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AMC - you guys were correct!

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Imp8012

Thread Starter
Freshman Member
Joined
Aug 13, 2007
Professional Status
Licensed Appraiser
State
Michigan
I did a review for an AMC today, the first AMC order Ive ever received and Ive been doing this 10 years. Id read numerous times in the forum how big of a pain and how low the fee from the various AMCs. Well let me just say, Never Again! It was a field review - paying 1/2 the going rate and then I spent an hour learning to downloand to their system. Now that Ive managed to send the report, I cant get in to invoice it. Ill call them tomorrow, Ive had enough of their system for the day! Anyways, you guys were right! What a nitemare.
 

JRS at OBX

Elite Member
Joined
Jun 13, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
Many AMC's don't want an invoice. They sent you the job at 1/2 the going rate, they will probably send you a check for 1/2 the going rate. Some of them let you upload an invoice by itself, but they probably don't pay any attention to it.

Congratulations on your new distaste for the scum of the industry.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Of course they don't want the invoice in the .pdf file. Might show the client how little the AMC is paying the appraiser!
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Of course they don't want the invoice in the .pdf file. Might show the client how little the AMC is paying the appraiser!
They will crack your PDF an put their own Invoice, like TU. Oh yeah they already made a Memo telling the tech monkeys to stop doing that and other things.
 

Rrebera

Junior Member
Joined
Jan 21, 2002
Professional Status
Certified Residential Appraiser
State
Ohio
Not surprised about the low fees, we have appraisers in Ohio working for less than $150.00 for a full appraisal. I see some doing FHA REO work $150.00 and covering 10 counties.
 

Ron Howson

Sophomore Member
Joined
Mar 30, 2005
Professional Status
Licensed Appraiser
State
California
I started thinking (big mistake) about the AMCs and their downward pressure on our fees. Since the big lenders and banks are outsourcing to them to cut their own expenses, they are getting more and more of the appraisal market. With all the repo's and bank/short sales, we should be not too much less busy, really, than a short while ago. There is a lot of appraising going on. It's just that many of us can't afford to work for those fees.

If you are willing to work for very little, you can have all the work you want. I started reading about Price Fixing and Collusion. It looks to me that this is what is going on. I added a couple of links that explain a bit about it. Price fixing can also be agreement to limit the amount paid to vendors. I have heard that the lenders/AMCs invoice the homebuyer between $500 and $700 for an appraisal, which is why they don't want your invoice attached to your report. It looks as though these AMCs have settled on a price or price range and from what I have read in this forum, they are all pretty much in the same ball park.

http://en.wikipedia.org/wiki/Price_fixing
http://en.wikipedia.org/wiki/Collusion

I have written a long, long, long letter to send to the Justice Department, Attorneys General Office and the Federal Trade Commission about this downward pressure on our fees and undue pressure on appraisal outcomes by AMCs and lenders. Hopefully, they will use their Anti-trust laws.

The appraisal union.org also has some interesting topics on it's agenda. I think when the market turns around, if we don't do something about it, the AMCs will own the majority of the market = us. They make a lottttt of money.
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
I think when the market turns around, if we don't do something about it, the AMCs will own the majority of the market = us. They make a lottttt of money.

AMCs are geared to a specific purpose for a specific market segment. Outside that market segment they are an utter nonissue.
 

gogirl

Freshman Member
Joined
Oct 19, 2007
Professional Status
Certified Residential Appraiser
State
California
This is my first time posting in a forum. I hope I am doing it properly. Re: Mgt co. fees. I decided this morning that I will no longer do work for these very low fees. and quit the AMC. I resorted to AMC's when my business with other lenders was all but gone. As a result of their excuse of "we are required by fannie mae 7-11 notice" I am doing twice the work for the same or less fees. There is no more profit and I have no life. I wonder how many other appraisers are in my position. I also wonder what would happen if all the appraisers who do work for AMC's would collectively stop for a week or so. Do you think they and the Wamu's, BofA's, etc would get a loud and clear msg. Someone should tell Fannie that their 7-11 announcement means absolutely nothing and has no impact on an appraisal. It is an exercise in futility. I also wonder if any other appraisers do not appreciate the AMC lack of professionalism and respect when their reps talk to appraisal professionals.
 
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Doug Meyer

Senior Member
Joined
Sep 13, 2003
Professional Status
Certified Residential Appraiser
State
Indiana
Gogirl: Welcome to the forum with your first post. Your reasons are why I have quit AMC's. Have one firm that sends me a few orders, but I have been on their list for over 15 years. Most are a pain in the rumps!
 

Tudor

Member
Joined
Aug 15, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
Someone should look into the AMC's and see who is doing the majority of the work. Is one appraiser doing a high number of appraisals a month? If so, are they doing all of the work or are trainees doing all of the work. I have a hard time believing a seasoned appraiser is going to do all that work for such low fees, but if they have a bunch of trainees, well a split with numerous trainees makes more sense.
 
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