AMC Fee Splitting Ratio

[J Grant]

LOL. No, they do not. You only think that because you think that AMCs work for free, and that just isn't the case.

I never said AMC's work for free, please link me to that imaginary statement.

I said that the bundled fee model means the AMC's often offer their services FREE OF COST to the lender. For example, in fee disclosure (easier to see )it states on the appraisals : borrower paid $500 appraisal fee, AMC retains $200, Appraiser gets $300 . The entire $500 came from the borrower it COST NOTHING for the lender ( free of cost or expense to the lender to use the AMC service )

Which is different than if the borrower paid $500 went to the Appraiser and AMC billed $100 (or X $ ) separate from appraiser fee, the $100 charged to lender as a stand alone cost for the AMC service of management. Which is how the lender ( and other businesses ) pay for services, they are billed for the service and pay for it as a charge/expense the way they pay for tax advice or IT support. as examples.

 

[J Grant]

I would never use that term because I don't split fees. I pay the appraiser the fee the appraiser stated, whether it $400 or $4,500. What i charge the lender for my service is simply none of your concern. It has no more relevance to you than the fee the closing attorney is charging, or the home inspector, or the agent. Are you "splitting fees" with those folks too???

If you charge $400, I charge $150, and bill the lender a total of $550, that is simply NOT splitting fees.

Bu the BORROWER paid appraisal fee was split with a portion going to the AMC, yes or no?

In above example, likely the lender charge to borrower was $550, so despite your claim of not splitting fees with the appraiser, the AMC did "split" the borrower paid fee to receive their portion of $ . Yes or no.

It is clearly seen in the handful of disclosure states, where the amounts are shown "borrower appraisal fee $550 , AMC $150 Appraiser $400. The AMC is splitting the borrower paid amount total to pay a portion to the appraiser, yes or no

. We recognize the AMC is not "splitting" the $300 fee they agreeed to pay the appraiser, when appraiser fee was $300 (with a borrower paid $550 ) where AMC billed the lender $550 .However you tap dance around it, a portion of the borrower paid gets Splot or portioned off to cover the AMC service and the appraisal service.

 

[EddieB]

Nevermind.... I've learned the definition of insanity long ago

 

[DWiley]

Bu the BORROWER paid appraisal fee was split with a portion going to the AMC, yes or no?

In above example, likely the lender charge to borrower was $550, so despite your claim of not splitting fees with the appraiser, the AMC did "split" the borrower paid fee to receive their portion of $ . Yes or no.

It is clearly seen in the handful of disclosure states, where the amounts are shown "borrower appraisal fee $550 , AMC $150 Appraiser $400. The AMC is splitting the borrower paid amount total to pay a portion to the appraiser, yes or no

. We recognize the AMC is not "splitting" the $300 fee they agreeed to pay the appraiser, when appraiser fee was $300 (with a borrower paid $550 ) where AMC billed the lender $550 .However you tap dance around it, a portion of the borrower paid gets Splot or portioned off to cover the AMC service and the appraisal service.

I don't know. I don't know what the borrower paid. I charged the LENDER, and the LENDER pays me. Just as my fee is no concern of the appraiser, the lenders' policies are none of my business, as long as they pay me.

I am not tap dancing around anything. I pay the appraiser the fee the appraiser cites. That is simply NOT a fee split, no matter how you wish to spin it.

 

[J Grant]

I would never use that term because I don't split fees. I pay the appraiser the fee the appraiser stated, whether it $400 or $4,500. What i charge the lender for my service is simply none of your concern. It has no more relevance to you than the fee the closing attorney is charging, or the home inspector, or the agent. Are you "splitting fees" with those folks too???

If you charge $400, I charge $150, and bill the lender a total of $550, that is simply NOT splitting fees.

The borrower paid fee of $550 was split $150 to cover your bill to lender of $150 and the $400 that the appraiser charged the AMC, yes or no.

 

[DWiley]

The borrower paid fee of $550 was split $150 to cover your bill to lender of $150 and the $400 that the appraiser charged the AMC, yes or no.

What part of "I don't know" did you not understand. I have never researched lender policies on borrower fees, because they are irrelevant to me and my business. I charge the lender. Lender pays. What the lender does outside of that is none of my concern.

Appraisers should set fees and collect them, and quit worrying so much about the fees of others. If you get the appraisal fee that you cited on a transaction, what business of it of yours how much I make? Frankly, if a borrower is upset about lenders passing fees along, then they need to talk to the lender, not to me (or you).

 

[J Grant]

I don't know. I don't know what the borrower paid. I charged the LENDER, and the LENDER pays me. Just as my fee is no concern of the appraiser, the lenders' policies are none of my business, as long as they pay me.

I am not tap dancing around anything. I pay the appraiser the fee the appraiser cites. That is simply NOT a fee split, no matter how you wish to spin it.

Ok let's confine it to the states that have appraisal and AMC disclosure fees, where you are aware of what borrower paid in the appraisal

In a disclosure state,s on the appraisal: Borrower paid appraisal fee $500. Appraiser $300 AMC $200

Is the above correct yes or no

 

[Mejappz]

-J often that fee split is inverted. For your edification see below. In the end, it’s all good though because hey appraisers get to set their own fees anyway so what’s the big deal.

 

[Michigan CG]

Multiple AMC price lists have been published on this site. Most AMCs charge $X depending on location and then either shop for a cheap appraiser or have a set fee to the appraiser. The AMCs who send out bid requests to 30 appraisers at a time most likely have a set fee paid to them and are looking to find the appraiser that will give them the biggest spread.

Many AMCs have a set fee they pay appraisers without the bid system. I have heard of the AMC keeping $100-200 of the overall fee.

Don't fool yourselves about direct lenders paying the entire fee to the appraiser. One regional lender here charges $520 for the appraisal and pays the appraiser $400. One of my clients adds $35 per appraisal to cover their appraisal department.

 

[EddieB]

Why does the term fee split bother you now, DW?

It’s been common verbiage long before you entered the business