AMC Rules

[Joe Flacco]

I think C&R isn't popular with large AMCs but the majority actually favor a cost plus model.

Translation: The large AMC's want their fees guaranteed but want to continue to find the cheapest appraiser possible.

 

[Mile High Trout]

AMC must ensure they select competent , experienced appraisers.

It's too bad they don't have those same requirements for their own staff.

Eventually there will be a new licensed position. Something about valuation management persons. Probably the most troubling thing I ever hear, is when an AMC worker informs me they're keen to ethics, because they took a USPAP class. Which is usually followed by an outright lie about checking with the client for fee increase, when you know dang well they're price shopping.

I've had I think 2 AMC orders in over 2 years.

You guys can keep them. It's a lose lose issue for appraisers, as long as there is not appropriately separated fees, for distinctly different services.

Cost+ = fail. Sounded nice, but has poor relationships to C&R regulation.

Properly separated and disclosed fees = win. Nothing short of keeping fee's from being co mingled will save the day.

Or we could go the other direction; If I'm appraising a sale, I want .5% of both the salespersons and the brokers commission. That should take the edge off. If they can do it, why can't we? What say you?

 

[Mike Garrett RAA]

regulated in my state...hasn't changed a thing.

 

[Michigan CG]

regulated in my state...hasn't changed a thing.

Because it is all lipstick on a pig.

 

[Non Sequitur]

Because it is all lipstick on a pig.

Don't act like an but.

 

[PL1957]

Translation: The large AMC's want their fees guaranteed but want to continue to find the cheapest appraiser possible.

In a cost plus model, the AMC has zero incentive to look for the cheapest appraiser. To the contrary, they have an incentive to look for the appraiser who will turn in a clean report, on time, causing them to spend less time on the back end.

 

[Mile High Trout]

In a cost plus model, the AMC has zero incentive to look for the cheapest appraiser. To the contrary, they have an incentive to look for the appraiser who will turn in a clean report, on time, causing them to spend less time on the back end.

But you're missing the details of the disclosure issue. There is a lot of growing emphasis on tracking C&R via closing documents.

And as long as the fees are not appropriately separated, there will be no proper distinction of what is and is not C&R. You'll never get AMC's to agree what is and is not an acceptable rake portion.

The new solution is properly separated fees.

If the AMC service is legitimate, it should be billed for separate from the appraisal service.

If the AMC service is legitimate, why don't they bill separately?

 

[PL1957]

But you're missing the details of the disclosure issue. There is a lot of growing emphasis on tracking C&R via closing documents.

And as long as the fees are not appropriately separated, there will be no proper distinction of what is and is not C&R. You'll never get AMC's to agree what is and is not an acceptable rake portion.

The new solution is properly separated fees.

If the AMC service is legitimate, it should be billed for separate from the appraisal service.

If the AMC service is legitimate, why don't they bill separately?

Believe it or not, some do ...

 

[Mile High Trout]

Those are better ones. Funny how they can do the same thing, yet one has a substantially increased impact towards appraiser fees, and the other does not. Talk about imbalanced business presence.

 

[Lost Cause]

There Is (And Will Be) No Enforcement

States will be enforcing TILA.

Who do you think you're kidding?