Well, the shockwaves have reverberated through the appraisal industry. This email was sent from management to all WAMU appraisal vendors. [Inman ran a story about the announcement as well referring to my post about the WAMU decision].

The email is polite and respectful, perfect pr speak, shows the disconnect between cost-cutting efforts of upper management in periods of declining mortgage volume and risk management by using [appraisal management companies].

This message is intended for all Fee Appraisers

July 13, 2006

Dear Valued Partner:

Washington Mutual is a dynamic, growing company focused on delivering optimum results to our customers and shareholders.

We’re contacting you today to let you know that after a thorough review of our current appraisal processes, we made the decision to outsource the management of appraisal services to national appraisal management companies.

We will begin transitioning our appraisal needs to two vendors exclusively, throughout the remainder of 2006.

With the formation of this new long-term relationship, we will be reducing the volume of new appraisal orders that we send to you during this transition. We ask that you continue to complete your current assignments following normal processes.

We thank you for your hard work and your continued support of Washington Mutual.

Please know that we have valued your work and contributions to Washington Mutual and we wish you great success in the future.

If you wish to contact LSI or First American, you may reach them at:
LSI – Rick Prosser
rprosser@lsi.fnf.com
1-800-722-0300 ext 79084

First American (eAppraiseIT)
StaffAppraiser@eAppraiseIT.com

We thank you for your hard work and your continued support of Washington Mutual.

We wish you great success in the future.

Thank you,
Michelle White
Washington Mutual Residential Appraisal, Senior Manager
Greg Hoefer
Washington Mutual National Appraisal Production Manager