The Appraiser Shortage Myth Part 43

[J Grant]

Actually, a better comparison is to the way the real estate market operated before the introduction of the modern MLS system. Buyers only had data on a limited segment of the market. Modern MLS systems changed that, and now market participants have access to far more data. And now we have even more data with Zillow, Trulia, etc.

FCR says that AMCs pool the labor, but the labor still operates as individual companies contracting with the AMCs. What is being pooled is the information about the labor. That information includes service times, quality, how those compare to others in the same market, and, yes, fees within the market area.

Selling services in a non-AMC market is like selling a home in an area without MLS or some other such system. There is far less data for a buyer to use in making a purchase decision.

All zillow etc does is make home info for sale including MLS listings easer for buyers to find. Yet home prices are higher than ever. Clearly, making data more available has not led to lowering home prices. In addition, the market forces are completely different. Buyers are free to select any home they want Now even a loan officer cant' select any appraiser they want. The selection of buying ( appraisal services ), is made through a narrow channel, a large share being AMC's, effectively reducing "demand".

Relating it to the housing market, AMC analogy would be as if the large pool of individual home buyers disappeared to be replaced by a consolidation of home buyers into a few sharing one goal ( low price) and with purchasing power to be able to purchase a mass of properties.Their parallel approach to a seller is comprised of compete only on price, lake view or brand new you are an interchangeable widget with every other house- there are only 8 buyers for homes now, 7 of them mass buyers like us buying houses n volume. But we wil pay your price ! But only if your price is low. Otherwise, bye, and good luck holding out for the 8th buyer who many other sellers tried to snag, a few did, the rest could not hold out long enough.

In addition, what home buyers pay for a house does not go through a third party with a third party retaining a portion of the payment. For these and many other reasons, the comparison is ludicrous.

 

[TRESinc]

Since the govt regulates so much around appraisal ordering and fees for res lending work, , yes I think they should step in

well at least she finally admitted that she is waiting for the government to step in and make everything better for her...

The lender and by extension borrower need an appraisal for the mortgage transaction. The lender, and thus the borrower, do not need an AMC doing the management aspect for a mortgage transaction.

then take it up with the party responsible for the AMC - the lender. to date i have never read about an AMC forcing a lender to utilize their services...[/QUOTE]

 

[djd09]

only appraisers do.

That is right. So let the companies that do not have public trust control the money and the regulations. Brilliant.

 

[Deleted member 130081]

to quote my late grandfather - who died and made you king sh|t?

My father, Lord Doo Doo. LOL. Ok - I went a bit over-board there.

 

[djd09]

My father, Lord Doo Doo. LOL. Ok - I went a bit over-board there.

Who died and let you go over board. lol

He/She can put you on ignore, right?

 

[Deleted member 130081]

Your posts are condescending and irritating, and can go beyond that into insulting. Making personal, derogatory statements such as above ( incessant whining) come as natural to you as breathing. Please stick to the issues if at all possible.

I am speaking from my point of experience as you do yours. I explore lots of different solutions in my posts, among them a govt mandated minimum fee for this segment of lender work. So what of it- it works very well for VA panel. If you don't personally like it, that does not elevate your opinion above mine, nor make posts advocating for it "whiny"-

It's hypocritical, that you hammer appraisers for exploring a govt solution, including a mandated min fee, when the AMC and lenders actively lobby and advocate to influence govt policy in their favor.

Kaboom!

 

[SpartanAG]

Hard to believe this thread is still alive....

 

[DWiley]

...it is my understanding that Reasonable and Customary as laid out in the regs, requires the fees to be based on direct-lender work,

Another point that must not be over-looked here, is that the AMC model did not come to occupy the market share it enjoys today through traditional free-market behavior, rather has capitalized on government action that violently disrupted an other-wise free-market system.

I think that first one was just addressed in responses to JG's posts. The omission of AMC fees is required in the alternative presumption, but the same is not true of first presumption. To state that AMC fees cannot be used in C&R calculations is simply not consistent with what the regs actually say.

Yes, the massive growth of AMC business share was driven by regulations. Those regulations certainly do not require AMC use, but they created an environment that made use of AMCs an appealing option to lenders. There is a reason why so much business goes through AMCs, and that reason is that the AMCs provide a service to the lenders. Does it work perfectly? Absolutely not. I work every day to try to make it better.

 

[TRESinc]

Are AMCs licensed for public trust? Or are they profit companies. Remember USPAP requires no bias. Bias exists in others. Ask Corelogic.

yes in most states AMCs are licensed, and soon in ALL states they will be. even our own state is more than halfway done with their new AMC regs.

what exactly does USPAP have to do with AMCs? last i checked USPAP applies to licensed appraisers, not anyone involved in real estate.

 

[Eli]

La could get rich. Lol

It's not funny but they are enforcing laws in place. No problem there with me. They have several in your "camps" too that are highly skilled.

They have several who would be great witnesses.