In the News – Is HVCC working? Pt. 2: Appraiser’s Point of View

2017-12-20T17:34:18+00:00 June 3rd, 2010|Categories: In The News, Uncategorized|Tags: , , , , , , , , , , , , , , , , , |

So overall, lenders seem to be content with HVCC.  That’s one out of four.  But how about appraisers? The popular method for lenders to comply with HVCC has been to contract with an appraisal management company (AMC) to handle the appraisal process (though some are managing the process internally).  In this arrangement, the appraisal order is placed with the AMC by a non-production person in the lender’s office, the order is assigned on a random basis to one of the appraisers in a pool, and if the appraiser accepts the order, the appraisal goes forward.  Sounds simple enough and workable, right?  Most appraisers I’ve talked to are somewhat ambivalent on the issue.   They’ve lost business from long term, cultivated, relationships but picked up business from others in the random assignment process.  There’s a middleman now (remember the AMC) and middlemen have to get paid.  We’ve all heard of AMCs demanding appraisers to accept a lower fee for reports to be on their panel.  A common refrain is less qualified appraisers that otherwise might not be able to get business on their own, gladly step in on these terms with the result being poorer quality appraisals.  So, appraisers have had to [...]