CA Class action lawsuit re: AMC undisclosed fees?

[Sandra Koutsopoulos]

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 ...

 

[glenn walker]

My understanding is this case never went anyplace.The Law firm was kinda advertising in appraisal journals looking for appraisers to be part of a class sction law suit. Give them a call maybe you can join it.

 

[Terrel L. Shields]

FNMA and AMCs created the shortage, then complained about the shortage, then created conditions that exacerbated the shortage. Funny how that works.

 

[ucbruin]

FNMA and AMCs created the shortage, then complained about the shortage, then created conditions that exacerbated the shortage. Funny how that works.

You don't know 1st hand since you don't do work for these entities....

 

[Sandra Koutsopoulos]

My husband and I were discussing parasites the other day, and how in nature, parasites are a nuisance but don't usually kill the host until there are so many of the blood-suckers that the host dies, and then the parasites die because there is no more blood to suck. That analogy has long seemed relevant to me.

 

[chad hampton]

Lawsuits don’t work. Need more pipe hitters.

 

[Mark K]

My husband and I were discussing parasites the other day, and how in nature, parasites are a nuisance but don't usually kill the host until there are so many of the blood-suckers that the host dies, and then the parasites die because there is no more blood to suck. That analogy has long seemed relevant to me.

Are you talking about the AMCs or the lawyers that filed the suit?

 

[glenn walker]

The AMCs have been around for 30 years but some on hear thinks it's the last 10.

They just lived in areas that the Big Banks hadn't yet targetted. Out here the Big Banks owned their own AMCs and thousands of appraisers loved them and their low fees, because it was guaranteed steady work.

 

[Terrel L. Shields]

You don't know 1st hand since you don't do work for these entities....

I know one of my old trainees no longer accepts FNMA work because of two frivolous "tips" by FNMA to the state whose investigator agreed with her E & O attorney that the complaints were frivolous. And she is out the deductible on her insurance. I know that this site of all sites has long complained about low fees offered by AMCs, about technology charges that are BS, and innumerable "stips" that are meaningless.

 

[Sandra Koutsopoulos]

Are you talking about the AMCs or the lawyers that filed the suit?

It seems to fit the AMCs more, since they have been feeding longer. Like most folks, when I hear "lawyers", I get a sick feeling in the pit of my stomach. But now that my son is a L****R, I have come to see that for some things, they are a helpful misery. I just wish that being an appraiser would have enabled me to semi-retire comfortably. But since much of the 'profit' for our efforts has been diverted and absorbed before we get paid for our work, I'm... grumpy. Definitely grumpy. Especially as E&O, software, databases, MLS, licensing & Continuing Ed fees continue to go up. It just ain't fun anymore.