The link below was provided by the publisher of Working RE magazine, a division of OREP, this appraiser's insurance provider. The Executive Essay was printed in the April 2011 issue of Mortgage Banking magazine. The essay provides a thorough and cogent explanation of the market for lender-based appraisals here in the spring of 2011.
The appraisers are out there, however, many refuse to complete appraisals for the below market fees being offered by many AMCs. One factor not mentioned in the article is that a number of lenders (not identified here as it is common for AMCs and lenders to "blacklist" appraisers who speak out against a particular company) actually own their own AMCs either outright of through joint ventures. These particular AMCs are some of the worst offenders regarding unreasonably low fees being offered to appraisers.
Do not hesitate to write of post feedback. Here is the link:
A recent blog post in the appraiserlawblog by Liability Insurance Associates (LIA) details the FDIC's recently filed suit against two large AMCs. As stated in the conclusion, while it may warm the hearts of appraisers to see two AMCs being sued, it probably means negative outcomes for all appraisal related industries as it diminishes the overall perception of the importance of appraiser conducted services in the minds of the courts and public.
To read the full post (recommended), please click link below:
The link below is a story published 5/25/2010 on the blog of Liability Insurance Administrators. It details recent happenings in a lawsuit by a group of homeowners against one of the country's largest lenders. The subject of the suit is that homeowners' equity lines of credit (HELOCs) were unjustly reduced based on flawed valuations completed through the use of an automated valuation model (AVM) rather than a full appraisal.
If the lawsuit is successful, it will put new scrutiny on the use of AVMs which could potentially favor independent fee appraisers whose businesses have been negatively impacted by the use of AVMs for lending decisions.
The Mortgage Asset Research Institute (MARI), a division of Lexis-Nexis, published an annual report on April 27, 2010, revealing that appraisal fraud actually increased following the implementation of the HVCC May 1, 2009.
Click the link below to read the full story by syndicated real estate columnist Kenneth Harney: