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Appraisers Thank You NAR...You speak and HUD listens!! You are putting a stop to low paying AMC's!

By
Real Estate Appraiser with Lanier Appraisal Service CR004373

 

I have always known the that NAR (National Association of Realtors) was a force to be reckoned with but as an Appraiser I just wanted to personally thank all the Realtors out there that have put their foot down stating that they are tired of deals dying because there are way too many appraisers coming into areas to appraise homes that they have no clue about.

Appraisers who are working for AMC's (Appraisal Management Companies) for 1/2 to 1/3 of their fees and who are traveling over an hour or more to get to the property and who are not familiar with the the market dynamics and trends in the various neighborhoods, usually produce poor appraisal reports both under and over-stated values will occur. 

FHA/HUD listened to the NAR .... as of February 15th as dictated in one of their recent mortgagee letters, appraisers must be paid their usual and customary fees for their appraisals. This does NOT mean U & C fees that AMC's define as hard as they have tried. HUD did define U & C as that which the appraiser would normally charge, which has NOT been discounted for an AMC.

Realtors and Borrowers are actually not worried about appraisal fees being too high, rather they are concerned about low fees and they SHOULD be! I am a firm believer you get what you pay for and if an appraiser is forced to take a pay cut in order to get work and they have only a few days to get that report back to the AMC, guess what happens...YES....Mistakes, oversights and SHORT cuts are taken....NOT GOOD for anyone.

So NAR thanks for making your concerns known. Maybe we will finally get seasoned appraisers who know the areas well, who are paid for their expertise and who are also not coerced into obtaining a certain value (all part of the HVCC lingo) then all will be sane in this crazy Real Estate World.

Now Fannie and Freddie should follow suit!

Have a great weekend everyone!

 

 

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Comments (7)

Lanre-"THE REAL ESTATE FARMER" Folayan
Samson Properties - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Thank you for sharing this Mary. Hopefully this will lead to better appraisals and more deals getting closed. Have a great weekend. Great post.

Mar 20, 2010 02:35 AM
Randy Schulenburg
Schulenburg Realty, Inc. - Pingree Grove, IL
Schulenburg Realty, Inc.

That's good news for appraisers.

Mar 20, 2010 07:00 AM
Richard Glesser
North Country Appraisal Services - Gaylord, MI

Unfortunately, a month after enacting, I've seen no change.  As a Certified General, I anticipated a great swell in my FHA work after October deadline which mandated use of Certified Appraisers.  Didn't happen.  With the adoption of HVCC guidelines on February 15, 2010, I also anticipated an increase with AMCs opting for local appraisers at more traditional fees.  Haven't seen one.  Either no one is borrowing FHA or all the good intentions have been fruitless.

Mar 20, 2010 09:52 AM
Christine O'Shea
Christine E O'Shea Broker - Naples, FL

I absolutely agree, Mary.  NAR is a such a strong organization, they heve to keep on stepping in on these issues!

Mar 20, 2010 02:08 PM
Mary Thompson
Lanier Appraisal Service - Flowery Branch, GA
Lake Lanier Appraiser in North Georgia

Thanks for your comments. Richard, sorry to hear that your business has not changed. Have you considered trying to get on Fannie Mae's approved list for REO appraisals? I got on their list last year and it has been a god send for me

 

 

Mar 24, 2010 12:12 AM
Richard Glesser
North Country Appraisal Services - Gaylord, MI

Actually moving in the direction of commercial appraising.  I've done commercial sporadically over the past 25 years but concentrated on the residential.  Far less crowded in the commercial areas.  May be better off not doing the residential since it always seems to take precedence over work on my desk due to urgency of lenders.  Without the comfortable flow of residential, I'll be more apt to concentrate on the commercial.  Thanks for the advice on REO work.

Mar 24, 2010 04:27 PM
Denise Allen
Resh Realty Group - Chesapeake, VA
Realtor@ Chesapeake, Hampton Roads

Don't know why someone would travel that far to get half price on something but I guess that it keeps money coming in. 

Mar 28, 2010 02:56 PM