BayAppraiser over at SFGate (the website mentioned in our last post) had this to add in the comments on the article “Appraisers Give Home Valuation Reform Low Marks”:
The appraisal industry is splitting into two camps. The highly competent and ethical, and the corner-cutting form fillers (who are currently in high demand by the big banks). Unfortunately the general public typically only sees the latter type of appraiser.
The banks have complete control of the appraisers they hire. The smaller lenders, in general, do an excellent job. However, many of the larger lenders have chosen to use the least competent appraisers to pad their bottom line. Short term profits over long term stability. If anyone thinks the welfare queen big banks have learned their lesson in the recent mortgage meltdown they are sadly mistaken. The big banks are acting far worse now than ever.
I would highly recommend that everyone reassess who they bank with. Reward the good lenders with your business!
Read more here.
I don’t think there is a more eloquent or articulate way to explain the current state of our industry.
Rumor has it that there will be a moratorium on HVCC this November. God willing it will be the end of it because it’s killing business for the appraisers who won’t knuckle under to the AMC monopolization of the industry. Looks like we just have to hang in a few more months and maybe the sun will break the horizon.
If you want an idea of what HVCC has done to the appraisal industry just take a look at New Orleans after Hurricane Katrina blew through. The sad part is that HVCC was totally preventable and can be reversed if enough people just speak up.
The problem is that when people are “speaking up” they are so misinformed that they almost cause more damage than they do good. Take the article recently posted at SFGate (website for the San Francisco Chronicle) titled, “Appraisers give home-valuation reform low marks”
Under the reforms, when a home is sold, lenders must arrange an appraisal through middlemen called appraisal management companies, which hire the appraisers.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/02/21/MNJJ1C3DIM.DTL#ixzz0gPk0vPHP
Lenders are NOT required to use AMCs (Appraisal Management Companies) but the AMCs sure want you to think they do, don’t they?
Reading through the comments following that article is enough to make any decent appraiser’s blood pressure rise.
“They don’t want to put the time and effort into doing a good job (probably because they are mad because of getting ripped off by the Appraisal Management Companies).
Many appraisers are probably poor people who love to hurt those who are better off than them. How sad.”
While many comments seemed to be accurately focused more than a few contained sentiment like that quoted above. It amazes me how many people want to use appraisers as the scapegoat for the great bubble burst (and the boom) when appraisers are some of the FEW people in the mortgage process who don’t make commissions off the transaction.
Equally as amazing are the people who insist that appraisers are somehow beholden to protect the lender’s interest. It says a lot about our society when you have people who would rather skewer small business owners rather than the big business corporations who have proven time and time again that they will increase their profit margin through any means necessary.
Ascot Appraisals is a real estate appraisal firm based in Bakersfield, California. We offer efficient, accurate, and honest home appraisal services in Bakersfield and Kern County.
