Be the Driver, rather than just a passenger of your appraisal practice

[DWiley]

It is not about an AMC reporting a bundeled fee to the lender. It is that the AMC gets paid from getting a % of the bundleed appraisal fee which was covered by the borrower

There have been examples posted in the past from the handful of states requiring break down of fees and it looks like this :

Appraisal fee: $500 AMC $175 Appraiser $325

Nothing in your example points to a lender getting a percentage of a bundle. In the 8+ years I worked in AMC land we never billed based on a percentage of the total fee.
I understand that is not consistent with your belief. It is just what I saw actually happen.

 

[J Grant]

Nothing in your example points to a lender getting a percentage of a bundle. In the 8+ years I worked in AMC land we never billed based on a percentage of the total fee.
I understand that is not consistent with your belief. It is just what I saw actually happen.

It breaks down to a percent of the bundle, regardless of how you billed it or describe it -

The lender has a borrower paid appraisal fee of $500 to work with for an order. The AMC sends out a bid or compares rates and assigns the order to Appraiser John who does it for a fee of $150. The lender then sends the $500 to AMC to pay the appraiser out of it? Idk, I am not on the accounting end of it so can't say. But the $150 and the $350 are parts of the whole or percentages of the whole


On the HUD settlement statement, the $500 is listed as an appraisal fee and the appraisal fee is identified as a bundled fee.

 

[DWiley]

It breaks down to a percent of the bundle, regardless of how you billed it or describe it -

The lender has a borrower paid appraisal fee of $500 to work with for an order. The AMC sends out a bid or compares rates and assigns the order to Appraiser John who does it for a fee of $150. The lender then sends the $500 to AMC to pay the appraiser out of it? Idk, I am not on the accounting end of it so can't say. But the $150 and the $350 are parts of the whole or percentages of the whole


On the HUD settlement statement, the $500 is listed as an appraisal fee and the appraisal fee is identified as a bundled fee.

LOL. By your logic the appraiser is also getting a percentage of the bundled fee The $325 is a certain percentage of the $500, just like the $175 is a certain percentage.

Is that how it works? No. Doesn't work like that for the AMC either, no matter how many times you assert otherwise. We had contracts with over 200 lenders, and in no case was the AMC fee a % of the total fee.

 

[glenn walker]

Nothing in your example points to a lender getting a percentage of a bundle. In the 8+ years I worked in AMC land we never billed based on a percentage of the total fee.
I understand that is not consistent with your belief. It is just what I saw actually happen.

Facts don't matter on this issue it's all about feelings and emotions

 

[J Grant]

LOL. By your logic the appraiser is also getting a percentage of the bundled fee The $325 is a certain percentage of the $500, just like the $175 is a certain percentage.

Is that how it works? No. Doesn't work like that for the AMC either, no matter how many times you assert otherwise. We had contracts with over 200 lenders, and in no case was the AMC fee a % of the total fee.

Are you trying to drive me crazy lol -
Whether one describes it as a percentage or not, the AMC gets paid a portion, or part of the money out of the total appraisal fee (which is classified by HUD as a bundled fee )

Yes by my logic the appraiser is getting a percentage of the bundled fee. Which is the problem . With no AMC in middle, the appraiser gets ( typically) the whole appraisal fee via a direct lender or private order. When lender uses an AMC, the appraiser gets a percent, or portion of $ of the bundled fee. Upshot is the appraiser gets less money for performing the same work when an AMC is involved -

That is the flaw of the current system (from the appraiser perspective ). The system imo benefits the lenders the most-

 

[J Grant]

https://www.reinhartlaw.com/knowledge/HUD-adopts-new-respa-regulations/

 

[Dublin ohio]

Are you trying to drive me crazy lol -
Whether one describes it as a percentage or not, the AMC gets paid a portion, or part of the money out of the total appraisal fee (which is classified by HUD as a bundled fee )

Yes by my logic the appraiser is getting a percentage of the bundled fee. Which is the problem . With no AMC in middle, the appraiser gets ( typically) the whole appraisal fee via a direct lender or private order. When lender uses an AMC, the appraiser gets a percent, or portion of $ of the bundled fee. Upshot is the appraiser gets less money for performing the same work when an AMC is involved -

That is the flaw of the current system (from the appraiser perspective ). The system imo benefits the lenders the most-

Simple question. Besides a limited number of appraisers. Who cares how the fees are disclosed. Do you think the consumer really cares who is getting what. All they care about is the total of fees. How is separating of fees going to help anybody. What will it accomplish.

 

[J Grant]

Simple question. Besides a limited number of appraisers. Who cares how the fees are disclosed. Do you think the consumer really cares who is getting what. All they care about is the total of fees. How is separating of fees going to help anybody. What will it accomplish.

Not my arguing point whether or not the consumer cares, though some might- and many would be shocked if they knew, ( they don't know) that their home appraisal is being bid out to find a cheaper provide flea market style. The point is whether appraisers have have grounds for a class action suit I have no idea-

I've said hundreds of times, disclosure of fees is not the answer, a separation is, where lender pays the AMC whatever $ they want for the AMC service and the appraiser gets 100% the appraisal fee

Looks like they like to use the word bundled charge now rather than bundled fee on the HUD. From what I gather there have been consumer lawsuits about all kinds of bundled charges, which can be title and other services. I bet appraisals are the only bundled charge with 30% -40% going to a third party lol

 

[Dublin ohio]

Not my arguing point whether or not the consumer cares, though some might- and many would be shocked if they knew, ( they don't know) that their home appraisal is being bid out to find a cheaper provide flea market style. The point is whether appraisers have have grounds for a class action suit I have no idea-

I've said hundreds of times, disclosure of fees is not the answer, a separation is, where lender pays the AMC whatever $ they want for the AMC service and the appraiser gets 100% the appraisal fee

Looks like they like to use the word bundled charge now rather than bundled fee on the HUD. From what I gather there have been consumer lawsuits about all kinds of bundled charges, which can be title and other services. I bet appraisals are the only bundled charge with 30% -40% going to a third party lol

I used the consumer as an example. The basic question is: Who cares and why and what will it accomplish.

 

[glenn walker]

Not my arguing point whether or not the consumer cares, though some might- and many would be shocked if they knew, ( they don't know) that their home appraisal is being bid out to find a cheaper provide flea market style. The point is whether appraisers have have grounds for a class action suit I have no idea-

I've said hundreds of times, disclosure of fees is not the answer, a separation is, where lender pays the AMC whatever $ they want for the AMC service and the appraiser gets 100% the appraisal fee

Looks like they like to use the word bundled charge now rather than bundled fee on the HUD. From what I gather there have been consumer lawsuits about all kinds of bundled charges, which can be title and other services. I bet appraisals are the only bundled charge with 30% -40% going to a third party lol

ACTUALLY..YOU are wrong I know of two or three others. Lender controlled ESCROW..Escrow officer is not paid the fee collected 80% plus goes to LLC or Corporation. TITLE Insurance fee charged borrower but Big Bank USA.has ownership in Lemon Coast Title. BIG CHASER BANK has 9% stake in Big Dog appraisal management. The list goes on and on. The segragation of appraisal fees is the Nat on the elephants butt that's not what you people are focused on.