My name is Pieter, i am a certified residential appraiser in the state of california. I read the article and onestly i totally agree with the new changes that will occur beginning 2009. Up until now i had to deal with several lenders/brokers that from time to time were pushing for value. You had no idea of how many appraisals orders i left on the table just because i believe in my profession and most of all i belive in FAIR market value , which is what we appraisers have to look for. And i believe in justice, in doing the things RIGHT. Now all these new changes will eliminate at least the biggest part of it. But my questions now is this and is very simple: How do ONEST appraisers like i consider myself to be stay in business with these new regulations? Where will we get business from? In other words, what do we have to do to keep practicing our profession? Would somebody be so kind to reply to my questions at my e-mail address please with the answers please?? That would be very much appreaciated!! Thanls a lot. Pieter

Your articles are always very informative. The Maverick Residential Mortgage article was especially insiteful. It was a great example of how quickly things can get out of hand. When companies grow fast without a quality security check in place.

Nice work on this one as well! The problem here is not only that lenders apply pressure to appraisers. It goes much deeper. Lenders, Appraisal Management Companies, Brokers, Builders, etc apply the pressure. Pressure comes from all of these sources and more! Appraisal Management Companies are not any better. They are going to do what the lender wants every time. many of them are owned by the lenders. It’s a way for the lender to profit from the appraisal and not disclose it to the consumer! Management companies are not the answer to this problem. It is not resonable to think that these companies are going to make a difference. They only increase the problem. The management companies are profit driven and drive quality services away. Leaving consumers with low quality appraisal work because management companies rotate tward the product with the cheapest price. At the same time this is going on, the lender is telling the consumer that they are only paying for an appraisal fee, but actually, they are paying for an appraisal fee plus an appraisal management fee. Many times these appraisal management companies accept orders to complete appraisal work and they have no qualifications and do not employ anyone that is qualified to complete or accept the appraisal assignment. Often times they claim to employee these professionals, but actually contract independent fee appraisers to complete these assignments. They do not staff W-2 employees. They are not employees at all. They are 1099 independant contractors that work for seperate companies. Appraisal Managment companies often do not have anyone that is qualified to accept an appraisal assignment according to USPAP regulations or Appraisal Law. Not only are consumers being charged for appraisal managment services which should constitute an unearned fee, but the appraisal management company and the lender deceive the consumer by not disclosing this information. The management company makes the difference between what they can charge the lender or consumer and the lowest price that they are able to get the work done. In some instances these companies are making as much or more than the appraiser. These managment companies are going make things better? If a bank, lender, broker, etc, wants to profit from an appraisal they need only set up a management company and keep a portion of the appraisal fee without any appraisal education or regard for USPAP (Appraisal Law). These companies are just as deceptive as the lenders that apply pressure. They may even be a bigger problem.

I encourage you to learn more at:
http://appraisalblogs.com

Sign the Appraisal Management Petition:
http://www.ipetitions.com/petition/AppraisalManagement/