisers who are Incompetent and agree to wholly unrealistic turntimes which do NOT enable required Due Diligence.

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

Appraisers are already empowered to NEGOTIATE an acceptable fee. As long as the "ant army" accomplishes demanded turnaround times based on inherent lack of due diligence and INCOMPETENCY - fighting against the "fee paper tiger" is a losing cause.

NO ONE cares what the fee is, ESPECIALLY Politicians - except Appraisers. BANKS accepting INCOMPETENCE either directly or via their Captive or Contracted AMCs - must be the Issue. All else stems from that CORE FACT. Each time they do - they violate Federal and State Laws.

Time to make them accept the LEGAL responsibility for their actions.

THAT MUST BE THE FIGHT.

 

[Mike Kennedy]

Agreed.
6. Any formerly independent contractor that is being managed by a third party entity is an employee as defined by federal labor laws, therefore the managing party is responsible for the application of federal labor laws for that contracted employee including but not limited to minimum wage, state, federal and local taxes, unemployment insurance and all other applicable labor laws.

Please post a link to that ? what does "formerly independent" mean?

 

[TJSum]

Item 1 - Appraisers shall not have any entity managing their business and shall work directly with lenders to negotiate fees, delivery dates, and assignment scopes. All others are forbidden from management of this function.

DONE

This one has my vote.

Everything else is acting too much like a victim, hoping we will be thrown a bone here or there.

The second option would be to start our own nationwide appraiser owned AMC, such as the co-op. We set the business model based on many of the same notions stated in the Magna Carta of the OP. Why form a union or PAC begging the legislators to do the right thing by us? It never has happened and never will. Instead of demanding victim status, why not have most appraisers form their own AMC, doing business the way we set it up, at the expense of all other AMCs.

Yes, it would only work if we got enough appraisers to join to put a major hurting on the AMCs, but that is the same need for any union to have any effect. So if we are going to get that many appraisers online, why not run it ourselves via a co-op instead of letting the already in place AMCs run things, with a constant battle between them and some union to try to get them to do the right thing. We have a better option, and it would only take the same level of appraisers as a union would. Why settle for less ??? Let's stop thinking like victims dependent on others to save us, we can save ourselves.

 

[Greenback]

Certification #21 only states a user (no intended use).

What's the "use" data collectors claim from/for the client? Does there need to be seperate uses for each intended users?

Data mining is wrong. They can use the report as an additional intended user, but name doesn't go beyond imply.

Question is: why would data miners need to be an intended user? what relevance is data collectors? I would like their involvement spelled out in detail so they can conform with the original intended use.

If so..

The Intended use should be defined in detail and every user have their use defined in detail.

Suspend #21 OR clearly describe their use in detail and enforce it without data mining.


Sincerely,

 

[DonRico]

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.

 

[Meandering]

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.

 

[Mike Kennedy]

Who the heck promoted AMCs above other employment placement services, I don't know.

The Banks who either own them or enthusiastically contract with them.