Appraiser name withheld in exchange for interview

I had to swear on the Bible and my father's grave not to reveal the identity of the appraiser breaking a confidentiality agreement with an Appraisal Management Company to tell me what it's like to work for them. To give you background on the importance of this interview, my last three columns explain the most common way for banks and lenders to comply with the May 2009 federally-mandated Home Valuation Conduct Code is to hire a third party to order appraisals — enter the AMCs. They are unregulated, often out-of-state, bank-owned companies that smell like a pack of wolves running nationwide. Freelance appraisers beg to be put on their rarified "approved lists" or face becoming a legend in their own time.My source told me:"Ten years ago, I made about $350 per appraisal. Today, the typical homeowner is paying $450 — $550 since the HVCC went into effect May 2009, and the appraiser only receives $230 to $285 for the same appraisal. "What I get from the AMC is no service, half of the time phone number contacts are incorrect and I don't receive a copy of the California Residential Purchase contract, which is required by law. "Out in the field, homeowners inquire why it's so costly, and I can't tell them because my lips are sealed by the AMC's confidentiality agreement. People don't understand when the appraiser is at the house for a small amount of time that this is just the beginning of the hard work that goes into an appraisal. "It takes about 8 to 12 hours to complete a simple property appraisal, and my overhead costs have skyrocketed for continuing education and multiple information services that are required of us. "The good appraisers are working second jobs or leaving the industry because our liabilities are too huge. Those hanging on are hoping things are going to change. "With all the disclosure statements that are required in a real estate transaction, it is incomprehensible why banks do not have to disclose what they are paying the appraisers!"~ MikiDear Miki:Every day more teachers' jobs are lost. State workers are on mandatory furloughs and California is in a financial crisis. Creative ideas are debated on how to balance the budget. What is not typically heard is the estimated economic impact of the HVCC on our state as a whole.A recent article on the HVCC in the Appraisal Press states "In some large states, the economic impact and the job loss figures are equivalent to losing a military base or a major manufacturing plant." It goes on to say, California is suffering the equivalent of losing over 9,800 jobs and over $700 million in economic impact!How can this be? The income that independent appraisers have lost due to the HVCC is compounded when you take into account the ripple effect it has throughout the rest of our economy. Out of state AMC's take a large portion of the fees previously paid to local appraisers. These dollars are no longer available to buy goods and services here locally. We not only lose the local commerce, we lose the tax dollars on the goods no longer purchased. Ultimately, the lost revenue to our state compounds to a staggering figure that makes even the $24 million dollar missing watchdog mandated to oversee the HVCC pale in comparison.How many teachers could we pay with $700 million?When looking at the overall estimated loss to California, it becomes clear this is not simply an issue for appraisers, mortgage brokers and realtors. It affects everyone, from our school children and teachers to state workers and the unemployed. The real mystery appears to be why this is allowed to continue. Now that the "unintended consequences" have become quite clear, why is there not outrage?The HVCC is set to expire in July 2010; however, the changes it has created in the way appraisals are ordered has long reaching adverse effects to the consumer and our economy.Representatives Childers (D-MS) and Miller (R-CA) introduced legislation in June 2009 requesting an 18-month moratorium on the HVCC. While this is applauded, in the face of the cost of the HVCC to our state (which is in dire need of a balanced budget), it seems woefully inadequate.~ Cynthia Sulamo, Sulamo Appraisal Servicecsulamo@cs.comDear Cynthia:Remember the July 2009 video of Governor Schwarzenegger holding a knife symbolizing his budget cuts and thanking his Twitter fans for sending him ideas on how to balance the budget?The Gov particularly liked one that he said he'd follow, and that would be to autograph the 15 percent of the state cars he ordered to be sold giving the vehicles more value.Perhaps, he could help out the people of California by autographing the bill cowering in a corner that would require an estimated 150 AMCs doing business in California to register with the governing body Office of Real Estate Appraisers. I called the Gov's office:Me: Hello, I was wondering when we could expect the Governor to sign the SB 237 bill that was passed by the senate. ... It would require Appraisal Management Companies to register with the OREA. Right now the AMCs are unregulated and paying appraisers a great deal less than they deserve.Voice: It shows it passed in the senate and the status reads; "It is ordered, held in engrossing and enrolled."Me: What does that mean?Voice: Probably means the bill is being held by the senate because they don't want the Governor to veto it.Me: Veto it?Voice; The Governor is only focusing on water and prison reform issues right now, and I don't know what his position is on the bill. Me: Should I call the senate and ask them what is happening?Voice: No. Don't call the senate because the senate won't be doing anything except holding the bill until it's the right time to send it to the Governor. However, I'd be glad to pass on your position on the bill to the Governor. Me: The bill, as I understand it, should be one of his priorities.Voice: I'll let him know. Thank you for calling.Click.Dear Miki:A new group called Appraisers Information Network is being formed to provide a forum for appraisers to exchange information or to just get some suggestions on how to solve a difficult appraisal assignment. This are no membership dues, the only requirement is that you come to a monthly meeting at a local coffee shop and share your thoughts, vent concerns or anything else you feel is important to the appraisal profession. If you are interested please call or email.~ William J. Miklos, Jr., TM Appraisal, wmiklos@att.net, (916) 467-7032Real estate agent Miki Garcia can be reached at askmikigarcia@yahoo.com.