Indianapolis based appraisal management company StreetLinks has established a $1,000,000 fund to pay a performance guarantee to its clients, saying that it ensures their appraisals are consistent and accurate.
Of course with any guarantee you have to read the fine print. A lender simply has to stick to the following rules:
- Minimum volume: 50+ full conventional and/or FHA products per month
- Established and typical state, regional or national lending footprint
- Adherence to StreetLinks, HVCC and FHA appraiser independence process
- Utilization of StreetLinks “IntelAssign” appraiser selection process
- Volume, footprint & reporting equality must be established to derive a fair comparison if the performance guarantee is constructed around a competing AMC or lender “in-house” process
Why waste their money starting a million dollar fund? Just throw $500 into a separate bank account, call it a performance guarantee and make it nearly impossible to meet the criteria – because that’s really what they’ve done here. It’s a failed attempt to differentiate themselves from the typical appraisal management companies. 
The late Chris Farley said it best in the movie Tommy Boy:
…they know all they sold ya was a guaranteed piece of s***. That’s all it is, isn’t it? Hey, if you want me to take a dump in a box and mark it guaranteed, I will. I’ve got spare time. But for now, for your customer’s sake, for your daughter’s sake, ya might wanna think about buying a quality product from me.
In a somewhat related story, I remember seeing a Businessweek article that talks about NovaStar Financial, a large subprime lender during the housing boom.
NovaStar was disciplined by three states—Massachusetts, Nevada, and Washington—for such infractions as employing unlicensed brokers and charging unlawful fees. Without admitting wrongdoing, the company paid $5.1 million in 2007 to settle similar allegations in a class action brought on behalf of borrowers. After its mortgage business collapsed, NovaStar morphed into an AMC last year by acquiring another company and renaming it StreetLinks National Appraisal Services.
Steve Haslam, NovaStar’s former chief of retail lending, is now CEO of StreetLinks.
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@bgoheen: Really? What a FRIGGIN JOKE, this company needs a new PR company because this one’s a flop. This is the equivalent to a Realtor saying “I put $20k in cash in a bag that I will hand you at closing if you list your house through me.*”
*Seller must raise home price by $44k to qualify. Seller must be able to do a back handspring. Seller must list at least three properties within 24 hours to qualify.
wth ever. STUNT FAIL, I hope the appraisal world is listening.
In a word: WEAK.
RM
Business Weeks summed it up well former subprime ceo now AMC ceo. Streetlinks just signed up Plaza Home Mortgage as its “partner.” Thats some kind of HVCC firewall between the mortgage broker and the appraiser.
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Wow – it sounds like the obstacle I’m facing trying to meet the banks “short sale” approval this week. Of course we’ll approve a short sale if the buyer brings $12,000 to close and signs a new note for $47,000.
Never gonna happen!
This performance guarantee is very useful, especially to home buyers that don’t want to get shafted by realtors and appraisers trying to jack the purchase price up on them so they can make jam more deals through and more in commissions and fees. I’d much rather have the lender turn me down for a purchase because the appraisal came in low than to find out later that I’m underwater by 50% because the appraiser, realtor and mortgage broker worked together to jacked the appraisal up and get the loan to go through.
Who wudda thunk it. Another angry realtor/appraiser complaining about a company that doesn’t let their appraisers do deals with the realtor/mortgage broker to jack up the value of the appraisal and make his commissions/fees go up. It’s complainers like you that is the reason companies like Streetlinks are going to weed guys like you out of the business. You people did it to yourself and now your going to pay the piper. You guys just don’t get it. The lender and the buyers are the ones that took the beating because of all the jacked up appraisals you people did to pad your wallets. And now you complain because you want to put more risk on the lenders and home buyers.
Wait!…let me get this right…it’s, as you say, “The lender and the buyers are the ones that took the beating…” That’s the story?! Whoa…the LENDERS took the beating. Those poor innocent b*st*rds… Yikes…I guess I’ve NEVER heard that it was the appraisers who caused this mess…at least not to the exclusion of the Lenders being culprits too. Dude, you’re a GENIUS! (or maybe you’re a lender…unlikely that you’d be both lol)
“Sid” – How exactly do appraisers inflate the purchase price of a home? I didn’t realize that was something I could do. Also, basing appraisal fees on the value of a home is illegal. Higher fees can be charged for complexity, size, etc. but not the loan amount.
@Sid: Totally agree on that those who asked for greater appraisals led to the companies like Streetlinks become a growing threat to rest of us.
So Sid, you think an officer of a dishonest, failed mortgage company would be a good CEO of an Appraisal Management Company? Good standards and ethics there right?