Much-maligned appraisal management company fires back at naysayers

Much-maligned appraisal management company fires back at naysayers

Much-maligned appraisal management company fires back at naysayers The president of the country’s largest appraisal management company welcomes broker feedback.

“For us to get feedback from the broker community, that’s logged into the system as well … if they are reported they are investigated,” Tom McCormick, president and CEO of The Nationwide Group, parent company of Nationwide Appraisal Services (NAS) told MortgageBrokerNews.ca “ If the broker has any information he wants to share with us, we’re open to that.”

Brokers have complained that appraisal management companies, such as NAS, cost the client more money (by $50-$70, according to one broker estimate), slow down the home buying process, and often result in an inferior appraisal; added steps and costs with no added benefit of more oversight.

“Every time I've had to use NAS [or] Solidify, I’ve had nothing but issues,” one broker wrote on MortgageBrokerNews.ca. “Late appraisals, cost issues, no communication, never made it to the lender, etc.”

When asked, McCormick wouldn’t address these concerns specifically.

“It’s really hard to respond to hearsay,” McCormick said. “Once the appraisal gets put into the system it is tracked thoroughly and brokers can always see the status, they’re always notified of any delays and once the appraisal is complete.”

McCormick did provide clarity on how the process works. The company only uses approved appraiser lists that have been provided by lenders and it has implemented appraiser matrix measures to ensure quality and efficiency.

It also ensures appraisers are properly licensed and carrying the proper insurance.

NAS ranks appraisers based on lender, broker, and client feedback, according to McCormick.

“We create a lot of efficiencies for appraisers by keeping them in their local jurisdictions,” he said. “What we do on the back-end of the systems once we have appraisers in the system is we rank them based on the lender’s previous experience with the appraisers.”
 
44 Comments
  • Mike 2015-05-11 9:39:13 AM
    I love NAS, you pay more but they use new, inexperienced appraisers who really don't understand the market or the differences in the areas and types of houses so you tend to get the value you need instead of the real value. Personally lenders are crazy to use them but certainly worth the extra $75 to make deal work. Great set up Tom!!
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  • MT68 2015-05-11 9:44:56 AM
    NAS, Solidifi and others must do more to twart appraisers who try to rape you with upcharges for idiotic reasons like "executive home." It seems like every fricken appraisal in Toronto comes back with a $75-150 upcharge request. It is totally baseless to try and milk brokers for more money just because the property is over $1 million. Hello appraisers. Newsflash for you. Almost every single family house near the downtown core is over $1 million. Don't give us that "extra liability" crap either. Your E&O covers $2 million houses just like it covers a $500,000 house.
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  • Derrick Foster 2015-05-11 9:46:58 AM
    Let's see .....ummm.
    Don't carry E & O insurance and don't stand behind the appraisers work. Use a list of accredited appraisers we could access on line off the lenders list.
    Cost extra for what amounts to simply passing on a lead and more often that not having to have us contact the client for them as they can't get hold of them after 5pm.
    Overall I do see the value added service they provide :)
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