I'm piling on....F the AMCs

[George Hatch]

The AMCs didn't actually do anything except to develop, promulgate and sell their own business plan. It's the lenders who made the decision to buy those plans instead of their other remaining alternatives. It's those participating lenders who have decided appraisers aren't worth $600 fees unless there are no other options.

We can say those lenders are wrong about that but that doesn't alter what they're doing or why they're doing it. Not so far, anyway.

 

[djd09]

i believe the thread says f the AMC's...not cheerlead them

 

[glenn walker]

I recommend he start getting up to speed on 3.6 because it doesn't have any extra ADU boxes for single family homes with 5 Junior ADUs.

The year 2026 is going to be a rough one for one's who specialize in odd ball properties and odd ball clients.

 

[J Grant]

The AMCs didn't actually do anything except to develop, promulgate and sell their own business plan. It's the lenders who made the decision to buy those plans instead of their other remaining alternatives. It's those participating lenders who have decided appraisers aren't worth $600 fees unless there are no other options.

We can say those lenders are wrong about that but that doesn't alter what they're doing or why they're doing it. Not so far, anyway.

The lenders DO NOT PAY for the appraisal, whether the appraisal fee is $600 or $300 . The BORROWER PAYS for the appraisal

It is, therefore, complete garbage to claim these participating lenders do not think the appraisal is "worth " the $6000 fee. The PARTICIPATING LENDERS you mention order an appraisal with a fee of $600 that the borrower pays.

The difference is that when a lender uses an AMC, the AMC might keep half o the $600 and pay the appraiser $300. Some lenders use both an AMC and a fee panel, and the lender has the borrower pay $600 for the appraisal either way.
Go huddle with your AMC-aligned buddy to come up with some other misleading spin on the topic-

I am not naive, and I realize that if given their way, the lenders would not use an appraisal, but the lender would rather not use any independent alternative valuation either.

The lenders favor the Waiver/value acceptance because the SC price is the value, or the lender estimates the property value for the LTV they need to make the loan ( if it falls in a GSE AVM range). The Waiver/value acceptance is not an independent alternative valuation. How can the client who is a vested party ( the lender ) make up their own value estimate and be called an independent valuation?

 

[Terrel L. Shields]

Either a AMC orders it or a the Lender orders it directly BUT borrowers can't choose your service's.

It's been FDIC regulation since at least the early 90s that the borrower was not to select the appraiser or use an appraisal obtained by the borrower. It was the mid 2000's when they finally stopped loan officers from ordering direct. I met 2 loan officers the other day. I've worked for them for 5 years and never knew their names or faces. A couple of secretaries order the appraisals for all 3 branches of the bank.

 

[George Hatch]

The lenders DO NOT PAY for the appraisal, whether the appraisal fee is $600 or $300 . The BORROWER PAYS for the appraisal

It is, therefore, complete garbage to claim these participating lenders do not think the appraisal is "worth " the $6000 fee. The PARTICIPATING LENDERS you mention order an appraisal with a fee of $600 that the borrower pays.

The difference is that when a lender uses an AMC, the AMC might keep half o the $600 and pay the appraiser $300. Some lenders use both an AMC and a fee panel, and the lender has the borrower pay $600 for the appraisal either way.
Go huddle with your AMC-aligned buddy to come up with some other misleading spin on the topic-

I am not naive, and I realize that if given their way, the lenders would not use an appraisal, but the lender would rather not use any independent alternative valuation either.

The lenders favor the Waiver/value acceptance because the SC price is the value, or the lender estimates the property value for the LTV they need to make the loan ( if it falls in a GSE AVM range). The Waiver/value acceptance is not an independent alternative valuation. How can the client who is a vested party ( the lender ) make up their own value estimate and be called an independent valuation?

My understanding of it was that the disclosures cover what the lender is or has already charged the borrower and is paying out.

The appraiser is getting paid the fee that they agreed to. They didn't bid for and were never offered the $600. They offered and accepted the split.

There might be a technology fee in there but the appraisers aren't paying the AMC or the lender anything out of their end. The money we're complaining about never belonged to the appraiser at any point of their engagement.

 

[George Hatch]

i believe the thread says f the AMC's...not cheerlead them

I'm not cheerleading for them. I'm just not allowing the obvious untruths to pass without comment as if they were true. Mostly because I don't think trafficking in obvious untruths is a viable way to prompt for what you want.

If you need a BAMN advocacy then you shouldn't expect to find it in a roomful of appraisers.

 

[djd09]

how was the ivpi going to pay appraisers....and how was it going to fund itself hee haw

 

[J Grant]

My understanding of it was that the disclosures cover what the lender is or has already charged the borrower and is paying out.

The appraiser is getting paid the fee that they agreed to. They didn't bid for and were never offered the $600. They offered and accepted the split.

There might be a technology fee in there but the appraisers aren't paying the AMC or the lender anything out of their end. The money we're complaining about never belonged to the appraiser at any point of their engagement.

The appraisers would get the C and R borrower paid $600 when the lender orders without an AMC.

Why do appraisers agree to such basement-level splits? Because AMC's have a skewed demand/supply due to high volume share and the unparalleled advantage of offering their management service free of cost to their lender customers. I have not seen this in any other business, including the commercial side of the appraisal business.

In my estimation, an average appraiser who works with AMCs and does 6 regular assignments a week, with a relatively benign fee split to the AMC of $200,, that appraiser sees a loss of $60,000 a year in income. It amounts to a $600,000 loss over 10 years.

 

[J Grant]

I'm not cheerleading for them. I'm just not allowing the obvious untruths to pass without comment as if they were true. Mostly because I don't think trafficking in obvious untruths is a viable way to prompt for what you want.

If you need a BAMN advocacy then you shouldn't expect to find it in a roomful of appraisers.

You are not "allowing" untruths.

Everything I have stated, and others have stated, is true and fact-based. You are making misleading statements/blaming it on the appraiser and whitewashing the AMC fee split via the HUD, allowing them unfair trade advantages not seen in any other business that must compete by charging a cost to the customer. AMC's offer their service free of cost.

I offer lawn mowing service for free to a customer, You charge a customer $50 to mow a lawn. Who is that customer going to choose ?