Sunday, December 6, 2009

1 More Reason to Regulate Appraisal Management Companies

Wouldn't you know it. As soon as I publish "7 Reasons to Regulate Appraisal Management Companies in Florida", I realized the title should have been "8 Reasons". Rather than rewriting the post as ideas come to me and are suggested by others, it seems like a better idea to add posts to the blog.

It seems as though everyone and their brother is jumping on the AMC bandwagon. This company may have been in business since 1991 or since the world was an onion, but their promo demonstrates another reason AMCs must be regulated. Here is the page of interest. Among the "advantages" cited:

  • 100% Loss Warranty - Protection from the liability of an appraisal coming back in the future that could result in a loss.

  • Will Match any Fee - We will insure competitive pricing and will match any quote provided in writing for any appraisal service.

  • How in the world can a company be an honest broker for an objective, unbiased, valuation service when the company has an interest in the outcome of the service? If the AMC warrants against loss, does it appear as though the company may have an interest in keeping the opinion of value on the low end? Might the AMC encourage the appraiser to keep the opinion of value close to the AVM estimate?

    Is it curious that one of the main "advantages" cited is matching the fee quoted by their competitors? Does this imply a commitment to quality?


    Anonymous said...

    We need to also point out the pressure to complete appraisals in a specific time frame. In this market it is unreasonable for any AMC to impose a 24-48 hour turn around time. I have found that most AMC's do not even understand the turn around time I am always pointing out that the turn around time does not include weekends or holidays in addition it is from the time of inspection not from the time you sent the order over.

    Presure comes in more than just one form. I feel VERY presured by unreasonable time frames. WE all know the market has changed appraisals take longer to complete these days, and AMC's should not be allowed to tell us how long we have to complete the report or presure us to complete it in a certain time frame nor rate our companies based on turn around time and future business.

    Anonymous said...

    I would argue that it is far too late to regulate or save the residential appraisal profession. Far too many have left the business for better careers at this point and will not return.

    Congress was too slow to act (oh wait they still haven't acted...but I hear they are thinking about it).