AQB – possible changes to college degree, practicum, alternative experience, etc.

By on February 17, 2016   /   AMCs, appraisal management company, Appraisal Qualifications Board, fees, future, lender appraisals, new appraisers, state appraiser regulators, trainees   /   12 Comments
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AQB wants comments on possible changes to college degree, practicum, alternative experience, etc.
Comments deadline March 31, 2016
College degree – alternative for licensed upgrade to certified
My comments: I keep hearing from appraisers that college graduates have lots of high paying opportunities. But, these types of jobs are only for engineering, computer science, etc. jobs. Some with business degrees from highly rated schools can get “Wall Street” jobs. Not for the vast majority of graduates with degrees in English, psychology, etc. I don’t know how realistic it is to offer a route from Licensed to Certified with no 4 year degree required since few lender clients will accept licensed appraisers and their numbers have dropped significantly.
Practicum – alternative experience up to 50%
My comment: I studied science in college and spent many afternoons in labs. When I graduated I was ready to go to work and needed no training. This is a significant problem for appraisers.
The only appraisal class I ever had with practical experience was a junior college appraisal class taught by a real estate agent. We all appraised his home using Fannie forms. A practicum was offered awhile ago by the AQB but was too difficult to set up and none were ever offered. Hopefully, these new requirements will be easier and, more important, include hands-on appraisal experience.
Click here to read the full document
My comments: Lender appraising has been a boom and bust business since Fannie and Freddie started securitizing loans in the 1960s, requiring armies of new appraisers during the booms with most laid off during the busts. Everyone seems to forget this. The current licensing system does not consider it.
Of course, the biggest problem today is lenders not allowing trainees to sign on their own. Lenders can solve this problem now. The draft recognizes this problem. But, AMCs (low fees and  Scope Creep) are the most significant reason for the “brain drain” of experienced residential appraisers leaving the profession since 2008. Retiring baby boomers is another factor.
Who is worried about an appraiser shortage? The Appraisal Foundation’s income will go down. AMCs will have fewer appraisers to broadcast cheap fees. Finding appraisers in rural areas will be more difficult, but this has always been a problem. Lenders are hoping maybe they can use AMCs or “alternative products” because of the shortage. Of course, not much of this applies to commercial appraising, only to residential AMC work.

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NEWZ// 2-4-16 – Adjustments-Unwanted mansions-Why homeowners don’t refi-Loan buybacks

By on February 4, 2016   /   adjustments, appraisal, appraisal business, appraisers, Collateral Underwriter, Fannie, mortgage loan volume, weird homes   /   Leave a comment
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 5 Reasons Homeowners are not Taking Advantage of Refi Opportunities

Excerpts:

Historically low mortgage rates have been circling the housing market for several years now. Low mortgage rates present opportunities for homeowners to refinance their homes, but recent data and analysis shows that they are not taking advantage of billions of dollars in savings.

Although the number of refinancers may appear to be large, it is actually down from over 7 million in April 2015. Black Knight reports that interest rates were under 3.7 percent during this time, and the 20-year rate was 3.96.

Black Knight Data & Analytics SVP Ben Graboske explained, “This population is diminishing, and as mortgage interest rates rise, it will only continue to shrink further.”

Here are the five:

Lower credit scores and income.

Hassle and upfront expense.

Not enough equity.

Inconsistent job history.

Lack of assets.  

Lots more info plus a link to the original study.

http://www.themreport.com/news/data/01-25-2016/5-reasons-homeowners-are-not-taking-advantage-of-refi-opportunities

My comment: interesting analysis plus a link to the nerdwallet full analysis. I have always wondered why so few people are not doing refis with rates still at historic lows.

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 CU Quick Guide Videos Now AvailableNew short videos (~4 min) show how to easily use the Collateral Underwriter® (CU™) web application to research common messages. Watch the Quick Guide Intro to the Comp Selection Message to see how to use CU to review appraisals with a material difference between the appraiser-provided and CU model-selected comparable sale rankings. The Quick Guide to Data Discrepancy Messages shows how to quickly view other appraiser observations when there is a discrepancy in reported data (either from what the appraiser previously reported or from what other appraisers have reported.) Want to learn how other lenders have leveraged CU? Review this new Housing Industry Forum article which details how lenders that maximize the use of CU have been able to make the underwriting process more efficient while improving appraisal quality and reducing appraisal-related loan defects.Additional CU live webinar dates are also now available:

CU User Interface Basic Training: Feb 10, 2016 from 2 – 3:30 p.m. ET

CU User Interface Advanced Training: Feb. 18, 2016 from 2 – 3:30 p.m. ET

Maximize your Appraisal Review Efficiency and Effectiveness with CU: Feb. 24, 2016 from 2 – 3 p.m. ET

For more information on CU visit the CU web page. 

My comment: see how CU works, from the lender side. 

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America’s Most Unwanted: The Neverland Ranch and Other Unsold $100 Million Mega-Mansions

Excerpt:

Michael Jackson’s $100 million Neverland-formally known as Sycamore Valley Ranch-is still stuck on the block.

Listed last May (sans the King of Pop’s amusement park), the 2,698-acre compound in Los Olivos showcases a 12,598-square-foot, French Normandy-style main house with six bedrooms and nine baths. Other structures include three separate guesthouses, a 5,500-square-foot movie theater with a stage, numerous barns, animal shelter facilities, and a maintenance shop.

Check them all out at:

http://www.forbes.com/sites/kristintablang/2016/01/26/100-million-mega-mansions-for-sale-neverland-ranch-jeff-greene-rancho-san-carlos-palazzo-di-amore-le-palais-royal

My comment: if they ever do sell… very, very long exposure times!

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Adjustments – “Support” vs. “Proof, what should you do?

New in the FEBRUARY 2016 issue of the paid Appraisal Today

– Adjustments Part 1 – Are you making too many adjustments? Lots of ideas, research, etc.

– Support vs. proof for adjustments by Bob Keith. A very good explanation of Scope Creep on adjustments. He is the former Executive Director 

of the Oregon State Appraisal Board and is a consultant for appraisers with state board complaints

– Identifying Residential Architectural Styles by Mark Nadeau,SRA, Book review. Read my review to decide if you want to buy the book.                        

– Two good, practical residential books, with very good tips on adjustments  Book reviews. 

– The Dictionary of Real Estate Appraisal, 6th Edition – Read my review to decide if you want to buy this book. 

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Fannie, Freddie Unveil New Appeals Process for Loan Repurchases

Excerpt:

Fannie Mae and Freddie Mac unveiled an appeals process Tuesday that will allow an independent arbitrator to resolve disputes between lenders and the government-sponsored enterprises over loan repurchase demands.

The new independent dispute resolution process, which was approved by the Federal Housing Finance Agency and endorsed by the Mortgage Bankers Association, is an effort to provide lenders more certainty that they won’t later face costly repurchase requests if a loan goes bad.

http://www.nationalmortgagenews.com/news/secondary/fannie-freddie-unveil-new-appeals-process-for-loan-repurchases-1071121-1.html

My comment: Maybe lenders will be less paranoid about appraisals causing buybacks and cut back on Excessive Appraisal Requirements.

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One-third of realty transactions are plagued by delays, some of them fatal By Ken Harney

Excerpt:

According to the study, of the 32 percent that experienced delays, 46 percent were triggered by “financing issues,” which is up from 40 percent during the first half of 2015. Appraisal-related problems caused 21 percent of the delays and home-inspection issues in 14 percent. Of the nearly 1 of every 16 (6 percent) of deals that turned into total disasters and fell through, home inspection and financing were the primary culprits. Sixteen percent went south because of the appraisal.

https://www.washingtonpost.com/realestate/one-third-of-realty-transactions-are-plagued-by-delays-some-of-them-fatal/2016/01/19/0d74d684-beb9-11e5-83d4-42e3bceea902_story.html 

My comment: maybe that’s why some AMCs are pressuring/asking for more when you “come in” under the sales price. Their clients, the lenders, don’t like deals falling through…

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Study finds discrepancies between reported and actual home sales prices By Ken Harney

Are some realty agents hyping the pricing information on closed sales they report to their local multiple listing service, or MLS? And if so, should you care?

A first-of-its-kind study by appraisal and real estate experts suggests that maybe they are and maybe you should. Researchers compared closing documents – which are supposed to indicate the final price in sales transactions – with the prices that agents actually reported to their MLS and found that in nearly 1 of every 11 cases (8.75 percent) there were discrepancies. Overstatements of final price exceeded understatements by a ratio of nearly 3 to 1. In one case, the price reported to the MLS was 21.4 percent above the actual closing price.

https://www.washingtonpost.com/realestate/study-finds-discrepancies-between-reported-and-actual-sales-prices/2016/01/26/86d11660-c435-11e5-a4aa-f25866ba0dc6_story.html

My comment: And AMCs worry about discrepancies on public records and appraisers on GLA!! Another reason Big Data (CU) fails and needs appraiser input. 

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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, go to www.mbaa.org 

Note: I publish a graph of this data every month in my printed newsletter, Appraisal Today. For more information or get a FREE sample issue go to www.appraisaltoday.com/products.htm  or send an email to info@appraisaltoday.com . Or call 800-839-0227, MTW 8AM to noon, Pacific time.

Mortgage applications decreased 2.6 percent from one week earlier 

WASHINGTON, D.C. (February 3, 2016) – Mortgage applications decreased 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 29, 2016.  The previous week’s results included an adjustment for the Martin Luther King holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 11 percent compared with the previous week.  The Refinance Index increased 0.3 percent from the previous week to its highest level since October 2015.  The seasonally adjusted Purchase Index decreased 7 percent from one week earlier. The unadjusted Purchase Index increased 11 percent compared with the previous week and was 17 percent higher than the same week one year ago.

The refinance share of mortgage activity increased to 59.2 percent of total applications from 59.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.9 percent of total applications.

The FHA share of total applications increased to 12.9 percent from 12.7 percent the week prior. The VA share of total applications remained unchanged from 11.1 percent the week prior. The USDA share of total applications remained unchanged from 0.7 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since October 2015, 3.97 percent, from 4.02 percent, with points increasing to 0.41 from  0.40 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  This is the fourth straight weekly decrease for this rate.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to its lowest level since April 2015,  3.84 percent, from 3.89 percent, with points increasing to 0.26 from 0.25 (including the origination fee) for 80 percent LTV loans.  This is the fourth straight weekly decrease for this rate.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.80 percent from 3.83 percent, with points decreasing to 0.35 from 0.38 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.22 percent from 3.28 percent, with points remaining unchanged at 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.00 percent from 3.09 percent, with points remaining unchanged at 0.34 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week

The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990.  Respondents include mortgage bankers, commercial banks and thrifts.  Base period and value for all indexes is March 16, 1990=100

 
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www.appraisaltoday.com/products.htm  or call 800-839-0227. 

 
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How to Stay Happy as an Appraiser

By on December 16, 2015   /   AMCs, appraisal management company, forecast, future, lender appraisals, new appraisers   /   1 Comment
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How to Stay Happy as an Appraiser with Ann O’Rourke – Dustin Harris Podcast 12/13/15

In a recent paid Appraisal Today newsletter I wrote an article: “Staying positive with unreasonable fees and Scope Creep from AMCs”. In my article I go over many ways to be positive. These ideas are not new and have been around for many decades. I applied them to appraisers.

Whenever I do public speaking, I am much more “out there” than I am when I write. I am much more spontaneous, similar to when I am interviewed for podcasts.

I don’t think that there have ever been as many dissatisfied residential appraisers as there are now, primarily due to several factors:

– AMC and over-management of appraisers

– Low AMC fees for the work required

– Ever increasing requirements from investors and lenders

I know many long time residential appraisers who have quit appraising because they don’t want to work for AMCs. If I could only get work from AMCs, I would have quit also. But, I also know appraisers who do a lot of AMC work and they are satisfied with it. Dustin is a good example. They modified their businesses. I also know appraisers who do very little AMC work.

All successful business people have a positive attitude. Some of us are fortunate to be born that way. But, you can change your attitude.

Click here to listen

http://theappraisercoach.libsyn.com/075-how-to-stay-happy-as-an-appraiser-with-ann-orourke

 

To subscribe or listen on other web sites, go to

– Android – http://www.stitcher.com/podcast/the-appraiser-coach

– iTunes – Subscribe to the podcast so you don’t miss any! I am a subscriber.

https://itunes.apple.com/us/podcast/the-appraiser-coach-podcast/id966765322

– Website – http://theappraisercoach.libsyn.com/

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How many appraisals per week and how much time to complete an appraisal report?

By on October 7, 2015   /   AMCs, appraisal management company, lender appraisals   /   4 Comments
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How many appraisals per week and how much time to complete an appraisal report?
Source: Steve Costello at www.fncinc.com. Published 8-4-15
This month I want to discuss three recent polls dealing with how much time it takes to complete appraisal reports and how many hours you end up working to get them all done. In the first poll, we asked “On average, how many “interior inspection” appraisals reported on a 1004 do you normally produce in a week?” This poll was very popular with 4945 responses. There was a clear winner with the response of “4-6 appraisals per week” pulling in 44 percent of the vote. The next most popular answer of “7-9 appraisals per week” took quite a drop and only pulled in 20 percent vote. The last two available answers were those at either end of the scale and they were almost tied. A few appraisers really crank out the orders because 16 percent responded that they do “10 or more” appraisals per week. On the opposite end were those representing 17 percent of the vote who only complete “1-3” appraisals per week. My guess is that many of the people in this group may be semi-retired but like to keep active in the profession while making some extra money. Of course, any individual’s volume is going to depend a great deal on their specific geographic area and general complexity of their assignments.
In the next poll we asked: “On average, how long does it take you to complete a 1004 interior inspection appraisal report including inspection time (excluding driving time)?”
This was another popular poll with 4836 responses. The winner here was “4-5 hours” with 39 percent of the vote. Not far behind was “6-7 hours” with a 29 percent share of the vote. From here the numbers dropped substantially with 13 percent of appraisers going with the response of “8-9 hours”. That is really getting to be painful when it’s taking that long to finish each assignment. The most extreme answers both received the lowest number of votes. “More than 9 hours” was the choice of 8 percent of the appraisers with the final 10 percent going for the answer of “2-3 hours”. My guess is that the appraisers in that final group really have their system down to a science and fully utilize all the available technology.
Finally, we asked, “On average, how many hours per day do you spend working on appraisals and appraisal-related business?” This poll was the most popular of the three with a total of 5451 responses. The winner was “9-10 hours” with 37 percent of the vote. The second most popular answer with 23 percent pushed the level up to “11-12 hours”. The old standard workday of “7-8 hours” came in a distant third gathering only 17 percent of the vote. Not far behind were the 15 percent who really “burn the midnight oil” working “13 or more hours” per day. Only 9 percent work “6 hours or less” each day with most of these appraisers reporting at least 5-6 hours worked per day. It’s clear, and not at all surprising, that most appraisers are working very long hours there days.
My comment: Appraisers are working long hours now because appraisal volume is way up. If you are willing to work for low AMC fees you can get as much work as you want. I would have liked to see how many hours per week. I suspect many appraisers are working 6-7 days a week. I did, during previous boom times. These polls do not include time spent on revisions. I have some data below on that. Plus, the amount of time returning update requests – answering phone calls and emails.
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How much time is spent on revisions?
 From the November 2014 Appraisalport newsletter
On average, how much time do you spend making and delivering requested revisions on any given appraisal?@ We had a total of 4870 responses to this poll. Nearly half (48%) of those chose the response of A10-30 minutes.@ This would seem about right for most minor to moderate revisions. Many must be making pretty minor revisions because the second most popular response with 24 percent of the vote was under 10 minutes@. Another 18 percent are having to take a bit more time and went with the choice of A31-60 minutes.@ A smaller group of 7 percent is having to invest some real-time to make the revisions and picked the response of over an hour.@ The final 3 percent selected the answer of AI  to make revisions.@ I=m not sure if that means they are doing an amazing job on every report and never get a request or if they just refuse to do any revisions!
My comment: Lots of appraisers complain about excessive revision requests, but this poll indicates that appraisers aren’t spending much time on them. The time may have increased since 11/14.
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How often have you received revision requests that have no contributory value to the report, or were already addressed in the report commentary?” Sept 7 poll – www.fncinc.com received 3,273 votes

 

 

 

 

 

Appraisal Humor

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A very, very funny appraiser video!

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NOT customary and NOT reasonable fees?//TRID??

By on September 23, 2015   /   AMCs, Appraisal fees, appraisal management company, fees, lender appraisals   /   10 Comments
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NOT customary and NOT reasonable fees?
What is reasonable? Let me see… For example, the amount of work to produce the appraisal plus respond to request for more information, updates, etc. increases the time from 5 hours ($70 per hour) to 8 hours ($47.50 per hour),  a 33% decline. Of course that is gross, not considering your expenses. You are able to get the same fee – $350. But, the fee is not reasonable. Calculate this for your typical appraisal fees.
What is customary? Somehow AMCs seem to think that “one price fits all”. Before AMCs took over, appraiser fees varied widely around the country. The Midwest was typically the lowest, around $250. The West Coast (Washington and Oregon) and some East Coast states were higher, around $450. Alaska and Hawaii were much higher. We accepted “standard” fees from our clients as we took the easy appraisals and the hard appraisals, which balanced out. I didn’t ask for a fee increase when a property took more time. If was a high end home or a rural acreage property, the lenders paid higher fees. Or, we scheduled appraisals to reduce driving time. Clients understood that they could not give us all the hard appraisals and appraisals scattered over a wide geographic area.
Now, AMCs have standard fees, but they don’t consider the factors above. Many appraisers have responded by asking for fee increases or just turning down the assignment.
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TRID vs. the current system of AMC ordering appraisals
TRID will make the method above (“one fee for all appraisals”) very difficult for AMCs. Lenders have to provide an appraisal fee within 3 days. AMCs won’t be able to spends days “shopping” for the lowest fee for a tough appraisal. AMCs won’t have time to negotiate with appraisers. Yes, there are options but they delay the loan.
Now, appraisers can quickly accept broadcast orders with the expectation of getting a fee increase. After Oct. 3, that will create problems for lenders and AMCs.
What will happen? How can AMCs tell their lenders what to charge for a specific appraisal (the full cost, including AMC fees) within a few days? Their systems assume all appraisals are the same. I doubt if they have anything set up to distinguish complex rural from a tract home. Can AMCs even quote different fees within a state? I see AMCs making less money because the appraisal fees they pay will increase. Now, they are waiting for appraisers to tell them that the fee has to be higher.
What does this mean for appraisers who work for AMCs? Higher “standard” fees to cut down on appraisers refusing fees? This cuts into AMC profits unless they can get higher fees from their lender clients. But, AMCs compete with other AMCs. Fees are a big factor when a lender selects an AMC.
I have no idea what will happen. I am glad I don’t own an AMC with lots of lender clients. Maybe they will never raise appraisal fees for difficult properties. But, who will do them?
Volume is high now and AMCs have difficulty finding appraisers to do the tough appraisals and FHA appraisals. When volume is low and appraisers need the money, the “one fee for all” is easier for AMCs to use.

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The Power of Social Media and Appraisers

By on August 26, 2015   /   AMCs, appraisal management company, lender appraisals   /   2 Comments
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A few months ago, an AMC sent out an email to all their appraisers saying it was requiring that they include a copy of their work file with the appraisal.
Within a very short period of time after it was sent, I saw the email posted to a Facebook group. There were 356 comments posted. It soon “went viral” spreading all over the Internet. The AMC backed down.
Within the past week, another AMC sent a very rude email response to an appraiser who declined applying for a staff position at the AMC. I saw it posted on a Facebook group. It also went somewhat viral, although not as widely distributed as the workfile email.
Read more, including the original email, in the very interesting Jonathon Miller’s Housing Notes – August 21 edition.
Click here – it is near the bottom of the page.
What does this mean? In the pre-Internet days, often it would take weeks, or months, for appraisers to find out about FHA and Fannie changes, for example. Now it is available within a few minutes.
What’s the downside for appraisers? Even if you post to a group that requires approval, your postings can be obtained by others. Group members can send them to anyone. This is a definite problem if do court testimony. A while ago an attorney asked me how many appraisals I had done in the past 6 months as I had a broken ankle. How did she know about my ankle? She did not subscribe to the email-only discussion group. She asked another appraiser to check online for anything that might help her case. Other appraisers have reported similar situations.
Remember the Primary Rule, which I learned when I first browser opened the Internet to us all. At that time you assumed it could be published on the front page of the New York Times, Wall Street Journal, etc. Now, it is even worse – it can go all over the Internet. The only communication that I know of that is private is the inside of postal mail envelopes. Government agencies can track what is on the outside, but not the inside without a special court order.

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Facing AMC License Denial, Coester Sues Virginia Board

By on August 12, 2015   /   AMCs, appraisal management company, lender appraisals   /   4 Comments
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Facing AMC License Denial, Coester Sues Virginia Board
by Isaac Peck, Editor, WorkingRE
Excerpt:
Facing denial of its license to operate an appraisal management company (AMC) in the state of Virginia, the AMC Coester VMS has filed a lawsuit against the Virginia Real Estate Appraiser Board alleging that the Board is engaged in “a conspiracy to restrain and monopolize trade” and is operating in violation of federal antitrust laws.
The suit follows Virginia’s recently passed AMC licensing laws, which set an August 18 deadline for applicants to obtain AMC licensure or cease operations in the state. The Board has issued dozens of AMC licenses but selected Coester for closer examination. On July 15, Coester attended an informal fact-finding conference and addressed several of the Board’s concerns, including Coester’s history of consent orders and settlement agreements in five other states, for alleged violations of state laws: Maryland, North Carolina, Tennessee, Louisiana, and Minnesota. The allegations against Coester in these states include: unlicensed AMC activity, false advertising, failure to pay appraisers on time, failure to pay customary and reasonable fees, failure to respond to requests within the time period specified, failure to submit biannual certification, as well as USPAP violations committed by Brian Coester himself.
Read lots more, and get links to the docouments at:
For lots more info on Coester, just google Coester AMC or brian coester appraiser
My comment: Looks like various state appraisal boards are looking closer at AMCs. Coester recently got into a tiff with the Louisiana State Board, which was resolved. I am so glad California has never had an appraisal board!! (Gov.  Schwartzenegger wanted to cut costs back then.) Too many possible conflicts of interest… The issues seems to be mostly about fees. I am also not comfortable about appraisal state boards regulating appraisal fees. They should focus on what is important – USPAP.

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Are you or your firm planning on any hiring trainees within the next 5 years?

By on August 5, 2015   /   AMCs, appraisal management company, lender appraisals   /   3 Comments
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Are you or your firm planning on any hiring trainees within the next 5 years?

 

My comment: I wonder what the response would be if lenders allowed trainees to sign on their own… remember the mortgage broker days? I sure wish there was a survey on trainee commercial appraisers as I see lots of them where I am. I am hearing that it is back to the “old days” when fee appraisers only hired relatives (because most appraisers were staff appraisers at lenders).

 

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AMC/lender now accepts trainees signing on appraisal reports

By on June 23, 2015   /   AMCs, appraisal management company, lender appraisals   /   1 Comment
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Be sure to check your state’s requirements, as they vary widely among the states.

This is the first one I know of. Maybe they have been reading my free emails where I suggest this is the only solution to the appraiser shortage, now and in the future, that can start immediately. FYI, Red Sky is owned/affilated with U.S. Bank

Excerpts from an email (Appraiser Partner News) sent to appraisers on its panel June 11, 2015

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Supervisory Appraiser Change

Upon review, Red Sky Risk Services, LLC has refined its expectations regarding the involvement of appraiser trainees. Important to note, the following change DOES NOT override specific state statute(s) or appraiser training requirements.

Effective immediately, Red Sky is no longer requiring supervisory appraisers to be physically present with trainee appraisers at all subject property inspections and driving comparable sales.

My comment: There is a short additional list of specific requirements. But, they are nothing new – Supervisor to review report, responsible for report, etc.

 

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

By on June 2, 2015   /   AMCs, appraisal management company, lender appraisals   /   16 Comments
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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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