Anyone else feel violated?

[Stacia L. Ashmore]

I am a licensed broker and certified appraiser. I worked in mortgage lending for a few years before I came over to the dark side. I have been appraising for 11 years. I also teach appraisal courses at our local community college. I am conscientious, diligent, thoughtful and passionate when it comes to the appraisal industry. I am proud of my accomplishments. But today... I feel alone. I feel betrayed. I feel violated. I am hurt and angry that my soveriegnty as a sole proprietor has been ripped away from me. I have followed USPAP to the letter. I have chosen my clients carefully, and work only with clients who respect me and hire me because I have earned their trust in providing professional, reliable appraisal services to maintain a healthy real estate portfolio.

I am beginning to think it might be time for a career change, as I feel that I am being forced out of the one I worked so hard to establish.

[Todd Redington]

I think all of us that have engaged in this business in a thoughtful, conscientious, ethical, and moral manner are feeling disenfranchised. I have lost all of my mortgage clients that I have developed over the years (22) because of this. I have already performed a "service" for one of them who received an AMC generated appraisal that was so poorly done that I went back out to the property, performed an appraisal, and submitted a report to my old client. All so that they could submit it to the AMC's appraiser for consideration to correct the original report. The appraiser missed a model match sale 2 blocks away from the subject and from within the last 45 days that justified a value $80,000 higher than what was reported on the original appraisal. The closest comp in the original appraisal was almots a half a mile away. This particular client is thinking of closing his Brokerage doors because he is not comfortable with the random quality of work that he is experiencing and does not want to get caught doing a loan on a property that is over-valued and get into a lawsuit. I personally am looking into getting a job with HUD or the FDIC as in investigator to get some of these less than honest appraisers out of the business. As for getting out of the business, I am a third generation appraiser, this is what I have done all my life, I really have no other marketable skills, so to change jobs is to work fast food. Then again with AMCs paying as little as they are, that might be a pay raise. God Bless to all, and don't give up the fight.

Todd Redington,SRA
Newport Beach, CA

[Tracy Martin]

I would dearly love to be involved in the investigation end of this mess, too. Keep us posted.

[Stacia L. Ashmore]

Thanks Todd & Tracy for your words of encouragement. Sorry I'm posting in the wrong section. I'm new to this kind of thing, but this type of pressure sends me looking for relief in different places than I would normally search. My frustration has hit the pinnacle as I read over the contracts sent to me by the AMC that has taken over the appraisal process for my biggest client - a credit union. Their legal documents are right up there with mob boss mentality, or worse - unionized labor. They have a "no compete" clause and "hold harmless" clause that look like sheer entrapment for a lawsuit. I've been mulling them over since 1 May when they contacted me on behalf of the credit union. I just can't seem to make myself sign and submit them, even knowing that I will not get a single appraisal order until I do. I'm not signed up with any other AMC's, so right now I'm dead in the water. These AMC's go against everything I believe as a self-employed professional. They are not giving me one service, or relieving one liability, or adding any benefit to my practice, they are only adding beurocracy to the process. To make matters worse, this AMC is a middleman between me and my client, and there is another middleman between me and the AMC who will also be shaving a slice off my fee. They have dictated to me what I am "allowed" to charge and informed me of what percentage I will be receiving of that. I feel like I'm back in trainee school! Does anyone know the history of Mario Cuomo and AMC's? Someone told me that he received large campaign contributions from the industry, but I have been unable to confirm that, so I have to assume it's a rumor. Thanks for listening! I feel better just being able to air my thoughts to folks who know what I'm talking about, and possibly share some of the same views. Most of my associates here are brokers and realtors or loan officers who see things from another perspective, although they are not happy with the situation for different reasons.

[Michael Tabor]

Stacia, I could kiss you for actually reading those contracts, and refusing to sign them...

Lots of appraisers are signing them and setting themselves up for catastrphic loss...

From my blog: http://hyperionappraisal.blogspot.com/2009/05/caveat-emptor.html

I did work for First Horizon, who started using Appraisal Port. I signed their agreement in 2006 or 2007, and then 2008, they asked me to renew my agreement. Way down at the bottom, near the end, was the clause I am referring to. I refused to renew and have since lost all the work I was getting from First Horizon.

Ever since then, in every agreement I look at, I scoot through all the usual stuff about use and intent, requirements of the appraiser and responsibilities of the AMC, and in every case, maybe the second last item is an indemnity clause that hangs the appraiser with ALL the liability.

[Steve Timper]

Yes, I ran into the same thing. I read some of the mounds of paperwork AMC's were sending me, all with No compete and hold harmless clauses, I never signed any and have started my letter writing campaign. I was told by someone I respect in government that the best way we can all get out of this hole it to write our legislators in DC and the State level about the history of Cuomo with the AMC's and before at the helm of HUD when he help implemented the so called, "stated income" liar loans.

Please see the attached graphic. I call on all real estate appraisers, write your congress men and women, and let us shed some light on our problem. Download the graphic and send it to all of our legislators.

[Tracy Martin]

I can only guess that you are referring to the HVCC rather than the 1004MC. For what it's worth, many appraisers share your thoughts and feelings. I am a national instructor (appraisal CE) and your sentiments are echoed from coast to coast.
But, before you do anything rash, have you considered changing your direction rather than your career? There are many opportunities outside the lending arena where appraisers are respected and their opinions valued.

[Michael Tabor]

I think you need to change the focus of your business, not throw away all of your valuable experience. I don’t know if your primary focus was mortgage work, but there’s a ton of non-lender work out there for those who can demonstrate proficiency. And it sounds like you have the proficiency.

[Michael Tabor]

A couple of things here that you might want to see. http://www.appraiserswatercooler.com/group/1004MC/forum/topics/amcs...