UAD 3.6 discussion

[timd354]

The lender is passing along a portion of the BORROWER PAID appraisal fee to compensate teh AMC. It id

That is why I tried to differentiate it by calling it a hard cost to the lender. I assumed you would understand what that meant.

The borrower covered both the $200 the lender "paid" the AMC and the $400 paid to the appraiser. If the borrower gave the lender $600 for the appraisal, it did not COST the lender anything to use the AMC. Yes or no?

What difference does it make whether you call part of the $600 fee collected by the lender from the borrower for the appraisal and AMC management cost a $600 appraisal fee or a $400 appraisal fee plus a $200 AMC management fee?

Either way, the lender is still collecting $600 from the borrower and the AMC is still being paid $600 by the lender and is still paying the appraiser the same $400. Changing the nomenclature does not change what actually happens and what the appraiser gets paid. To think otherwise is living in a fantasy world.

 

[timd354]

It would eliminate the kind of competitive fee bidding and fee comparison that AMCs do to procure the lowest or lower fee, which drives many qualified appraisers away from AMC work, and means less qualified and inexperienced may get the orders ( and have to rush through them to make it up in volume.

Thanks for the laugh. If you think that separating out the appraisal fee and the AMC management would result in AMC's not competing on price, including the price of both the appraisal and the AMC management fee, I have got a bridge I would like to sell you.

If I am big bank lender who does not give a lick about appraisers and AMC A is willing to contract with me to provide appraisals at a cost not to exceed $300 plus a $150 AMC Management fee and AMC B offers to contract with me to provide appraisals at a cost not to exceed $400 plus an AMC Management fee of $150, take a good guess at which AMC is getting Big Bank Lender's appraisal orders.

 

[J Grant]

What difference does it make whether you call part of the $600 fee collected by the lender from the borrower for the appraisal and AMC management cost a $600 appraisal fee or a $400 appraisal fee plus a $200 AMC management fee?

Either way, the lender is still collecting $600 from the borrower and the AMC is still being paid $600 by the lender and is still paying the appraiser the same $400. Changing the nomenclature does not change what actually happens and what the appraiser gets paid. To think otherwise is living in a fantasy world.

Because it is deceptive to fudge what is being done -words matter.

You invented this $400/$200 example from a $600 by saying it would be unchanged if lenders had to pay a hard cost SEPARATE from the appraisal fee.
Did you not understand what the lender paying an AMC a COST as separate from the appraisal fee meant?

If a lender wants to pay an AMC $200 per order to an AMC for processing as a COST borne by the lender, so be it. But do you really believe lenders would pay $200 an order if it came out of their own operating funds?
Yes or no answer, please.

 

[J Grant]

Thanks for the laugh. If you think that separating out the appraisal fee and the AMC management would result in AMC's not competing on price, including the price of both the appraisal and the AMC management fee, I have got a bridge I would like to sell you.

If I am big bank lender who does not give a lick about appraisers and AMC A is willing to contract with me to provide appraisals at a cost not to exceed $300 plus a $150 AMC Management fee and AMC B offers to contract with me to provide appraisals at a cost not to exceed $400 plus an AMC Management fee of $150, take a good guess at which AMC is getting Big Bank Lender's appraisal orders.

Do you comprehend my position?
I DID NOT SAY THE SOLUTION IS SEPARATING OUT FEES AS A DISCLOSURE IS THE SOLUTION.

I said, the AMC should have NO INVOLVEMENT in the $ amount of the appraisal fee. The appraisal fee collected by the lender from the borrower should be paid in full to the appraiser (whether the lender or AMC cuts the check/ auto deposits. 0

How can you keep failing to get it? I know you are an intelligent man.

The AMC should not offer to provide appraisals at a cost. The AMC . Again, the AMC no longer has any say in establishing appraisal fees. The AMC charges X$ per order and lender accepts it, or they can work out a yearly retainer. Whatever they want. Just leave the appraisal fees out of it. If the AMC uses sstaff appraisers instead of paying a fee panel, then the AMC can profit off staff he sme way a lender would, becaue when a lender uses staff, they still charge the borrrower $600 for the apprisal.

 

[chad hampton]

Appraisal fees are not paid by the lender.

 

[NC Appraising]

Cannot clone report 24 minute mark.

Very good video

 

[Non Sequitur]

Cannot clone report 24 minute mark.

Very good video

Another great example of musical chairs in the AMC world. I see AppraiserLoft's old chief appraiser found another AMC home.

 

[BRCJR]

What difference does it make whether you call part of the $600 fee collected by the lender from the borrower for the appraisal and AMC management cost a $600 appraisal fee or a $400 appraisal fee plus a $200 AMC management fee?

Either way, the lender is still collecting $600 from the borrower and the AMC is still being paid $600 by the lender and is still paying the appraiser the same $400. Changing the nomenclature does not change what actually happens and what the appraiser gets paid. To think otherwise is living in a fantasy world.

Some just do not get it. JG thinks separating the fees, on paper, will somehow magically increase the appraisal fee.

 

[cashcatz]

Cannot clone report 24 minute mark.

Very good video

I appreciate Joel's honest and direct speaking style here. There's too much BS and hype in the software world.

 

[chad hampton]

Not about increasing fees. It’s about transparency and ethics. It’s a public trust thing. Remember how that phrase used to be a cornerstone of this profession. Now it’s a punch line.