We recently received an application to become a vendor for a large AMC with a very recognizable name. Upon reviewing their requirements we found that they expect to have a USPAP compliant appraisal report returned to them within 24 hours of inspection. Additionally, they expect the appraisal to be provided in a raw format leaving it vulnerable for them to mine data and manipulate existing data within the report.
BUT! They expect us to sign a contract stating we will comply with USPAP guidelines.
Licensing requires that you abide by USPAP to begin with so their little form means only one thing – if you violate USPAP – they can’t be held liable for it.
Back to the turn-around time – it is always possible to turn an accurate, responsible, USPAP compliant appraisal report in 24 hours. What if you need to research? What if you need to speak to someone at the county assessor’s office? What if you require information from realtor or the title company? We have had broker’s take 3 days to send us a sales contract or transfer disclosure statement.
Furthermore, let’s look at their fees. The fees they are willing to pay a highly qualified appraiser (more qualified than 90% of the yuck-yucks running the place and shuffling assignments around to appraisers) are less than 50% of the usual fee for an appraisal. But, guaranteed they are charging the client the usual fee if not more and pocketing a pretty hefty profit for doing no more than shuffling emails around.
After reviewing your requirements we decline to return this application.
Your turn around times are a joke. You should know better. A quality appraisal takes longer than 24 hours when a QUALIFIED PROFESSIONAL is evaluating a property AND following USPAP guidelines.
Our license requires us to follow USPAP – signing a form saying that we will continue to do what our LICENSING requires of us is not only RIDICULOUS but is clearly negated by the turn around and other extraneous requirements.
Furthermore, ANY appraiser willing to provide a raw appraisal file to ANYONE and thus leaving it open for data mining and manipulation – isn’t too interested in following USPAP anyway.
It must be nice to be a big AMC with no legal requirements or licensing requirements or fines or censures while you ride on the backs of hardworking appraisers who put their licensing at risk so you can make more money off their education and hard work.
We are looking forward to the time when HVCC is reversed and people see the AMCs for the criminals they actually are.
Thanks, but no thanks!
There are strong indications that mortgage fraud has INCREASED since the HVCC took effect. Once again, I would like to point out that appraisers are taking it in the shorts, losing their businesses, clients, etc. and FRAUD HASN’T DECLINED.
Once again – in the big scheme of things – the appraiser is the ONLY one in the mortgage equation who doesn’t make a fat commission. But, they were the FIRST professionals up on the chopping block and have now been criminalized and scapegoated while everyone else kept up with business as usual and AMCs were ushered in on red carpets. Now we are beginning to hear that AMCs are pressuring appraisers to hit value – when a supposed “middle man” was going to eliminate undue pressure on appraisers.
Way to go, Cuomo.