He never addressed the “real” issue about the appraisal problem. There is “no” shortage of appraisers, there is a shortage of appraisers willing to work for AMC’s that take half the appraisal fee, and require a lot of unnecessary work that is not USPAP related. The profit margin is to small to make a living off of AMC appraisal fees. FYI, you do not have to go thru an AMC to order an appraisal! Many lenders require you to use their AMC, so they can make money off of the appraisal fee.
There is no shortage of Appraisers in most areas
The issue is the AMCs that attempt to place appraisal orders for lenders
I see the same order come to my office every day or two for weeks
It comes to me for $325 or $350 the first few time
As the basic fee is $500 none of the appraiser’s even reply to the requests
So, your first week (some times two) is lost in this way and it has nothing to
do with the appraisers
The second reason orders don’t get picked up is the relationship between some AMCs and the Appraiser’s that has been destroyed. Every Appraiser in my two county area has a list of AMCs (and even some Lenders) that we will not even take an order from. One Appraiser has 20 companies on his list.
Why? Those companies treat the Appraiser like SHIT (sorry for that).
So, many orders come from an AMC that no one in the area will work for and when they do reach the appraiser the fees are far to low. Those orders sit for a week or two before one of two things happen
1 – the AMC increases the fee or sends out a BLAST email requesting the Appraiser to provide a Fee that they will work for
2 – the order is sent out to the appraiser through a different AMC
If Option 2 takes place we could see the order again start all over at $325 or some thing more real depending on who the new AMC is.
But by this time we have already lost a week, maybe two
How do I know that I am not the only appraiser that sees this mess taking place you ask.
Well, we hold an appraiser’s meeting every month in the area for the two county area I work. I hear the same thing ever month. We even laugh about the orders that are way up in the mountains (2 to 3 hours drives) that they AMC is attempting to get us to do for $300, YES I said $300. We all get the BLAST EMAILS.
If you want to make things run smooth it is easy, YES SO EASY
But it will never happen
Make the Lender Pay the Appraiser’s Invoice, Not the AMC
Make the Lender Pay the AMC a FLAT FEE for Placing the Order, not just keeping every thing they can from the fee they collect from the Lender and squeeze out of the Appraiser by attempting to get the Appraiser to do the work CHEAP
Stop the AMC from telling the Appraiser HOW TO DO HIS/HER JOB
Now lets look at the next step
The AMC Often holds up the report from the Lender for DAYS after the report is complete
Why? Good Question. They hold it up for some dumb reason that they claim it does not meet THEIR REQUIREMENTS or Their VIEW of how some thing is to be.
The issue here is that the report meets Fannie Mae, USPAP and/or FHA requirements already. But they (teh AMC) have created their own set of requirements that have nothing to do with the report and are not needed for the underwriter to use the report.
BUT the AMC will not send the report to the Lender unless you include their list of required items.
I have reached an end with this type of garbage. I now tell them I will contact the owner of the property and have them check with the lender. If their Lender has not received the report by the end of the second day I will send the report to the Lender myself with a statement that shows what day the report was complete.
In the last two years this has ONLY happened once.
Gee, the Lender no longer uses that AMC
Well, I could get into the fee side of the issues from the Appraiser’s view but that is for another day
Several issues here of course, number one of course being government regulations. This war against us by the government needs to stop (Dodd Frank). We need people in the government making rules that actually know what it’s like to be on the field everyday, not these useless politicians that think they have a clue. Cuomo, get rid of AMC’s who only slow things down and dictate to the poor appraisers. We are sooo happy you stepped in and cleaned everything up for us. Also more borrowers should be getting loans with PIW’s and not paying $750 for an appraisal to begin with. Yes, I’m talking to you DU, LP!!!! 70% LTV 800 score r/t refi w/ 25% DTI needs one? Gimme a break. Is this another attempt at a coup on the mortgage broker? I’m still standing!! Shortly no one will want to be in this industry any longer because of all the BS and then it will just be the order takers of the “too big to fail” to rescue all the borrowers out there. Someday they will finally have it their way. GO TRUMP
There is no reason for a lender to require an appraiser to be Certified for 85% of the loans. Why do they require a Certified Appraiser? Easy
FHA went to it as a requirement for FHA work. There was no reason for Lenders to follow that move.
There are many many appraiser that are licensed and have been for many years that are better appraisers than many of the Certified Appraisers out there. But lenders and AMCs will not use them
Want to reduce turn times on your deals, then start providing work to all the appraisers that are out there doing just a few a month with a license
Quick fixes for the lending community in regards to appraisals
1. Stop using an AMC. Either start your own appraisal desk or use a portal. With either of these options, you will get a higher quality appraiser, where the appraiser earns more while the consumer pays less. If you have a concern of compliance, then the portal option might be best for you, another benefit is that lender liability is reduced due to no humans involved from the 3rd party. Costs are between 7 to 36 dollars per order.
2. Lenders can immediately remove the self created rules that trainees can’t inspect on their own. This is the single biggest reason appraisers will not take on a trainee. Why take on the responsibility when it does not really free you up to increase your business.
Implement both of these suggestions and you will see that there is no shortage of appraisers.
In order to get an appraisal in less than 60 days, we in Portland are paying $1000+ appraisal fee. Appraisal was ordered 9-21. Here is the message from the management company on 9-26:”PLEASE ADVISE RIGHT AWAY – The ONLY appraiser we have who is willing to complete this assignment at this time is a rush only appraiser. The total invoice would be $1000 & delivery date of 10/13. PLEASE ADVISE ASAP IF WE SHOULD MOVE FORWARD WITH THIS APPRAISER OR CANCEL THE ORDER?” The 2nd choice was $595 for a 11-15 due date. Yesterday, I met with an appraiser that was being paid $1200 for a 3 week “rush”.
Welcome to our world. In order to get an appraisal in less than 60 days, we in Portland are paying $1000+ appraisal fee. Appraisal was ordered 9-21. Here is the message from the management company on 9-26:”PLEASE ADVISE RIGHT AWAY – The ONLY appraiser we have who is willing to complete this assignment at this time is a rush only appraiser. The total invoice would be $1000 & delivery date of 10/13. PLEASE ADVISE ASAP IF WE SHOULD MOVE FORWARD WITH THIS APPRAISER OR CANCEL THE ORDER?” The 2nd choice was $595 for a 11-15 due date. Yesterday, I met with an appraiser that was being paid $1200 for a 3 week “rush”.
I wouldn’t touch an appraisal these days for $2,000 due to the amount of time required and the increased liability. Someone has to do them though…thank God for fools!
You want what for how much how fast….oh, when it goes sideways it’s the appraiser….commissioned L/O get how much….1%, 2% etc. An appraiser wants $595 to $795 and we’re greedy. Anybody out there figure how many hours really goes into an appraisal? You’d be flipping burgers at McDonalds. My dad always said if it was easy everyone would do it. Well those guys are gone. Appraisers need to unite and continue to stand up to make a great fee, deliver a great product. Anybody every have coins appraised? Did you ever argue with that guy? He’ll tell where to get off.
UAD and the data grab and then I have to buy back the data that I helped build “their” database with….C’mon now. Get rid of the AMCs and their money grab as well. My engagement letter tells my clients, once the assignment starts, no contact. You want to know when you’ll get a completed assignment….when you stop calling me about when you get the report. Keep pounding on appraisers and you’ll continue to get the lousy reports you lenders despise. Ok…I’m off the soap box.
As everyone states,,,, The loan officers/realtors are getting old (average age 57+-). We need to drop the licensing requirements for loan officers and realtors. Lets go to high schools and do a recruitment drive. Appraiser shortage NOT. The only shortage is the amc’s that are willing to pay a living wage. I have been living in poverty for the last 10+- years working for $270.00 a job. What I can bust out 3-5 jobs a week. Wow, lets go buy a house Martha!, Let alone feed your family!!! LOOK AT how much money WELLS FARGO MADE OFF THERE AMC/APPRAISAL DEPT. DO YOU KNOW HOW MUCH? TRY BILLIONS. BASIC ECONOMICS.. MORE MONEY, MORE PEOPLE THAT WANT TO DO THE JOB… BASICS…
I was on vacation when this posted but I find the comments interesting. In my area there is definitely an appraiser shortage. Many of the appraisers we have left are approaching retirement age. VA can’t recruit appraisers in our area. AND, the state has such ridiculous licensing restrictions that there are few young people willing to put in the 4 years of college + the 2-3 years of apprenticeship required to obtain a license. Even the appraisers here see the problem. And, most of them are simply too busy to take on an apprentice and especially for that length of time. We’re heading for a major problem. Plus, turn times are horrible and prices keep going up. This issue does need to be addressed and sooner rather than later.
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Please educate yourself on the issue before making these comments
Good morning gents…. your show this morning was only 19 seconds and only included a plug for a website development company.
He never addressed the “real” issue about the appraisal problem. There is “no” shortage of appraisers, there is a shortage of appraisers willing to work for AMC’s that take half the appraisal fee, and require a lot of unnecessary work that is not USPAP related. The profit margin is to small to make a living off of AMC appraisal fees. FYI, you do not have to go thru an AMC to order an appraisal! Many lenders require you to use their AMC, so they can make money off of the appraisal fee.
Regarding Appraiser shortage…………….it’s the Fee’s!!! Very simple.
Wow
There is no shortage of Appraisers in most areas
The issue is the AMCs that attempt to place appraisal orders for lenders
I see the same order come to my office every day or two for weeks
It comes to me for $325 or $350 the first few time
As the basic fee is $500 none of the appraiser’s even reply to the requests
So, your first week (some times two) is lost in this way and it has nothing to
do with the appraisers
The second reason orders don’t get picked up is the relationship between some AMCs and the Appraiser’s that has been destroyed. Every Appraiser in my two county area has a list of AMCs (and even some Lenders) that we will not even take an order from. One Appraiser has 20 companies on his list.
Why? Those companies treat the Appraiser like SHIT (sorry for that).
So, many orders come from an AMC that no one in the area will work for and when they do reach the appraiser the fees are far to low. Those orders sit for a week or two before one of two things happen
1 – the AMC increases the fee or sends out a BLAST email requesting the Appraiser to provide a Fee that they will work for
2 – the order is sent out to the appraiser through a different AMC
If Option 2 takes place we could see the order again start all over at $325 or some thing more real depending on who the new AMC is.
But by this time we have already lost a week, maybe two
How do I know that I am not the only appraiser that sees this mess taking place you ask.
Well, we hold an appraiser’s meeting every month in the area for the two county area I work. I hear the same thing ever month. We even laugh about the orders that are way up in the mountains (2 to 3 hours drives) that they AMC is attempting to get us to do for $300, YES I said $300. We all get the BLAST EMAILS.
If you want to make things run smooth it is easy, YES SO EASY
But it will never happen
Make the Lender Pay the Appraiser’s Invoice, Not the AMC
Make the Lender Pay the AMC a FLAT FEE for Placing the Order, not just keeping every thing they can from the fee they collect from the Lender and squeeze out of the Appraiser by attempting to get the Appraiser to do the work CHEAP
Stop the AMC from telling the Appraiser HOW TO DO HIS/HER JOB
Now lets look at the next step
The AMC Often holds up the report from the Lender for DAYS after the report is complete
Why? Good Question. They hold it up for some dumb reason that they claim it does not meet THEIR REQUIREMENTS or Their VIEW of how some thing is to be.
The issue here is that the report meets Fannie Mae, USPAP and/or FHA requirements already. But they (teh AMC) have created their own set of requirements that have nothing to do with the report and are not needed for the underwriter to use the report.
BUT the AMC will not send the report to the Lender unless you include their list of required items.
I have reached an end with this type of garbage. I now tell them I will contact the owner of the property and have them check with the lender. If their Lender has not received the report by the end of the second day I will send the report to the Lender myself with a statement that shows what day the report was complete.
In the last two years this has ONLY happened once.
Gee, the Lender no longer uses that AMC
Well, I could get into the fee side of the issues from the Appraiser’s view but that is for another day
James the Appraiser
Several issues here of course, number one of course being government regulations. This war against us by the government needs to stop (Dodd Frank). We need people in the government making rules that actually know what it’s like to be on the field everyday, not these useless politicians that think they have a clue. Cuomo, get rid of AMC’s who only slow things down and dictate to the poor appraisers. We are sooo happy you stepped in and cleaned everything up for us. Also more borrowers should be getting loans with PIW’s and not paying $750 for an appraisal to begin with. Yes, I’m talking to you DU, LP!!!! 70% LTV 800 score r/t refi w/ 25% DTI needs one? Gimme a break. Is this another attempt at a coup on the mortgage broker? I’m still standing!! Shortly no one will want to be in this industry any longer because of all the BS and then it will just be the order takers of the “too big to fail” to rescue all the borrowers out there. Someday they will finally have it their way. GO TRUMP
OOO
I missed a major issue in my post above
There is no reason for a lender to require an appraiser to be Certified for 85% of the loans. Why do they require a Certified Appraiser? Easy
FHA went to it as a requirement for FHA work. There was no reason for Lenders to follow that move.
There are many many appraiser that are licensed and have been for many years that are better appraisers than many of the Certified Appraisers out there. But lenders and AMCs will not use them
Want to reduce turn times on your deals, then start providing work to all the appraisers that are out there doing just a few a month with a license
James
Quick fixes for the lending community in regards to appraisals
1. Stop using an AMC. Either start your own appraisal desk or use a portal. With either of these options, you will get a higher quality appraiser, where the appraiser earns more while the consumer pays less. If you have a concern of compliance, then the portal option might be best for you, another benefit is that lender liability is reduced due to no humans involved from the 3rd party. Costs are between 7 to 36 dollars per order.
2. Lenders can immediately remove the self created rules that trainees can’t inspect on their own. This is the single biggest reason appraisers will not take on a trainee. Why take on the responsibility when it does not really free you up to increase your business.
Implement both of these suggestions and you will see that there is no shortage of appraisers.
In order to get an appraisal in less than 60 days, we in Portland are paying $1000+ appraisal fee. Appraisal was ordered 9-21. Here is the message from the management company on 9-26:”PLEASE ADVISE RIGHT AWAY – The ONLY appraiser we have who is willing to complete this assignment at this time is a rush only appraiser. The total invoice would be $1000 & delivery date of 10/13. PLEASE ADVISE ASAP IF WE SHOULD MOVE FORWARD WITH THIS APPRAISER OR CANCEL THE ORDER?” The 2nd choice was $595 for a 11-15 due date. Yesterday, I met with an appraiser that was being paid $1200 for a 3 week “rush”.
Welcome to our world. In order to get an appraisal in less than 60 days, we in Portland are paying $1000+ appraisal fee. Appraisal was ordered 9-21. Here is the message from the management company on 9-26:”PLEASE ADVISE RIGHT AWAY – The ONLY appraiser we have who is willing to complete this assignment at this time is a rush only appraiser. The total invoice would be $1000 & delivery date of 10/13. PLEASE ADVISE ASAP IF WE SHOULD MOVE FORWARD WITH THIS APPRAISER OR CANCEL THE ORDER?” The 2nd choice was $595 for a 11-15 due date. Yesterday, I met with an appraiser that was being paid $1200 for a 3 week “rush”.
I wouldn’t touch an appraisal these days for $2,000 due to the amount of time required and the increased liability. Someone has to do them though…thank God for fools!
You want what for how much how fast….oh, when it goes sideways it’s the appraiser….commissioned L/O get how much….1%, 2% etc. An appraiser wants $595 to $795 and we’re greedy. Anybody out there figure how many hours really goes into an appraisal? You’d be flipping burgers at McDonalds. My dad always said if it was easy everyone would do it. Well those guys are gone. Appraisers need to unite and continue to stand up to make a great fee, deliver a great product. Anybody every have coins appraised? Did you ever argue with that guy? He’ll tell where to get off.
UAD and the data grab and then I have to buy back the data that I helped build “their” database with….C’mon now. Get rid of the AMCs and their money grab as well. My engagement letter tells my clients, once the assignment starts, no contact. You want to know when you’ll get a completed assignment….when you stop calling me about when you get the report. Keep pounding on appraisers and you’ll continue to get the lousy reports you lenders despise. Ok…I’m off the soap box.
As everyone states,,,, The loan officers/realtors are getting old (average age 57+-). We need to drop the licensing requirements for loan officers and realtors. Lets go to high schools and do a recruitment drive. Appraiser shortage NOT. The only shortage is the amc’s that are willing to pay a living wage. I have been living in poverty for the last 10+- years working for $270.00 a job. What I can bust out 3-5 jobs a week. Wow, lets go buy a house Martha!, Let alone feed your family!!! LOOK AT how much money WELLS FARGO MADE OFF THERE AMC/APPRAISAL DEPT. DO YOU KNOW HOW MUCH? TRY BILLIONS. BASIC ECONOMICS.. MORE MONEY, MORE PEOPLE THAT WANT TO DO THE JOB… BASICS…
Good comedy skit.
I was on vacation when this posted but I find the comments interesting. In my area there is definitely an appraiser shortage. Many of the appraisers we have left are approaching retirement age. VA can’t recruit appraisers in our area. AND, the state has such ridiculous licensing restrictions that there are few young people willing to put in the 4 years of college + the 2-3 years of apprenticeship required to obtain a license. Even the appraisers here see the problem. And, most of them are simply too busy to take on an apprentice and especially for that length of time. We’re heading for a major problem. Plus, turn times are horrible and prices keep going up. This issue does need to be addressed and sooner rather than later.