Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

MortgageValuations

Brian Coester claims “We are not out of business,” as AMC runs into financial difficulty

AMC claims bank made mistake

The Maryland law firm of Shapiro Sher Guinot & Sandler PA sent a letter November 14th to the appraiser clients of one of the nation’s largest appraisal management companies, CoesterVMS.

This letter marked the beginning of tough times ahead for owner Brian Coester.

In it were claims that the law firm represented FVC Bank, according to a nearly illegible copy of the letter that has since made the rounds in the appraiser blogsphere. The letter states that FVC Bank is shutting down a $700,000 line of credit to CoesterVMS, which would seemingly indicate financial troubles for the AMC.

Responding via text, Coester said, “We are not out of business,” and that he was in the process of getting “what the bank did corrected.”

Coester later told HousingWire that FVC Bank recently took over Colombo Bank's assets, which held hundreds of thousands of Coester's money in an account, and wanted the line of credit moved. Coester said they were in the process of finding an new home for the AMCs' financials when FVC suddenly pulled the plug.

"In the middle of the night, they closed the line. It caused a huge disaster, but now we got all the money back," Coester told HousingWire Tuesday. Coester said they are reissuing checks to appraisers and said the bank contacting his clients was "a disaster." As a result, CoesterVMS business was cut by two-thirds, but Coester added: "The blizzard and holiday didn't help, but we're getting back to normal."  

AMCs were borne from the ultra-tight regulatory environment envisioned by Dodd-Frank. The aim was to put an arms-length between LOs and appraisers, in order to prevent a return to the artificially high valuations common during the housing boom earlier this century. Lenders contact AMCs for valuations and then the AMC assigns an appraiser who is understood to be a prior unknown to the mortgage transaction.

After Dodd-Frank, AMCs boomed and many failed, some spectacularly, leaving appraisers with significant unpaid wages.

“The rumor mill around this is yet another big black eye for the AMC industry in general, as this is one of the big ones,” said one appraiser, off the record. “It’s common knowledge there are many, many appraisers who are owed money [by Coester].”

When contacted by HousingWire, a licensing specialist for the Virginia Department of Professional and Occupational Regulation responded with only the following advice to appraisers who may be affected:

If you would like to collect money owed to you from a company doing business in Virginia, you will need to do so through a Virginia court. According to Section 54.1-2021.1.D of the Code of Virginia, a suit may be brought directly against the surety bond or letter of credit required for an appraisal management company's licensure. If the property was not in Virginia, you may need to consult the laws of the jurisdiction in which the property is located. We recommend you consult an attorney regarding your options. However, the Virginia Real Estate Appraiser Board does not have the authority to order payment. If you would like to file a complaint against a licensee, please file a complaint with the Department of Professional and Occupational Regulation.

Calls and emails to the named parties at the law firm and bank have not yet been returned.

Mary Broz-Vaughan, Deputy Director of Communications & Board Operations at the DPOR told HousingWire, "We at DPOR have no knowledge concerning the allegations of asset/account seizure."

Most Popular Articles

FHFA: Government to back mortgages up to $970,800 in 2022

The FHFA today announced the baseline conforming loan limit for 2022 will be $647,200, an increase of 18%. In high-cost areas, the new ceiling loan limit will be $970,800.

Nov 30, 2021 By

Latest Articles

Fannie Mae revs up its credit-risk transfer machinery

Fannie Mae is once again back in the credit-risk transfer market with a $984 million note offering through its Connecticut Avenue Securities real estate mortgage investment conduit

Dec 02, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please