Appraisal Institute Controversy Part 2

[Non Sequitur]

AI National promoting AMCs. What a contrast to Dr. Chance’s message:

"There are many that enjoy working with AMCs......"

 

[Joe Flacco]

Many people do like working with AMC. Mostly seems like they are people that just got their license in the last few years and were flipping burgers before.

 

[Joe Flacco]

Those guys remind me of when I first got licensed. Working super hard and thankful to be making money. It was exciting times.

 

[Joe Flacco]

I don't know how current the information is but Google says AMC only has 60% share of mortgage origination appraisals.

40% is plenty for those that choose not work with AMC. That is not even including non-mortgage related purposes.

 

[Non Sequitur]

I don't know how current the information is but Google says AMC only has 60% share of mortgage origination appraisals.

40% is plenty for those that choose not work with AMC. That is not even including non-mortgage related purposes.

It’s much higher than 60%. Unfortunately the GSEs are mute when asked, but the best analysis I’m aware of is the FHFA’s analysis of UCDP portal data that showed 23% not associated with AMCs. That aligns with what REVAA has claimed in the past (see attached).

 

[Mejappz]

It’s much higher than 60%. Unfortunately the GSEs are mute when asked, but the best analysis I’m aware of is the FHFA’s analysis of UCDP portal data that showed 23% not associated with AMCs. That aligns with what REVAA has claimed in the past (see attached).

View attachment 99034

Interesting when I said that AMCs had 80% of the market cornered a few years back; I was attacked immediately by the fraudsters. Well looks like I was right again.

 

[Mejappz]

AI National promoting AMCs. What a contrast to Dr. Chance’s message:

"There are many that enjoy working with AMCs......"

Of course, the AI is bound to promote the AMCs since they are operated by AMCs themselves.

 

[RCA]

The central problem with AMCs is lack of competence. You would have to gut their organizations of their leadership and replace them with non-existent competent real estate analysts. The professionals capable of running AMCs of the future exist for sure - but they are professors at leading Universities --- and you would have to take several of them and merge their knowledge and skills into one.

Skills needed:

1. Non-parametric statistics & data mining.
2. AI, e.g. ResNet AI analysis of photographs.
3. Software engineering: Ability to write complex software systems and deal with complex relationships.
4. Knowledge engineering: How to succinctly represent and display complex relationships, e.g. making the invisible visible.
5. Real estate, especially ground knowledge of local areas they are appraising.

An example of #4 & #5:

Actually the skills needed are widely needed now - it's largely a question of pay. AMCs take a big cut of the amount people are willing to pay for high quality appraisals. There is really no room for AMCs who can't meaningfully contribute to the production process. So, theoretically and AMC with professionals skilled per above could run an "appraisal company" but they would likely have to do all of the work themselves rather than farm it out. So, effectively they would not be an AMC but simply an appraisal company with experts and trainees.

... There is no room for AMCs in future appraisal.

 

[George Hatch]

One of the GSEs said a while back that that are getting about half of the total SFR loans (with appraisals) and that AMCs are doing 50-55% of those. So if AMCs are controlling 80% of the entire SFR market they only way that happens is if the non-GSE loans are engaging almost entirely via AMCs.

100 loans:

..50 going to the GSEs
-28/50 (55% of the 50%) coming in via the AMCs
..22/50 coming in AMC-free @ the GSEs

To get to 80/100

..80 AMC-engaged as claimed
-28 AMC-engaged @ GSEs
..52 unaccounted for. That 52 is ~equal or slightly more than the 50 loans that didn't go through the GSEs. That would imply that all or almost all the SFR loans that don't go to the GSEs are being engaged by AMCs.

 

[Surf Cat]

It's interesting when you click the video above in post number 91 and look at the related videos on YouTube...... there's views, but no comments. There is one solitary comment for the video above....."AMCs are a disaster and they steal the fee." LOL