More AMC and PDC Bull

[sputnam]

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.

Thing is... Appraisers could have 'banded together'. In the same ways that CPAs did. Appraisers could have cooperated amongst themselves. Appraisers could have acted, within the industry, to discipline and/or educate appraisers who were not doing things the right way. We didn't. One of the consequences of that is others have acted to do that for us. Often in ways that are detrimental to the appraisal industry.

 

[Zoe]

Some of the best appraisal reviewers are with banks that have an internal appraisal and loan review department. They don't use an appraisal management company. They don't have part ownership in an appraisal management company. They don't get a kickback from an appraisal management company and their reviewers don't focus on fastest and cheapest appraiser and try to keep part of the appraisal fee disclosed on truth in lending disclosures.

Many small banks with their own appraisal and loan review department required "no bailout" from taxpayers during the big recession.

The appraisal fee they charge on truth in lending disclosures is transparent to the borrower.

 

[chad hampton]

About time to grow up and quit crying because you chose your fate and nobody owes you anything.

Probably what Luigi was told

I think appraisers will keep fighting. But you guys can lay down anytime you want.

 

[J Grant]

Thing is... Appraisers could have 'banded together'. In the same ways that CPAs did. Appraisers could have cooperated amongst themselves. Appraisers could have acted, within the industry, to discipline and/or educate appraisers who were not doing things the right way. We didn't. One of the consequences of that is others have acted to do that for us. Often in ways that are detrimental to the appraisal industry.

This is beyond ironic
You, as an appraiser ( and others like yourself), align with the AMC / their affiliate lender and get paid extremely well by the AMC for a management position. In exchange, you never speak out against the AMC's poor pay to appraisers, and your silence acts against the interests of working appraisers., You do not tell the AMC or lender that the AMC should be paying appraisers better, and should not be picking appraisers by low fee, you do not advocate for reform or a cap of the split wrt the bundled fee, you stay silent when the AMC stops giving work to appraisers who "come in low" on a value.

And then you castigate other appraisers for not "banding together!"

Appraisers did band together to sign the petition back in the day against lender pressure. Did you sign it? Unfortunately, the petition was ignored for years, letting the lender pressure continue. And when the HVCC came out, it got revised to favor AMC/lender interests over appraisers and the rest is history.

 

[Zoe]

Many large banks have their own internal appraisal department and loan review department. They don't use appraisal management companies.

The appraisal department and loan review department report directly to the Board of Directors of the Bank. The lending process has no power over their loan review and appraisal department. Their departments may have to answer questions from Federal or State banking regulators but they don't answer to the lending side of the bank. The departments are separated and the loan review and appraisal department report directly to the board of directors and regulators in their reports.

When regulators come in they review the internal appraisal department and loan review department reports on the loan files.

 

[djd09]

well, there's a little boy waiting at the counter of the corner shop
he's been waiting down there, waiting half the day they never ever see him from the top
he gets pushed around, knocked to the ground he gets to his feet and he says
what about me? it isn't fair i've had enough, now i want my share
can't you see, i wanna live but you just take more than you give...

 

[George Hatch]

You, as an appraiser ( and others like yourself), align with the AMC / their affiliate lender and get paid extremely well by the AMC for a management position. In exchange, you never speak out against the AMC's poor pay to appraisers, and your silence acts against the interests of working appraisers., You do not tell the AMC or lender that the AMC should be paying appraisers better, and should not be picking appraisers by low fee, you do not advocate for reform or a cap of the split wrt the bundled fee, you stay silent when the AMC stops giving work to appraisers who "come in low" on a value.

That's quite the allegation. Can you prove it?

 

[J Grant]

That's quite the allegation. Can you prove it?

It is proven right here on the board. The folks who work at upper-level management roles- have you ever heard them speak out against the system, here or in any professional or media capacity?
The Appraisal Institute did speak out, but it was drowned out by more powerful interests, and the AI own designated were in the upper level AMC management roles so how much could the AI do..

Instead, they blame the appraisers for accepting low fees. While the appraisers might share some of the fault, the main blame goes to the AMC/lender exploitation of the system to the max. Whatever the outcome of the lawsuits pending in the courts, the lawyers recognize it, using the verbiage excessive AMC fees and usorous fees.

The folks here rationalize the system instead of addressing what is wrong with it, compare it to appraiser-run fee shops, or products sold at Target,, etc. Appraisers are blamed for accepting low fees as the cause of the low fees! Instead of the lender/AMC exploitation of the bundled fee to the max due to the severe supply and demand balance being addressed as the main cause.

It stands to reason that the present system of exploitation would not have continued for so long without the cooperation of appraisers who are in upper-level and management positions at the AMC's. Which is to be expected; they chose a side, and their own job would be at risk if they spoke out. They are not just paid well for their expertise; they are paid for their silence.

 

[George Hatch]

You made an allegation of personal corruption against an individual. You might consider offering an apology for that rather insulting accusation. And consider refraining from doing it again.

As for the fees, they vary by locale and by market demand. That fact alone is instructive as to how those fees get set IRL.

 

[J Grant]

I didn't intend any allegation against him as an individual ( I happen to think highly of him wrt his posts, giving appraisal advice, and for the way he conducts himself here like a gentleman) . But he alleges appraisers are to blame for accepting low fees, for not banding together, etc.

IT seems all the allegations on this topic can only flow one way here - working appraisers blamed for accepting low AMC fees, treated like children for being "emotional" , accused of not understanding how business works, etc. - but if we point out that appraisers in AMC management positions might contribute to the problem, it is treated as awful.