Current Event Blog

The plight of the real estate appraisal trade in dealing with appraisal management companies (AMC) aside, the consumers and people of the State of Oregon need this bill. Between 1991 and just before the agreement to the HVCC by Fannie and Attorney General of New York, appraisal fees were roughly stagnant. While not the best situation for real estate appraisers, the steady fees certainly were a boon to the consumer that had to pay them. Now in the last six months to a year I am hearing how consumers are now being charged anywhere from $500 to $900 for real estate appraisals that the appraisers are being paid $175 to $350, or so, by the AMCs. It is the AMCs that are hitting the consumers with these rapidly increasing fees while at the same time having little concern regarding the skills or experience of who the AMCs hire to do the real estate appraisals. The Oregon consumer is getting the shaft.

Worse, the vast majority of appraisal work being done in Oregon is now funneled through out-of-state AMCs. Oregon runs on small businesses. Real estate appraisers in Oregon represent small businesses. If you allow these profits being raked off the backs of Oregon consumers to flood out-of-state, it certainly may contribute to the reduction in Oregon business taxes for the Oregon General Fund as well as allow Oregon households to lose discretionary spending dollars to out-of-state interests. At the current rate I hear other appraisers all saying they are getting out of this business, it may not be long and residential appraisers that are willing to try and compete against this AMC business model, and profit center for out-of-state banks that own them, will mostly all be gone. That damages the consumers of this state, and it damages the state tax base that is in part supported by Oregon real estate appraisers.

Please support HB3624.