An example of AMC client requirements

By
Real Estate Appraiser with Ashcroft & Associates

Below is an email that was sent by probably the most deligent and respected AMC that I sometimes work with (when we agree upon fees, which has caused a strain in our working relationship lately)

In addition to some of the crazy client requirements like aerial photos, this AMC kindly brings up issues that are most common in appraisal reports like missing information. 

In addition, they require all reports be converted to an ACI file type prior to delivery.  I have had nothing but problems with ACI (... Lighthouse... a fee based software) dropping information out of the appraisal report upon transfer.  The additional time all of these extra requirements take (from aerial photos, to file conversion to web uploads... and I haven't even started on how many people call me for status calls on each file just to see if there have been any changes since my last status update) cause me to question whether my fees from two years ago minus 25-50% +/- is really going to keep me a float in another year.   

                                      

 

Top 10 Revision Request - Forum

 

XXX appreciates your continued efforts to submit quality reports in a timely manner and wants to personally thank you for all of your hard work and dedication. We wish to continue our partnership and expand our business relationship with you. We want to work with you and help reduce the time spent working on an appraisal report, included is a list of the ten most frequently rejected items from the ESS QC Review department for your review. These ten conditions account for 40% of the overall rejections placed.

 

 Metlife Specific Corrections:

•1.       Metlife- Previous Sales Requirement: Please be advised Metlife requires the very last sale for all the comparables and the subject- even if this was 50+ years ago. If you do not have access to this information please explain that this was not available to you (IE if you are a non-disclosure state or if the information is not available by typical means- MLS/ public records). If you do not have access to this information please explain underneath the previous sales grid that this was not available to you and that you did search back for the very last sale. In the previous sales grid please be advised it is acceptable to write "no previous sale information available"

•2.       Metlife- Appraisal Disclosure Information: This is a client requirement; MetLife needs a comment addressing whether the appraiser has or has not appraised or been involved with the property in the last 3 years. For instance, if you have had no influence with this property in the last 3 years you will need to state "The appraiser has not had any influence or appraised the property in the last 3 years."

  

Citizens Specific Corrections:

•1.       E&O Insurance needed: Citizens requires that the appraiser must have E&O insurance regardless of your states requirements.  Please scan your E&O insurance document and save this on your desktop. You will then want to insert the scanned document into your report as an extra image document. This needs to be included in your report- please make sure to always attach this document to Citizens reports.

•2.       Aerial Photo: This client requires an aerial photograph which can be easily be obtained online. Please go to www.bing.com , and select the "map" tab. Type in the address and go to view and select "birds eye view". Then press CTRL and PRINT SCRN (located next to your F12 button) Go back into your software program and you can paste the image by selecting CTRL and V. This will copy the entire website page and you will now have the aerial photo the client requires.

  

Non- client Specific Corrections:

•1.       Client Name/ Address Incorrect: The correct client address to use when writing your report will be located on the 2nd page of your order instructions.

•2.       Missing Data/ Blank Sections/ Typos/ Inconsistent Adjustments: Please double check your work and make sure everything within your report is consistent. By double checking comments, adjustments, and sections within your report this will help eliminate these errors. Proofreading is the best method to avoid these types of rejections.  ****Also- Please take advantage of our websites review system. Instead of selecting "override" when you go to upload your report, review the items that have been flagged. This is a great tool to avoid minor mistakes- like forgetting to check a box****

•3.       Predominant Comment: Please remember to always add a comment about whether the marketability is effected if the predominant value exceeds the market value by 20%.  Please comment whether or not the marketability is effected by the over/ under improvement.

•4.       Loan/ FHA Case Number: Do not submit your report if you do not have the FHA Case Number. Please call our office to obtain this information. Please be advised when writing your report we only require the FHA Case number and the loan number at the top of the report. If you are truly unable to include both the FHA Case Number and the loan number- please include the FHA case number and provide a comment that due to your software program and/or the form there was not enough space to include both numbers at the top of each page.

•5.       HVCC Comment: Please be advised that both Metlife and Citizens require the exact statement to be included within their reports. Please be advised there is no penalty for including this statement to all of your reports, by adding this universal statement you can avoid ever having this rejection sent to you.

•6.       All Rejections Have Not Been Addressed: Please be advised it is extremely important to address all corrections the first time. To prevent missing any corrections put a check mark or cross out the items once you have addressed them.

  

Please be advised... the client instructions are constantly changing! It is important to always review the instructions before going to your inspection or writing your report. To make sure that you gather all the necessary information needed to complete the report according to the standards the client presents.

  

FYI- When making your corrections do not make the correction to the Adobe PDF file, you will need to make the corrections within your software program (IE ACI, Wintotal, Bradford Clickforms etc) then you will need to print a brand new PDF file. Once the new unmodified PDF file is created you can upload this file to our website.

 

Added 6/18/2010

 

Top 5 Chase requirements

•1.       Aerial Photo- Chase requires an aerial photo with all reports. An aerial photograph can be obtained via the internet. You can utilize different search engines to find free website where aerial photographs are available. Once at the website you can copy the image by pressing CTRL and PRINT SCREEN (located next to your F12 button). Go back into your software program and paste the image by selecting CTRL and V. This will copy the entire website page and you will now have the aerial photo the client requires.

•2.      Comparable Search Data Attachment- Chase requires that a copy and paste ALL of MLS comparable search data. This summary list of all the MLS comparables is to be included in the report. For example: (If page 2 of the URAR shows 22 comparable sales in the past 12 months they will expect to see a list of all those comps). Print screen your MLS data and insert the information into your report. **It would be most efficient to print screen this information when you pull your comparable search data**

•3.      Comparable Search and Results Paragraph- Chase requires a detailed paragraph of the comparable search and results.  An example is given in the Order Instructions.  

•4.      Mapped/ Boundary Requirement- Chase requires that all the boundaries listed in the neighborhood section also be clearly marked/visible on the location map. To fulfill this many appraisers include a 2nd location map with the subject marked and all 4 boundaries clearly labeled.

•5.      Predominant Value Comment- If the predominant value exceeds the market value by 20% add a comment about whether the marketability is affected by the over/ under improvement.

 

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Rainmaker
173,379
Richard Glesser
North Country Appraisal Services - Gaylord, MI

I get frustrated with AMCs which bow to the demands of lenders to assure work.  Their Quality Control request addition comments, comps, or information which is generally either not available or already in the report commentary.  Then, the lender's underwriter repeats the same process.  I would applaud the AMC which simply hires good, competent appraisers and lets the work go through since a good appraiser eliminates Quality Control. 

May 13, 2010 12:11 PM #1
Rainer
34,959
David Mescon
DAVID B. MESCON REAL ESTATE APPRAISER AND CONSULTANT - Kailua-Kona, HI

Sad - isn't it?

May 18, 2010 02:22 PM #2
Rainmaker
90,211
Craig Chapman
Call Realty / Access Appraisals - Mesa, AZ
The Value Guy

The AMCs do all this to support their existance as an entity that is worth 1/2 the fee.  Too bad it is a false premis.

June 04, 2010 08:47 PM #3
Rainmaker
117,220
Sara Goodwin
Ashcroft & Associates - Portland, OR
Portland, Oregon Appraiser

The nit-picking gets laughably insane sometimes.  I get a bit tired of having to read over each client requirement twice before submitting a report just to be sure I didn't miss adding some trivial request.

June 07, 2010 01:11 PM #4
Rainmaker
117,220
Sara Goodwin
Ashcroft & Associates - Portland, OR
Portland, Oregon Appraiser

New lender requirements added above.

June 18, 2010 12:07 PM #5
Ambassador
2,032,214
Todd Clark
Keller Williams Realty - Beaverton, OR
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494

To be honest, I really thought this crap would have been repealed by now. Shows you how the government works! Fast to past crap, slow to repeal it. (By the way, you may want to post a public post soon as you only have 90 days from your last public post to do so before they take away your free Rainmaker status away)

July 23, 2010 12:33 AM #6
Rainmaker
117,220
Sara Goodwin
Ashcroft & Associates - Portland, OR
Portland, Oregon Appraiser

I had more hope in reform as well, Todd. 

Thanks for the mention about 'public access'.  I'll have to reverse my hiatus from blogging sooner than later ~

July 24, 2010 10:46 AM #7
Rainmaker
44,584
D. Bass
Alpha Mortgage Training - Atlanta, GA
Blog: Ask The Underwriter

I know this blog is over a month old, but I HAD to comment.  I'm with Todd! I was hoping this nonsense would be over by now.  The only thing they're doing is chasing away the good appraisers and attracting the bad ones that don't mind working for $1.00 (I'm being sarcastic about the number)......which is more work for us (underwriters)!  If the appraisal was not supportive (or clear) the first time......why would you charge the broker to provide additional information!!!!!!  All about the money!

September 05, 2010 02:21 PM #8
Rainmaker
46,762
Alisa McKeel Willson
Appraisal Pros in Texas - Huntsville, TX
Certified Res. Appraiser

First time for this one...

Include a photo of the borrower's photo id as an attachment when sending the report. 

 

January 17, 2011 12:10 PM #9
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Rainmaker
117,220

Sara Goodwin

Portland, Oregon Appraiser
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