FANNIE bonds with AMCs, over your dead low paid body.

[J Grant]

WRT the quality of the appraisal, I'm curious what you think it means when a power user of appraisals makes a choice - informed by direct experience with thousands of appraisals over many years - to outsource the selection to one or more AMCs that they know shops by price.

Is it your view that these lenders are being fooled by the AMCs or are making an uninformed choice? Because it looks to me like their actions are demonstrating their perception of the situation. What do you think?

It is my view that these lenders are sleazy and their perception of the situation is they get something in exchange-whether that is stock options, under the table $, a silent agreement that the AMC will stop sending work to appraisers who appraise "low" too often, - the lender is fine with short changing borrowers and investors who assume the lenders are choosing the appraiser or using an AMC to choose wisely, not an AMC that auctions out each order flea market style by comparing bids or fees.

 

[George Hatch]

Okay, so then you obviously do understand the bankers for what they are and you do understand that there's nothing that will prompt them to become better world citizens or act in furtherance of social or economic justice. They will only do what they are forced to do.

 

[J Grant]

Okay, so then you obviously do understand the bankers for what they are and you do understand that there's nothing that will prompt them to become better world citizens or act in furtherance of social or economic justice. They will only do what they are forced to do.

The one thing bankers fear is bad publicity - that their sleaze is exposed to the borrower customers. This exposure is what thelawsuits making their way through the courts might accomplish. Along with free open access by the public to AI. You trash AI, but it is the go-to free search engine, and is calling it accurately wrt AMC's and lenders.

Lenders won't change their ways to be good citizens. They will change their ways under threat of exposure that will hurt their business with borrowers ( or induce regulators to watch them more closely )

 

[Sandra Koutsopoulos]

DWiley said:
The "consumer" for an appraisal is the lender, not the borrower.

But the CONSUMER of the loan is the Borrower. The Borrower is paying for the loan fees including appraisals. IMO, Borrower is not getting the benefit of what he is paying for, often a $600-$800 appraisal; he's getting a $350-$450 appraisal with a B.S. premium on top to enrich AMCs for lender hired for lender's convenience. Lenders pay the light bill too, which is part of their cost of doing business. If lenders use AMCs, that is their cost of doing business, and those exhorbitant AMC contract fees should not be extracted from Borrowers' and appraisers' pockets, or added to Borrowers' costs.

IMO, appraisers should be paid a fair amount for what they provide. IMO, AMCs contribute little to the entire process, other than to enrich themselves like blood-sucking leaches. Before Dodd/Frank, I provided appraisals to many lenders across the country without AMCs taking a (big) cut. I'm content to sell my services like that again, but lenders have been apparently brainwashed that they MUST order appraisals through AMCs, perhaps because the higher-ups have signed contracts.

It's all rather pointless now, since AMCs are eliminating viability for appraisers to stay in business doing lender appraisals, and thus AMCs are reducing their own pool of human appraisers. I doubt AI will give AMCs a big chunk of the push-of-a-button valuation. Kinda like a parasitoid. The primary biological term for an entity that lives inside or on a host, feeds on it, and eventually causes its death is a parasitoid.

 

[George Hatch]

The one thing bankers fear is bad publicity - that their sleaze is exposed to the borrower customers. This exposure is what thelawsuits making their way through the courts might accomplish. Along with free open access by the public to AI. You trash AI, but it is the go-to free search engine, and is calling it accurately wrt AMC's and lenders.

Lenders won't change their ways to be good citizens. They will change their ways under threat of exposure that will hurt their business with borrowers ( or induce regulators to watch them more closely )

Well, I suppose that if you believe they can be coerced into acting more empathetically and compassionately to fee appraisers by shaming them then that might work.

 

[J Grant]

Well, I suppose that if you believe they can be coerced into acting more empathetically and compassionately to fee appraisers by shaming them then that might work.

That is not what I said. I said they fear bad publicity, which these lawsuits will expose them to , as well as AI putting the intel out to anyone who asks it, which was not the case before.

 

[Surf Cat]

Doesn't this all point out the amount of useless waste of funds that are slathered around at Borrower's expense that provide little/no benefit to Borrower, and basically just greases the palm of every superfluous entity involved?

I wanna be greased.....lube appraiser's wallets.

 

[Sandra Koutsopoulos]

We are not superfluous!

 

[George Hatch]

That is not what I said. I said they fear bad publicity, which these lawsuits will expose them to , as well as AI putting the intel out to anyone who asks it, which was not the case before.

Yeah, because everyone will sympathize with the plight of the appraisers.

Whatever you guys want to do to "resist" is fine by me. Go for it. Just don't make the mistake of trying to shame other appraisers into honoring your picket line because I think you might get some pushback for that.

 

[chad hampton]

So the borrower has to pay for 2 appraisals if they want one? How very “public trust” of the system.