PAREA Update

[djd09]

just like the appraisers that kill a deal, they will sift through the inspectors the same way...dont drink the kool aid

 

[shrubberyvaluation]

just like the appraisers that kill a deal, they will sift through the inspectors the same way...dont drink the kool aid

I don't do hybrids, I wonder what happens when a deal is "killed" because the appraiser has the wrong property characteristics.

 

[djd09]

I don't do hybrids, I wonder what happens when a deal is "killed" because the appraiser has the wrong property characteristics.

just get their E&O policy first...come to think of it, ask them to fill out an application, get a background check, and send 3 sample reports for due diligence sake

 

[J Grant]

They even call it a 1004.

Wait till the AMCs come after the private work. There won’t be any independent appraisers left to fight. This isn’t even a profession if you step aside and let people take your work. That seems like a cowardly thing to do.

AMCs will not go after private work ( which is miniscule anyway in volume ) . There is no incentive also for a private person to engage an AMC even if an AMC approached them. The AMC's exist because the HUD split fee enables them to divide the fee and regulations prohibit customer from selecting the appraiser -which does not apply to private work.

What has always been a threat and remains a threat is whether AMC's going forward will absorb virtually all lender work (right now there is still direct lender order panels) Will see - to those surprised at the AI positions -why are you surprised? AI designated front for the AMC's in senior capacity.

 

[chad hampton]

AMCs will not go after private work ( which is miniscule anyway in volume ) . There is no incentive also for a private person to engage an AMC even if an AMC approached them. The AMC's exist because the HUD split fee enables them to divide the fee and regulations prohibit customer from selecting the appraiser -which does not apply to private work.

What has always been a threat and remains a threat is whether AMC's going forward will absorb virtually all lender work (right now there is still direct lender order panels) Will see - to those surprised at the AI positions -why are you surprised? AI designated front for the AMC's in senior capacity.

I agree with you. Which is why it should be insulting when appraisers are told to "just go find non-lender work" and "build your appraisal business about non-lender work". This profession only exists because of lender work. Which is why the AMC are only interested in that. With the exception of a few fringe clients, that's how it is. Appraisers better fight for lender work as though your career depends on it. Because it does.

 

[ucbruin]

I agree with you. Which is why it should be insulting when appraisers are told to "just go find non-lender work" and "build your appraisal business about non-lender work". This profession only exists because of lender work. Which is why the AMC are only interested in that. With the exception of a few fringe clients, that's how it is. Appraisers better fight for lender work as though your career depends on it. Because it does.

The better advice would be to marry a high income earning spouse....
Hahahaha....

 

[J Grant]

I agree with you. Which is why it should be insulting when appraisers are told to "just go find non-lender work" and "build your appraisal business about non-lender work". This profession only exists because of lender work. Which is why the AMC are only interested in that. With the exception of a few fringe clients, that's how it is. Appraisers better fight for lender work as though your career depends on it. Because it does.

Why would a private party need an AMC to "manage" an appraisal for them? The idea is ludicrous.

The main reason AMC's have such a large share of lender work is because due to the regulatory prohibitions wrt ordering and the perk of HUD bundled fee, an artirical demand was created, and spread because AMC;s can offer their service FREE of actual cost to lender as client/customers - which puts individual appraisers at a tremendous competitive disadvantage.

Watch the AMC share of work get cut to the bone if lenders had to actually PAY A COST for it - said cost 100% divorced from any appraisal fee.
A private party would send an AMC packing because unlike lenders, a private party would need to pay out of pocket for the AMC end, and who among them is that stupid?

There is no way for appraiser to "fight" for lender work - barring a class action lawsuit wrt the AMC unfair competitive advantage/bundeled fee and so far appraisers have not shown the will for such such adversarial action. The problem is two fold - a diminishing amount of mortgage work and the continued AMC hold on a large part of it, which depresses fees.

I believe most naive people lured in by PAREA or the spin will bail as soon as they see what conditions and income actually are. The vultures stripped the appraisal profession to a carcass and now they expect Minorities to be grateful to be offered an opportunity to gnaw on a bone? What hypocrites - would be funny if they had any self awareness, which they don't.

 

[alebrewer]

So it seems you're forgetting one very important aspect - AMC's don't just 'skim off the top' and count their money. They are engaged to perform specific functions - as are appraisers. And the users of AMC's pay them for said functions. Sometimes the fees are bundled, and sometimes they're not (as is the case in my world). Regardless - the AMC clients are paying the AMC's for specific services - not just for grabbing some of the fee and running to their castle to count the money.

 

[jay trotta]

I agree with you. Which is why it should be insulting when appraisers are told to "just go find non-lender work" and "build your appraisal business about non-lender work". This profession only exists because of lender work. Which is why the AMC are only interested in that. With the exception of a few fringe clients, that's how it is. Appraisers better fight for lender work as though your career depends on it. Because it does.

I agree, but with the invention of Bias to support PAREA, unless we get more than a few in Congress to agree, IMO it's a lost cause. On the Fed side they always required "Independance" from Lenders, (regarding Public Trust - just like Accountability, political nonsense as usual) when that changed via D-F & HVCC the steps were put in place to produce direct Control over the appraisal industry and how appraisals will be produced.

If I recall before the 2008 crash, there was approximately 1 in 12 reports (anyone needs to add to this, feel free) that may have created a lost deal or overvalued property. That problem will be solved......I guess.

 

[J Grant]

So it seems you're forgetting one very important aspect - AMC's don't just 'skim off the top' and count their money. They are engaged to perform specific functions - as are appraisers. And the users of AMC's pay them for said functions. Sometimes the fees are bundled, and sometimes they're not (as is the case in my world). Regardless - the AMC clients are paying the AMC's for specific services - not just for grabbing some of the fee and running to their castle to count the money.

Save the spin-

I agree AMC's are engaged to perform specific functions. ....and since THOSE FUNCTIONS BENEFIT THE LENDERS, THE LENDERS SHOULD PAY 100% OF THE COST FOR IT, ( divorced from appaisal fee)

The clients do not pay the AMC from their own operating funds , the way lenders pay for IT support or Janitor service. The lenders send a pass through payment to the AMC that is "skimmed/split from the appraisal fee, leaving the appraiser with less $.

Why should appraisers be subsidizing the service that benefits lenders, from our income?
Isn't that socialism and govt interference wrt you usually rail about...