amcs: Michigan Moves toward AMC Regulation - 03/31/12 08:08 AM
 
Thursday, March 29th, the Michigan House passed House Bills 4975 and 5271 to provide regulatory structure to Appraisal Management Companies (AMC's).  The bills were introduced by Realtor member and State Rep Margaret O'Brien, a Republican from Portage, Michigan.
 
In compliance to Dodd-Frank, AMC's would need to meet 4 minimum requirements:
Register with and be subject to supervision by State-appraiser certifying and licensing agency in each state which they operate; Verify that only licensed or certified appraisers are used for federally related transactions; Require appraisals coordinated by AMC comply with USPAP; Require appraisals are conducted independently and free from inappropriate … (3 comments)

amcs: Is Appraising still a viable career? - 04/11/11 03:42 PM
I've recently been discussing the evolution of the appraisal profession with several of my colleagues and it seems conversation always winds up around the future of the appraisal profession.  After 25+ years in the business, careful review of "the numbers" indicates not.  For the first 10 years, while fees were lower, forms and required data were also much less.  However, the past 10 years have been marked with increased reporting and data requirements including increased liability.  The lending institutions hijacked the 1004 form in 2005 restructuring it to meet their specific needs and desires.  Appraisal scrutiny has increased dramatically as have … (12 comments)

amcs: Competency?!? - 04/01/11 10:49 PM
The following was posted in a state appraiser peer group site to which I belong:
I just received a lead on an appraisal in Shelby Twp.  The client is insisting the use of an appraiser who lives, or has offices, in or surrounding the Twp.
The conversation continues:
Whatever happened with the most competent appraiser, as opposed to the appraiser in closest proximity.  Like Shelby Twp is a complicated locale...
 
I know, right? I didn't bother because I'm two townships away.
 
Amazing that they are getting down to a township level. There are a few areas where there are … (5 comments)

amcs: Dodd-Frank and Customary Fees - 04/01/11 08:50 PM
It's April 1st and the provisions of the Dodd Frank Financial Reform Act requiring local appraisers to be paid customary local fees has taken effect.  All orders from AMCs which were received today by my office included substantial fee increases making them equivalent to normal local fees!
Well, maybe in my next life......
 
… (5 comments)

amcs: Early Thanksgiving Weekend - 11/23/10 01:51 PM
It's 1:30 on Tuesday and I have a few more calls to make before I close it up until Monday.  Many of you have been in this as long as I have - 25+ years.  For the balance of this year, all are playing by my rules.  As I rushed to try to schedule my last appointments, what I've missed for all these years finally hit me.  If I do rush out to look at some homes and spend tomorrow and part of Thanksgiving writing the reports to meet artificial deadlines, no one will be there until Monday to process them … (0 comments)

amcs: Chase - Attacking the appraisal industry - 06/18/10 01:07 PM
The following was just received from another colleague who sits on Michigan's State Board.
 
OK, I can't make this stuff up any more. And you wonder who is working for Chase. Did you know that Chase is the #1 filer of complaints in all 50 states for appraisers.     
… (4 comments)

amcs: Outrageous AMC Fee offering - 06/18/10 12:01 PM
Just received this e-mail forwarded by a colleague.  Hard to believe when normal fees in my market area are $375-450.  Posting this to allow all to see the effects of HVCC and AMCs.
Dan,   It amazes me that any qualified or competent appraiser would actually agree to what you offer and it amazes me that you have the balls to offer this type of agreement.  It is obvious that you are looking for form filling hacks that have no narrative or cognitive skills.  I am curious to what types of people (I will not use the word appraisers) would actually … (0 comments)

amcs: Everyday Problems of an Appraiser - 02/24/10 09:04 AM
With all the posts and conversation about poor appraisers, I just wanted to take a moment to provide some insight to exactly what appraisers deal with from AMCs and underwriters.  Remember, neither the AMC nor the underwriter have any local knowledge and limited, if any, appraisal training.
I recently I completed a very easy assignment within Traverse City when compared to most in Northern Michigan.  My comps were within blocks, adjustments within range, and all items bracketted.  I received the following from the Quality Control of the AMC:
Appraiser to provide at least two comparables that have closed within 90 days. If … (7 comments)

amcs: Everyday Problems of an Appraiser - 02/24/10 08:44 AM
With all the posts and conversation about poor appraisers, I just wanted to take a moment to provide some insight to exactly what appraisers deal with from AMCs and underwriters.  Remember, neither the AMC nor the underwriter have any local knowledge and limited, if any, appraisal training.
I recently I completed a very easy assignment within Traverse City when compared to most in Northern Michigan.  My comps were within blocks, adjustments within range, and all items bracketted.  I received the following from the Quality Control of the AMC:
Appraiser to provide at least two comparables that have closed within 90 days. If … (7 comments)

amcs: Take Action against Poor Appraisals! - 02/21/10 08:42 PM
Overwhelming sentiment seems to feel that HVCC has resulted in poor appraisals by unknowledgable, distant appraisers.  This is, in fact, a result of the HVCC and its result of many lenders using AMCs which hire appraisers based not on qualifications, but rather on who will accept the lowest fee.  This allows AMCs to employ appraisers distant from properties with no local knowledge who turn out poor reports due to that lack of local knowledge combined with poor appraisal practices.  On 2/15, FHA joined other lending entities in adopting HVCC.  However, FHA added a stipulation that the appraisers must be compensated based … (7 comments)

amcs: Fight Poor Appraisal Results! - 02/21/10 08:38 PM
Overwhelming sentiment seems to feel that HVCC has resulted in poor appraisals by unknowledgable, distant appraisers.  This is, in fact, a result of the HVCC and its result of many lenders using AMCs which hire appraisers based not on qualifications, but rather on who will accept the lowest fee.  This allows AMCs to employ appraisers distant from properties with no local knowledge who turn out poor reports due to that lack of local knowledge combined with poor appraisal practices.  On 2/15, FHA joined other lending entities in adopting HVCC.  However, FHA added a stipulation that the appraisers must be compensated based … (5 comments)

amcs: DO SOMETHING!!! - Take Action against poor appraisers. - 02/21/10 08:32 PM
Overwhelming sentiment seems to feel that HVCC has resulted in poor appraisals by unknowledgable, distant appraisers.  This is, in fact, a result of the HVCC and its result of many lenders using AMCs which hire appraisers based not on qualifications, but rather on who will accept the lowest fee.  This allows AMCs to employ appraisers distant from properties with no local knowledge who turn out poor reports due to that lack of local knowledge combined with poor appraisal practices.  On 2/15, FHA joined other lending entities in adopting HVCC.  However, FHA added a stipulation that the appraisers must be compensated based … (4 comments)

amcs: An End in Sight for Poor Appraisals Due to HVCC? - 02/18/10 08:04 PM
A light may have been turned on at the end of the tunnel for Realtors and Loan Officers who have seen their businesses plummet due to the poor appraisals which have been done by incompetent appraisers since HVCC was adopted.  Today, Ala Mode, an appraisal software company, released a publication called Appraisal Fee Reference.  This lists the average appraisal fees throughout the country by county (or Parish).  Most may say "So what?".  However, it opens the door to submarine the AMCs who are largely responsible for sending incompetent appraisers into unfamiliar areas based upon their acceptance of below standard fees.  The … (2 comments)

amcs: An End in Sight for Poor Appraisals Due to HVCC? - 02/18/10 07:14 PM
A light may have been turned on at the end of the tunnel for Realtors and Loan Officers who have seen their businesses plummet due to the poor appraisals which have been done by incompetent appraisers since HVCC was adopted.  Today, Ala Mode, an appraisal software company, released a publication called Appraisal Fee Reference.  This lists the average appraisal fees throughout the country by county (or Parish).  Most may say "So what?".  However, it opens the door to submarine the AMCs who are largely responsible for sending incompetent appraisers into unfamiliar areas based upon their acceptance of below standard fees.  The … (8 comments)

amcs: FHA and HVCC Alert!!! - 02/12/10 02:11 PM
As of February 15th, all FHA appraisal requests will have to conform to HVCC.  This means a heavy reliance on AMCs for appraisal services which have been ordered through good, local appraisers.  Expect a similar result as conventional markets have seen since HVCC whereas AMCs will use inexperienced and locally incompetent appraisers willing to work for tablescraps.  The appraisal problems caused by HVCC will now spread into the FHA loans.
… (3 comments)

amcs: No Comps!!!! - 02/10/10 03:19 PM
I was trained in the wisdom that there are always comparables, perhaps not perfect or as similar as you (or the underwriter) would like, but there are still always comps.  After more than 25 years of appraising, I recently completed my first assignment where there were no comparable closed sales.
The property was a REO vacant canal-front site on a small lake in northeast Michigan.  As a REO property, the prospective listing Realtor had already completed a BPO.  Unfortunately, BPOs are not evaluated to the same standards that appraisals are.  Within a 5 county area, there are few lakes which have canal … (11 comments)

amcs: Inexperienced Appraisers - 02/10/10 02:39 PM
During the overwhelming sentiment against non-local appraisers, I have consistently made the point that the problem is not use of non-local appraisers, but rather incompetent appraisers who lack local knowledge which violates the Competency Requirement of USPAP.  However, a recent comment to one of my blogs alerted me to another contributing factor - inexperienced appraisers. 
Before HVCC, appraisers built client base through experience and service to local and national lenders.  Many lenders required several years of experience before consideration for appraisal work.  Since the activation of HVCC, AMCs have taken over the appraisal process and eliminated the natural and developed professional … (8 comments)

 
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Richard Glesser

Gaylord, MI

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North Country Appraisal Services

Address: P.O. Box 1271, Gaylord, MI, 49734

Office Phone: (800) 806-1075 x 101

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