In the wake of AppraiserLoft stiffing appraisers for tens of thousands of dollars, and CoreLogic announcing they are bailing out of AMC ownership, it is good to see AMCs described a little more accurately and thereby getting some of the scrutiny they have long deserved.
Nothing new to appraisers in this article, but consumers should have a more accurate accounting of what they are actually paying for, and more publicity is one way for that to happen:
'Middleman' appraisers spur concerns
Once borrowers pay the appraisal fee, the lender sends the order to the middleman company that’s tasked to find an appraiser. What happens afterward could reveal a lot about the quality of the valuation, insiders say. Some companies release single proposals to individuals. But some also follow this format: A blast is sent out by email and text message to contact pools as large as 50, “depending on their database,” said Lowe, the appraiser from Carlsbad.
“...The appraiser would start the work, then it would be canceled because they found someone cheaper,” said Vidi, of the appraisers guild. “So the consumer is really not aware of the shenanigans involved.”
...More experienced appraisers are leaving the industry as appraisal fees trend lower. ...The departure of experienced appraisers from the field has made way for novices who are willing to travel longer distances to fulfill orders and likely cram more into their schedules to make up for lower rates, several appraisers have told the Union-Tribune.