Real Estate Appraiser Tips: A Horrible Week Working With An AMC and New Mexico Governor’s New AMC Law…Smile!
This week has been rather difficult, which is the reason I haven’t posted as often on Real Estate Appraiser Tips! I started taking orders from an AMC that just recently began automated calls to appraisers for order acceptance. I hadn’t worked with this AMC in some time and received three FHA orders from them the week prior. What I received from them, only after accepting the orders, was “13 Page Appraisal Orders” for each assignment. I’ve been appraising for almost 20 years now and have never received a 13 page appraisal order.
Within these 13 pages was some of the “extras” “their client” requires above and beyond normal FHA appraisal requirements. Just one of them was that their client would not accept MLS photos for listings used. Oh No! On two of the orders, I had to drive all the way back out to the areas to take real listing photos. Another was that it wasn’t good enough for me to include 2 photos inside the attic, the “head-and-shoulders” inspection verbiage and the overall statement that SUBJECT MEETS FHA MINIMUM STANDARDS for existing dwellings outlined HUD Handbooks 4150.2 and 4905.1. No, they wanted an additional comment that the attic itself complied with FHA guidelines and accused me of skirting “the issue”. What Issue? Then they told me to add the words “covered porch” or “uncovered porch” to my sketch. I have yet to have someone send me a photo of an “uncovered porch”. There is no such thing as an “uncovered porch”! There’s wood decks, open patios, aluminium patios, stone walkways, but no uncovered porches that I’ve ever seen.
The straw that broke my back on Wednesday morning was their telling me that the photo below, my Comp. #1, was an MLS photo and said it needed to be replaced with a real photo. I explained that that was my mirror in the photo and had to send them a photo of my SUV to prove the color of my SUV. Talk About Insanity!!!
I NOW UNDERSTAND WHY “AMC’S” IS BECOMING A FOUR-LETTER WORD! AND, THIS INSANITY IS THE FUTURE OF OUR APPRAISAL INDUSTRY?
And, don’t we just love that AMC where their client’s extra requirement is for us to report the comps previous sold history (price and date) back to infinitiy (beyond just 12 months) and if you can’t find any sold history within your Legal News, to add a comment as to why?
By Thursday, after 3 revisions for one report, I was about ready to pull my hair out over this insanity.
Then, I wake up early this morning and see Brian Davis’ FeedBlitz email: New Mexico Governor Signs Appraisal Management Company Legislation into Law – Puts AMCs “On Notice”! AND, there’s a smile from ear to ear.
There’s two important aspects (hopefully obstacles for AMC’s) about this new law is that are of note. First, it requires AMC’s to post a surety bond. To me this important because there have been reports of new AMC’s setting up shop, hiring appraisers and then not paying them. Why allow AMC’s to get away with such illegal action? And, why allow appraisers whose license has been revoked or suspended from starting an AMC after the fact?
Second, it requires AMC employees who review appraisals to be “geographical competent” to complete the review. THIS IS MAJOR! I’ve always wondered about this issue. How can a reviewer in CA know the pulse of a market in Kissimmee FL? And, why do I see Appraiser Reviewer Job Announcements for major lenders where the reviewer must move to Atlanta or Chicago or New York to review home appraisals performed nationwide? I DON’T GET IT AND NEITHER DOES THE GOVERNOR OF NEW MEXICO!
Try To Have A Great Weekend! Bill Cobb
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{ 9 comments… read them below or add one }
Good article! I think it is appropriate for any appraiser to do a technical review, but it is not OK for any appraiser to do a value review. Value requires intimate knowledge of a market, so agreeing or disagreeing with a value in a review would be appropriate only if that appraiser is geographically competent. Technical reviews where a trained professional is reviewing the report for a report written to the standards appropriate for that type of report would be a little more flexible. I would happy if AMCs are completely removed from the process myself, but I think if they are going to be here, fair is fair.
I do have to say I do work with a couple of really good AMCs that don’t stick it to the appraiser, but there are ceratinly far mor ethat do then those that don’t.
Thank you for your time, Woody! And, I agree with you on technical versus value. I too work for a couple of good AMCs, but for the most part, my experience has not been favorable. Bill
Still chuckling!
Jenn, I hope that means you’re feelin my pain….just a little! Hope all is well in N.H. and that you’re thawing out up there! The White Mountains are an incredible view! Take Care!
Bill
GREAT ARTICLE, FEELS LIKE ALL OF US HAVING SAME ISSUES HOWEVER I GOT A BETTER ONE. TODAY I WAS ASKED WHY I DIDNT USE COMPARABLES WITH BAY FRONT WHILE APPRAISING HOUSE WITH A RESIDENTIAL VIEW. CAN YOU BEAT THAT ONE? IS THERE A PLACE I CAN FORWARD THIS REQUESTS AND REPORT IT ? THIS QUESTION IS CONSIDERED A STANDARD ONE WHILE DEALING WITH AMC’S. I HAD TO EXPLAIN IN ADDITIONAL ADDENDUM WHY I DIDNT USE THEM (NO COMPANSATION) . TAKE CARE FELLOW APPRAISERS. BEST WISHES
Thank you for your time!
Bill
This is the level of competence across the board for both the AMC’s and the Banks. Your job is to do what they demand-PERIOD. This industry is the bastard child of ignorance and stupidity getting together after an all nighter. I wish all my fellow peers well because that’s all the thanks you are ever going to receive. Quality is not best produced from 24hr turn times and folks running around with a license after going to the Sally Struthers Real Estate School for 90 hours. Good Luck-
Thank you for your time!!!
Bill
Anyone in the Appraisal Industry (real appraisers only please, not an AMC desk bound client rep) who’d like to order home-made cookies or brownies, you have my e-mail address! I too have been in the business almost 20 years, I can take the absurdity no longer, not to mention no work / money at all. The hell with this nonsense – I’m off to begin another venture. If interested (chocolate, chocolate, chocolate!) contact me for a price sheet and ordering info. Good luck. Tom.