Appraiser CooperativeAlternative To Appraisal Management Companies

In the face of the government's take over of Fannie Mae and Freddie Mac and the implimentation of the Home Valuation Code of Conduct (HVCC), many industry professionals are simply choosing to wait and see what happens. However, we've recognized the need for some industry improvements and have boldly positioned ourselves "ahead of the pack."

The HVCC has a good intention to curtail the undue influence that has been previously placed upon appraisers. As such, under HVCC lenders or a third party specifically authorized by the lender will be responsible for selecting, retaining and paying the appraisers. The lender CANNOT accept an appraisal report completed by an appraiser who was selected, retained or compensated in any manner by any other third party. Unfortunately the resulting remedy has resulted in a firestorm of controversy and a growing wave of disgust across all parts of the lending industry with regard to the third party management of appraisals.

But this third party solution commonly dominated by Appraisal Management Companies (AMC's) has three inherent problems:

• AMC's take a large portion of the appraisal fee and many appraisers have been forced to accept appraisal assignments for 50 cents on the dollar.

• AMC's slow the appraisal process down because they utilize inadequately trained personnel.

• AMC's, as an intermedairy, interfere with the entire process, which in turn results in slower service and an inferior quality of appraisal products.

Where there is equitable competition in the marketplace, loan originators are free to choose any AMC that they like. However, a problem arises when the AMC is a subsidary of the lender. In such cases, the loan originator generally has no choice but to use the AMC that the lender dictates. (And it is also interesting to note that this practice used to be illegal. Previously no lender could dictate which apprasier had to be used by a loan originator.) - Talk about a sweetheart deal! The AMC extracts exhorbitant fees from the borrower, while paying a hungry apprasier less than standard wages with a warning - "Take it or leave it!"

Since the implementation of the HVCC, many have reported that AMC's provide horrible customer service because they're slow, they charge too much, they're unresponsive and someone even said that they burst into tears when they get critized. While poor customer service is not unique to AMCs, the solution is a time proven process known as competition in which the good ones do well and the bad ones die off as word get around. Just visit any DMV and you'll see what happens when you don't allow competition. Sadly, HVCC allows the one thing it should not - AMCs owned by, and exclusively providing appraisals for, particular lenders.

Intermediaries are rarely a good solution to any problem - especially when getting the relevant parties together directly (in this case the Loan Originator and the Appraiser) could result in conflict or undue influence. And that, interestingly enough, is what the HVCC was supposed to prevent. AMCs are supposed to solve this problem, but many of them - not surprisingly - simply create a new and larger one.

ReValYoo's Unique Position

ReValYoo is more than an Appraisal Company, we are an Appraiser Cooperative dedicated to providing reliable market condition data, unbiased real estate appraisals, appraisal review and broker value opinions to the lending, legal, insurance, real estate and financial services industries.

ReValYoo is taking a leadership position in the appraisal industry through the execution of a "protective firewall" appraisal order system which ensures "Fair (realistic) Market Value," free from the undue influence that has plagued the industry in the past.

• ReValYoo has a HVCC compliant trained staff who are dedicated and professionally experienced in handling lender stipulations, conditions, and the inevitable questions that follow the delivery of an appraisal report and the “protective firewall system” has been implemented to insure continuous compliance with the HVCC requirements.

• ReValYoo also has senior professional appraisers on staff who are always available to clarify appraisal issues, and offer appropriate solutions to the more complicated valuation assignments.

• ReValYoo's Cooperator Appraisers are Licensed and Certified Real Estate Appraisers in each of their respective States, each of whom are highly trained professionals and experts in both the estimating of market values, and the reporting of those value conclusions using the appropriate appraisal methods and formats.

• ReValYoo is set apart, as an Appraisal Cooperative, from all other management firms in the use of IT and communications technology and other computer software and valuation developments, which allow for prompt placement and completion of appraisal assignments.

It's a ReValYoo ("Real Value") position that delivers benefits and value to a Lender/Client, Appraiser, and Consumer alike.

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