Going to go ahead and Bash appraisers why don’t you get your back straight we are required by law to review any sales contract we don’t look at the contract to see what the appraised value is going to be, give me a break. We are required to review all ofthe terms and any other concerns that can affect property. It’s exactly this mentality that just ticks me off what an insult this is. With 10 government agencies and reviewers and AMC’s and lenders and everyone else looking over our shoulder, yeah I’m just going to pick a number the match the contract price that’s how I’ll do it and my license would be gone in about a week.
Bill, I totally agree. I hold a managing broker license and a residential appraisal license. Comparatively, appraisers are micro managed. Real estate agents have little to no governance, while appraisers are under a microscope every…single…step.
In most states, there is no shortage of appraisers, just a shortage of appraisers that are willing to work for fees that don’t allow a profit. AMC’s / Banks are dictating appraisal fees. They charge the consumer for an “appraisal”, which the consumer is willing to pay, but the appraiser is only getting 50% of that fee! They float the appraisal order amongst the AMC’s until they find an inexperienced appraiser that has no idea of what it’s going to take to do a credible job or how to determine a healty profit margin.
You hit the nail on the head. Follow the money and you will find out why the number of appraisers is shrinking nationwide. How much did the typical appraisal cost before HVCC?
On the $2000 transaction you mentioned, how much was the APPRAISER paid and how much did the AMC gouge from the consumer? Regarding trainees, why would someone with a college degree spend another two years training for a career that is being regulated out of business and barely covers enough to pay the bills?
There is no shortage of appraisers in CA. The AMCs own the majority of the work going out. And they are still paying the cheapest person instead of paying someone who knows the market area. Now almost all the AMCs are controlled by only a couple companies with CoreLogic being one of them buying up everything. Now many companies are doing AVMs which reduces the appraisal volume. Its tough to be a good honest appraiser out here the cost of living is high and the fair paying work is hard to find.
Has anyone ever listened to Andrew Cuomo speak?? Three words cannot come from his mouth without an uh or a duh or an ert, etc. A member of Mensa, I believe he is not.
Geographic Competency, c’mon???? It is more important to find an appraiser who will work for less than one that is experienced and knows something about the area he or she is working in. Crossing state lines and waivers, sheer brilliance.
Ron Blessey, Sr. Loan Officer, The Mortgage Place, Santa Fe, NM
The only reason they can’t find appraisers is because of the income dropping substantially after AMCs started up. it boggles my mind that people think an increase in appraisal fees lately is a bad sign!! How about that increase just finally starting to catch up to cost of living? When I started appraising almost 20 years ago the standard fee was $300. TWENTY YEARS AGO. would you keep working at a job with ever-increasing liability and requirements for the same amount of pay you were given 20 years ago?? I would not be appraising anymore if I were still just doing fee work through AMCs.
I agree. HVCC and AIR needs to go away. AMCs need to go away. But We MUST Mandate the Appraisal Invoice be provided to the borrower and the AMC fee totally separated out on the Closing Disclosure (CD that replaced the HUD1 with TRID) The Appraisal should be a 20% tolerance and not ZERO tolerance and the AMC fee separated as an APPRAISAL ADMIN FEE and that should be a ZERO TOLERANCE ITEM under TRID!!
This would help alleviate the price gouging going on. Ridiculous that AMCS take 200-600 bucks per report for pushing it through a computer system, And Any AMC that is owned in any part or affiliated with and Financial, title, credit vendor CANNOT have STAFF appraisers. Its a total Conflict of interest for them to have STAFF appraisers. Reviewers is fine but not staff appraisers.
When an LO or anyone pressured me when I was appraising, I pushed back. However it happened so rarely that it wasnt an issue. Century Lending is self managed fee panel and Century Lending is expanding to California and the West. We pay full fees.
We also offer automated unlimited RATE LOCK float down…. Yes thats right. Take the stress out of locking and be able to tell a borrower that they can get better pricing if rates improve!
Kellie Reed kreed@centurylending.net
Huge problem with Appraiser Liability and USPAP crossing state lines and spending the time and diligence to become competent.
For right now remove the appraisal from the TRID zero tolerance fee category Increase to 20% (on 450 report thats 90 bucks). Add in and SEPARATEfrom the Appraisal Cost, the AMC administrative Fee to the LE and CD and that is ZERO tolerance fee. Require the Appraisers invoice to be attached to each report to the lender and borrowers. Lastly Make is a violation of AIR for AMCs to employ Staff Appraisers (not reviewers but field appraisers) if they are in ANY WAY affiliated or owned by any financial services, title, credit or other entity.
25+ years in this industry, I absolutely just love appraising, being outside, inspecting properties on a warm sunny day… nothing like it… THEN I have to go into the office and deal with the politics of this profession and I want to pull my hair out. From having Freddie Mac, Fannie Mae and FHA standing on my shoulders just waiting for that one innocent mistake or error that can allow them to put me on an exclusion list without recourse and overnight destroy my career, my shoulders hurt. If they truly wanted absolutely completely factual and supported appraisals, they would give us the very information that they are farming out of each and every one of our reports (UAD) but, we are DENIED THIS IMMENSE DATA even though several guidelines state that this type of information cannot be withheld from the appraiser.
Unrelated topic; I do not understand why a LENDER is allowed to OWN an AMC by stating that it is a “separate entity” Does the money eventually wind up in the LENDER’s bank account? I know an AMC, owned by a subsidiary of the actual lender who not only makes me cringe when they talk about “the AMC” in the third person and I know damn well they are virtually the same company, do you see conflict of interest??? If they NEVER completed a loan the entire year, they would still make over $3,000,000+ a year just off of the 30%+ fee they charge while making it appear that we receive most all of that fee. What has this industry come to where this is allowed? The very system they have been trying to change is now in control of the system. I am tired of answering to some AMC reviewer who is most likely reading off of a check list and requiring me to take time out of my day to re-explain something that was ALREADY IN MY REPORT. I COULD TYPE FOR HOURS BUT I HAVE TO TRY TO DRUM UP SOME NEW ASSIGNMENTS AS I AM SITTING HERE TWIDDLING MY THUMBS WAITING FOR MY NEXT ORDER…
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Nailed it, guys. HVCC bad idea, made worse with Dodd-Frank…
Going to go ahead and Bash appraisers why don’t you get your back straight we are required by law to review any sales contract we don’t look at the contract to see what the appraised value is going to be, give me a break. We are required to review all ofthe terms and any other concerns that can affect property. It’s exactly this mentality that just ticks me off what an insult this is. With 10 government agencies and reviewers and AMC’s and lenders and everyone else looking over our shoulder, yeah I’m just going to pick a number the match the contract price that’s how I’ll do it and my license would be gone in about a week.
Bill, I totally agree. I hold a managing broker license and a residential appraisal license. Comparatively, appraisers are micro managed. Real estate agents have little to no governance, while appraisers are under a microscope every…single…step.
Soooo, making a bad situation worse?! Way to go again government! I wonder if our real estate friendly president will fix this.
In most states, there is no shortage of appraisers, just a shortage of appraisers that are willing to work for fees that don’t allow a profit. AMC’s / Banks are dictating appraisal fees. They charge the consumer for an “appraisal”, which the consumer is willing to pay, but the appraiser is only getting 50% of that fee! They float the appraisal order amongst the AMC’s until they find an inexperienced appraiser that has no idea of what it’s going to take to do a credible job or how to determine a healty profit margin.
You hit the nail on the head. Follow the money and you will find out why the number of appraisers is shrinking nationwide. How much did the typical appraisal cost before HVCC?
On the $2000 transaction you mentioned, how much was the APPRAISER paid and how much did the AMC gouge from the consumer? Regarding trainees, why would someone with a college degree spend another two years training for a career that is being regulated out of business and barely covers enough to pay the bills?
There is no shortage of appraisers in CA. The AMCs own the majority of the work going out. And they are still paying the cheapest person instead of paying someone who knows the market area. Now almost all the AMCs are controlled by only a couple companies with CoreLogic being one of them buying up everything. Now many companies are doing AVMs which reduces the appraisal volume. Its tough to be a good honest appraiser out here the cost of living is high and the fair paying work is hard to find.
Has anyone ever listened to Andrew Cuomo speak?? Three words cannot come from his mouth without an uh or a duh or an ert, etc. A member of Mensa, I believe he is not.
Check this link out to peek under the sheets to see where this guy has been and where he comes from. http://mandelman.ml-implode.com/2009/08/cuomo%E2%80%99s-crossing-an-outsider%E2%80%99s-appraisal-of-the-new-hvcc-rules/. These brain truster’s have ruined this industry and will not be satisfied until they complete their mission.
Geographic Competency, c’mon???? It is more important to find an appraiser who will work for less than one that is experienced and knows something about the area he or she is working in. Crossing state lines and waivers, sheer brilliance.
Ron Blessey, Sr. Loan Officer, The Mortgage Place, Santa Fe, NM
The only reason they can’t find appraisers is because of the income dropping substantially after AMCs started up. it boggles my mind that people think an increase in appraisal fees lately is a bad sign!! How about that increase just finally starting to catch up to cost of living? When I started appraising almost 20 years ago the standard fee was $300. TWENTY YEARS AGO. would you keep working at a job with ever-increasing liability and requirements for the same amount of pay you were given 20 years ago?? I would not be appraising anymore if I were still just doing fee work through AMCs.
I agree. HVCC and AIR needs to go away. AMCs need to go away. But We MUST Mandate the Appraisal Invoice be provided to the borrower and the AMC fee totally separated out on the Closing Disclosure (CD that replaced the HUD1 with TRID) The Appraisal should be a 20% tolerance and not ZERO tolerance and the AMC fee separated as an APPRAISAL ADMIN FEE and that should be a ZERO TOLERANCE ITEM under TRID!!
This would help alleviate the price gouging going on. Ridiculous that AMCS take 200-600 bucks per report for pushing it through a computer system, And Any AMC that is owned in any part or affiliated with and Financial, title, credit vendor CANNOT have STAFF appraisers. Its a total Conflict of interest for them to have STAFF appraisers. Reviewers is fine but not staff appraisers.
When an LO or anyone pressured me when I was appraising, I pushed back. However it happened so rarely that it wasnt an issue. Century Lending is self managed fee panel and Century Lending is expanding to California and the West. We pay full fees.
We also offer automated unlimited RATE LOCK float down…. Yes thats right. Take the stress out of locking and be able to tell a borrower that they can get better pricing if rates improve!
Kellie Reed kreed@centurylending.net
Huge problem with Appraiser Liability and USPAP crossing state lines and spending the time and diligence to become competent.
For right now remove the appraisal from the TRID zero tolerance fee category Increase to 20% (on 450 report thats 90 bucks). Add in and SEPARATEfrom the Appraisal Cost, the AMC administrative Fee to the LE and CD and that is ZERO tolerance fee. Require the Appraisers invoice to be attached to each report to the lender and borrowers. Lastly Make is a violation of AIR for AMCs to employ Staff Appraisers (not reviewers but field appraisers) if they are in ANY WAY affiliated or owned by any financial services, title, credit or other entity.
25+ years in this industry, I absolutely just love appraising, being outside, inspecting properties on a warm sunny day… nothing like it… THEN I have to go into the office and deal with the politics of this profession and I want to pull my hair out. From having Freddie Mac, Fannie Mae and FHA standing on my shoulders just waiting for that one innocent mistake or error that can allow them to put me on an exclusion list without recourse and overnight destroy my career, my shoulders hurt. If they truly wanted absolutely completely factual and supported appraisals, they would give us the very information that they are farming out of each and every one of our reports (UAD) but, we are DENIED THIS IMMENSE DATA even though several guidelines state that this type of information cannot be withheld from the appraiser.
Unrelated topic; I do not understand why a LENDER is allowed to OWN an AMC by stating that it is a “separate entity” Does the money eventually wind up in the LENDER’s bank account? I know an AMC, owned by a subsidiary of the actual lender who not only makes me cringe when they talk about “the AMC” in the third person and I know damn well they are virtually the same company, do you see conflict of interest??? If they NEVER completed a loan the entire year, they would still make over $3,000,000+ a year just off of the 30%+ fee they charge while making it appear that we receive most all of that fee. What has this industry come to where this is allowed? The very system they have been trying to change is now in control of the system. I am tired of answering to some AMC reviewer who is most likely reading off of a check list and requiring me to take time out of my day to re-explain something that was ALREADY IN MY REPORT. I COULD TYPE FOR HOURS BUT I HAVE TO TRY TO DRUM UP SOME NEW ASSIGNMENTS AS I AM SITTING HERE TWIDDLING MY THUMBS WAITING FOR MY NEXT ORDER…