CA Class action lawsuit re: AMC undisclosed fees?

[Zoe]

I was checking CA regs re: AMCs to see if there was a time period requirement for AMCs to pay for the appraisals they order in CA. Nope. Loosey-goosey, they pay when they feel like it. Then:
I ran across multiple headlines about a California February 2025 class action lawsuit against AMCs bilking the public out of some $12,000,000,000 for non-disclosure and not breaking out AMC fees incl tech and other charges from the appraisal fee stated on the loan closing statements. One contention is that Borrowers think the appraisal fee reflects the work of expensive professionals. Another observation noted the results of this practice of non-disclosure is that appraisers are leaving the business because their income is heavily eroded and chipped away, and that might result in an actual shortage of appraisers in time of need. Imagine that. They're only a decade or so late. What are the odds something positive will happen with this? Could it be the Appraiser's version of the recent disconnection of buyer-agent/seller-agent real estate co-broke fees offered in MLS?
arcc-usa.org
https://arcc-usa.org › california-class-action-challenges-i...
Feb 20, 2025 — ... (AMCs). “Lenders bundle hidden AMC fees with the appraisal costs, leading to inflated charges that are never clearly disclosed to homebuyers.

What You Need to Know About Appraisal Management ...

Morgan & Morgan Lawyers
https://www.forthepeople.com › Blog Index
Jan 29, 2025 — Many buyers may not realize is that hidden fees, often linked to Appraisal Management Companies (AMCs), can significantly inflate their costs.
Feb 24, 2025 — The lawsuit contends that AMC middlemen misrepresent appraisal costs ... AMCs charged borrowers more than $12 billion in hidden fees ...

Investigation Launched into Appraisal Fees and ...​

Note Servicing Center
https://noteservicingcenter.com › investigation-launche...
Feb 10, 2025 — Analysts in the mortgage industry have voiced concerns that AMCs may contribute to inflated appraisal fees by imposing additional layers of cost ...

AMC Fined Over C&R Fees​

Working RE Magazine
https://www.workingre.com › AMC-fined-over-cr-fees
A $10,000 fine big friggin deal!!! They were taking in $465 per appraisal. Paying out $250 and then minus a “technology or service fee” They were hauling in ...

About the only players that could make a difference are a State prosecutor or the FTC. I think current admin has clipped CFPB wings similar to clipping a bird's wings A State govt or the FTC have way more power and other people like REEVA or ABA or whoever are scared to play with FTC or State prosecutor because then it could bring charges from other govt agencies at State and Federal level in the investigation. It could also bring charges against private companies not in the prosecution lawsuit like private companies including federally and/or like regulated institutions like banks, etc.

 

[Zoe]

That is like Ms. Chance with Appraisal Institute. They accused her of embezzlement sometime after they fired her. That could bring charges against many other people if IRS and FBI get involved also.

HUD could get involved and bring charges. When you open those kind of doors at government level, it can explode quickly due to regulators at both state and federal level.

 

[Sandra Koutsopoulos]

This Class Action lawsuit filed in CA, stays only in CA? or may become Fed? Considering the AMCs feed on Corpa Omnia, maybe it has legs?....

 

[glenn walker]

This Class Action lawsuit filed in CA, stays only in CA? or may become Fed? Considering the AMCs feed on Corpa Omnia, maybe it has legs?....

It doesn't have any legs. Lol

 

[Zoe]

DOGE would be scared to mess with some govt officials at both State and Federal level. FTC is one. Some State and other govt officials are similar that DOGE would be scared to mess with due to ramifications in a lawsuit. Memphis is in heated battle with Elon right now. City and Elon are trying to make amends with lawsuits flying from local officials and others. I think Elon heads DOGE. He has not appeared before camera in Memphis. LOL.

Govt officials have power. A homeowner's association in an individual development has power within their boundaries. I think some of the environmental issues Elon has stirred in Memphis has Elon scared to testify in front of some of the groups opposing the development. The pressure spreads sometimes to other entities.

The focus may be on one entity, but when fully developed it spreads to other parties and entities, both private and public entities.

 

[Zoe]

I think Trump and DOGE are scared to mess with FTC, some State governments, and some other state and federal officials.. They fear the officials or others may find out things that implicate them personally and corporately.

That is like deceased pope saying he thought tariffs were wrong because he believed in free trade and they were going to hurt the poor.

 

[glenn walker]

If they ever won it would be all over the appraisers news and blogs, but even then it could go through the appeals process and be a few years before a resolution.

In the meantime your on food stamps, social security or both and it won't matter anyways..lol

 

[Terrel L. Shields]

, they are a helpful misery.

That is an excellent description of the role of an attorney.

 

[chad hampton]

AMC‘s in their current form have only been around for 10 to 15 years.

I wouldn’t sweat it, you have to learn to read the room. Middle men profiteers that offer nothing are about to get hammered hard.

 

[jay trotta]

IMO- If we think a bit about it, the Fed had the opportunity to be "transparent" about Fee's back in 2010+/- when Dodd/Frank came into play and they avoided it like the plague. It was their opportunity to solidify Public Trust by breaking out the Fee in the HUD-1 which they failed to do. Therefore, bringing on the AMC Eveolution and destruction of the appraisal industry as a whole, which appears to be their intent via the rear-view mirror.

IMO-all a Class Action lawsuit does is feed the attorney. Looking at the Real Estate one for NAR, in actuality, it does not support the Seller Agent by limiting their ability to offer the Buyer Agent via MLS equal, more, or less of an incentive to sell a particular property. It is now hidden away and requires an inquiry by the Buyer's Agent, sort of self-defeating for the Seller. If I were a Seller I would look for as much Exposure as possible for the highest and best by All potential Buyers.