More AMC and PDC Bull

[Non Sequitur]

I strongly doubt the number of appraisers leaving parallels the reduction in demand. I know that hasn't been the case in my state.

2021 newsletter indicating to ~5900 SL+CR licensees. 04/2026 stats indicate to 4627. The volumes in this state are down by 50% or more compared to 2021.

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It may not parallel loan origination decline exactly, but it isn't something that should be ignored when presenting loan origination stats as the only reason why appraisers have little work.

 

[Bobby Bucks]

Every independent appraiser who has dealt with AMCs has discovered the higher their level of dishonesty, the lower the fee they pay. No amount of wordsmithing and thesaurus tweaking can change that fact and no amount of advertising spent on booths at the Buzz/Vegas events in Sodom, Nevada will change it either. It’s shameless.

 

[Non Sequitur]

Only the govt can kill it.

This I agree with. And it circles back to why REVAA and the insiders are so involved with TAF, the AQB, and the GSEs.

 

[Joe Flacco]

Cert Res numbers definitely moving lower here since around 2023. There was not much movement before that.

 

[Dublin ohio]

Bull. AMC’s do not disclose back to the lender what they ended up paying the lowest bidder. I know you have been out of the field for a couple of decades but this how the AMC thievery works: The appraiser (as an example) is paid $275 after bidding, but the AMC charged $700 for the appraisal and a $150 management fee. The AMC disclosed a $700 appraisal fee and the $150 appraisal management fee to the lender. The lender disclosed a $700 appraisal fee and a $150 appraisal management fee to the borrower. The appraisal fee is a flat out lie. The exception is the cost plus AMCs, which are few and far between. And it doesn't matter who prepares the disclosure, the borrower is being lied to and misled.

Not arguing with the above. But do you really think that many lenders don't know the actual amount the appraiser is being paid. We have members on this forum that work for lenders and I am sure there are lender lurkers on just about every forum of this type. Plus many states require that the appraiser disclose what they are paid within the report itself. I am sure that some if not all lenders have full knowledge of what is going on

 

[George Hatch]

It may not parallel loan origination decline exactly, but it isn't something that should be ignored when presenting loan origination stats as the only reason why appraisers have little work.

I wouldn't ignore it, but I also wouldn't ignore the difference between the decline in overall loan volume vs the (greater) decline in demand for appraiser hours via the waivers and hybrids., If (for example) the overall loan volume in a state is 30% and the machine is taking an additional 10% of those deals offline via waivers then the reduction in demand for appraiser hours will be greater than the 30%.

 

[Non Sequitur]

I wouldn't ignore it, but I also wouldn't ignore the difference between the decline in overall loan volume vs the (greater) decline in demand for appraiser hours via the waivers and hybrids., If (for example) the overall loan volume in a state is 30% and the machine is taking an additional 10% of those deals offline via waivers then the reduction in demand for appraiser hours will be greater than the 30%.

I agree. The drop in origination volume isn't taking into account the use of something other than an appraisal AND isn't taking into account AMC staff appraisers or national puppy-mill firms. Not much is trickling down to independent appraisers. But again, repeatedly posting the link to "40% drop in originations" as the only reason independent appraisers are struggling is misleading to a point of dishonesty.

 

[Terrel L. Shields]

If we, as appraisers, accept lower fees just so we can stay busy... then, we are going to be offered lower fees.

too true

fewer years of experience for one.
And not able to handle an assignment-

As I see it not handling the assignment is far removed from the idea of fewer years. Some people are competent after a year or two. Some aren't. So, it's their track record that counts not their chronological attributes.

 

[Non Sequitur]

Not arguing with the above. But do you really think that many lenders don't know the actual amount the appraiser is being paid. We have members on this forum that work for lenders and I am sure there are lender lurkers on just about every forum of this type. Plus many states require that the appraiser disclose what they are paid within the report itself. I am sure that some if not all lenders have full knowledge of what is going on

I believe lenders who use AMCs don’t care. IMO it is just a flat out lie to disclose the appraisal fee as $700 when an appraiser agrees to complete the appraisal for $275. Either update the disclosure and refund the difference, or pay the appraiser $700.00. AMC's bidding it out and taking the difference is thievery, especially when borrowers are not allowed to shop that fee.

 

[DWiley]

I agree. The drop in origination volume isn't taking into account the use of something other than an appraisal AND isn't taking into account AMC staff appraisers or national puppy-mill firms. Not much is trickling down to independent appraisers. But again, repeatedly posting the link to "40% drop in originations" as the only reason independent appraisers are struggling is misleading to a point of dishonesty.

I never suggested it was the only reason, but for raw impact, it is the most important by a big margin.

If 600,000 loans were being originated per month pre-COVID, and that volume has dropped to less than 400,000 per month in the past three years, that alone is a drop of over 200,000 potential appraisal assignments. Look at the waiver numbers that one can get at the AEI web site and tell me which is the bigger factor, volume drop or use of appraisal alternatives? Sure, they both have an effect, but only the smaller one seems to get any significant discussion.