My prediction on 3.6

[TerryRohrer]

My bad. I completely misunderstood this post:
"It is incredible that the dinky appraisal fee, hundreds of dollars, not thousands of dollars...that the appraisal fee, one of the lowest fees in the RE system."

I should have known better. When you said the appraisal fee is 'one of the lowest fees in the RE system', I thought you meant, 'the appraisal fee is one of the lowest fees in the RE system'. I must have overlooked the part about it being low for the amount of labor involved (or maybe, just maybe, you didn't actually say (or think) that)...

So sorry for my obtusity.

That was a typo. "Reading for context" means, "understand what she meant to say, not what she wrote."

 

[George Hatch]

If the AMC had no profit-related intersection with the appraiser's fee, why in the world would the AMC shop by fee?

The system is wrong, and I am tired of wasting my time fighting off appraisers who keep defending it or questioning how it could be fixed.

Two questions:

When everyone who has worked for an AMC in a senior capacity over the last 15 years (without exception) says that the lenders are constantly on their case about the total fees the lenders are paying and are constantly showing them what their competitors are doing with fees and various performance metrics. As in 3-4 times a year in face-to-face meetings

and​

when they also say that its very common for panel applicants and panel members to approach them and ask if lowering their fee will result in more work

then​

how seriously do you take these comments? How honest do you think these current and former employees are being about what they have personally experienced?

 

[Lycabull]

Wow, how quickly things always seem to digress to insults on here. Disclaimer: I have a couple of people on ignore so have not read all the comments.

I usually log onto this site to learn and/or get info. Thanks to those of you who have offered up useful info/opinions and even those of you who think you have, but not everyone agrees with. Instead of calling anyone names, I plan to make up my own mind if that is ok with everyone.

I'm leaning towards taking a class or two, waiting to see what the software and AI vendors come up with and then seeing how the industry reacts. Most people in the lending industry I've spoken to about this had/have no clue about the impending changes. Same with the realtors I've spoken with. I think we would all be well served to remember most people are only interested in the value, not the report. I never blamed anyone for human nature. Will borrowers notice the new changes? Doubtful and even if they did, I doubt they would care much. For most borrowers, it is and always has been, all about the value, not a reporting format.

It helps to think of the changes as additional reporting requirements for a particular segment of the lending industry rather than the end of the world. Based on the reviews I've done, more standardization is not necessarily a bad thing.

 

[Zoe]

I still have a slight feeling it will slow down commerce.

I could be wrong.


It is gut feeling. Turn time on appraisal 3 weeks.

 

[Stephen Mueller]

 

[Surf Cat]

Pretty heated back and forth.

I haven't read every single post but on what I have read, and based on working for AMCs in the past, Grant has the inside track.

Yes, I also used AI to gather information.

First, The borrower funds the entire transaction, including the appraisal fee.

Because lenders do not directly pay the AMC out of their own pockets, they have less incentive to negotiate lower management fees or ensure the independent appraiser receives a market-rate fee. This frequently results in lower fees for local appraisers and higher bundled costs for consumers.

Location also factors into how much the AMC keeps for their management fees. The more appraisers in metropolitan areas, the more the AMC skims from the appraisal fee due to spamming out assignment offers creating a bidding war.

It appears the new trend coming on strong is the W-2 staff appraiser. The new AMC model is going to be more like an appraisal firm.

 

[J Grant]

Two questions:

When everyone who has worked for an AMC in a senior capacity over the last 15 years (without exception) says that the lenders are constantly on their case about the total fees the lenders are paying and are constantly showing them what their competitors are doing with fees and various performance metrics. As in 3-4 times a year in face-to-face meetings

and​

when they also say that its very common for panel applicants and panel members to approach them and ask if lowering their fee will result in more work

then​

how seriously do you take these comments? How honest do you think these current and former employees are being about what they have personally experienced?

I take both those comments seriously and that those employees are being honest about what they personally experienced. Both are examples of why the AMC system that gets the AMC compensated from a share of the appraisal fee is terrible for the appraisers. But you already know that. The appraisers left who do AMC work, some of them may indeed offer to lower their fees . Many appraisers refuse to work for AMC's or only accept an order from an AMC if they get decent fees, and some appraisers have left the business because of the business reality that you describe.

 

[J Grant]

First, The borrower funds the entire transaction, including the appraisal fee.

Because lenders do not directly pay the AMC out of their own pockets, they have less incentive to negotiate lower management fees or ensure the independent appraiser receives a market-rate fee. This frequently results in lower fees for local appraisers and higher bundled costs for consumers.

The above comment about how lenders do not pay the AMC our of their own pocket, explains why the AMC's have such a huge market share.

I have continually asked the supporters of the current system here if lenders would use AMCs if the lender had to pay the AMC a cost from their own pockets, and they never answer the question, becaue they know what an honest answer to that question would be.

It is this huge market share, thanks to a government perk of HUD-bundled fee, which allows AMC service free of cost to the lender customer, that gives the AMCs the power of their huge work volume. and that power used against appraisers is what procures such low fees.

It is fun to see the so-called free market people here turn into tigers defending a govt perk of corporate welfare

 

[Bobby Bucks]

Wow, how quickly things always seem to digress to insults on here. Disclaimer: I have a couple of people on ignore so have not read all the comments.

I usually log onto this site to learn and/or get info. Thanks to those of you who have offered up useful info/opinions and even those of you who think you have, but not everyone agrees with. Instead of calling anyone names, I plan to make up my own mind if that is ok with everyone.

I'm leaning towards taking a class or two, waiting to see what the software and AI vendors come up with and then seeing how the industry reacts. Most people in the lending industry I've spoken to about this had/have no clue about the impending changes. Same with the realtors I've spoken with. I think we would all be well served to remember most people are only interested in the value, not the report. I never blamed anyone for human nature. Will borrowers notice the new changes? Doubtful and even if they did, I doubt they would care much. For most borrowers, it is and always has been, all about the value, not a reporting format.

It helps to think of the changes as additional reporting requirements for a particular segment of the lending industry rather than the end of the world. Based on the reviews I've done, more standardization is not necessarily a bad thing.

I agree. The simps in here are boring and annoying and it’s obvious they haven’t completed a 1004 in years or have yet to complete their first one, yet they’re suddenly experts on 3.6. I’m still in a holding pattern, I’m watching from the sidelines, but am not going to waste excess or time or money until the bugs are worked out of the 3.6 train wreck which took 8 years to create.

 

[chad hampton]

If the AMC‘s morph into their own appraisal companies, will they have to revisit DF to create a new third-party? It would seem so.