Are appraisers for real estate appraisal assignments from AMC's complaining about their pay?
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AI Overview
Yes, real estate appraisers frequently complain about low pay, fee compression, and high, non-transparent fees charged by Appraisal Management Companies (AMCs)
. Many appraisers report that while consumer costs have risen, their compensation has remained stagnant or decreased, leading to frustration over AMCs taking a large portion of the total fee.
Key points regarding appraiser complaints about AMC compensation:
- Low Fee Splits: Appraisers often report that AMCs take a significant percentage of the appraisal fee, leaving them with reduced compensation for their expertise.
- Fee Compression: A shrinking mortgage market has exacerbated fee pressure, causing AMCs to seek the lowest-cost, fastest-turnaround providers.
- Lack of Transparency: Appraisers complain that AMCs hide their markup, with some prohibiting appraisers from attaching their own invoices to reports.
- Stagnant Pay: Many experienced appraisers claim their pay has not increased in over 20 years, making it difficult to maintain a sustainable business.
- Increased Workload: Along with lower pay, complaints include unreasonable turnaround times and an high number of revision requests.
Despite these complaints, some in the industry note that AMCs provide services like handling revisions and finding clients, and that appraisers can choose to work with, or avoid, specific companies.
Looks like we have a consensus.
The fly in the ointment is that independent appraisers were doing appraisals for all kinds of lenders for decades, but with Dodd Franck, entities (AMCs perhaps) sold lenders on the AMCs providing SOooooooo much value to them; probably had their salespeople attend every lender workshop, convention, etc from coast to coast to perpetuate that bull. As independent appraisers all across the nation, we do not have representatives at every lender meeting to pitch the value of US. On the other hand, if lenders had to pay AMCs separately from the appraisal fee, perhaps we would have more opting to hire us directly. Still, if they are obsessed with eliminating a teensy part of the loan process by outsourcing appraisal ordering, that is pitiful. When I worked for one lender, part of my job was to hire appraisers, and it wasn't an overwhelming difficult task whatsoever. And that was before internet search engines that could find info in milliseconds. I ordered appraisal from entities who had proved themselves responsive, competent and accurate. Not so very hard.
So if lenders have signed contracts with AMCs, it's very likely independent appraisers lose the opportunity to independently be hired by those lenders.... due to the AMC contracts which have removed that option. Restraint of trade, anybody?...
