Pressure to complete an appraisal by an AMC? What are my options?

[VikingErickson]

An appraiser in my firm is currently undergoing an unreasonably dramatic situation with an AMC where they are trying to intimidate the appraiser into completing the appraisal assignment. Basically, the inspection was completed and due to comments from the homeowner about how the value must be high, how he did so much work to it, how he dumped money into it, etc., she went to the AMC and denied the order due to an attempt to influence value, as well as an issue with complexity. The homeowner is a contractor that put top of the line finishes into his house, which is otherwise a very basic and standard house, but only completed maybe 60% of it. They wanted an as-is appraisal. It's more than likely an extreme over-improvement, coupled with only a partial finish, and further exacerbated by the undesirable location (great city/school district, but right off of a major highway). The homeowner's behavior was also very odd, which probably doesn't factor into this but certainly made her uncomfortable completing the appraisal after the inspection.

After speaking with the AMC, they appeared to have a problem with her refusing to complete the assignment and have repeatedly said things like "oh it's fine, I spoke with the homeowner and he's totally cool with it. Just complete it and get it back to us". After two weeks of them not accepting no for an answer, the "senior reviewer" responded with an irate email saying things like "YOU HAVE LOST YOUR MIND!!!!" and "IF YOU BAIL HE WILL FILE A COMPLAINT!!!!" (he = homeowner). All caps, riddled with spelling errors, etc. She sent an email back explaining that per USPAP, she cannot complete the report, essentially. He responded again by trying, yet again, to get her to complete the appraisal report and said he's "just trying to keep (her) out of trouble".

Clearly, this is a messy situation. We've now involved our lawyer. But the laws regarding jurisdiction over what AMC's can or cannot do is pretty obscure. It's also pretty obscure as to whether or not a complain can legitimately be filed if an appraisal is never even completed (we're located in Minnesota).

So the first question is, can she be in hot water over not completing the appraisal report, due to contractual obligations? And secondly, what is the best way to go about this? Ghost them? Call the Dept of Commerce? Report them? Have the rest of our correspondence go through our lawyer? And lastly... Are there any laws about intimidation or coercion as it pertains to COMPLETING an assignment (in contrast to influencing an appraisal's value)?

To make matters worse, we have two outstanding orders with this AMC and although we won't be working with them again, we're questioning whether or not it's the smartest move to further enrage them by denying the other two orders, as well.

Thank you all in advance.

 

[CANative]

I'm on the side of the AMC on this one, unfortunately. Just complete the assignment without regard to anything anyone says.

As to being sued, don't look toward USPAP. Anyone can sue anyone for anything at any time.

 

[Michigan CG]

You mentioned many things including complexity. Document everything in writing including the "senior reviewer" and send it to the lender.

Tell the AMC in a short note that they have been informed that you aren't doing the assignment multiple times and it is your business and your business decision not to complete the order.

 

[VikingErickson]

I'm on the side of the AMC on this one, unfortunately. Just complete the assignment without regard to anything anyone says.

As to being sued, don't look toward USPAP. Anyone can sue anyone for anything at any time.

She already told the AMC that she felt pressure to hit value and that it influenced her. She also said to them that the complexity of the assignment was not something that she was comfortable with.

Are you saying that, despite USPAP being pretty clear that the appraiser must deny the appraisal under these circumstances, that she should just complete the appraisal anyways?

I have to admit that I wasn't expecting anybody to say that she should go forward with completing the appraisal, especially after putting it in writing that the appraisal is too complex AND that she felt unduly influenced to hit value, despite USPAP's direct contention with that.

 

[VikingErickson]

You mentioned many things including complexity. Document everything in writing including the "senior reviewer" and send it to the lender.

Tell the AMC in a short note that they have been informed that you aren't doing the assignment multiple times and it is your business and your business decision not to complete the order.

There isn't any violation with bypassing the AMC and contacting the lender, directly? Especially as it pertains to her correspondence with the AMC?

Thank you for your response!

 

[CANative]

She already told the AMC that she felt pressure to hit value and that it influenced her. She also said to them that the complexity of the assignment was not something that she was comfortable with.

Are you saying that, despite USPAP being pretty clear that the appraiser must deny the appraisal under these circumstances, that she should just complete the appraisal anyways?

I have to admit that I wasn't expecting anybody to say that she should go forward with completing the appraisal, especially after putting it in writing that the appraisal is too complex AND that she felt unduly influenced to hit value, despite USPAP's direct contention with that.

"She" should have rejected the assignment from the beginning if this was an assignment where FannieMae underwriting standards are required (the assumption can be the need for the use of the 1004 Fannie form.) The USPAP flexibility of gaining experience prior to completing the assignment is specifically excluded by Fannie Mae in their selling guide.

On the other hand there are multiple parties who have a monetary interest in the transaction and would be harmed by bailing on the assignment at this point.

The appraiser has gotten herself into a real jam by not having a deeper understanding of the role of the appraiser. If the issue of complexity is insurmountable, withdraw and take the lumps that are coming. If she can get help, even if it comes with a hefty fee, then complete the assignment and acknowledge the assistance.

What else can be done?

 

[ucbruin]

She already told the AMC that she felt pressure to hit value and that it influenced her. She also said to them that the complexity of the assignment was not something that she was comfortable with.

Are you saying that, despite USPAP being pretty clear that the appraiser must deny the appraisal under these circumstances, that she should just complete the appraisal anyways?

I have to admit that I wasn't expecting anybody to say that she should go forward with completing the appraisal, especially after putting it in writing that the appraisal is too complex AND that she felt unduly influenced to hit value, despite USPAP's direct contention with that.

Is it possible that a more experienced appraiser from your firm go back to the subject property and inspect the house and help her complete the report or just have it reassign to the firm's more experienced appraiser?

 

[Terrel L. Shields]

e inspection was completed and due to comments from the homeowner about how the value must be high, how he did so much work to it, how he dumped money into it, etc., she went to the AMC and denied the order due to an attempt to influence value,

If I told them I was withdrawing because I didn't trust the borrower, that would be the end of it. I will not fall on my own sword willingly.

 

[Michigan CG]

There isn't any violation with bypassing the AMC and contacting the lender, directly?

You are letting the lender know what kind of scumbags they are dealing with.

 

[Kitarkus]

What contractural obligation are you/your appraiser under? I see absolutely no reason why you and/or your appraiser cannot halt work related to this job at any point during your work or analysis related to this assignment. If your employee/appraiser feels that she was being pressured/influenced and has lost a sense of objectivity....she should absolutely walk away. The AMC is being entirely unreasonable the way I read your post. What "complaint" will who file with whom??.....and who cares! As far as the other two orders that you have with this AMC....why would you even question whether to complete these....no....hell no!
If they can't treat you with the independence and respect that I can only assume that you deserve....run....do not walk....and slam the door behind you. Sue you?....for what?....having ethics?

CANative..."On the other hand there are multiple parties who have a monetary interest in the transaction and would be harmed by bailing on the assignment at this point.".......perhaps you are right....but I think not. This appraiser is not a party to this transaction. Her involvement may very well throw a wrench into some type of loan timing.....but she is not a responsible party to this transction...she has no obligation or consideration aside from an agreement to perform a service. She feels that she is being influenced during the course of an attempt to be an unbiased 3rd party....end of story. I'd run....I don't think she is in any ill fated situation. Perhaps the Borrower will think of not placing himself in the appraisal process next time. Kudos to your appraiser.

Edit: The issue of complexity?....did you ever say that this job was beyond the Appraiser's expertise?....if so that is a completely differing issue and I assume that she was otherwise capable of competing the job that she had been tasked with. As far as contacting the Lender/Client and bypassing the AMC....personally I would not do so. You likely had signed some type of Agreement with AMC prohibiting such an interaction. Even if no such Agreement was entered into....this is not a Lender issue....this is an AMC issue. Keep your blinders on...and quit letting this AMC bust your chops. YOU ARE THE BOSS of this Assignment...PERIOD. This AMC is proving their complete lack of worth....as an entity to stand between the Appraiser and Lender to ensure objectivity. I give them a failing grade.....and respectfully.....pull up your pants and tell this AMC to POUND SAND. You don't need a lawyer....you need to YELL.