Appraisal House Blog

I've received a lot of calls and emails from my last post, so I want to thank all of those appraisers out there who (a) still believe our industry shouldn't be given away to the management companies, and (b) think that the current HVCC is a bad thing for our industry and needs to be revised or killed. 

I remain hopeful that it will not go into effect anywhere near it's current incarnation.  Personally, I don’t understand how it COULD pass – I can’t imagine there wouldn’t be tons of lawsuits against Fannie and Freddie, since they (and the NY SAG) are essentially telling customers I’ve had for years that they can no longer choose to do business with me.  (What would happen if you told realtors that from now on every prospective buyer had to sign in to a government web site, and they would be assigned the next available realtor regardless of reputation or knowledge?) 

What this agreement is essentially saying is that, as a professional residential appraiser who has worked for years providing quality appraisals for use in mortgage lending, I no longer have any right to perform that action unless specifically asked to do so by a third party.  I cannot prospect for business in this category (aside from "signing up" with the AMC's), and I cannot get referral business from people that appreciate my professionalism, speed, and work quality.  So the entrepreneurship is taken away.  My job would consist of sitting by the phone, hoping it rings, and then making sure the assignment makes value so it will ring again. 

By the way, I am aware that the above is a drastic over-simplification, but if that has historically been your business then that is a fairly accurate description.  Yes, you can find new clients that are correspondent lenders, or find local banks the do construction loans, or get divorce work from appraisers, but the bottom line is that the HVCC has just taken away the business you have built and run and made successful.

I'd be interested to hear from appraisers that do a lot of work for AMC's about what percentage of the time they bust values.  Does anyone bust values regularly and still get the same amount of work?  I don't see how the HVCC does anything but pass the pressure up the line.  Sure, there is no pressure from the lender on the appraiser anymore, but the lender is still going to pressure the AMC (hello eAppraiseIt and Wamu!).  And the AMC is now going to pressure the appraiser (or stop using them and find another one who will get the job done.   

Tell me if I'm wrong on this...