The Appraiser Shortage Myth Part 43

[Evincere]

No. Just trying to end a disagreement on an amicable note.

I don't recall having a disagreement with you in particular.

 

[J Grant]

TRID or no TRID, to implement cost plus the AMC would need to pay a uniform fee/the panel agree to wok for that fee in a region. Because it would be chaos for a loan officer to never know the appraisal fee to quote or charge a borrower /applicant from one order to the next.

Right now, with TRID in place, direct order lenders pay a uniform fee in a region that appraisers accept to work for . So it certainly can be done.

We all agree TRID would be better off gone, and maybe one day it will be. However, it is not a barrier to implementing cost plus.

 

[djd09]

The lender blames the regulations, the AMC hides behind the lender, and the homeowner and appraisers are separated. Is this public trust?

 

[Eli]

And was/is my thought on TRID. BUT! When looking at the big picture (national) you're dealing with thousands of changes, especially in the AMC world. So I could see the push back. I'm not in favor of the push back, but I can understand where it comes from

You posted earlier that there is no fee split based on your personal experience. Please correct me if I read you wrong.

I asked you a hypothetical where the money goes that the borrower pays?

 

[Terrel L. Shields]

https://www.federalregister.gov/documents/2017/07/31/2017-15748/real-estate-appraisals

 

[Eli]

No, they are not being paid C and R, if an individual fee is mcuh lower (or higher) then what other non AMC work or VA pays as the final rule defines C and R...but however C and R is interpreted ( sate boards are struggling with it now.) if an AMC pays higher or ower (usually low) the AMC is claiming it's fine since "we paid the appraiser their fee"... The C and R issue as a stand alone issue is bit off topic. ( appreciate the post though)

Yes. That's antitrust issues. Market power on price due to market structure.

Does anybody want demonstration quality reports? Surely Denis does. Lol

That's a joke. I bet he hasn't done a demonstration quality report in years. He don't understand antitrust law either.

 

[Eli]

Call Timd Denis. He can help you. Lol

 

[PL1957]

Another factor that no one has mentioned is that AMC are significantly less costly for lenders than maintaining their own appraisal department. They've essentially outsourced this function, just like they've outsourced facilities management and every other thing that regulations will allow. No more salaries, no more benefits, no more office space. No problems with staffing up when busy or laying off when slow. AMCs are never going away ...

 

[Eli]

New thread . I'm bad, but I'm good when I'm bad. Lol

 

[Eli]

Another factor that no one has mentioned is that AMC are significantly less costly for lenders than maintaining their own appraisal department. They've essentially outsourced this function, just like they've outsourced facilities management and every other thing that regulations will allow. No more salaries, no more benefits, no more office space. No problems with staffing up when busy or laying off when slow. AMCs are never going away ...

No doubt, but antitrust issues are involved. I see them from both a market structure standpoint with market power on price and a truth in lending disclosure standpoint.

If we were all doing demonstration quality reports? I would dance for public trust.