Ftc Files Complaint Against Louisiana Reab

[timd354]

The AMC offers $Z to appraiser. Appraiser can try to negotiate this but offer is limited due to no control over X or Y

This part of your premise is simply false. If the AMC offers $Z to appraisers and Z is below the market rate of what appraisers are willing to work for in a particular market, then the AMC is going to have to agree to pay more than Z in order to obtain an appraisal, regardless of $X and $Y....In fact, sometimes AMC's take a loss on a particular transaction in which case $Y is actually a negative number.

 

[Meandering]

And then they can run to the media crying appraiser shortage, and price gouging and then the trolls will come out in defense of free markets.



If they make no money that's the risk they take for not correctly reading the market while being the middle man.

Or shall we digress to SLAs and how the AMCs already set the price to the lenders, so, ooops, they didn't see that coming, now it's the appraisers fault.

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[timd354]

If they make no money that's the risk they take for not correctly reading the market while being the middle man.

That is patently obvious and is a cost of doing business for them. National AMC's enter into contracts with national lenders knowing full well that they will take a hit on some percentage of transactions in certain geographic locations

 

[djd09]

How does an AMC not make money on every deal. That is straight up public relations.

 

[Meandering]

That is patently obvious and is a cost of doing business for them. National AMC's enter into contracts with national lenders knowing full well that they will take a hit on some percentage of transactions in certain geographic locations

Then why didn't you bring it up, like it wasn't any consideration for your post below.

Did anyone consider that appraisers do not have a free market in regards to fees if we go through an AMC?

The AMC charges $X. Appraiser has no control over how much this is.
The AMC keeps $Y. Appraiser has limited control. AMC needs to maximize this to keep in business
The AMC offers $Z to appraiser. Appraiser can try to negotiate this but offer is limited due to no control over X or Y

This is why minimum fees need to be set by Appraisal Boards based on C&R (Market Forces)

A refusal to "deal" over the appraisal fee between the AMC and the appraisers, might push some assignments to occasionally lose money for the AMC. But overall, the refusal to deal on fees is exactly what Ken posts about. And that refusal to deal is because of SLAs, not because of any supply and demand issue.

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[timd354]

Then why didn't you bring it up, like it wasn't any consideration for your post below.

I don't generally think about posting stuff that is absurdly obvious to anyone who has thought about it for more than 2 seconds.