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Does AMC Survey Shed Light on “Propoganda”?

The Maryland-based Coester Appraisal Group recently released its annual survey on appraisal management companies (AMC).  According to AppraisalNEWSCAST.com (the Coester blog), the survey sheds light on industry propaganda.  “After further analysis of the data from the Annual Coester Appraisal Group Vendor Survey, it seems like many of the implications made regarding the state of the mortgage industry as a whole have been debunked.”

Here are the highlights.  You can tell us in the comments section whether or not common AMC complaints have been “debunked” by the survey.

The Coester results state that one third of respondents travel 15-20 miles to complete an appraisal (an additional 31.4% travel 10-15 miles).  Regardless of where the order comes from (AMC or a lender) the average appraisal turnaround time is 4-5 days from the receipt of the order.

According to the survey, AMCs are not earning a huge profit margin on the backs of appraisers – they are only taking 30 percent of the independent appraisers fee.

Finally, the survey  noted general concerns of appraisers.  The most prevalent concerns focused on set or reduced fees.  Other concerns include turnaround time and pressure; poor communication from AMCs; and lack of expertise/uneducated AMC personnel.

Comments
  1. John Jackson

    what a lie. I have e-mails, phone calls etc to show that Mng Companys making a lot of money of us. I HAVE BEEN REGISTERED WITH THIS COMPANY FOR SOMETIME NOW, NEVER GOT AN ORDER. THIS IS A COMLETE LIE. DID THEY USE THEIR SPECIAL “FEW” APPRAISERS.? THIS IS A LIE!!!!!!!!!

  2. John -
    The data was untainted and we have no reason to lie. As you can see from the report that it is very fair and addresses problems with AMC’s as well as benefits of using AMC’s. Its naive to think all things associated with appraisal management companies are bad just like all things associated with using appraiser aren’t good.

  3. John C

    Only 30%?! To do what?! Resend an order? To call for updates that have already been posted on their site? I would love to see brokers allow some referral company take 30% of their commission.

  4. Annette of Aurora, CO

    I would like to see the raw data on this survey. This site tells me nothing that can be collaborated so in answer to your question, NO, AMC survey does not shed light on the propoganda. Who was surveyed, how many were surveyed, when, and what was the purpose of the survey. This report says nothing about the sample size or the geographic areas surveyed, or who did the analysis. I have never even heard of the Coester Group who claims to be the largest AMC! And, as far as “they only take 30% of the appraiser’s fee”? First I think that is an understatement. Isn’t it interesting that they do not want an invoice going to the lender that shows the appraiser’s fee? Don’t you wonder why? And, what do they do to earn 30+%? They don’t have to be licensed appraisers and pay the state fees. They don’t have educational requirements that they have to attend and pay for. They don’t have to pay for or carry E&O insurance. They don’t have to pay for gas and wear and tear on your vehicle. They don’t have to pay for appraisal software. But, most importantly, they have no accountability to anyone for the appraisal. Oh, but they only take 30%! In my opinion that is 25% too much.What is the value they add that is worth anything? How much do they really make? Only they know because we have no way of knowing what they bill the lender. If they pay $225 for a 1004, like some AMCs I know, they are making more like 50%.

  5. kim traynor

    It is true that most AMC’s take at least 50%, and than what cracks me up the most, is they attempt to tell me how to do the report!!!!! Give me a break!

  6. Citizens Against Cuomo's Reelection

    No need to worry about the real truth. In 10 months AMCs have sown their seeds for their own destruction. Had they been willing to been semi fair on fees they may have survived 2010. As it now stands their brief careers of extortion will come to an end soon enough. The American public has slowly but surely become aware of the greed factor that was involved with HVCC. Sadly enough, the outcome could have been far different. TAVMA/AMC propoganda is began to pop up on the internet shortly after the House Of Representatives approved the HVCC sunset provision of the Consumer Protection Bill. The purpose for the propoganda is to protect the mulit billion dollar Cash Cow that HVCC created overnight for the banking industry.

    These stories will continue to appear in the press until the banking industry has convinced & bribed every U.S. Senator that HVCC truly does have a purpose. HVCC was shoved down our throats in the name of consumer protection. We still wait breathlessly for proof that consumer’s were protected. All we’ve seen to date amounts to nothing more a huge increase in appraisal cost to the consumer and the poorest quality appraisals i the galaxy.

    FIGHT HVCC…CALL YOUR U.S. SENATOR BEFORE IT GOES UP FOR VOTE.

    CONTRIBUTE HEAVILY TO ANDREW CUOMO’S OPPONENT IN THE 2010 NY GOVERNOR’S RACE.

  7. Joseph

    he Ultimate Solution for the Appraisal Industry

    Guest Post by Tony Pistilli, Certified Residential Appraiser and Vice-Chair, Minnesota Department of Commerce, Real Estate Appraiser Advisory Board, Minneapolis, Minnesota

    Since the inception of the Home Valuation Code of Conduct (HVCC) in May 2009, there has been much discussion, and misinformation, about the benefits and harm caused by the controversial agreement with the New York Attorney Generals office and the Federal Housing Finance Agency. This agreement, originally made with the Office of Federal Housing Enterprise Oversight, requires Fannie Mae and Freddie Mac to only accept appraisals ordered from parties independent to the loan production process. Essentially, this means, anyone that may get paid by a successful closing of the loan cannot order the appraisal.

    In the past 6 months while the Realtors© and Mortgage Brokers associations point fingers at appraisal management companies for their use of incompetent appraisers who don’t understand the local markets, appraisers are complaining that banks are abdicating their regulatory requirements to obtain credible appraisals by forcing them to go through appraisal management companies at half of their normal fee.

    Banking regulations allow banks to utilize the services of third party providers like appraisal management companies, but ultimately hold the bank accountable for the quality of the appraisal. Unfortunately, the banking regulators have yet to express a concern that there is a problem with the current situation.

    I need to state that appraisal management companies can provide a valuable service to the lending industry by ordering appraisals, managing a panel of appraisers, performing quality reviews of the appraisals, etc. However, banks have been enticed by appraisal management companies to turn over their responsibility for ordering appraisals with arrangements that ultimately do not cost them anything.

    The arrangement works like this, the bank collects a fee for the appraisal from the borrower; orders an appraisal from the appraisal management company who in turn assigns the appraisal to be done by an independent appraiser or appraisal company. During this process the appraisal fee paid by the borrower gets paid to the appraisal management company who retains approximately 40% to 50% and pays the appraiser the remainder. So for the $400 appraisal fee being charged to the borrower, the appraiser is actually being paid $160-$200 for the appraisal. Absent an appraisal management company the reasonable and customary fee for the appraisers service would be $400, not the $160 to $200 currently being paid to appraisers.

    Rules within the Real Estate Settlement Procedures Act (RESPA) have allowed this situation to occur, despite prohibitions against receiving unearned fees, kickbacks and the marking up of third party services, like appraisals. RESPA clearly states, “Payments in excess of the reasonable value of goods provided or services rendered are considered kickbacks”.

    Banks are allowed to collect a loan origination fee. This fee is intended to cover the costs of the bank related to underwriting and approving a loan. Ordering and reviewing an appraisal is certainly a part of that process. Understanding that banks ultimately have the regulatory requirement to obtain the appraisal for their lending functions, why is it that borrowers and appraisers are paying for these services that are outsourced to appraisal management companies? Does the borrower benefit from a bank hiring an appraisal management company? Does an appraiser benefit from a bank hiring an appraisal management company? The answer to those two questions is a very resounding, no! Clearly the only one in the equation that benefits is the bank, so why shouldn’t the banks be required to pay for the outsourcing of the appraisal ordering and review process?

    It is here where I believe the solution for the appraisal industry exists. Since banks are the obvious benefactor from the appraisal management company services, the regulators should require that the banks, not the borrowers or appraisers, pay for the services received. This one small change in the current business model would allow appraisers to receive a reasonable fee for their services and in turn they should be held more accountable for the quality and credibility of the appraisals they perform. Appraisal fees would be competitive among appraisers in their local markets, much like the professional fees charged by accountants, attorneys, dentists and doctors. Appraisal management companies would suddenly be thrust into a more competitive situation where their services can be itemized and their quality and price be compared to those of competing providers. This will ultimately lead to lower fees and improved quality of services to the banks. The banks will then have a very quantifiable choice, do they continue to outsource their obligations to an appraisal management company and pay for those services or do they create an internal structure to manage the appraisal ordering and review process? Either way, the banking regulators need to hold the banks more accountable at the end of the process.

    When all of the previously discussed elements are present, I believe the appraisal industry will be functioning the way it was intended. Appraisal independence will be enhanced and borrowers will be rewarded with greater quality and reliability in the appraisal process. This is exactly the change that is needed, in addition to the HVCC, to stop the current finger pointing and address the poor quality and non-independent appraisals that have been and are still rampant in the industry.

  8. Sheraldia

    I hear you Annette. We still have the same costs associated with being an appraiser. Education, certification/license fees, gas, data, etc…And let’s not forget those new costs to upload some of those appraisals ($7-$14 each) or yearly AMC/special software fees (ACI Lighthouse). Those costs are still there! I’ve asked borrowers how much they paid for the appraisal and the cost of “the appraisal” has definetly increased for the consumer.

    Our little company could do over 100 per month. We are lucky to get 50 now because they are distributed to those who could not run a profitable company in the past, could not get and retain a client. Just send the AMC your license, resume & E & O and you’re in…..maybe. We have also been approved with a number of AMC’s and I am still wondering where we are in their rotation. Only get work from about 4 consistantly.

  9. I have been in the appraisal business since 1992. I started with a fee split of 30% and that fee was $300 for a URAR so I made $90 on my first reports. I had no fees, dues, or office costs as I worked in my supervisors office. I learned quickly and soon rose to 55%, the top fee split he would pay, within one year. I was making $165 per report, still no expenses and I had secretaries making appointments and compliling and delivering reports I now am completely on my own, run my own company, have 18 years of experience, have trained 18 appraisers, and take care of all my own technical issues. I won’t get into my breakdown of expenses but suffice it to say I pay WAY more now than I did 18 years ago. And assuming the median fee charged in my area is $350 (alamode statistics) for a URAR 1004 form WITH market conditions form. That represents a 14% increase from the $300 fee that we charged for the same report 18 years ago. I think I can safely say that cost of living have risen far more than 14% in that same time frame. But what is really disappointing is most of my work comes from an AMC that pays me $255 for a 1004 form. So I figure that now, with all my expenses, I make LESS than I did as a trainee. My experience counts for nothing and I have no recourse with the AMC’s, they simply say “That’s all we pay and there are plenty of other appraisers who are willing to work for that fee”. It simply sucks.

  10. Sylvia

    Amen Annette

    Think about it…..”only 30%” of our fees?! How about throwing away 30% of your pay ! How about all the AMC’s that are owned by former “current” crooks and appraisers stripped of their licenses.

  11. Greg D

    I to have been a Coester panel appraiser for over 6 months and have never heard a word from them. Anyone can join, but only a few chosen appriasers get work from them. Otherwise, I would think I would have had at least one order from them in that time frame. I have been appraising over 20 years and am verrrryyyyy anti-amc. They have done nothing to help the situation but add to my grey hairs. Bloodsuckers.

  12. Ardeth

    Coester is just selling space in a directory to have access to amc’s. So the “only” 30% comment is explained and of course the “survey” means absolutly nothing. HVCC has done nothing but keep the fox in charge of the hen house and has given them a gun and a raise.

  13. PJTMC

    The facts speak for themselves. If the system is basically maintaining the “status quo” even with the inception management companies then why are many well qualified appraisers leaving the industry or retiring. Common sense would dictate if the system were not rife with greed by the management companies these highly qualified appraisers would not be leaving. I do work for some management companies of which I am very selective. I find that they provide a fair if not full fee to the Appraiser and are not “using” the Appraiser as a “cash cow”. However, they are few and far between. There are far more opportunists out there. That being said, there are many people in that business that saw a chance to make a quick buck in an unregulated business….the “perfect storm” (if you will) for their taking….all the benefits without all the risk. I would view any research done by a benefiting party as suspect…kind of putting the fox in the hen house. Take it for what it is worth.

    I agree with the argument above made by Tony Pistilli. The solution of having the end user (banks) pay the Appraiser directly seems to make far more sense than playing “he said, she said” as we are all doing now. Let the banks deal with the management companies as a separate business instead of comingling it with the Appraiser.

  14. Steve

    The use of AMC’s is a joke. Follow the money and what do you see? Who are these AMC’s, who own’s them and what politician has his/her hand out? AMC’s take 50% period!!! for what? do the banks lose 50% of their fee’s or the AMC’s? And what of undue pressures to get the appraisal done and in or NOT be paid or be penalized and have more of your fee taken from you. I have had as many as 6 different people call me from an AMC to check on the status of appraisal and when they can have it. I need a person full time just to deal with all their communications. Furthermore, in this market to have to do an appraisal in 24 hours is absurd! That is how mistakes are made or the pressure to fuddle the data to get the report done. How is this helping improve the quality of appraisals? Appraisers should be left alone to be independent and do their work AND get paid directly! So Mr Brian from Coester, WHO THE HELL DO YOU THINK YOU ARE!!! SURVEY! WHAT A JOKE TO COVER YOUR BUTTS!!!

  15. Well said my coleagues. iT APPEARS THAT THE SAME BANKERS, APPRAISERS AND POLITICIANS THAT STARTED THE DEBACLE PRIOR TO 1989 ARE STILL AROUND WITH DIFERENT ADDRESS AND TITLES. Let appraisers be selected by rote in aeas of their competance. Ifyo list the foreclosures by lender and appaisers a posative correlation will be evidnet. Let us point as those truely responcible.

  16. Chuck

    Do you think an interested party like an AMC who is trying to jusify their existence would publish a report to the contrary? Or would make the survey credible? Having the AMC fee totally separated from the appraisal fee charged the borrower or lender should eventually result in how much value an AMC really does contribute to the process. I would think it would be much less as their primary function is a delivery boy or messenger. Using a round robin method in order to assign appraisals is not rocket science either. With AMCs only being concerned with the cheapest and quickest appraiser (in order to boost their profits) serves no one but themselves.

  17. NY Leprechaun Cert.Appraiser

    Folks interested in tracking the “performance” of AMCS are welcome to register (free) and visit “Clients, the Good, the Bad, and the Ugly” on http://www.Appraisersforum.com That includes the Coester Group. Highly enlightening.

  18. Joseph,
    Excellent post and even better that you gave credit where it was due.
    “Guest Post by Tony Pistilli, Certified Residential Appraiser and Vice-Chair, Minnesota Department of Commerce, Real Estate Appraiser Advisory Board, Minneapolis, Minnesota”.
    It focuses on a viable solution, along with getting credibility and ownership back to where it is needed. I am going to copy and paste the statement in as many blogs, chats and wherever copy and paste works, as it is the simplest explanation of this cluster I have seen and as I hate complaining, especially if I don’t have a solution, which, Thanks to your unselfishness I do, I’m going to do my best to get the word out!

  19. Greenback

    AMCs are not Firewalls.

    AMCs are in it for a profit and nothing else; by servicing their clients. AMCs clients are the lending industry. The lending industry controls what the AMC does. AMCs are chop shops and act as a brokerage. It’s unfortunate that TAVMA is misguided and able to operate “as-is”. I truly feel sorry for the general public. They are the ones who hurt the most. The AMCs that are not controlled by the banks are a for profit venture only, as well.

    AMCs promote economic slavery. The name Appraisal Management Company is insulting to the real estate market. There is no Firewall associated with AMCs. How sad. Mr. Coestor should be very ashamed of himself. AMCs are “Vipers”. Not only is AMCs number two goal is to make a profit off the consumer, they are chop shops that assist automated valuation models with their data from confidential information contained in the general public real property via Real Estate Appraisals. It’s sickening to know that AMCs are stripping America’s economy and taking equity from the general public.

    Just because Mortgage Brokers and REALTORS assisted with the downfall of the economy, doesn’t make AMCs right. The real estate market does not need AMCs, the market needs true, sincere “Firewalls” that is not for profit and operated Independently from the government, sales people of all types, and especially the lending industry.

    When the politicians tell lobbyists that they will now do the right thing, the general public will be in control and Real Estate Appraiser Independence will be a great opportunity for the economy – AMCs will be converted into Firewalls, market value will be accounted for, equity will have a chance to breathe, and the appropriate professional THE INDEPENDENT REAL ESTATE APPRAISER will be empowered to serve and protect the general public trust.

    America should not be forced into an economic slave trade. And it starts with taking Real Estate Appraiser Independence serious. Ignorant decision making within the real estate market for decades have contributed heavily to what the economy is feeling today. Unfortunately, the fix is being delayed due to the lending industry, the secondary market, politicians, and AMCs – their false prophecy, deception, and blatant lies, as well their propaganda, as of today.

    Sincerely,

  20. Robert

    “they are only taking 30 percent of the independent appraisers fee.” Why are they taking anything? Are they also taking from the credit companies, the title insurance companies, the survey companies? Overhead is overhead whether it is physically inside a bank structure or a subsidiary of a bank. Why was it decided to “take” from anyone rather than charge what needs to cover overhead as banks and businesses have always done?

  21. Captain M

    Mr. Brian Coestar never misses an opportunity to seize the day. He capitalizes on all cherished American holidays including Veterans Day, Thanksgiving, MLK Day etc etc. with an attractive icontact holiday greeting that mostly promotes the last chance, hurry, hurry, hurry, big 2 for 1 Sale for his AMC directory.

    Now, thats the mark of a true Capitalist. No doubt he will take this too as a compliment. lol

  22. Appraiser in NC

    I have been appraising for 17 years and have worked very hard to give an honest opinion to whoever was willing to pay for it, even when I got fired regularly in the last few years for not telling people what they wanted to hear.

    The HVCC is a poorly written document that only creates a new set of problems for the lending industry and appraisers in particular. There are plenty or regulations in place to keep honesty in this industry – the problems have arisen from the complete lack of “enforcement” of the existing regulations. This has allowed rogue appraisers and lenders to florish in a system where there has been little or NO consequences for willfully manipulating data to “create” value.

    I don’t mind working for an AMC if they are proven to be an effective firewall – however I don’t appreciate that I am the one paying for the privilege of helping the lender comply, and to “give” the AMC data that they then resell to my clients. Just doesn’t seem fair does it?? I keep wanting to ask for a kiss from someone, on a daily basis.

    The appraiser deserves the fee charged to the borrower, the lender should pay the AMC for any “services” they provide. This would eliminate the parasitic relationship the AMC now enjoys.

  23. Tom J. of Philadelphia PA

    I have proof from an AMC (Not Coester) who sent me 2 orders last week. The sent the order over for a standard 1004. They require the appraiser to have homeowner fill out their credit card form. Now the Appraiser knows how much the AMC is charging for the appraisal. The charge is 25% higher than my normal fee would have been and yet paying me 15% less than what I normally would have made on the assignment. So yes, I made close to my normal fee, but that is because the CONSUMER IS BEING JUICED ! what is more, the bank who requested the appraisal is an old client of mine.

    I agree with every appraiser here. Our fees have remained the same and even gone up. While preparing for the Tax deadline, I figured out I spent almost $2,000 between the required continuing education and renewal of my licenses in 3 states. Not to mention E&O insurance, MLS Fees – Oh yeah… Let’s not forget about the ALAMODE People… if you have a website, a silver level of support you’re looking at another $900/year. We haven’t added in the wear and tear of our vehicles, fuel. What about when the price of gasoline was peeking @ $4.00 / gallon?? As good honest business people, most of the independent appraisers ate the extra costs of the fuel at the time and not pass those costs on to our clients.

    The HVCC is one swoop has basically wiped out the small appraisal company’s and independent appraiser’s clientele with a stoke of a pen. The Federal Government preaches the road to recovery in this economy is SMALL BUSINESSES. Here is a prime example of the government talking out of both sides of their mouth ! We have shifted our business model to move away from the Mortgage Industry work.

    THE CONSUMERS ARE BEING CHARGED OUTRAGOUS FEES BECAUSE THERE IS NO MORE FREE MARKET.

    I ENOURAGE EVERY HOMEOWNER TO BECOME ACTIVE CONTACT YOUR ELECTED OFFICALS LET THEM KNOW AS A TAXPAYER THIS TRAVISTY NEEDS TO STOP !!!. ONE PERSON HAS CAUSED THIS PROBLEM – EMPOWERING THE SAME PEOPLE ( AMC’S ) MORE SPECIFICALLY “ FIRST AMERICAN “ WHO CREATED THIS MESS WITH WASHINGTON MUTUAL. THAT IS LETTING THE FOX INTO THE HEN HOUSE NO ?

  24. jenny

    of the 5 “new amc” appraisers used for my buyers’ properties in the last 6 months– all were from out of the area- over 20 miles. all took over 5 days on their reports. all made mistakes in their reports that delayed closing (lack of expertise!). and communication?
    what’s that?

    my obvious point: my field results conflict the findings of this report.

    too weird, huh!?!

    . . .but then again for awhile there smoking was good for us too- that’s what the industry “studies” showed. . .

    just a small town realtor spreading the (bad) word!!

  25. Captain M

    Fast AND Cheap. Does someone mention fair re the Appraisers due dilligence and equitable to anyone else including the borrower?

    http://appraisalinsight.blogs.realtor.org/2010/01/12/amc-reaches-goal-drives-down-turnaround-times/

    And…. the HURRY for the countdown is?? As someone mentioned..Imagine if a Realtor was held to a standard of competence where they had to sell a house within 27 days, 9 minutes and 4 seconds…OR ELSE.

    “Coester Appraisal Group, an appraisal management company (AMC) based in Gaithersburg, MD surpassed its goal of averaging less than 4 days total turnaround on appraisals nationally for two consecutive months. According to reports the firm averaged 3 days,19 hours, 48 minutes and 47 seconds.

  26. Joe Vita

    “Only 30%.” To place those two words together with the implication that it is not so significant an amount that it doesn’t impact a business’ bottom line or an appraiser’s ability to remain in business is ignorant as well as ludicrous.
    The fact that AMCs were given the right to impact the appraisal profession without any input from appraisers is criminal.
    Further, it was un-American for the government to summarily deny appraisers the right to solicit business any longer from our long time clients and to prevent them from contacting us with regard to opportunities to do business.
    You don’t need a survey to reach those conclusions.

  27. Greenback is correct!!!! An AMC does not provide a Firewall between the lender and the appraiser. If you want a true Firewall all you need to use is a computer program that automatically rotates the appraiser’s name within a database. It won’t cost 30 to 50% of the appraisers fee to operate the system.

  28. Joel Francis, SRA, GAA, GRI

    AMC’s 30% (or more) take of an already pathetic fee structure for appraisals makes residential appraising an even less viable career. The low fee structure attracts appraisers who perform 15 minute inspections and 2-hour (major corner cutting) turnaround times (and they even brag about). Following USPAP (you know, appraisal) guidelines, I rarely can complete an appraisal in less than 8 hours; and they often take 12-16 hours. A net fee of $250 divided by 8 hours turnaround time equals $31.25 less 40% for expenses equals $18.75. And if you have an office split on top of that you might be under $10 per hour. If the appraisal takes 12-16 hours you could be below minimum wage. Not bad for a college degree and for someone who tries to play by the rules. A friend of mine makes $16 at Home Depot plus benefits. Hmmmm.

  29. How utterly amusing. Having an AMC do a review on the effects of AMCs, is like having a fox do a review of what damages a fox might do in a hen house. I am stunned that the National Association of Realtors would even bother publishing this tripe. Ask any corrupt politician if he is corrupt and his response will be “Of course not.” Ask any AMC if it is doing irrepairable damage to the lending and appraising process, and it will answer “Of course not.”. I am disappointed in the NAR for wasting time on such a thing.

  30. The survey is a crock and everyone knows it, that is in the business. Until appraisers get some cahonies and just refuse to work at a loss this crap will continue. I figure the typical hourly rate to run a profitable office is around $90.00 per hour. I don’t understand why appraisers would except anything less, but as long as we have part time appraisers willing to drive 300 miles on the weekend to do an appraisal for $150.00 – $200.00. No one is served. I spoke with an AMC in my state that told me they have 170 appraisers signed up to do my county. I have been an appraiser since 1994 and I know there are not that many local appraisers.

  31. Hal Mann

    30% is not a huge margin?

  32. John H

    To quote Mr. Coestar: “The data was untainted and we have no reason to lie.”

    Sir, please provide the raw data (without appraiser names ) so that any of us may run additional analysis such as calculating a median or weighted average using order volume & age. Having spent more than half my life checking facts, further analysis of your result is necessary to eliminate your inherent potential for bias.

    Thank you.

  33. Scott

    I have always considered Coestar as a bit of a joke. A year or two ago I went to their website and was appalled at the numerous spelling, punctuation and grammatical errors I found.
    I just returned and nothing has changed. If you want a good laugh read through a few pages. They sound completely ignorant. They have no clue where to place commas, periods or apostrophes.

    Like the potential employer who tosses the spelling challenged resume into the trash, you cannot take seriously anyone who takes so little pride in their web presence.

  34. I am an agent in Arizona and a former loan officer. I live in Pinal County which runs from Apache Junction all the way (almost) to Tucson. What we have witnessed is AMC’s assigning appraisers from Phoenix for our homes in the southern most part of our county. They have no clue as to our market. It would be like me listing a home in PHX–I don’t know that market. As a result we have had sales lost due to low and inaccurate appraisals. I had a case last fall where the appraiser used a comp that had sold for $326,000–they had it on the appraisal has having sold for $394,000. They compared a home built in 2005 with one in 1989. It was one of the lousiest appraisals I have ever seen. I submitted better market data, and the AMC and/or the appraiser wouldn’t even consider it. This system has not made the appraisal process better.

  35. Terry Patton

    As a licensed Appraiser and Real Estate Broker I can speak from experience. AMC’s ARE making a killing on the backs of appraisers. I walked away from the appraisal side of my business when the AMC’s offered payments of $150-$180 to me for appriasals they were collecting $400-$450+/- minimum. It just was not worth my time. Giving up years of relationships with my clients was difficult but it just was not worth it any more. Fortunately I can still be a broker without someone from another state butting in to my business. Now you have the least experienced appraisers trying to make a living in an industry where I want the MOSt experienced people doing my appraisals. Some of the work product I see these days is a joke with obvious rookie mistakes. Congratulations to everyone who thought this was a great idea.

  36. so instead of having an appraiser out within a day or two as we had before – it now takes a week or two

    and most of the time we get out of area appraisers who have no idea of the market they are appraising

    and sometimes they even appraise the wrong house (I recently had this happen)

    and all this is now costing my clients more money

    who is this helping????????????

    the clients or some AMC who now takes a piece fo the pie

  37. sam wilson

    Their bias is obvious in their conclusion that 30% of any professional fee is not significant. Hey Realtors, how about your paying 1% of all future GSP (or to say, 30%fee) to Lender’s and their borrower must select you as the agent from their approved list? Your thoughts

  38. Retired Appraiser

    Re: Carole Christensen’s comments

    Over the past two years I have read thousands of comments on HVCC. Your brief comment hit the nail on the head. In one brief paragraph you said everything that truly needs to be said about HVCC. You’ve explained precisely why experienced appraisers have left the business and why the greenhorns will be leaving when they finally figure out that they are working for free.

    Bravo! If only CNBC and a few national news agencies would pick up on your comment and spread the word to the U.S. Senate before they vote on this issue.

  39. I agree with every appraiser. I can’t say much that hasn’t already been said in this blog. Just to touch on a few things. FIRST AMERICAN, E APPRAISE IT, BANK OF AMERICA. We the people, bailed you out. Call First American, and you will get to talk to a guy named “Kevin”, which is obviously not his real name. HE IS IN INDIA. We bailed out Bank of America so they can outsource jobs to India, instead of creating jobs here. Some liar in India is telling me how to do an appraisal in Florida. And they are charging $400+ and paying the appraiser $170.

    Brian Coester-YOU AND YOUR COMPANY ARE A JOKE!!!

    I think the best way for us, the appraisers, is TO GO ON STRIKE.

    If we got together and went on strike for a week, the lending industry would feel it and hopefully we could be heard.

  40. WOW…as you can see…we beg to differ with the “survey says”! I also have never received any assignments from this …company. 30% and you want to say that out loud???? Thanks for letting me know your JUGULAR CUT for…hummm not much so I can turn down any assignments you in my dreams would supply. Hey can I charge for the time…all the time it took to supply you my company profile which included confidential information???
    WHO WHO WHO is regulating these AMC’s???? Big Gov passed AMC approval for use via the HVCC…BUT were they not also suppose to PROVIDE a Watch-dog Committee? Big GOV forgot about part B…guess they really do want about 50% of us to change careers. (check that out…@10-30 per reporting notice turning in their licenses) Wonder what the crystal ball reveals for when the market does return and it trully will be the fault of the appraiser…for the return report delays they already blame us for. Perhaps we will be busy…think we will ever get together..stand together and get our fees back to a FAIR LEVEL??? Just so ya know…my turn time is typically within 48 hours…don’t think we are trully the ones who are THE cause of the failed property sale closings!!! For Fair FEE Info: Check the great survey provided by alamode regarding local area FEES…normal…normal fees for the form type. STAND TOGETHER or STAND ALONE!!! I am standing alone…but still refuse to bend over!!!

  41. Steve St.George

    Unbelievably the worst policy ever. Andrew Cuomo should resign. We took thousands of independent qualified appraisers and gave their jobs to a few untrained appraisers willing to accept a much smaller fee and willing to travel 2 counties to do so. If the Gov’t is so inclined to reduce the unemployment figures that they are willing to spend billions to create 300,000 jobs, why would they approve this policy that has resulted in hundreds of thousands of self employed appraisers to lose their income……OH, because it doesn’t show up on the stats. Instead it looks like the HVCC’s hired 100,000 instead of 500,000 independent appraisers losing their income. What a joke. Unfortunately, these entrepreneurs will have the last laugh when they hand over their homes to the banks that agreed to therse terms, which will then bring down the economy and will ultimately result in the removal (I hope) of all existing politicians who felt it was better to spent 7+ billion to created a few hundred thousand jobs instead of giving EVERY american a check for $100,000 to bring their mortgage in line, pay their debts or spend to improve the economy. Clearly this country has lost its ways and we are continually being led down the same path by the Politicians.

    P.s. Brian, If you want facts, come see my files. Don’t send out a survey to a select few.

  42. Found A Better Profession

    EXPERIENCED APPRAISER’S WILL HAVE THE LAST LAUGH

    The housing market will undoubtedly see a double dip; primarily because HVCC has handed the appraisal profession to new appraisers. The experienced appraisers who left the business rather than take that 50% pay cut will certainly be entitled to a long last laugh when this happens. I for one hope that it does happen and leads to a depression that makes the 1930s look like a picnic.

  43. Colleen Patterson

    “ONLY 30%” THAT THIS AMC ADMITS TO? “ONLY?
    AND THE NORM IS HIGHER THAN THAT IN MY EXPERIENCE.

  44. Doug

    I’m quitting the business. Got another job. I looked at my income in the past few years and it just keeps going down. Fees are stagnant and declining. Costs are going up. AMC’s expect me to work 7 days a week. My income has gone down 30% due to their take. Just doesn’t work. 12 years in the business shot due to Cuomo. But now I get days off, vacation, steady income. But I’ll keep my license. What will happen is that no one will train new appraisers. People won’t get the education because of the extra requirements. My prediction is that in 10 years the average URAR will be $600. An AMC will be nowhere in sight. In the meantime it is to greener pastures.

  45. Retired Appraiser

    I agree with Doug. Over 50% of the experienced appraisers have left the business and nobody in the right mind will ever consider entering it because of poor fees and the fact that the industry can be so easily manipulated by lenders.

    Lenders are slowly realizing that AMC’s bottom fishing methods virtually guarantee poor quality appraisals. In response they will turn away from AMCs and find better firewalls. Firewalls not comprised of 100% sponge hopefully.

    I believe that appraisers and consumers were raped by HVCC because of banking greed. In the end they what comes around goes around. The bitch slapping that they gave appraisers will be nothing compared to what they will see themselves. Karma is one cruel MFer…it does require patience however.

  46. Steve

    I believe I have reached the ultimate in level of disgust with the appraisal business. We have recently received a few appraisal orders from 1st American E-appraiseit. Well, it seems that the orders come from Landsafe Appraisals (also an AMC). So, Landsafe gets their cut, then E-Appraiseit gets their cut, and now we get the appraisal order for a fee of $159.00. Oh yes, it includes the 1004 MC. I still have an office, E&O Insurance, phones etc to pay monthly. You do the math. Goodbye E-Appraiseit …Goodbye appraisal business…

  47. lisa johnson

    Coester Appraisal Group is a AMC and they are not registered in any of the required states which is a law. Warning to any appraisers that are doing business with them as you are jeopardizing your license to accept work. BEWARE. do not accept any business with this company.

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