House Bill 3040 in Washington State and House Bill 3624 in Oregon State are both working their ways through the legislature.

The banking lobbies are fighting hard to defeat or water down the bills.  Of course, the banks that own Appraisal Management Companies (AMC) are at the lead of the fight to defeat the bills.  AMCs make a great deal of profit charging banks AND APPRAISERS for the services the AMCs provide.  On the banking side, it is a profit center.   They don’t want a bunch of appraisers whittling away at their profits.  The fact that they are whittling away at the appraises’ profitability and integrity appears to be of no concern to them.

I say it is time for residential appraisers to stop selling their souls to the AMC store.   As I’ve said before, the AMCs don’t own us.  They use us for their own profits and give us little in return.

WE APPRAISERS HAVE ALL THE POWER.  THE ONLY POWER THE AMCs HAVE, WE APPRAISERS GIVE TO THEM.

So, no matter how the legislation comes down, no AMC in America has a chance of surviving or profiting without our (appraisers’) permission.

When an AMC calls and says: “You’ve been doing work for XYZ LENDING for years at a fee of $450.  XYZ is using SLUGGO AMC now.  SLUGGO wants to pay you $250 for an appraisal order from XYZ LENDING from now on.”  You, Mr. or Ms. Appraiser have to say “NO” to this.

If we appraisers act like professionals, rather than a scattered bunch of scared mice, we can move the fees paid to us right back to where they belong.

A couple of years ago I attended a seminar presented by George Van of LSI.  He spoke of a lot of things in that seminar.  But, the main message he repeated several times to the attendees was, “Appraisal fees are going to continue to go down.  Get used to it.”

Mr. George Van, I say to you that you don’t have a business without us appraisers.  I say it would be more wise of you and LSI to fight for appraisers’ health and vitality and integrity rather than continuing to abuse us.

And, Mr. Van, I remind you, WE APPRAISERS HAVE ALL THE POWER.  YOU CAN’T DO A SINGLE ASSIGNMENT FROM ANY LENDER WITHOUT US.

Ralph K. Olsen, MAI, SRA, IFA

Pacific West Appraisal Services, Inc.

pwas.net