AMC profile - Axis, an AMC that pays well and is pro-appraiser
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AMC profile - Axis, an AMC that pays well
and is pro-appraiser
here are an estimated over 400 Number of appraisals from each
T AMCs. They vary widely on how
many appraisals they do, who they
Types of AMCs by number of
appraisals
Looking at all the AMCs, they
state varies
Mid-size AMCs vary by which
work for, their method of determin- vary from relatively few per month states they work in, depending on
ing appraisal fees, etc. to tens of thousand per month. Some which states their clients do their
Because they vary so much, I have work for only one lender, and only most loans.
started doing profiles of different do appraisal ordering. Others work If an AMC gets a new client,
AMCs. This is the first profile. I am for many lenders and offer national requiring appraisals from states where
trying to find out what criteria coverage. they do not have many appraisers on
appraisers can use for deciding In general, they are classified into their panels, they must recruit
whether or not to work for an AMC. three categories, by number of appraisers.
You can research AMCs and find appraisals:
answers to the questions. 1. The Big Boys, handling tens of When was Axis started?
Axis Appraisal Management thousands of appraisals a month, The company was founded in
Solutions is a mid-range (by number including Rels, Streetlinks, LSI, February, 2009. HVCC started in
of appraisals), national AMC. I chose Service Link, PCV Murcor May, 2009.
them because they are local, in the 2. Mid size, national companies, such
San Francisco Bay Area, so I could as Axis.
Who started Axis?
The company was founded by
visit their offices and meet them face 3. The small regional or local AMCs. Michael Simmons and Kim Perotti.
to face. I had been hearing about Axis does 10,000 to 12,000 Neither are licensed appraisers, but
them for awhile from local appraisers appraisals a month, and would be have appraisal and mortgage back-
and a few of their clients. All the classified as a mid-size AMC. The grounds. Kim's appraisal company
appraisers I spoke with liked working large AMCs often do hundreds of had done appraisals for Michael's
for them. thousands appraisals a month. company.
I wanted to meet the owners in per-
son, as a company's founders have a AMC sub-contracting - "cascading" Michael Simmons - Founder and
significant impact on the direction of Many of the large AMCs subcon- Senior Vice President of Business
the company and the "company cul- tract their overflow to mid-size Development
ture", especially when the company AMCs. That is one of the reasons Michael focuses on the sales side of
is new. that appraiser fees are low. I call it the business. He is not a licensed
There is a big difference between "cascading". Big AMC A subcon- appraiser, but comes from an apprais-
companies that focus on making as tracts to Mid size AMC B, who then er family. His father was an appraiser.
much money as possible, and compa- subcontracts to mid-size or small He held the "dumb end" of the tape
nies trying to help people and/or not AMC C. Each one of these needs to starting when he was 8 years old. His
focusing on money. AMCs that only make money. father worked for PG&E (CA state
look at the bottom line are not the Axis does not participate in sub- utility company), appraised Guam and
best for appraisers. AMCs that focus contracting. Juneau AK after an earthquake, and
on appraisers may make less money, other large assignments as a fee
but are helping solve a problem - appraiser. His uncle has an MAI des-
how appraisers and lenders can work ignation. His mother ran a local real
together successfully. estate business and was the first
Axis does not compete on fees. woman commercial real estate broker
Their fees are higher than other in her area.
AMCs. They look for lenders who After doing real estate sales for
want the best appraisers, and want an awhile, he went into the mortgage
AMC that is willing to spend the lending business instead of appraisal.
time to resolve appraisal issues. His last position was a Senior Loan
January 2013–©Appraisal Today–PAGE 7Officer with Real Estate Financial Effect of founders on the business went to work for him. The apprais-
Services from 2000-2008, so he is A "classic" combination for CPAs, er's wife worked for a local appraisal
familiar with the lender side and and many other service businesses, is review company, so he was exposed
focuses on the sales and client con- an "inside" (getting the work done) to both sides - doing appraisals and
tact side. and an "outside" (sales/client con- being reviewed by someone else.
Simmons had always used good tact) person. The two founders are He became licensed in 2000 and
appraisers. For the borrowers it similar to this, in their personalities built up his business to 6-7 apprais-
meant the best deal and for him it and in what they focus on. Both ers. Later, he took a few years off for
meant they be retained as long term sides are necessary for success and family reasons, and re-started his
customers. growing a business. appraisal business in 2005.
Axis continues the founders' fami- Simmons also was a manager and
Kim Perotti - Founder and Senior ly business background. One of their member of Zone Data Systems. He
Vice President (Operations) first employees was Michael has a B.S. in Organizational
Kim focuses on the operation side Simmon's son, Matthew Simmons, Behavior.
of the business. She was the IT and the pipeline operations manager, who He met Mike Simmons in 2008
Marketing Coordinator for Miller and had recently graduated from college, and every few months he would ask
Perotti, from 2000 until she founded plus his dog, who comes to work him to come to work for Axis.
Axis. She had previously worked every day with him. Technology expertise is increasing-
there in the early 1990s, but left Here is their stated company phi- ly important for AMCs due to Fannie
when the appraisal market crashed in losophy: "We believe highly quali- Mae's UCDP and integration with
1994. Her company was a small, fied local appraisers provide an lenders' systems. Ron's experience
family owned appraisal company invaluable service to property owners and connections help Axis keep up
founded by her mother-in-law. Their and lenders. Axis believes that our with the changing technology.
offices are in San Rafael, CA, where appraisers should be recognized, sup-
Axis is located. ported and compensated for that high Janice Bezou, SRA, Director of
Previously she was a teacher and level of expertise." Vendor Management and Lender
later an administrator at the Santa Services
Rosa School District for 10 years. Ron Simmons, SRA, Director of Janice started appraising at Home
She focuses on the management side Valuation Services and Chief Savings in 1991, where many
and sees the company as "a commu- Appraiser California appraisers started. Over
nity of learners". No, he is not related to Michael the years, she worked in various
She has a masters degree in educa- Simmons! He joined Axis in August, management positions with
tion, which is a primary reason for 2011 and had previously worked in Washington Mutual, Wachovia, and
the company's approach to educating sales for Woodfin, a tech company other lenders. Janice started working
their appraisers on current issues, that built Rels' software and built for Axis in May, 2012. She has a BA
helping appraisers with their Fannie Mae's UAD/UCDP software. in management and lives very close
appraisal questions, and if there are Most of the appraisal forms software to Axis so she doesn't have a very
serious problems, upgrading a panel companies, and many other compa- long commute to work any more.
appraiser's education to remain on nies, use Woodfin's software devel- She contributes an extensive back-
their panel. oped for Fannie Mae. ground in managing appraisals for
Like many of us, appraisal was not major lenders. Her main responsibili-
his first career. He started in devel- ties include vetting new panel
oping computer applications in the appraisers and fixing "problem"
late 1970s, and did sales for about 8 appraisals.
years. His expertise was communica-
tion between the tech people and the
users. When he started his family, he
wanted more time at home and quit
his sales job which required lots of
traveling.
In the late 1990s, he met an
appraiser while helping a friend
move scrap metal from a home, and
PAGE 8–©Appraisal Today–January 2013My visit to Axis headquarters is an expensive place to live. Is Axis trying to bring in trainees?
I spent most of my time in an They have an office in Tempe, AZ, They are working with Arizona
office, interviewing. But, I did walk near Arizona State University, where State's real estate department to set
through the offices several times and 55 of their employees work. Many up a pilot internship program. Staff
was given a tour. companies are outsourcing to India, appraisers will work with the interns.
Most of the non-appraiser employ- but Axis chose to set up an office in
ees were young and appeared to be Arizona, hiring mostly part time col- How would you describe your
under 35 years old. They were busy, lege students, to handle some of their AMC?
but did not appear to be stressed out. administrative work. Labor costs are We emphasize being a "local" solu-
Overall, it was quiet, with everyone much lower in Arizona than in the tion by focusing on a model of geo-
looking at their computer screens. San Francisco Bay Area. Most of the graphic competency. We do so
Overall there was an upbeat, but employees are younger than the through:
business-like atmosphere. I have had headquarters employees as they are • A policy of assignment placement
young employees working for me in college students. There are also within a tight radius of subject, keep-
the summer when I ran my national appraiser reviewers with 5-10 years ing our appraiser partners off the road
conferences. I don't know why, but of experience there. & making money writing reports, all-
there was a lot more energy. I saw Why Arizona State University? the-while fostering our appraiser part-
the same situation at Axis. One of their managers graduated ners' expertise for nuances in their
Of course, what I really liked was from there. Also, they wanted a loca- unique markets.
that every person had 3 monitors. I tion within a 2 hour plane ride from • Dedicating specific teams at Axis to
want that!! Some of them had desks the headquarters location. work consistently with local vendor
that you could move up and down so Axis also employs staff appraisers partners, from placement to report
you could stand or sit. A definite plus in "selected markets". delivery to the lender – allowing a
for us "old timers" with bad backs. friendly rapport with our staff and a
Their physical address said "third What ordering and managing focus on consistent work with a
floor" but they did not occupy the software do they use? defined set of lender/clients.
whole floor. They have expanded They use a la mode's Mercury • We also dedicate significant
their footprint. I suspect that "third Network, enhanced with special resources to encourage an active rap-
floor" is their goal, and is a good AMC software developed by a la port and ongoing service to our
address for marketing purposes. mode. All their appraisers are appraiser partners by encouraging
required to use the Mercury calls to speak "live" to our staff,
How many employees are at Axis? Network. Axis pays the $10 fee for monthly newsletters and weekly tips,
Currently, Axis has 97 employees. each appraisal. and sponsoring course offerings at a
There are 15 QC-2 appraisers and discount through the Appraisal
another QC-1 group of 20-25 non- Institute.
appraisers who have been trained to • Perhaps as important as anything
do administrative reviews. Currently, listed above, we believe in maintain-
they do not use computer software ing and preserving fees for our
for reviews. All the reviews are done appraisers. We work hard to operate
by live people. on thinner margins than other AMC's,
They have "setup" employees who paying out higher portions of fees,
screen the orders, making sure the working to not reduce fees in slower
orders are correct (borrower phone climates, and even covering Mercury
number, address, etc) Their account fees for our partners.
managers focus on the the pipeline,
from ordering, communicating with
appraisers, receiving the appraisals,
and submitting appraisals after QC is
done.
Axis' main offices are in San
Rafael, CA, located in one of the
highest priced housing markets in the
country. The San Francisco Bay Area
January 2013–©Appraisal Today–PAGE 9How do you handle cash flow When do you pay appraisers?
problems? On the 5th day of the following What is your appraisal volume?
Many AMCs (and appraisal compa- month after the appraisal has been For now, 10,000 to 12,000
nies) can have cash flow problems. accepted by QC. appraisals per month.
They have to pay the appraisers
before they are paid. What are your appraiser levels How many appraisers are on your
They also can't easily downsize, if There are two levels: Panel apprais- fee panel?
business slows down, or they lose a ers and Affiliate appraisers For now, around 4,200.
main client. Panel Appraisers who consistently
Most of their appraisals are pre- deliver quality appraisal products with Annual appraiser networking party
responsive turn times are invited to for fee appraisers in January, 2013
paid by the borrower's credit cards at Axis has an annual open house and
the time of loan application. I recently become Affiliates. Affiliates receive
party for their fee appraisers.
refinanced my house through Quicken slightly higher fees.
As part of their focus on education,
Loans, a large lender, and gave the "It is AXIS' goal that all appraisers
they offer reduced fee California State
loan officer my credit card for pay- become Affiliates since each appraiser
regulations class and a USPAP class
ment of the appraisal fee. invited to join AXIS is highly quali-
taught by a top Appraisal Institute
Some lenders pay on 30 or 60 day fied within their marketplace."
instructor.
schedules. That can cause cash flow Panel appraisers from all over the
problems with AMCs. How do they determine appraisal
fees? country attend.
Having about half their employees
as part-time college students mean On average, appraisers are compen-
sated at an average of 79% of the How do they keep appraisers on
that downsizing, if necessary, is very their panel and when do you remove
easy. QC appraisers can easily appraisal fee. Their lowest appraisal
fee is $300 for a 1004.
them?
become staff field appraisers. They focus in trying to help
Their appraisal fees are not cost appraisers get better - education,
What territories can appraisers plus (set appraisal fee plus additional reviews, etc.
work? fees for services). They do not sepa-
Of course, some appraisers won't,
"Axis believes that each market is rate out a specific appraisal fee as
or can't, change, so they are not used.
unique and only a highly qualified fees vary widely around the country.
appraiser who truly knows and lives Their appraisal fees are based on What about value pressures from
that market can provide a fully sup- what is standard in the marketplace. clients?
ported and accurate opinion of value For example, fees in northern They focus on marketing to clients
within that market. Therefore, Axis California are higher than in Southern who are looking for more credible
limits each appraiser to narrowly California. Pre-HVCC, appraisal fees appraisals. Simmons, one of the co-
defined territories that are determined varied around the country, with the founders, comes from a mortgage
through conversation with each West Coast higher than the Midwest banker background. They have mort-
appraiser regarding their specific and East Coast. Some states, such as gage banker/broker clients who use
qualifications for that market. It is a Montana and North Dakota have them to handle their appraisals.
time intensive process, but fundamen- always been higher as there are fewer One of the clients was at one my
tal to Axis' philosophy." appraisers and they often drive long interviews briefly and said they use
distances. Axis because they want more credible
How many AMCs do you work for? appraisals, such as not using an
About 30 currently. Their engage- appraiser traveling from another area
ment letters sent to appraisers are spe- who does not know the local market
cific to each lender's requirements, very well. It is also much easier to
rather than using long "generic" explain to borrowers why they don't
engagement letters that combine get their loan.
requirements of many AMCs. Their
software is set up to easily do this.
PAGE 10–©Appraisal Today–January 2013How is turnaround calculated? "Axis appraisers come to Axis by Contact information
From the day the order is accepted. referral from lenders and industry Phone: 888-806-AXIS (2947)
We count by business days, not calen- leaders. Appraisers may start this (Office)
dar days, and allow extensions, such process by requesting that two of Fax: 866-248-8388 (Fax)
as borrower not available, etc. their business contacts provide refer- E-mail: info@axis-amc.com
ences to Axis about the caliber of
How do you find appraisers for your their work. When Axis has received AXIS
panel? two referrals for an appraiser, an Axis 1537 4th Street; Suite 175
We prefer to use referrals from representative then contacts the San Rafael, CA 94901
other appraisers, real estate and mort- appraiser to discuss their experience,
gage professionals. In areas where we www.axis-amc.com
qualifications, and the Axis philoso-
have few panel appraisers and no phy."
referral sources, we use state For more information, send an
appraisal board lists of licensees and email to info@axis-amc.com.
www.asc.gov to make initial contacts.
We have never advertised for What are your panel appraiser
appraisers. requirements?
After the initial interview, apprais-
How does an appraiser apply for ers are asked for additional informa-
your panel? tion.
Axis very picky about who is on Requirements include:
their panel. After two referrals are
• Resume
submitted on their web site, each
• E&O (minimum $500,000 cover-
applicant is interviewed over the
age)
phone to see if they will fit with what
• Minimum of 5 years experience,
Axis requires from appraisers.
certified appraiser
Go to www.axis-amc.com and click
• 2 work samples, reviewed by
on appraisers. Information on QC,
appraisers.
how to apply, and a page for referral
• Geographic competency
sources to submit referrals.
• 2 references from someone who
Referrals must be submitted on the
knows the appraiser's work, such as
web site. The form says "Loan origi-
clients (lender and non-lender), real
nator/underwriter" but referrals will
estate agents, etc.
be accepted from appraisers, real
estate agents, and others familiar with "Finally, a second interview with
the appraiser's work. one of Axis' lead appraisers is extend-
ed to the appraiser to determine the
appraiser's specific geographic exper-
tise."
"Appraisers who successfully com-
plete the screening process are added
to the Axis Panel via their indepen-
dent appraisal company and orders
are placed with and payments are
made to the appraiser's company."
January 2013–©Appraisal Today–PAGE 11You can also read
