So these appraisal companies that suck the blood (money) out of the hard working appraiser to do not want any liabilities for the appraisals that they order.  Are they serious?  They want the appraiser that they hire to indemnify and hold harmless the AMC's (appraisal management company) against any lawsuit.  In some instances the AMC is requiring the appraiser to indemnify the lender and and the AMC for amounts equal to their costs in repurchasing a mortgage loan regardless of proving the appraiser liable.  The AMC is free of any obligation and the appraiser bears all responsibility.  NAR is strongly opposing this.  Gee, thanks.

Let me illustrate the issue.  The AMC charges $450 for an appraisal.  They do nothing but order the appraisal.  They pay the appraiser $200.  The appraiser indicates a value of $300,000.  So if the mortgage company does not fill out the proper paper work or the value is challenged and the mortgage is not sold by the bank/mortgage broker the appraiser is on the hook for the buy back of the $300,000 mortgage.

Is this not the definition of INSANITY.  Who among us will do appraisals under that GUN?

We need to stand together or we will hang individually.

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Posted by Webster, Ma Conrad Allen, Realtor on 08/19/2011 06:44 AM   Comments (10)   Appraisal Issues in the ActiveRain Channel  
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10 Comments on DID YOU HEAR ABOUT APPRAISAL MANAGEMENTS COMPANIES LATEST SCAM?

AUG
19
2011
1,450,130 Points 46 Featured Posts Outside Blog Called Shot Master

Thank you for the post. I have not  yet heard of such companies in my market area.
6:52am • #1
645,973 Points 67 Featured Posts Outside Blog Attended Rain Camp

Hi Gita - These appraisal management companies are in every state.  Talk to a local lender about them.
7:32am • #2
525,425 Points 54 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Conrad - this is insane, crazy, nutty.....no...it seems to be the new normal!  Enjoy a great weekend!
7:33am • #3
645,973 Points 67 Featured Posts Outside Blog Attended Rain Camp

Dysfunctional is the new norm Barbara because of governmental insanity.
7:38am • #4
667,050 Points 8 Featured Posts Outside Blog Hit Router Called Shot Master

If all the appraisers were to quit that might and I say might get their attention
7:44am • #5
678,997 Points 51 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Conrad, just finished reading all of your rants on the appraisal industry. The fact that this middle man, the AMCs, has been thrust upon us has never made sense to me. It's just free money to them, with in my opinion, no added value.
10:15am • #6
239,220 Points Localism Sponsor Attended Rain Camp

Conrad,

I hear you! I'm also finding BPOs are done at a discounted rate and agents like myself are given very little time to do them.

FRUSTRATING TO SAY THE LEAST!
3:36pm • #7
645,973 Points 67 Featured Posts Outside Blog Attended Rain Camp

Hi James - Don't bet on it.

You are 1000% correct Connie.

For sure Michele.
7:53pm • #8
AUG
20
2011
627,100 Points 8 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Hadn't heard about this.  I wouldn't blame appraisers for taking a stand against doing anything for these companies.
11:05pm • #9
AUG
21
2011
645,973 Points 67 Featured Posts Outside Blog Attended Rain Camp

These appraisal management companies are the ones who hire people out of the area.  They give the jobs to the lowest bidder.  Quality suffers for all real estate agents Kay.
9:06am • #10


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