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AMC`s who prey on appraisers

Every day I hear of some incompetent AMC cutting the fees to appraisers.
Their claim is that if you do not do it for that low fee, someone else will.

In my opinion if we refuse them at their price, and others do the same, then they will come around.

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Permalink Reply by R D on May 18, 2009 at 8:30pm: Michael:

I have worked for both of these companies in the past. Where do you find this legal jargon in their agreements. Can a person find this somewhere? I do not remember that in my agreement, but I signed on with them several years ago.

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Permalink Reply by Michael Tabor on May 18, 2009 at 8:47pm: R.D.,

I did work for First Horizon, who started using Appraisal Port. I signed their agreement in 2006 or 2007, and then 2008, they asked me to renew my agreement. Way down at the bottom, near the end, was the clause I am referring to. I refused to renew and have since lost all the work I was getting from First Horizon.

Ever since then, in every agreement I look at, I scoot through all the usual stuff about use and intent, requirements of the appraiser and responsibilities of the AMC, and in every case, maybe the second last item is an indemnity clause.

An Example from LSI. Look all the way down, second last paragraph:

Dear Appraiser:
This Independent Contractor Agreement (this “Agreement”) confirms the terms and conditions
of the agreement between you and LSI Appraisal, LLC (“LSI”), concerning your provision of certain
collateral assessment services that may be requested by LSI.
LSI enters into this Agreement with you based on your experience as a licensed or certified
appraiser in your state(s) of operation... You shall serve as an independent fee appraiser on LSI’s
network of independent suppliers and shall provide services as requested by LSI from time to time.
This Agreement should in no way be construed as a guarantee or promise on the part of LSI, whether
actual or implied, of a continuing relationship between us, of a minimum level of appraisal orders, of a
minimum level of revenue or of a consistent or stable volume of orders. Order assignments shall be
made by LSI in its sole discretion, based on whatever factors it may deem relevant from time to time.
You hereby waive any claim arising from a failure to provide a minimum level of appraisal orders,
including the failure to provide any orders at all. You further agree that all decisions regarding
appraisal assignments are left to the sole discretion of LSI and cannot form the basis for any future
action or lawsuit. Your duties under this Agreement shall include, but shall not be limited to doing the
following:
(a) Receive and forward immediately to LSI, at the address or telephone number
designated by LSI: (1) all third party correspondence, mail, telephone inquiries, notices, and other
communications of every kind and nature whatsoever which are addressed or otherwise directed to
LSI; and (2) all funds received by you from any source in connection with transactions in which LSI is
involved or which relate to any collateral assessment order solicited or negotiated by or on behalf of
LSI;
(b) Comply, and shall cause any and all employees to comply, with all applicable
statutes, rules, and regulations relating to your business in any and all jurisdictions in which you
conduct business, including, but not limited to, the Uniform Standards of Professional Appraisal
Practice (“USPAP”), and FIREAA Title XI. You shall also maintain and shall cause any and all
employees to maintain, all licenses, certifications, and permits required in connection with your
appraisal business. Attached as Exhibit A is a full and complete list of all appraisers (and their license
numbers) who work in your firm as of the date of this Agreement. You agree to notify LSI
immediately of: (a) any and all changes in the identity and/or license numbers of your appraiser staff;
or (b) any change in your firm name; and
(c) Prepare each and every appraisal assigned to you by LSI in accordance with
applicable law, regulation or standard (including but not limited to USPAP as it may have been
adopted in your jurisdiction) and within the timeframes specified by LSI. You will cooperate with LSI
in connection with all matters arising out of your provision of services hereunder, including but not
limited to LSI’s quality control measures and periodic auditing requirements. You may not
subcontract to any third party any of the appraisal services to be performed by you under this
Agreement, without LSI’s prior written consent.
Subject to your provision of services acceptable to LSI, you shall be entitled to compensation
on a fee for service basis in accordance with the fee schedule agreed upon between you and LSI from
time to time. You agree to comply with and abide by all LSI billing and payment policies and
procedures in effect from time to time during the term of this Agreement. It is understood and agreed
that you and your employees are independent contractors and not employees or agents of LSI or any
affiliate thereof and nothing in this Agreement shall be construed to the contrary. LSI is not
responsible for payment of any of your salaries, benefits, expenses, insurance, taxes, withholding,
workers compensation, or any other employee costs or benefits, all of which shall be your sole
responsibility. Except as instructed by LSI, under no circumstances will you attempt to collect any
fees from any LSI client. You will not discuss with any third party, the fees paid to you by LSI or the
fee structure set forth in this Agreement. You agree that all collateral assessment reports prepared by
you at our request shall belong to the financial institution or other party for which it is prepared and
that all property data (e.g., valuation, address) contained in such reports may be used by LSI. This
Agreement may be terminated at any time by either of us, with or without cause, upon thirty (30)
calendar days advance written notice to the other. LSI may also terminate this Agreement immediately
for cause, based on factors it deems relevant, in its sole discretion. In addition, at LSI’s option, this
Agreement shall terminate automatically in the event LSI has not placed an order with you for a period
of one hundred eighty (180) calendar days.

You shall indemnify and hold LSI harmless from and against any and all liabilities, damages,
losses, costs and expenses (including attorneys’ fees), claims, and causes of action, arising out of your
performance or non-performance of your duties and obligations hereunder, whether as a result of your
negligence or willful misconduct. This Agreement constitutes the entire agreement between us
regarding your services and it may not be assigned by you without our prior written consent. This
Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania. Except as otherwise noted in this Agreement, this Agreement may not be modified or
amended except by a written instrument executed by both of us.

All notices, demands, requests, designations and consents given by either party hereto to the other
party shall be in writing and shall be personally delivered or sent by express (next day) delivery
service or by certified U. S. Mail, return receipt requested, addressed as follows:; ▶ Reply to This