The Appraiser Shortage Myth Part 43

[Eli]

Wow. I'm learning some things. I'm still a little cloudy on how an AMC gets paid.

I assume there is a contract. Can you post that payment section?

To be honest, I would like to see a whole contract.

 

[Terrel L. Shields]

that is the simple reality of the situation.

It is a reflection that banksters hate appraisers and had them shoved down their throats. As far as they are concerned, we are just another peon employee forced upon them they pay grudgingly.

 

[Bobby Bucks]

Wow. I'm learning some things. I'm still a little cloudy on how an AMC gets paid.

The math and method is a bit fuzzy, but the AMC is paid directly by the appraiser in advance. The best analogy is to visit your local county fair next month and observe the game being played on the table with 3 shells and a prize.

 

[Non Sequitur]

Jonathan Miller charges up front.

And Mr. Miller has never driven a car to an assignment (per his recent guest host podcast). His business model has ZERO relevance to 99.999% of boots on the ground residential appraisers chasing lender work.

 

[J Grant]

The math and method is a bit fuzzy, but the AMC is paid directly by the appraiser in advance. The best analogy is to visit your local county fair next month and observe the game being played on the table with 3 shells and a prize.

How does an appraiser pay an AMC upfront? It doesn't happen that way ( unless an appraiser is a moron and offers to pay an AMC when they do an appraisal. The AMC gets paid at whatever date within placing the order they arrange with the bank. The AMC pays the appraiser within whatever date they and appraiser agree to. It only becomes a problem when an AMC is late paying the appraiser per agreed on time frame, or does not pay the appraiser.

Many professionals bill and are paid X days or months or weeks after delivery. My accountant sends me a completed tax return on good faith ( been using him for years ), I send him a check a few weeks later. I am no fan of AMC's , but as long as they do pay and appraiser agrees to the time frame, I don't see that as the problem.

 

[J Grant]

I understand the dislike of banks but you are not acknowledging the larger picture. The small lenders have to comply just like the banks do. The paperwork nightmare and the regulations imposed by the past administration are eliminating the small banks and lenders not the big banks.

The problem is , prior to the last administration, there was lax regulation, and the housing market collapsed and nearly sank the economy, Wall St malfeasance etc. The last administration may have went overboard with the regulations, but I see default rates reported as lowest in 10 years, and they actually qualify people now to get a mortgage. But I agree it is more burdensome for a small lender to comply with all the regulations than a large one, and I am no fan of TRID. Hopefully a balance can be struck between not enough regulation and too much .

 

[timd354]

I understand the dislike of banks but you are not acknowledging the larger picture. The small lenders have to comply just like the banks do. The paperwork nightmare and the regulations imposed by the past administration are eliminating the small banks and lenders not the big banks.

Increased regulation always kills the little guys and is good for big business...I don't get why so many people don't seem to understand that

 

[J Grant]

Increased regulation always kills the little guys and is good for big business...I don't get why so many people don't seem to understand that

We understand it. Remember the lax regulations leading up to the boom? That was good for big business too, and ended up killing lots of little guys, including lots of individual home owners who lost equity and lost homes. Like anything else, a balance is usually the optimal,; a sensible, effective level of regulation that is not over regulated nor under regulated.

 

[timd354]

We understand it. Remember the lax regulations leading up to the boom? That was good for big business too, and ended up killing lots of little guys, including lots of individual home owners who lost equity and lost homes. Like anything else, a balance is usually the optimal,; a sensible, effective level of regulation that is not over regulated nor under regulated.

Please cite any post I have ever made where I have advocated for zero regulation of the mortgage lending industry. Regulation is needed, but the regulation needs to be done in an intelligent manner and before adopting increased regulation, one needs to consider all of the ramifications of those regulations. People are way too quick just to call for more and more regulations without think through the ramifications and unintended consequences of those regulations

 

[J Grant]

I never said you specifically advocated for zero regulation.
I was commenting on the topic in general. People can be too quick to call for more regulations, but the last round of regulations, though they might have gone over board, largely worked- hopefully now the imbalance can be addressed sensibly .