NAR Seeks to Bar AMC Indemnification Clauses

NAR President Ron Phipps sent the attached letter to heads of government agencies today.

Here’s an excerpt :

Appraisers provide an independent and impartial analysis of the market, and a credible opinion of the value of real property. This analysis is a critical component of the mortgage transaction and, in recent months, has become the subject of unnecessary pressure. The mounting use of indemnification clauses by AMCs may be interfering with the appraiser’s independence and objectivity. In many cases, appraisers are asked to sign contracts that include language to indemnify and hold harmless the AMC against any suit, threat, or claim on any work product or service provided as part of the contract agreement. In some instances, the appraiser is even required to indemnify the lender and the AMC for amounts equal to their costs in repurchasing a mortgage loan, regardless of any proof of culpability on the part of the appraiser. 

Download Letter to Regulators on Appraiser Indemnification FINAL 08112011

If you are not comfortable downloading the attached pdf, there is an online version at this link: http://appraiseractive.blogspot.com/2011/08/nar-encourages-bar-of-amc.html

Thanks to Frank Gregoire for providing the link -

Francois (Frank) K. Gregoire IFA RAA
Gregoire & Gregoire, Inc.
Realtor - Appraiser
Office 727-344-3393
Mobile 727-420-3804
Fax 727-344-3395
[email protected]
http://fl.living.net/Realtor/gregoire
http://appraiseractive.blogspot.com