The legislation concerning Appraisal Management Companies (AMC) is still moving through the legislatures in Washington and Oregon.  Some of the larger AMCs are owned by banks.  The banking lobby is showing up strongly to fight the proposed AMC legislation.

What the larger banks have done is made a profit center of residential appraisal ordering, and made the independent appraiser pay for it.

Over the years appraisal fees rose to cover the added work of newer regulations and more extensive analysis imposed by the industry.  Appraisers have a 350 page book called the Uniform Standards of Professional Appraisal Practice (USPAP) that must be followed when conducting an appraisal (federal and state law).  A single family residential appraisal, conducted under USPAP is a lot of work.

As the AMCs continue to lower fees to appraisers and raise fees to borrowers.  The work appraisers do continues to be eroded by the “Ride ‘em hard and put ‘em away wet.” attitude of the AMCs.

One way we appraisers could resolve the problem is to say “NO” to the abusive AMCs.

It seems that amongst the residential appraisal community there are lots of people who will work for any fee to get any work they can.  This leads to extreme burn out and erosion of the quality of the work product submitted.

I invite appraisers in Washington State to join the Appraisers Coalition of Washington.   Here’s their link.     http://www.acow-wa.org/

Also, an appraiser’s coalition of Oregon is forming.  There will be more news of that in about a month.

A word to you appraisers out there.  No AMC can create an appraiser.  Appraisers create appraisers through the trainee programs.  AMCs live off of our professional efforts.  The AMCs don’t own us.

WE APPRAISERS HAVE ALL THE POWER.  THE AMCs HAVE NONE, BUT WHAT WE GIVE THEM.

WE APPRAISERS GIVETH AND WE APPRAISERS CAN TAKETH AWAY.

Think about it.

Ralph K. Olsen, MAI, SAR, IFA

Pacific West Appraisal Services, Inc

pwas.net