More AMC and PDC Bull

[djd09]

listen to the doom and gloomers..but what about parea

 

[J Grant]

just a reminder

here you go Jgrant the revenge you so want against evil AMC's

The AMC Their entire business model was built on the margin from full 1004s, not on micro‑fees. of desktops

I won't personally benefit if fees rise for AMC appraisals since most of my work is non AMC, however, I suffered from it since in the years following the HVCC I burned through a big chunk (most ) of my savings in order not to cave to low AMC fees - and I am disgusted with what it has done to the profession.

I don't think AMCs are evil- just greedy- taking exploitative advantage as enabled by affiliate lenders - made possible by the bundled fee and the extreme imbalance of supply and demand, particular to this segment.

 

[Carnivore]

Well thats the problem to many appraisers chasing not enough assignments, I do think sone AMCs do that on a regular basis by making you sweat

 

[J Grant]

Well thats the problem to many appraisers chasing not enough assignments, I do think sone AMCs do that on a regular basis by making you sweat

It's not simply too many appraisers chasing not enough assignments.

It's also a result of the AMC's having a specific to them incentive to pick appraisers with low fees because the AMC is a wholesaler middleman, looking to mark up as much as possible.

Thus, an AMC might have 30 appraisers on its panel in a region, and most of its orders go to six appraisers that bid the lowest, with the rest of the panel receiving nothing or a trickle of overflow work.

A lender might have 30 appraisers in a panel in a region since typically, all the appraisers get paid the same C and R fee in that region, and the orders get spread or rotated among the 30 appraisers.

 

[glenn walker]

The only person coming to save you is the version of yourself thats tired of your current situation !

 

[George Hatch]

This comment shows you STILL do not understand disagree that lender, when not using an AMC (regardless of deploying AI), you fail to understand disagree that the lender IS NOT GOING TO FEE SHOP REGULAR MORTGAGE APPRAISALS BECAUSE A LENDER CANNOT FEE SPLIT AN APPRAISAL FEE WITH ITSELF.

English. Do you speak it? Our disagreement has zero to do with you using an argument that others can't understand. You are mentally incapable of forming an argument that anyone with a very average intellect cannot understand. Nor do I think the reason for the disagreement has anything to do with you "not understanding" my expression of these ideas. You just disagree with me. Stop saying this is a matter of us not understanding the other.

The lenders aren't coercing the AMCs to shop by fee because of fee sharing, either. They're doing it in part to control the amount they charge the borrower. It's an expression of competition.

 

[George Hatch]

It's not simply too many appraisers chasing not enough assignments.

It's also a result of the AMC's having a specific to them incentive to pick appraisers with low fees because the AMC is a wholesaler middleman, looking to mark up as much as possible.

Thus, an AMC might have 30 appraisers on its panel in a region, and most of its orders go to six appraisers that bid the lowest, with the rest of the panel receiving nothing or a trickle of overflow work.

A lender might have 30 appraisers in a panel in a region since typically, all the appraisers get paid the same C and R fee in that region, and the orders get spread or rotated among the 30 appraisers.

That's called the principle of substitution. You may have heard of it. Even the AI-vomitron has heard of it. Kindly take note of that "rational behavior" comment.

 

[George Hatch]

As for the prospect, however unlikely, of AI-agents being deployed directly by the lenders and thus rendering financially obsolete the outsourcing of appraisal engagement to a 3rd party AMC:

The operative question becomes how much effort it would take to train that AI to act like a rational buyer of appraisal services. That is, assuming an AI-agent would need any additional prompts to act rationally.​

​

WWJD?
WWAID?

 

[J Grant]

English. Do you speak it? Our disagreement has zero to do with you using an argument that others can't understand. You are mentally incapable of forming an argument that anyone with a very average intellect cannot understand. Nor do I think the reason for the disagreement has anything to do with you "not understanding" my expression of these ideas. You just disagree with me. Stop saying this is a matter of us not understanding the other.

The lenders aren't coercing the AMCs to shop by fee because of fee sharing, either. They're doing it in part to control the amount they charge the borrower. It's an expression of competition.

Its not a matter of disagreement ( we have agreed on some things.)

However, when you say things such as that even without an AMC, the lender would continue to shop by fees, that is not true!! Lenders are not allowed to fee split off the HUD bunded fee. Thus, lenders, when no AMC is involved, do not shop by appraiser fees; they pay their panel the same agreed-upon $ amount per appraisal in an order and reserve fee quotes or bids for complex orders.

Since you never seem to get this fact, I continue to believe that you do not understand it.

I never said the lenders coerce AMC's to shop by fees. The lenders pass on the appraisal fee to the AMC who splits it with the appraiser. Two different conversations.

 

[J Grant]

As for the prospect, however unlikely, of AI-agents being deployed directly by the lenders and thus rendering financially obsolete the outsourcing of appraisal engagement to a 3rd party AMC:

The operative question becomes how much effort it would take to train that AI to act like a rational buyer of appraisal services. That is, assuming an AI-agent would need any additional prompts to act rationally.​

​

WWJD?
WWAID?

Its a ridiculous question.
Whether a lender deploys AI or not to manage the administration of appraisal orders, the lender typically pays the appraisers a fee that is the same $ amount as the appraisal fee the borrower covers. and the lender seeks to pay the appraiser on a panel the SAME AMOUNT, because the lender wants to quote borrowers the SAME AMOUNT for regular appraisals on the good faith estimates

So wtf, is the AI agent shopping for?

Perhaps an AMC would use an AI agent if it is more cost-effective for them than their current automated system for appraiser fee shopping.