AMC appraisal orders have become a dreaded necessity for many appraisers. The question is, should you accept orders from a system that you fundamentally disagree with? This article deals with both sides of the argument and makes some suggested solutions to the issue.
As appraisers, we have all heard experiences other appraisers have had with AMC appraisal orders. We have heard personally through friends or especially through forums, where appraisers are bashing the appraisal management companies for fraud, misrepresentation, integrity issues, and, especially, greed.
So this leads to the question, should we accept or decline AMC appraisal orders?
Reasons to Decline...
As mentioned above, there are many appraisal management companies that have questionable ethics. They are asking appraisers to accept a job where they are making only 50% commission, they have only 24 hours to complete the job, or they are asking you to reach a number. Some of them want you to sign contracts with indemnity clauses that would put all responsibility on the appraiser, including paying all legal fees for the appraisal management company.
The larger banks realize that they have a huge influence, just by the great numbers of loans that they produce. And unfortunately, there are many appraisers who will meet their demands.
Reasons to Accept...
While there are many appraisal management companies that have some serious issues, there are also hundreds of AMC's that treat appraisers with the respect that they deserve. I know this from personal experience, as I have been an appraiser for over 10 years. AMC appraisal orders from these companies offer a decent fee split, usually only taking about 10%. They have a fair turn time of 2-3 days, and they let you do your job.
While I see the reasons not to accept AMC appraisals from unethical appraisal management companies, of greater importance to me is providing for my family. I can choose not to use the major AMC's and only choose the companies that fall within my guidelines.
It is easy to get caught up in the frustration of everything that is going on in our industry, and you really only have two options. You can stop appraising, or at best, do it part time, because that is the only work you will be receiving. Your other option is to start accepting jobs and keep your profession. We all have to make adjustments, so that may be your only solution.
My Rule of Thumb...
I accept all AMC appraisal orders. As soon as I notice that they are doing something I disagree with (sometimes it is during the sign-up process!), I scratch them from my list. I have more than enough work through the other AMC's I deal with and personal orders through my website. I don't have to accept everything that comes my way.
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