More AMC and PDC Bull

[Surf Cat]

The market (gse lenders ordering through an AMC) does not function like a normal competitive market due to AMC's
controlling assignment distribution. Add to this that AMC's have their own appraisers on staff getting first dibs on assignments and cutting off the independent fee appraiser.

Borrowers are typically quoted one charge for the appraisal and the appraisal only, unaware that the AMC management fee is bundled in that charge. Appraisers not staffed with the AMC are pressured to accept the unfair portion of the split stay on a panel....a "pay to play" scenario.

You pro AMCers chalk this up to "the market will pay what the market is willing to bear."

Legally, this is allowed because federal law permits AMC-based appraisal ordering, and the fee split itself is not broadly capped by federal law. Instead, the main requirements are transparency and paying appraisers a customary and reasonable fee.

The way the system is currently working, it's the complete antithesis of transparency and customary and reasonable fees. The current system lacks true competition and has appraisers over a barrel (for GSE work) and the powers that be know it and are taking full advantage of it.

 

[Carnivore]

I am still looking for a solution that makes you all happy, So far I have not read one other than eliminate all AMC''s. by summary execution, which would bring this economy to a screeeching halt

 

[ddnma]

Where did this terminology of a rational buyer come from? A lender acts as a regulated buyer in these mortgage loans and when no AMC is used, the lender must pay C and R fees to appraisers

When an AMC is involved, the AMC is still supposed to pay an C and R fee to the appraiser, which became corrupted via the second HVCC ruling ( which you have spoken out against, to your credit) and for far too long no pushback by a legal court regarding how excessive the AMC portion kept of the bundled fee became.

I can not envision a lender picking one AMC over the next for $10, since the borrower covers the appraisal fee (which the lender forwards to the AMC), whether the lender quotes the borrower $10 more or less as the appraisal fee. As long as the borrower covers the amount, the lender pays nothing out of pocket as a hard cost..

Have you worked for a large lender, a large AMC, have you served on the ASB or the AQB, have you ever served in leadership with a major appraisal organization, have you ever worked high up in a GSE?

 

[George Hatch]

Which AMC would have the appraisers? #1 or #2? Apply your same logic.

That's right - the same logic applies. If the volumes are equal most appraisers would choose the higher paying AMC. But if the higher paying AMC doesn't have the same volume then some of those appraisers might defect to the competing AMC even though the fees are lower.

 

[Carnivore]

Have you ever created an Appraisal company? I don't mean a one trick pony show. I am serious

 

[George Hatch]

I am still looking for a solution that makes you all happy, So far I have not read one other than eliminate all AMC''s. by summary execution, which would bring this economy to a screeeching halt

I disagree and here's why. I think the lenders could readily do 100% direct engagement if they had no other alternatives. It would be far easier for them to do that now in 2026 than it was in 2010.

 

[George Hatch]

The way the system is currently working, it's the complete antithesis of transparency and customary and reasonable fees. The current system lacks true competition and has appraisers over a barrel (for GSE work) and the powers that be know it and are taking full advantage of it.

Fees vary by locale and market conditions. The participation of AMCs doesn't prevent those variances from occurring. The inelastic supply meets the varying levels of demand. Not just among the AMCs, either. Even the VA has different fees by locale.

 

[Surf Cat]

I am still looking for a solution that makes you all happy, So far I have not read one other than eliminate all AMC''s. by summary execution, which would bring this economy to a screeeching halt

The only solution is for appraisers to band together and just stop.... slam the brakes collectively Nationwide.

It won't happen though. It'd be like herding cats. Plus, appraisers are pu*sies. They want to take the easy way out and sign a petition or join a union.... which is already proven not to be effective.

 

[George Hatch]

Most fee appraisers were attracted to self employment precisely because they want to operate solo and outside of any organizational constraints. We want to work by ourselves because we don't work well with others. Enough so that our anti-organizational tendencies becomes a point of pride for many of us.

 

[Surf Cat]

I disagree and here's why. I think the lenders could readily do 100% direct engagement if they had no other alternatives. It would be far easier for them to do that now in 2026 than it was in 2010.

I agree. With the advent and current Breakneck pace development of AI, it could replace 90% of what an AMC does. Appraisers to a lesser extent.

Sure, appraisers can develop an opinion of value from their computer without going into the field and get relatively close. Since the lenders are not lending their money.... relatively close is probably "good enough". Fieldwork and personal inspection is no longer needed.