My New Blog

HEY LENDERS!  DID YOU KNOW THAT YOU DO NOT HAVE TO USE AMC'S TO ORDER APPRAISALS?

    The AMC's (appraisal management companies) want you to think that you must order through appraisal management company's to get appraisals completed.  THIS IS NOT TRUE!  You can comply with the rules of HVCC and just have an in house staff ordering process that does not get compensated based on the loans.  Many banks are already doing this.  Some are using there own systems, and some are using systems like FNC that puts in a technology (firewall) between order processors and appraisers.  This is really important, because some AMC's are gouging the appraisers and keeping 50% of the fee or more for simply taking an order and passing it on.   There are some AMC's that are honest and taking a small reasonable fee,(since they do none of the work and have no liability), but the majority are taking large parts of the fee.  On top of that, they are not regulated by anyone and typically are getting the lowest bidding, and in many cases, the most unexperienced and least qualified appraisers to complete the appraisal orders.  I know this, because appraiser like myself that are experienced, do not work for low paying AMC's.  It is not possible to provide a high quality product to your client, comply with USPAP, pay all business operating expenses (licensing, auto, insurance, staff, etc.) and complete reports for half of the standard fee.  Why would you want to hire the least qualified people available to complete work that is very important to your lending decision process?  If you choose to use an AMC, be careful.  Ask what they are paying the appraisers vs what they are charging you..  Have the appraisers put there actual service fee into the appraisal so the AMC's can not lie to you.  Remember, they are unregulated and they can do whatever they want without any consequences..   Unlike, the appraisers, who are heavily regulated and state licensed and Certified...

IF YOU NEEDED A DOCTOR, DENTIST, OR LAWYER, WOULD YOU HIRE SOMEBODY WHO IS THE CHEAPEST AND LEAST QUALIFIED TO HELP YOU?????   IT JUST DOES NOT MAKE SENSE.