Fannie Mae REO switching to AMCs

[alebrewer]

Yep. Used to get one or two HECM close outs a month before they started sending them out.

Interesting. I wasn't aware that F/F did HECM's. Always thought FHA did HECM's and Reverses. Learn something every day.

 

[Non Sequitur]

Fannie started out sourcing the reverse mortgage REOs to LRES a few years back. I have done 2 since then.

Same with REO in my area. In the past few years the only orders I received were HECM close outs, short sales, Land Shark builds, and monsters even the AMCs didn't want. I accepted one order each from CC and Accurate when they got into the game to test them out. Both paid less, expanded the SOW, and QC'd the reports to mortgage guidelines. What a mess, haven't completed one for either since.

 

[Overimprovement]

I don't begrudge appraisers for doing what they have to do to survive. I do begrudge them for not attempting to find better paying clients.

I don't either, but I do begrudge the money chasers who lead the industry in making such high barriers of entry--education, appraisal courses, experience, costing most of us years and tens of thousands of dollars, and then systematically, pulling the rug straight out from under us.

I get easy come, easy go, but my time in this industry was very hard to get, but then oh so easily lost...

 

[Zoe]

I don't see how the appraisal management company cannot be considered an employee of Fannie/Freddie. It don't makes sense according to employment laws.

Let's let IRS look at this.

Legally, I just don't see how the AMC is not an employee of Fannie/Freddie. They would get a w-2 from Fannie/Freddie as employee.

They could be commission employee, but Fannie/Freddie should still be considered employer.

Fannie/Freddie should pay whatever employee taxes/benefits to the employee.

 

[Overimprovement]

Accurate Group was wretched when I dumped them 3 years ago. Who knows how much worse they have gotten since then. Terrible stips, assignments got more and more log cabins on 50 acres through time, etc...

 

[Overimprovement]

From my sideline view, I see 90% of res. valuations going through the top AMC vendors within a few years. What few are left after PDC's, desktops, and waivers. That is before AI takes its cut as well.

I don't know of any lenders that WERE direct order, then went to AMC, then returned to direct order permanently. There may be some, but none in my areas.

 

[Mike Ault]

From my sideline view, I see 90% of res. valuations going through the top AMC vendors within a few years. What few are left after PDC's, desktops, and waivers. That is before AI takes its cut as well.

I don't know of any lenders that WERE direct order, then went to AMC, then returned to direct order permanently. There may be some, but none in my areas.

I had a discussion with the chief appraiser for one of large national AMCs yesterday (although not one of the three REO vendors listed) and he was of the opinion that within three years 80% of the residential assignments will be lost to waivers. Not to the UAD 3.6 hybrid experiment we are all scurrying around like lab rats getting ready to perform for them. More time wasted and money spent for nothing.

 

[Fernando]

Accurate Group was wretched when I dumped them 3 years ago. Who knows how much worse they have gotten since then. Terrible stips, assignments got more and more log cabins on 50 acres through time, etc...

They're still bad but I can handle it. If I can handle the Nando haters in AF, Nando can handle any AMC.

 

[J Grant]

I had a discussion with the chief appraiser for one of large national AMCs yesterday (although not one of the three REO vendors listed) and he was of the opinion that within three years 80% of the residential assignments will be lost to waivers. Not to the UAD 3.6 hybrid experiment we are all scurrying around like lab rats getting ready to perform for them. More time wasted and money spent for nothing.

I assume that would shrink his AMC volume?
Though certain AMCs are selected to handle the PDC collection for the Waivers that require it.

 

[Mike Ault]

I assume that would shrink his AMC volume?
Though certain AMCs are selected to handle the PDC collection for the Waivers that require it.

I didn't ask him but I would assume you are correct. He was pretty sharp and worked for Fannie Mae prior to assuming his current position, and if there's going to be a survivor in the "valuation industry", he would be one.