The Appraiser Shortage Myth Part 43

[gregb]

There is nothing perceived to be gained by lenders or AMC's in changing the the current business model. So long as enough appraisers go along, the machinery continues to be oiled and fed.

 

[Eli]

Out of the mouths of babes:

 

[hastalavista]

[I'm confused. Why did you get your college degree?/QUOTE]

Multiple reasons.
At the time, I thought it was necessary for the SRA (I'm not sure it was). It was necessary for the AG license.
But, more than that, I thought it was important for me to obtain a 4 year degree to move upward in my career path. Keep in mind, I'm the owner of my own appraisal firm so I didn't need the degree to move up in my own company. However, to compete in the area I wanted to compete within, I thought it was important. And, as it turned out, it was.

Funny story: I graduated with an AA from Santa Monica College. 30 years later I enrolled in the University of Phoenix to complete my degree (BS in Finance). The formal courses I took at UoP helped me significantly when I was taking the CG and MAI courses.
So, I graduated (with honors) and got my BS degree.
I have a court case: the attorney (whom I working for) asks me about my formal education. I tell him I graduated with honors from University of Phoenix with a BS in Finance.
He tells me, "Well, well quote your BS in finance but we'll leave out where you graduated from."

I guess the attorney didn't appreciate the degree from UoP to the same degree I did.

 

[Michigan CG]

My heart is breaking for the poor, overburdened banks. We should concoct a sing along of of woe for them. Its just too bad another piece of paper or additional figure should be added to the already existing tome of closing documents?

I understand the dislike of banks but you are not acknowledging the larger picture. The small lenders have to comply just like the banks do. The paperwork nightmare and the regulations imposed by the past administration are eliminating the small banks and lenders not the big banks.

 

[Michigan CG]

I am not aware of any lender who will pay an AMC for a report prior to actual delivery of the report. Why would they?

Wait a minute. I need wood at my camper so I went to the wood guy Saturday and paid him up front. He is delivering the wood next Friday. I know that if I paid the wood guy in advance that AMCs get paid in advance.

 

[gregb]

Wait a minute. I need wood at my camper so I went to the wood guy Saturday and paid him up front. He is delivering the wood next Friday. I know that if I paid the wood guy in advance that AMCs get paid in advance.

Trust me, with thé history of sketchy AMC's, it is a mistake to extend credit to some of these largely unregulated AMC's.

 

[timd354]

Please do a little research on the zero-tolerance requirement and how the regulated institutions are taking steps to ensure they never (in deed or in perception) cross that line.

Taking time actually do research before posting about something that one knows little or nothing about? You must be kidding, that is not the AF way.

 

[timd354]

.
Until appraisal fees are released from the zero tolerance bucket, the adaptation of the cost-plus model will likely never happen. For all the reasons I've posted, and for all the reasons you'll discover if you did some independent research on the matter.

You don't like the current system and want to change it; I get that.
But if you want to change it, don't you think it is worth some time and effort to understand how and why it works the way it does, so the solutions/changes you advocate for will address the specific issues in the current process, and once changed, will achieve the outcomes you desire?

ding, ding, ding....correct answer!

 

[Terrel L. Shields]

Why would they?

so I went to the wood guy Saturday and paid him up front

Jonathan Miller charges up front. On large assignments I charged a retainer. I've never had a client refuse to do it. I guess that puts us on a professional level with a woodcutter and the AMC and bankers somewhat less professional than a wood cutter.

 

[timd354]

Jonathan Miller charges up front. On large assignments I charged a retainer. I've never had a client refuse to do it. I guess that puts us on a professional level with a woodcutter and the AMC and bankers somewhat less professional than a wood cutter.

With the possible exception of some very complex, high end assignments or assignments in an area with a severe appraiser shortage, there is little chance that appraisers are going to be able to get a lender to pay a retainer or pay for an appraisal upfront for a residential mortgage lending assignment. Maybe that is not the way it should be, but that is the simple reality of the situation.