More AMC and PDC Bull

[sputnam]

A number of appraisers here do not accept AMC assignments, and some choose to go out of business or work part-time because of it. If that is the only power we have, it's not much of a power, because appraisers are not functioning in a free market environment within the regulated mortgage loan environment, and face a tremendously skewed supply/demand imbalance as well as AMC dominance with lenders due to the AMC able to hide their fees from consumers in the bundeled fee as well as charge usuorous rates becaue of it of a fee split.

That's right. It's not much of a power. We are the at the bottom of the appraisal supply chain. We have no powers other than choosing which Clients to work with, accepting/declining assignments, and setting the fees we are willing to accept.

 

[Carnivore]

The separation of fees on the initial good faith estimates and the HUD 1 are the actual cost are two different things .

Here is where it gets confusing The HUD 1 is two pages. Leave it to the government to make things confusing. The paralegal I mentioned and her boss both told me that that page one of the HUD 1 should actually be page 2 and page 2 should be page1

There is a lot of lines with dollar amounts so what you want is two line items 1. AMC fee and line 2 your actual fee.

am I confused or our you confused for your asking this should be changed ,

See I don't think the borrower will be outraged about the AMC cut and the appraisers cut They just want the money

Attorneys don't do full title search, The go back to the previous search another attorney did, They do have liability/malpractice insurance.
strangely attorneys seem to have very similar fee's for title search yet they our not really managed by an AMC or our they?

I don't like AMC's but to survive without them is a challenge because you now have to market your services to the public

dont get me started about C & R, That is a bunch of bogus crap some one came up with,

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[chad hampton]

AMC’s don’t pay yearly dues to Revaa for anything to change that isn’t in their best interest. I don’t know what you guys are all doing next week, but rest assured Revaa has their lobbyist full-time camped out in DC meeting with politicians and staff. And it’s certainly not for your benefit.

I think too many appraisers are under the impression It’s a level playing field out there. It’s not. Do you know who owns class valuation? If you do work for them, you’re currently negotiating with a hedge fund that backs them. Good luck.

The truth is appraisers, hold all of the power if they were bound together, but none of the power as individuals. And appraisers love to be on their own.

Nothing will ever change.

 

[J Grant]

WRT the assumption that consumers will embrace higher fees for appraisers, I would much rather be wrong (in disagreeing) about that than to be right.

See below : The lawsuits are not just about lack of fee breakout/disclosure, the specifically HIGH AMC FEES are. Nothing about high appraiser fees lol

Even the supposedly dumb consumer borrower can tell how excessive the AMC charge is relative to its service.

wrt appraisal fees - consumers are not suing lenders when there is no AMC involved. The consumer is fine with the appraisal fee going to the appraiser as not "too high" I bet nearly every consumer borrower believes the appraisal fee goes to the appraiser. They do not even know an AMC is used much of the time and if they do know, may assume it is some minor player, not gouging 50% anmd 40% etc excessive amount -



AI Overview


Yes, recent investigations and potential class-action lawsuits target Appraisal Management Companies (AMCs) for allegedly charging high or hidden fees. These actions, such as those investigated by Morgan & Morgan, argue that AMCs inflate appraisal costs while providing limited value, sometimes keeping a large portion of the fee instead of paying the appraiser.
ousingWire +1
Key Aspects of the Allegations

• Inflated Costs: The core issue is whether AMCs are overcharging consumers by adding high administrative fees to the appraisal cost.
• Lack of Transparency: Lawsuits suggest consumers are not clearly told how much of their fee goes to the actual appraiser versus the AMC.
• "Usurious" Nature: While not usually labeled as illegal interest rate usury, the fees are being challenged as unfair, deceptive, and excessive in relation to the service provided.

 

[J Grant]

That's right. It's not much of a power. We are the at the bottom of the appraisal supply chain. We have no powers other than choosing which Clients to work with, accepting/declining assignments, and setting the fees we are willing to accept.

The appraisers have fare less power than normal professionals do ( or that appraisers have outside of regulated lender work ).

The appraisers are disenfranchised of power in AMC work because 1) appraisers are not operating in a free market environment where they have access to potentially unlimited customers - the customer base is artificially limited to appraisers in res lending by prohibitions wrt selecting appraisers. 2) The AMC has an additional motivation not typical of individuals or firms hiring professionals- the AMC seeks to pay wholesale fees for its own profit markup, whereas individuals and firms hiring professionals normally seek only to pay reasonable cost fees.

 

[J Grant]

AMC’s don’t pay yearly dues to Revaa for anything to change that isn’t in their best interest. I don’t know what you guys are all doing next week, but rest assured Revaa has their lobbyist full-time camped out in DC meeting with politicians and staff. And it’s certainly not for your benefit.

I think too many appraisers are under the impression It’s a level playing field out there. It’s not. Do you know who owns class valuation? If you do work for them, you’re currently negotiating with a hedge fund that backs them. Good luck.

The truth is appraisers, hold all of the power if they were bound together, but none of the power as individuals. And appraisers love to be on their own.

Nothing will ever change.

The ones who band together are salaried workers or trade workers that are in unions. Which appraisers are not. We are not workers, we are professionals. And professionals normally have power as individuals in a free market supply and demand.

Only in the AMC realm and lender realm is the appraiser's power neutralized due to prohibition around ordering and selection, making it not a free market . However, lenders not using AMC's do not seek to exploit this for profit from appraiser fees, whereas the AMC does.

 

[Carnivore]

There is more. AMC,s are money making machines below is what AI says
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Some AMCs today are far more than simple appraisal managers — many have expanded into full collateral‑services companies that handle repairs, title searches, and even closing‑attorney coordination. Because these services go beyond traditional appraisal management, they’re allowed to charge additional fees, meaning they earn more money for tasks like arranging contractor repairs, managing re‑inspections, coordinating title work, or scheduling settlement attorneys. In short, some AMCs now operate as multi‑service vendors, not just appraisal managers, and they’re compensated for every extra piece of the process they take on.

 

[chad hampton]

Doctors, lawyers, and accountants all have powerful professional organizations that lobby on their behalf.

One could argue that the appraisal Institute is supposed to be that for us. But obviously they have failed in their mission statement.

If the appraisal Institute gave a damn about the residential profession, you would probably have another 10,000 members join and then there would be a far more level playing field.

I’m not arguing that DC isn’t a disgusting rotten place, that’s why all the demons end up making their way there to work, but it is what it is.

 

[J Grant]

It is of note that I do not recall those here who defend the lender engaged low pay AMC model EVER saying the fees the AMC;s charged were too high !! ( which is part of the consumer lawsuit, so yeah somebody noticed )

Instead, the posters here blamed the appraisers for accepting low fees (while not acknowledging the unique market forces that led to this)

I sure as heck do not see the attorneys in the consumer lawsuits blaming the appraisers for accepting low fees. The attorneys are putting the blame where it belongs - on the AMC's for charging excessive, maybe even usurious fees. We understand the lenders who used these AMC's were aware of it . Maybe they can't get hit for it as well.

 

[Carnivore]

because of capitalism which I support, I don't want Mandani economic thinking Appraisal Institute serves it's members but their members still have to compete in the free market