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Do all large lenders use AMC's

Discussion in 'Ask an Appraiser' started by tbliss86, Jun 21, 2010.

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  1. tbliss86

    tbliss86 New Member

    0
    Oct 21, 2009
    Professional Status:
    General Public
    State:
    Texas
    Will be starting a a small company as a trainee next month. Before starting I need to put together a business plan on how I can bring new business in the office. The appraiser currently does no advertising and all the work is referral business. From what I have read on the forum regarding the larger lending institutions, BOA, AIG, Citigroup, Quicken Loans, they all use AMC's. I would like to get on a few of their vendor lists but I have not read a single positive post regarding AMC's. Would I be missing an opportunity to get addittional business or be better off creating other avenues of new clients?
     
  2. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    295
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Sounds like the appraiser you will be working for has a good business model. I am guessing he/she is a CG appraiser?

    I Worked for two AMCs, a total of four reports and fired them both even though they paid $350 per report.

    I have so much referral work right now they could offer $600 and I would turn them down. It is simply not profitable for me to work for them.
     
  3. tbliss86

    tbliss86 New Member

    0
    Oct 21, 2009
    Professional Status:
    General Public
    State:
    Texas
    At $350.00 a report why did you fire them?
     
  4. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    295
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Because of the BS you have to go through with them. Rewriting to what they want, answering dumb questions that are already answered in the report.

    Some dumba** asking for another comp within a mile and 3 months when there are only 6 houses within a mile.

    One had a website that I was supposed to update every time I ate an oreo. If no update then they send an e-mail or call. I am a professional and expect to be treated as such. I told you when you get your report, leave me alone.

    I make a lot more on commercial and two regular residential clients that don't use AMCs.
     
  5. tbliss86

    tbliss86 New Member

    0
    Oct 21, 2009
    Professional Status:
    General Public
    State:
    Texas
    Thanks for the advice.
     
  6. DMZwerg

    DMZwerg Senior Member

    0
    Mar 25, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    Maybe yes and maybe no.
    If the chief appraiser is a CG, and particularly if a designated CG, then you may want to work and get licensed 1st then try to start bringing in additional business/clients. Most AMCs take part of the appraisal fee and as trainees are often split-fee you would likely end up with a split of a split (which would likely amount to "spit" ;) ) thus are generally not the best clients.
    If the chief appraiser is a very good mentor and you end up working there for years and build up to getting a CG yourself then you will probably see yourself specializing slightly different from your mentor more and more as time goes on and may actually look towards joining a different professional association and getting a different designation, unless there is enough diversity amongst the hopefully growing clientele to support multiple appraisers.

    Good luck!
     
  7. David Wimpelberg

    David Wimpelberg Moderator Staff Member Moderator

    75
    Mar 30, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    As a trainee, you won't be able to sell your services to the clients you mentioned. You have to sell the services of you mentor to the client.

    I personally avoid AMCs like the plague. In general, they are the most annoying, most demanding, most unreasonable, most unloyal, and cheapest paying clients on the planet. Many are also having issues with paying at this point, as noted daily on the forum.
     
  8. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    295
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    And that is their good points. :unsure:
     
  9. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    70% of all mortgages are processed by JP Morgan, Wells Fargo, or Bank of America. All require appraisals be performed by someone on their approved list. Even local banks that sell to one of these three are required to use their appraisers. The rest of the AMCs are fighting over the scraps left behind by promising lower fees and faster turn times. The appraisal business will soon be dominated by the big three AMCs.

    If you have the chance it would be advised to stay away from residential mortgage appraising. Unless something dramtic happens soon, it will get very very ugly.
     
  10. Pittsburgh Pete

    Pittsburgh Pete Elite Member

    69
    May 6, 2008
    Professional Status:
    Certified General Appraiser
    State:
    Pennsylvania
    Don't you mean "uglier!"
     
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