Here's the 5PM version which incorporates Mike's input and Marion's issue concerning AMC qualifications......
Article 1- SANCTITY OF AN APPRAISER’S SIGNED WORK PRODUCT.
Demand & Enforce an immediate halt to any alteration of an appraiser’s finished report by Appraisal Management Companies.
No watermarks, no missing pages, no blacked-out photos, no data mining.
If a report is altered for any reason, a mandatory notification process to the appraiser is triggered.
Article 2- ELIMINATION OF BLACKLISTS AND DO NOT USE LISTS.
(AFL-CIO legal team will have a field day with this restraint of trade issue.)
Any move to de-list a licensed/certified appraiser must be made in writing, with reasons clearly stated, and with a chance for the accused to offer defense. If a rating system is used to rank appraisers, this must be published and the rating criteria available to anyone on the list.
No more Double Secret Probation.
Article 3- HOLD HARMLESS & INDEMNITY CLAUSES DEMANDED BY AMC’s.
This concept is a farce on the face of it, and needs no further explanation.
Article 4- ENFORCE EXISTING FEDERAL AND STATE LAWS PERTAINING TO ORDERING, MONITORING, PEFORMING QUALITY CONTROL ON, AND/OR PROCESSING APPRAISALS per, but not limited to, U.S. 12 U.S.C, Title XI of FIRREA 1989, OCC & FDIC Regulations which detail with specificity the legal, fiduciary, and operational obligations and responsibilities of a Federally Regulated Financial Institution and/or its' legally authorized Agent(s). Mandatory Compliance is required under, but not limited to, Title XI Section 951.
TITLE IX — REGULATORY ENFORCEMENT
AUTHORITY AND CRIMINAL ENHANCEMENTS
SEC. 951. CIVIL PENALTIES.
poster note: recommend verification of the above research, and ALL applicable Federal & Individual State Laws by qualified Attorneys.
[Source: Section 225.67 added at 55 Fed. Reg. 27773, July 5, 1990, effective August 9, 1990]
Appraisals should not be ordered based on cheapest & fastest. The goal should always be a quality Estimate of Value, completed in a reasonable time frame and for a reasonable fee.
The appraisal is an important part of the lending process, a process which normally takes several weeks and costs thousands of dollars in total fees.
The appraisal should not be rushed and certainly should not to be discounted.
Article 5- REGULATE AMC’S FOR COMPLIANCE WITH APPRAISAL LICENSING REGULATIONS
AMC employees retained for review purposes must meet all state applicable licensing laws to provide that service. Any upcharges for Appraisal Management Company services above & beyond these reasonable standard fees are to be paid for by the lender, the consumer of these services. Not by the appraiser, the provider of services.
All appraisal fees & management charges will appear as separate line items on HUD-1 as mandated by RESPA.
Article 6- Reconsideration of Value Requests by AMC’s.
Define a standard process and establish a fee schedule to cover demands for review of additional comparables. It is disingenuous to use a machine-generated AVM as a benchmark for an appraisal prepared by a licensed professional after their first-hand observation of the subject. Time spent by an appraiser to revisit a finished, error-free report shall be compensated at standard rates.
Again, any state or local groups are welcome to use this as a discussion starter, and to track progress of lobbying efforts.
