AMCs are done soon

[Zoe]

Let me call it an appraisal consulting assignment to lenders. I'll call it an appraisal consulting assignment or referral appraisal and see if it gets disclosed on HUD truth in lending disclosures.

Appraisal management and appraisals are two different things. They are as different as title opinions and appraisals. They are as different as many items on the HUD-1 truth in lending disclosures.

 

[Zoe]

For all of you that have never seen a HUD-1 Settlement statement:

www.HUD.Gov

 

[Zoe]

www.HUD.gov

Just search for HUD-1 settlement statement and look at all the fees that are separated on the statement to borrowers. I could not get the link to post. Just do HUD.gov and search on their website for HUD-1 settlement statement.

 

[Zoe]

https://www.lendingtree.com/home/ho...for things like taxes, insurance or deposits.

Look at section L and items under line 800. All they had to do was add appraisal management fee as separate line item for the borrower. I can't get it to copy as a link. Just copy and paste in your browser.

 

[glenn walker]

Zoe Tennessee already has Separation of fees laws on the books. Maybe you need you to get up to date on Tennessee Real Estate Law

 

[glenn walker]

Zoe Line #804 on HUD-1 is where both the Appraisal and AMC are included and totaled to what borrower pays.

 

[Zoe]

Zoe Line #804 on HUD-1 is where both the Appraisal and AMC are included and totaled to what borrower pays.

Yes. That was not the intent of the original bill on separation of fees. It is a lie to the borrower and public and the nation. It is sad but I am sorry you can't see it.

There is another line in section 800 that would have been easy to add appraisal management fee.

 

[glenn walker]

Yes. That was not the intent of the original bill on separation of fees. It is a lie to the borrower and public and the nation. It is sad but I am sorry you can't see it.

There is another line in section 800 that would have been easy to add appraisal management fee.

There is no lie in Tennessee all the lender has to do is insert it and be done . What part of that do you not get ? Also there is another line where it can be placed .

 

[PGM92]

I recently had an order for a duplex in Hyde Park (Los Angeles) from an AMC. As is common in that area, the tenants were section 8…smoking pot in the middle of the day with children in the house type of stuff. I was able to fully inspect the back unit and measure the exterior of the front unit, but the tenant in the front unit refused to let me in.

When I finally got in touch with the owner (repeated calls and voicemails to appease the AMC), she told me that the front tenant is a nightmare and has a history of being violent…so she said she will contact the property management company to arrange a new inspection date for the front unit.

I notified the AMC of this. They didn't show concern for my safety. Just “let us know when the inspection is complete”.

Days later, the owner called me to tell me she is not moving forward with the loan.

To this point, I’ve done the following:

> Pulled subject, comparable, and neighborhood data
> Created a file & filled out body of 1025 report (minus the site & improvements section)
> Traveled 60 miles round-trip to the property
> Measured the exterior of both units and drew sketch (minus labeling front unit rooms)
> Fully inspected rear unit
> Drove to 7 comps for exterior inspection
> Spent an atypical amount of time communicating with the borrower & AMC.

So, I notify the AMC and ask for a modest cancellation fee of 30% of the total fee (which was already negotiated below the fee on my rate table).

The AMCs response: “Hello! Per the engagement letter, the client has a standard cancellation fee of $100. This is only paid if the inspection is completed.”

Since I did not have access to the interior of the front unit, they are saying that the inspection was not completed and I will get $0 for this order.

I blame myself, mostly. I let it happen to me.

That said, there is a strange sense of peace in being treated terribly by these companies, and severing ties with them.

When volume tanked, I took a non-appraising job at a law firm that specializes in estate planning, trust administration, and probate. After 6 months of getting to know these people, I now get a small-medium batch of high paying appraisal requests each month to do on the weekends. I upgraded to Certified Residential during this time as well.

Now, instead of spending 15 months chasing faceless AMCs for orders, I will spend that time finishing up a BA in Software Development and only providing appraisals to folks with whom I share mutual respect.

 

[Tiffany Gibbons]

I recently had an order for a duplex in Hyde Park (Los Angeles) from an AMC. As is common in that area, the tenants were section 8…smoking pot in the middle of the day with children in the house type of stuff. I was able to fully inspect the back unit and measure the exterior of the front unit, but the tenant in the front unit refused to let me in.

When I finally got in touch with the owner (repeated calls and voicemails to appease the AMC), she told me that the front tenant is a nightmare and has a history of being violent…so she said she will contact the property management company to arrange a new inspection date for the front unit.

I notified the AMC of this. They didn't show concern for my safety. Just “let us know when the inspection is complete”.

Days later, the owner called me to tell me she is not moving forward with the loan.

To this point, I’ve done the following:

> Pulled subject, comparable, and neighborhood data
> Created a file & filled out body of 1025 report (minus the site & improvements section)
> Traveled 60 miles round-trip to the property
> Measured the exterior of both units and drew sketch (minus labeling front unit rooms)
> Fully inspected rear unit
> Drove to 7 comps for exterior inspection
> Spent an atypical amount of time communicating with the borrower & AMC.

So, I notify the AMC and ask for a modest cancellation fee of 30% of the total fee (which was already negotiated below the fee on my rate table).

The AMCs response: “Hello! Per the engagement letter, the client has a standard cancellation fee of $100. This is only paid if the inspection is completed.”

Since I did not have access to the interior of the front unit, they are saying that the inspection was not completed and I will get $0 for this order.

I blame myself, mostly. I let it happen to me.

That said, there is a strange sense of peace in being treated terribly by these companies, and severing ties with them.

When volume tanked, I took a non-appraising job at a law firm that specializes in estate planning, trust administration, and probate. After 6 months of getting to know these people, I now get a small-medium batch of high paying appraisal requests each month to do on the weekends. I upgraded to Certified Residential during this time as well.

Now, instead of spending 15 months chasing faceless AMCs for orders, I will spend that time finishing up a BA in Software Development and only providing appraisals to folks with whom I share mutual respect.

That is awesome! You truly stepped up your game this slow time. Inspirational! If everyone would say no to AMCs, they would have been a thing in the first place. Turn that AMC in to the state board and write nasty reviews about them at BBC, Google, Yelp or wherever. They can't touch you now.