Many of you may have received this in your email in box. I have permission to post this from the author of this letter. I also received the letter he is referring to from RELS and pretty much told them what I thought of their "offer".
If you agree with its contents, then you have until March 18th to contribute to the Call to Action when it comes to AMC's (appraisal management companies). Another thing I would like to add is AMC's do not guarantee appraiser independence from lenders. Why do you think the HVCC was enacted to begin with? A large AMC was pressuring appraisers for values because their clients (The Banks) were pressuring them!
Also are you sick and tired of AMC reviewers (many or most who are NOT appraisers themselves) telling you how to do your work? I sure am. They tell us what comps to use even if they are not comparable and I hope all appraisers tell them in so many words where they can put their reviews!
First thing we should be asking reviewers is this: So how many years have you been an appraiser? The underwriters are also not appraisers, so how do they have the right to tell us our appraisals are unacceptable or the comps we use are not what they are looking for. I am seeing this more and more and all they want is close, recent sales to the subject property and they don't really care if they are comparable or not.
READ ON.......................
Fellow Appraiser:
It may have come to you attention that RELS has began a "phased" appraisal process that begins with a $45 desktop appraisal report
Appraisers on the RELS list are given the "opportunity" to participate in a program intended to save their customers time and money. Appraisers are asked to perform desktop appraisals to be used to evaluate a borrower's equity position.
Please click on the link to view the email from RELS dated March 5, 2009 announcing this program, the RELS required appraisal report and our formal Letter for A Call to Action. https://www.stickelman.com/si/si05.phtml
This program is dangerous on several levels:
1. It is comparable to the "comp checks' our industry has fought so hard to eliminate.
2. It amounts to coercion and other possible ethical issues including determining a predetermined value based upon the outcome of the appraisal. The appraiser is told that if they participate in this program they will have a greater chance of being offered the assignment upon upgrade of the report.
3. Appraisers are enticed into providing discount fee products with the carrot of additional new work and higher appraisal order volumes.
4. The desktop appraisal opens appraisers to increased liability since their analysis and reporting are fully accountable with USPAP and any additional state code.
5. If RELS is so "concerned with what borrowers or clients are paying" for appraisal services and reports, they could reduce their current override of up to 75% over contract appraiser fees (The appraiser is paid a fee of $200 and RELS charges the borrower $350).
6. There is nothing to stop RELS customers from utilizing this summary appraisal report to underwrite a real estate loan.
7. The continued abuse of valuation management is contributing to the slide of residential real estate markets, Wall Street, the US economy and the World Economy from a severe recession into a depression.
8. Banks like Wells Fargo are subject to federal regulation and this type of activity is prohibited under FIRREA, The Interagency Guidelines of 1994, the proposed HVCC and proposed Joint Agency Appraisal Guidelines. In recent years regulators and appraisers have fought this type of behavior that supports appraiser pressure, appraisal value shopping, threats of removal of business, making real estate loans without qualified appraisal reports and values. What is going on here? Who is watching and monitoring this type of reckless activity?
9. Discounted appraisal fees and rushed reporting, especially in this complex and dynamic market, is inadequate to allow the appraiser the ability to provide an accurate and reliable appraisal report and analysis. This type of allowed activity in the past has lead to our financial markets troubles. The appraiser must be provided adequate compensation and time to provide much needed accuracy and reporting. RELS $45, $185, $200 and other low demand fees destroy creditability in appraisals and appraisal analysis. The "client", "bank" or "borrower" can not continue to be allowed to control fees in the analysis, reporting times and adequacy of reporting based upon the Scope of the Appraisal Assignment, the Intended Use of the Appraisal or the Intended User of the Appraisal.
As you are probably aware RELS is jointly owned by Wells Fargo and First America, two companies who stand to profit from these discount appraisals. This country and many banks are facing financial collapse because of the proliferation of toxic mortgages based upon inaccurate appraisal alternative products or fraudulent or flimsy appraisals. The customers, shareholders and public must be made aware of the intent of these companies to water down the valuation process of many properties with declining or at best stagnant values. Wells Fargo Bank (WFC) has lost 73% of shareholder value this year; almost $92 Billion Dollars in 2.5 months or $1.7 Billion Dollars per business day (The price of the common stock on March 5, 2009, the date of the RELS email to appraisers was $8.12 and the price of the stock on January 2, 2009 was $30.00). When is enough, enough? It has been estimated that the World Economy (NBC News reported yesterday, March 9, 2009) had lost in excess of $50 trillion dollars in 2008.
As appraisers it is time to make a stand against this type of bullying by appraisal management companies and banks. It is our responsibility to protect public trust with the highest level of professional expertise. The Real Estate Appraisal profession was founded on the need for accurate asset valuation and is a result of the Great Depression in the 1930's. Our profession was created by the Federal Government to protect the "Public Trust" in real property value. This power and responsibility was not given to Settlement Service Companies, Title Companies or Banks, it was given to us, the real estate appraiser. It might be interesting to note that the Great Depression did not begin because of the Stock Market Crash of 1929, but by the Real Estate Speculation Crash in Florida of 1916-1928.
We ask that you review this e mail documents attached on the web link. You can then endorse and agree by filling out the information that serves as authority for support.
The final recipients of this document will include: President Barak Obama; Treasury Secretary Timothy F. Geithner; Chairman of the Senate Banking Committee, Christopher J. Dodd; Chairman of the House Finanacial Committee, Barney Frank; Comptroller of the Currency, John C. Dugan; Chairman of the Federal Reserve, Ben Bernanke; Chairman of FDIC, Sheila Bair; Fannie Mae and Freddie Mac; The Appraisal Foundation; members of the Appraisal Subcommittee; President of The Appraisal Institute, Jim Amorin; President of the American Society of Appraisers, Ronald M. Seaman; President of The Royal Institute of Chartered Surveyors, Peter Goodacre; General Counsel, Liability Insurance Administrators, Peter Christensen; CEO of Wells Fargo Bank; Attorney Stephen Berman; Attorney General for the State of New York, Andrew Cuomo; Dena Patel; The Associated Press; Reuters; Wall Street Journal; New York Times; Washington post; San Francisco Chronicle and any other interested parties.
You will have the opportunity to support this document until 5.00 pm eastern time, Wednesday March 18th by clicking the link below. The link also provides a copy of the RELS March 2009 email to its appraiser panel, a copy of the required appraisal report under their program and the Call to Action Document which will be sent from this group and its supporters. The Call to Action Document will have included in it all the items you see on the web link. You only need to endorse and support this document once, but can check the number of supporters at anytime.
https://www.stickelman.com/si/si05.phtml
We will also provide you with the opportunity to periodically check the status of signatures buy going to the link which you went to in order to support the document. It will give a running total of supporters.
This e mail is going out to approximately 20,000 appraisers throughout the United States. We ask that you forward this email to all appraisers you know and ask them to review and support this effort and encourage them also to forward this to fellow appraisers who they know. You will receive a copy of who receives these documents. It is important that you provide all the information in the sign up request so that it complies with the security requirements we will outline to the receivers and for us to communicate back to you. The information requested on the support sign up is necessary for validation and security protocol and will not be given or sold to anyone for any purpose. This effort is being organized by a small group of fellow licensed and certified appraisers from Ohio and Kentucky who have contributed their time and cost for the good of our profession. This is truly a grassroots effort from fellow appraisers.
At this time it is critical that our voice is heard and we thank you for your interest and support. To Review and Support this effort Click https://www.stickelman.com/si/si05.phtml.
Sincerely,
Ron Stickelman, Jr.
ron@saigroupllc.com
937-873-9900
So sign up and make your voice heard if you agree! If not disregard this post.
Mary Thompson
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