AMC Lawsuit Update

[jhornet88]

https://appraisersblogs.com/the-appraisal-fee-lawsuit-AMCs-cannot-outrun/

 

[Zoe]

The Appraisal Fee Lawsuit AMCs Can’t Outrun

The class action lawsuit filed against CrossCountry Mortgage and Class Valuation arrives at a moment when many in the appraisal profession have grown tired of watching Appraisal Management Companie…

appraisersblogs.com

 

[Zoe]

"The Appraisal Regulation Compliance Council (ARCC) findings released last year confirmed exactly how widespread this practice is. The fee breakdown chart that circulated across the appraisal community showed AMCs routinely keeping more than sixty percent of the borrower’s fee. Many of the entries in that chart were from Class Valuation, and appraisers recognized the pattern immediately. The appraiser’s portion was often the smallest slice, while the AMC’s portion was the largest. The chart made it impossible to ignore what appraisers had been saying for years. The borrower pays a premium, the AMC keeps the bulk of it, and the appraiser is left with whatever remains.


The lawsuit explains that borrowers are led to believe they are paying for an appraisal and nothing more. CrossCountry Mortgage told the plaintiff, “We may order an appraisal to determine the property’s value and charge you for this appraisal.” The filing states that this representation was false because the fee included an undisclosed management charge for Class Valuation. Borrowers are not informed of the AMC’s involvement until after the appraisal is completed, and even then they are not told how much of their money the AMC kept. By the time the closing disclosure appears, the borrower has already paid the fee and has no practical ability to choose another lender or negotiate anything."

"The suit argues that AMCs provide no benefit to borrowers and only a limited benefit to lenders. Their existence is tied to lender convenience rather than consumer protection. The complaint notes that lenders often create their own AMCs as subsidiaries because the profit margins are so high."

"The legal claims include violations of the Florida Deceptive and Unfair Trade Practices Act, unjust enrichment, and breach of contract. The FDUTPA claim focuses on the AMC’s concealment of its fees and its misrepresentation of the nature of the services provided. The unjust enrichment claim argues that Class Valuation accepted and retained money that bore no relationship to the value of its services. The breach of contract claim targets CrossCountry Mortgage for charging a fee that was not permitted under the loan agreement. The plaintiff seeks damages equal to the portion of the fee retained above the actual cost of the appraisal, along with injunctive relief to stop these practices."

 

[jay trotta]

"The Appraisal Regulation Compliance Council (ARCC) findings released last year confirmed exactly how widespread this practice is. The fee breakdown chart that circulated across the appraisal community showed AMCs routinely keeping more than sixty percent of the borrower’s fee. Many of the entries in that chart were from Class Valuation, and appraisers recognized the pattern immediately. The appraiser’s portion was often the smallest slice, while the AMC’s portion was the largest. The chart made it impossible to ignore what appraisers had been saying for years. The borrower pays a premium, the AMC keeps the bulk of it, and the appraiser is left with whatever remains.


The lawsuit explains that borrowers are led to believe they are paying for an appraisal and nothing more. CrossCountry Mortgage told the plaintiff, “We may order an appraisal to determine the property’s value and charge you for this appraisal.” The filing states that this representation was false because the fee included an undisclosed management charge for Class Valuation. Borrowers are not informed of the AMC’s involvement until after the appraisal is completed, and even then they are not told how much of their money the AMC kept. By the time the closing disclosure appears, the borrower has already paid the fee and has no practical ability to choose another lender or negotiate anything."

"The suit argues that AMCs provide no benefit to borrowers and only a limited benefit to lenders. Their existence is tied to lender convenience rather than consumer protection. The complaint notes that lenders often create their own AMCs as subsidiaries because the profit margins are so high."

"The legal claims include violations of the Florida Deceptive and Unfair Trade Practices Act, unjust enrichment, and breach of contract. The FDUTPA claim focuses on the AMC’s concealment of its fees and its misrepresentation of the nature of the services provided. The unjust enrichment claim argues that Class Valuation accepted and retained money that bore no relationship to the value of its services. The breach of contract claim targets CrossCountry Mortgage for charging a fee that was not permitted under the loan agreement. The plaintiff seeks damages equal to the portion of the fee retained above the actual cost of the appraisal, along with injunctive relief to stop these practices."

What Is Transparency? A Simple but Rich Definition​

At its core, transparency refers to the quality of being open, honest, and clear. It involves providing information freely, avoiding secrets or concealment, and allowing others to see the full picture. Think of it like looking through a window—what you see on the other side is clear and unobstructed.

As the banksters are involved, backed by politicians, the practice of deception has been at an all-time high. The fleecing of Americans has taken on new meaning over the past several years.