In the big scheme of things it’s easy to forget that what has gone on in the real estate and mortgage industry hasn’t just affected appraisers, it’s affected entire families. We’ve watched friends lose houses, marriages and yes, their families. The following is a blog post originally written by Amy of Amy’s Musings who also happens to be married to Mike Doran of Ascot Appraisals:

Hey Moron… Maybe You Ought To Stop and THINK
Originally Posted By AmyD. on March 8, 2011

You’ve heard me complain and bitch about what HVCC (and even though it has been replaced with new legislation – NOTHING has really changed) has done to the appraisal industry. My husband casually mentioned last night that he was discussing what has happened to the appraisal industry with a couple of friends (who are NOT appraisers or related to the real estate industry at all) Mike explained that as an appraiser he is no longer allowed to contact his clients. He really can’t even go out and market our business any longer.

The friends’ response?

“Well, after what happened you can’t really blame them.”

Blame them? After what happened? Worse yet, this person attended my wedding and has known my husband for 20 years. It still blows my mind and angers me beyond belief when I think about it. We worked hard to build our business. My husband nearly killed himself learning his craft and even now continues to hone his skills as an appraiser to do the best job that he can.

Imagine if you had to follow the news almost religiously to find out what might happen to your family’s income only to hear people disparaging and using your spouse’s profession as a scapegoat constantly?

Stop for a moment and really think about this, please.

Do you honestly believe that REAL ESTATE APPRAISERS are 100% responsible for the bust of a boom that resulted in an economic melt down of GLOBAL PROPORTIONS?

Stop and think about the government bail outs, the CEOs with their huge bonuses, the banks that erroneously foreclosed on thousands of homes – the ripple effects that stretched far and wide, the mortgage brokers who sold people on illegal mortgages. Appraisers NEVER have the final say on who gets a loan or how much a bank loans. The ONLY people in the the mortgage/financing transaction who DO NOT make a commission are APPRAISERS. But, they have been the ONLY people who have been PUNISHED by the fallout.

Appraisers, right now all over the country , no matter how many credentials, degrees, hours of continuing education, no matter how honest, ethical, or professional they may be – CANNOT WORK AS APPRAISERS unless some flunky (usually with almost ZERO knowledge of the appraisal process) from an AMC (Appraisal Management Company) sends them an order. Just imagine if you couldn’t get your next paycheck unless the teenager down the street sent you permission to go to work.

Now, let me connect a few more dots for you. An appraiser’s job is to evaluate the fair market value of a property. Simple. But now that they have been enslaved to AMCs and the nameless, faceless, blameless moron at the AMC is the one with all the power. They question value, they pressure the appraiser to hit certain values and they require such short turn around times that it is almost impossible for an appraiser to do his/her job responsibly and effectively and, of course, if the appraiser doesn’t play ball then they don’t get any work.

Woah! Wait a second, HVCC was supposed to save us all from undue influences on appraisers. Yeah, that worked out well, didn’t it?

And, if someone turns a crappy appraisal in to a state licensing agency do you think the AMC gets in trouble? Nope, the only people who are disciplined are the appraisers.

Now, who do you think OWNS an AMC? A private individual who fell into a very profitable niche? Actually, the top 3 largest AMCs in the nation are OWNED BY BANKS.

Woah… so wait a minute. The companies influencing value are owned by the companies making the loans on the properties?

Yup. And, if you think it doesn’t affect you – I encourage you to think again. The next time you want to sell your house, buy a new house, or refinance – you are a victim in this giant web of misinformation, manipulation, and deceit. In short, the foxes are in charge of the hen house and guess where you live?

Damn those crafty, weasel-y appraisers.

Imagine if you got a memo tomorrow that next week you were not allowed to work unless you signed up for a management company with no knowledge of what it takes to do your job? Imagine that all you can do is hope to impress them with your resume and then hope that your name came up at the top of their list when they needed the work done that your job entails? Worse YET, if you elect NOT to work with them your income will be reduced by 90%

I’m beating a dead horse trying to make this clear to you and I know that for 99% of the people who read this – it won’t make a bit of difference. You’ll roll your eyes, you’ll say appraisers and irresponsible borrowers caused the problem, and most of all you won’t care because it doesn’t effect your job, your paycheck, your family, or your livelihood and that ambivalence is what allowed sneaky, backroom deals like HVCC to be inked into existence.

The results of the other HVCC petition have been less than stellar. It’s unfortunate that sometimes weight doesn’t have teeth. There is a new HVCC petition and it will have an experienced lawyer at the helm.

We’re not down and out yet and we aren’t quite willing to give up either. Also? We put our money where our mouth is. Not much, but let’s be honest, in this economy not everyone has a lot to pitch in. Point is, if you can’t donate at least sign – you can spare 30 seconds if you can’t spare $2 right?

Legal Fund To Kill HVCC – Sign Petition Here

Mr. Savitt explained that he’s had several meetings with Cuomo’s office where he’s pointed out that HVCC is costing American consumers $2.8 billion. “We’ve met with his staff, but Mr. Cuomo has never had the time to meet with us personally,” Savitt told me. “And his people say the $2.8 billion cost is acceptable.” – read rest of article here.
- Martin Andelman – The Niche Report

This has already cost us (US, YOU, the taxpayers, citizens, etc.) $2.8 BILLION dollars. How much more are we willing to lose?

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.

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.