AMC purpose

[Surf Cat]

AMCs were supposed to be a firewall between the mortgage brokers & the appraiser....to ensure independence and integrity.

However, they morphed into money grubbing, scum of the earth, bottom feeders. Taking advantage of the stripped away independence of the "independent fee appraiser"

Their newfound "we got em over a barrel" system incentivizes them to maximize profit at the expense of appraisal quality, appraiser experience (hiring newbies for complex assignments) and "cough" public trust. They undermined the very integrity they were meant to protect and they rip off borrowers to boot.

 

[Zoe]

I don't think "partner" should be used in terms of public trust.

 

[Bill75]

Exactly. This is why you only receive the odd ball or "not going to make contract" orders. The AMCs cherry pick the easy orders for their staff and hand out the *****y orders to fee appraisers. Pretty good business model if I say so myself.

 

[Surf Cat]

Exactly. This is why you only receive the odd ball or "not going to make contract" orders. The AMCs cherry pick the easy orders for their staff and hand out the *****y orders to fee appraisers. Pretty good business model if I say so myself.

AMCs were designed to coordinate external appraisers, not to staff them.

 

[djd09]

I don't think "partner" should be used in terms of public trust.

maybe we can ask Frank about this...

 

[Bobby Bucks]

What a dreadfully boring thread, AMC jeopardy with half the participants trying to win brownie points with AMC royalty. Hopefully the f bombs will commence when enough people see the topic.

 

[George Hatch]

The OPs comment included a reference to why AMCs were created. That's what I've been responding to. The other topic of how they operate and how much damage their splits are wreaking on appraisers is a different issue. What they are/aren't and why they were created is not the same thing as how they operate and what they're doing to appraisers.

Fee appraisers exist as a business model because the lenders outsource the appraisal itself instead of carrying that overhead in-house. AMCs exist as a business model for the same reason - to outsource the overhead and to only pay as they go, scalable per the volume. The AMCs don't actually add to the isolation between loan origination and due diligence because the lenders were already required to isolate those functions.

 

[djd09]

purpose...divide the appraiser from their clients, fees, independence, inspection and so on

 

[Surf Cat]

purpose...divide the appraiser from their clients, fees, independence, inspection and so on

You forgot inflating costs without providing tangible benefits to borrowers.

 

[Terrel L. Shields]

That isn't what AMCs were created for. The lenders are already required to isolate the appraisal process from the loan origination

How does that work when the AMC is the appraiser? Obviously, they have no firewall between them and the lender. They kowtow to the lender or lose their contract. Make it make sense please.