Thanks for demonstrating my point, Craig. In editing my post to sound less like a personal attack, I missed changing a word and it has detracted from my message.
I have regular work as a residential appraiser, and I do not take work from AMCs. I did experiment with a couple last year for a total of 13 orders, but they were too annoying. I simply don't work for them. I would think that is true for all who don't like them.
Those that do work for them are approving of them by their actions. Why fight to shut-down the companies for which so many appraisers prefer to work? The several of the largest AMCs are not owned by banks. I'm sure they would gladly accept the work from banks even without an exclusive contract. Abolishing and outlawing bank owned, affiliated or contracted AMCs would not alter the number of appraisals sent through AMCs unless the whole concept of an AMC was abolished. Legislation that would accomplish that without loop holes, would also shut-down any shop with multiple appraisers.
The best clients don't use AMCs. I like having AMCs around to keep others busy and away from the good assignments. It makes it much easier for me since I long ago decided residential appraising doesn't pay enough to be a full-time occupation and I don't have enough time for high competition marketing. However, it does make a nice hobby and I enjoy the work.
Wachovia has an AMC (Greenlink), Countrywide has an AMC (Landsafe), Washington Mutual does (E-Appraiseit). Most big banks have AMC's; they are a profit center. I posted elswhere that Countrywide had their worst month ever in August; a paltry $34,000,000,000 in loan originations; yes 34 BILLION in 30 days, and every loan required an appraisal. What a nice department for Countrywide (landsafe). Exxons profit last year was one hundred million dollars a DAY. In one week, they could buy and pay for the Empire State building, the following week, the Sears tower.
It is not that appraisers prefer to work for these AMC's. In many markets AMC's flat out dominate them. If you attempt to work with any one of several thousand mortgage brokers in say south Florida, for the most part all of those mortgage brokers are running their loans through a dozen or so lenders, most or all of which have AMC's
It is the same in the alcohol business. If you go to a bar, there are hundreds of liquers that you will see. A mere handfull of them in any area are distributed by two or three distributors. There are all but 4 or5 major manufactures that make up about 90 or more percent of those brands that are distributed.
You would be shocked to know how many hundreds of brand names Kraft controls. Actually, I have to re check, but I belive the Altria group owns Kraft
The Altria groups sales were 43 Trillion dollars last year - Yes, TRILLION, not a typo. They own Ben and Jerrys, Breyers, Hagan Daz, nearly every Ice Cream company you have ever heard of. Look up the Altria Group on Wikipedia, their holdings are beyond amazing.
Try to get your product into a major grocery store chain - It is not going to happen, Been there - done it !
The banking industry is pulling it all in, and are accomplishing their objectives of finding cheap hired help, as they are in total control, and said cheap hired help is liable for the crappy reports that they are expected to turn around in a day. You virtually can not approach a mortgage broker, and receive work through any other means.
Big Business and Big Brother, partners in oppressing you, and I.
