Michigan CG
Elite Member
- Joined
- Nov 1, 2006
- Professional Status
- Certified General Appraiser
- State
- Michigan
The mortgage banker's association predicts 2019 mortgage origination to be about the same as 2018. 2018 was down 4% from 2017; 2017 was down 17% from 2016. 2018 was down 20% compared to 2016.
So 2018 vs. 2017 was not that different except the way the AMCs who control 70% (I think that is the number) of appraisals. In 2016 they were fat and they were ordering desperately. 2017 came around and volume dropped 17%.
What changed in 2018 that some people are very slow? I think everyone knows the answer to that. They basically turned to bid ordering. Prior they would send over orders for say $350-$400 but with a drop of 17% in 2017 they all (most) jumped into the mass e-mails with bidding on every single deal.
They are also now pushing on speed. One recently stated that the borrower/contact must be called within TWO HOURS of accepting the assignment, schedule within 48 hours and turn the report in within 48 hours. They are doing this to compete against the other AMCs.
We all know darn well they aren't selling quality, they are selling minimum standards and aren't even giving that to their lenders but no one seems to care so that has become the norm. The new norms are also blatant shopping for the cheapest appraiser no matter their quality, quality has gone out the door. Speed and fee are the only thing that matters and when they can't get that they cry shortage.
Originations aren't that much lower this year, it is who the AMCs are picking which is different from 2016. They have found they can illegally hire the cheapest and that is exactly what they are doing.
So 2018 vs. 2017 was not that different except the way the AMCs who control 70% (I think that is the number) of appraisals. In 2016 they were fat and they were ordering desperately. 2017 came around and volume dropped 17%.
What changed in 2018 that some people are very slow? I think everyone knows the answer to that. They basically turned to bid ordering. Prior they would send over orders for say $350-$400 but with a drop of 17% in 2017 they all (most) jumped into the mass e-mails with bidding on every single deal.
They are also now pushing on speed. One recently stated that the borrower/contact must be called within TWO HOURS of accepting the assignment, schedule within 48 hours and turn the report in within 48 hours. They are doing this to compete against the other AMCs.
We all know darn well they aren't selling quality, they are selling minimum standards and aren't even giving that to their lenders but no one seems to care so that has become the norm. The new norms are also blatant shopping for the cheapest appraiser no matter their quality, quality has gone out the door. Speed and fee are the only thing that matters and when they can't get that they cry shortage.
Originations aren't that much lower this year, it is who the AMCs are picking which is different from 2016. They have found they can illegally hire the cheapest and that is exactly what they are doing.
