Appraisal News and Business Tips

Appraiser shortage – for AMCs (Appraisal Management Companies), not other clients

Appraiser shortage – for AMCs, not other clients

There is a significant shortage of appraisers willing to work for AMCs with low fees and escalating Scope Creep.

AMCs whose business model is based on low fees to appraisers are having difficulty finding anyone willing to accept their appraisals. They keep calling and calling trying to find someone to work for their low fees.

Direct lenders or the few “good” AMCs are not experiencing an appraiser shortage. Appraisers who work for them turn down AMC work.

 

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15 Comments
  1. The amc are crooked and why the hell are they taking money from the appraiser when we didn’t hire them to begin with the lender does.. Also this new criteria to upgrade our license makes no sense. If you are an assistant already before 2015 or a certified appraiser and want to upgrade the new criteria should not apply. Why does the appraiser need all these rules and guidelines but the underwriter who was a secretary (aka a pencil pusher)or processor gets promoted with no certification and can argue my appraisal with no life experience. Thank you Andrew Como for having no knowledge of this industry on top of the job you have and putting your two sense in.

  2. As a certified general there is so much coming my way that If the fee isn’t reasonable and customary I don’t take it.

  3. I pass on all of these $225 jobs and must get 6-7 a week. But somebody is out there taking them otherwise they wouldn’t be broadcasting them. Shame on those appraisers.

  4. Together we have to stand to make a difference……….It’s kind of like standing up to the bully……Once one person does it everyone else begins to see the bully for what they are…….Louisiana has stood up……..Who will stand with us?

  5. Reblogged this on WV Council of Appraiser Professionals and commented:
    Appraiser shortage for AMCs, not other clients.

  6. Hopefully, more and more lenders will realize the “compliance” scare is a symptom of the AMC’s own unregulated creation and poorly designed model; not to mention false serving tech systems and self-indemnification. I could go on but there’s better news than that.

    This week marked a monumental win for appraisers and the meaning of reasonable fees. AMCs really are the creation of their own appraiser shortage.

    Welcome to the movement. #weknowthetruth

    Louisiana Real Estate Appraisers Board Resolves AMC Complaint
    Baton Rouge, LA – – On June 4, 2015, the Louisiana Real Estate Appraisers Board (LREAB) approved entering into a “Stipulations and Order” with Coester VMS Appraisal Management Group. The Order will resolve a pending complaint that alleged that Coester violated Louisiana law that requires AMCs operating in the state to “compensate appraisers at a rate that is customary and reasonable for appraisals being performed in the market area of the property being appraised, consistent with the presumptions of compliance under federal law” (La.R.S. § 3415.15, La. Admin Code. tit. 46, pt. LXVII, § 31101). Thecase had been scheduled for an adjudicatory hearing before the LREAB on June 4.
    In its complaint, the LREAB alleged that Coester did not utilize an objective, third-party fee study to establish their reasonable and customary fees, nor did they review the specific parameters of each assignment (property, scope of work, time frame, appraiser qualifications, appraiser experience and professional record, an work quality) to ensure that the amount of compensation paid to the appraiser was reasonable (La. Admin Code. tit. 46, pt. LXVII, § 31101 (A)(1) and (3).
    In the Stipulations and Order, Coester agreed not to contest the Complaint brought by the LREAB. In addition, Coester agreed to:
    Follow the current Louisiana fee schedule for a period of 12 months beginning 30 days after the effective date of the Order;
    Submit a quarterly report to the Board for a period of 12 months beginning 60 days after the end of the quarter beginning July 1, 2015 that lists all appraisal orders made in Louisiana, the fee paid to the appraiser and the date payment was made; and
    Pay administrative costs of $5,000.
    In response to the resolution of this case, Joseph Mier, SRA, AI-RRS, RAA, President of the Louisiana Real Estate Appraisers Coalition, stated that, “This is an important recognition that violators of the law will be held accountable for practices that are not permitted by Louisiana law. This is a step in the right direction for transparency for consumers and for the health of the appraisal industry going forward. Working together with Louisiana appraisers, the Louisiana Chapter of the Appraisal Institute and the national Appraisal Institute, we hope that this will help to advance transparency for the appraisal industry in the future. Appraisers are reminded to report any violations of the current AMC laws and rules to the LREAB so that the law is adhered to fairly across the board for everyone.”

    The Louisiana Real Estate Appraisers Coalition is a member driven advocacy group who works on behalf of the Louisiana Real Estate Appraisal Industry and Appraiser Professionals in Louisiana. For more information about LAREAC.org you can visit our website http://www.LAREAC.org or contact us at the address below.
    LOUISIANA REAL ESTATE APPRAISERS COALITON 906 CM FAGAN DR., SUITE 4A Hammond, LA 70403

    Louisiana Real Estate Appraiser Coalition (LAREAC)
    We speak out in support of all Professional Louisiana Real Estate Appraisers. We advocate for you on both state, federal, legislative and administrative topics. Your team is committed to communicating our professional appraiser views, positions and recommendations. We have something to say; together we have a voice.

  7. There appears to be well enlightened Appraisers here. I don’t get the total lack of business experience in this profession. Maybe a crash course watching “The Profit” may help. There is no profit in supporting parasites. The Appraisal and the Appraiser are Government mandated. The AMCs are unnecessary parasites. If the Appraisers would “just say NO” the AMCs would all be dead parasites and we could operate our businesses as businesses with a viable margin, reasonable working hours, and grow as a profession. I have a friend who is VP of lending for a local bank. One day she mentioned that an AMC was in and told her DODD/FRANK required them to use an AMC and they could guarantee 3 day turn times and they were going to go that route. After I debunked the 3 day mythe and explained A. Take someone at the bank that is not affiliated with origination and have them assign in a rotation process and B. The appraisers will work harder, correct sooner, and take calls from someone paying full fees vs 60% fee from an AMC, she realized that the AMC rep was full of %$@#!. She followed my direction and has a panel of full fee happy appraisers that answer their calls.

    I often wonder if the lender had to pay for the AMC rather than raping our fees, would they be so anxious to use them? The Appraisers own their own destiny and it’s about time they started acting like it. “Just Say No” Nancy Reagan

  8. I tell the AMC’s what my fee and turn time would be for assignments and not the other way around. As a certified general I have so much work coming my way that I can pick and choose. My non lender assignments are growing and I rely less on the lender work. I also have also decided not to continue with FHA due to the increase in requirements.

  9. A FLY ON THE WALL.
    Bravo to everyone who stands firm against the AMC’s.
    I raised my normal 1004 fee and still get some work from them – but not that much. Our other big problem is turn time. Hard to meet their deadlines and feel prostituted to tolerate their increasing scope of work, responding to revisions and such. Pretty much the same thing other appraisers say.

    HOWEVER! My big question is, ARE THE AMC’s FEELING ANY KIND OF PINCH? Are they really having difficulty finding appraisers? Are they worried? How many of their appraisers repeatedly make the low turn times? What, if anything, are they doing about it?

    Is any of this info reported in their trade publications or elsewhere? Would really like to know how they see it. Do they feel any pain at all? Would like to be that fly on the wall just to know about their troubles…

    Anyone have info on this?

  10. Let’s hope these newly-enlightened appraisers don’t go back to being bottom feeders when the market slows down. I raised my fees with every new requirement foisted on us in the last several years, and I’m doing okay. My goal is to be completely AMC-free in 2015…I only did three for them in 2014.

  11. If you eat healthy (quality clients and fee’s) it takes a little longer to prepare but you will live longer. Eat fast food (Low paying fast turn around amc’s) every day you may survive but eventually it will do you in. Still to many boiler plate appraisers that feel they are getting paid sufficiently when each report is 80% the same regardless of the property. Assuming there is teeth in the review and state systems similar to those noted in Richard Hagers recent article in Working RE Magazine the boiler plate low fee quick turn appraisers will get moved out BUT it will take more time.

  12. In all this time I have not reduced my fees, held firm and still paid my bills. There are a couple of agreeable AMCs that I work with regularly. My next step is to fire FHA after working with them for 30 years. ” FHA…I’m not a professional house inspector, I’m an appraiser, and you are too much liability”
    Yes, life is looking up.

  13. I just celebrated the third anniversary of firing all AMC’s on my client list. I sent formal termination letters as well. I have plenty of work from local lenders and private sources too; I also gained more free time and have significantly reduced stress since I made this decision. I have noticed that some of these AMC’s have started to contact me again for assignments; when I inform them they are not approved clients with my firm, and that fees in Montana START at $500+ for non-complex assignments, they stumble, falter, gasp. By far, the best decision I’ve made professionally, possibly ever.

    • Hats off to you Sandy. I fired the AMCs at the same time. Here in Ohio non-complex fees start at $350-$400. Appraisers working for AMCs are not in business, they have a JOB and their masters are slave masters.

  14. Well Hallelujah! I could not be happier to hear appraiser’s are finally fighting back. It has taken way too long (5+ years) for appraiser’s to realize they are worth more than minimum wage per hour. I have always said JUST SAY NO! Eventually, that response will prove truly meaningful and it looks like it finally is!

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