Hidden home appraisal middlemen have cost homebuyers $12 billion

[alebrewer]

The appriasers were screwed, because even though the appraiser agreed to the fee, the AMC control over a large volume and the artificial supply-demand dynamic of the work, which puts the appraiser at an extreme dsitatvange is teh problem.

An appraiser sends in their fee but if it not bottom basement low they get no orders - so it is BS to say it is fine because the appraiser "agreed to the fee"

Please refer me to the post where I said it was 'fine' - and thank you for doing so.

Saying that appraisers were screwed when they agreed to the fees is a bit like saying 'It's not my fault - they made me do it'. Completely childish. It's the victim mentality, J. No one made anyone agree to those fees. Those fees were agreed to because appraisers have been - and still are - making economic decisions. And in this case, they chose to continue appraising at lower fees because they decided that option was better than whatever other options they felt they had.

The LW has created this 'poor me' mentality in the hopes that folks will just give up and depend on the government for their subsistence - and that's exactly what it is (and will be) - subsistence. If you don't like the low fees - do something else. No one is forcing anyone to do anything.

 

[alebrewer]

As Shakespeare would say, therein lies the rub. If you take the low-ball fee, the onus is on you. I understand the cruel pinch of need but there comes a time when you have to stop taking it. Life is like a **** sandwich, the more bread you have the less **** you have to take. And if you continue to take crap fees from AMCs then all you are going to get is more crap fees...and giving the AMC leverage against every other appraiser on their roster.

Couldn't have said it better.

 

[J Grant]

Please refer me to the post where I said it was 'fine' - and thank you for doing so.

Saying that appraisers were screwed when they agreed to the fees is a bit like saying 'It's not my fault - they made me do it'. Completely childish. It's the victim mentality, J. No one made anyone agree to those fees. Those fees were agreed to because appraisers have been - and still are - making economic decisions. And in this case, they chose to continue appraising at lower fees because they decided that option was better than whatever other options they felt they had.

The LW has created this 'poor me' mentality in the hopes that folks will just give up and depend on the government for their subsistence - and that's exactly what it is (and will be) - subsistence. If you don't like the low fees - do something else. No one is forcing anyone to do anything.

I did not literally quote you saying it is fine - that was the message from your post

WRT - - yes, they made the appraiser do it applies - the appraisers with a res license have few options outside lender work for volume, and the AMCs have large volume shares, and they use that to award fees only to the lowest or low bidders. There is no corollary to it in normal supply and demand,

I personally do not do work for AMCs except for one owned by a lender, which is a cost-plus model. But it took me years of hardship and using up savings post-HVCC to claw my way back to not accepting AMC work, and some appraisers, particularly those who support a family, can not do that.

Idk why appraisers defend a system that hurts their own - and no, you did not literally say that, but that is the message AMC's and lenders rely on to support this system -many appriasers who post that kind of message, it turns out , either work for or have a connection to an AMC .

 

[George Hatch]

I think getting the article published is a good thing for all concerned, including the AMCs themselves.

 

[alebrewer]

WRT - - yes, they made the appraiser do it applies - the appraisers with a res license have few options outside lender work for volume, and the AMCs have large volume shares, and they use that to award fees only to the lowest or low bidders. There is no corollary to it in normal supply and demand,

Appraisers have just as many options as anyone else in this great country - probably more than most, as appraisers (typically) have four year degrees, have experience analyzing data, etc. Why are you pigeonholing appraisers into ONLY being able to appraise?

Idk why appraisers defend a system that hurts their own

I have NEVER defended the vile AMC practice of price gouging - you're welcome to point me to one of my posts where I did, though. What I have said - and will continue to say - is that AMC's are a legal form of business activity, and even the vile practice of price gouging is legal. Until that changes, what the heck are you going to accuse them of? Being law abiding citizens? Are some of the AMC practices moral? Absolutely not. Are politicians moral? Absolutely not - yet you break your neck to defend folks like Joe Biden, whose wealth increased from $7M in 2020 to over $15M in 2024.

Just take ownership for your own life - which it appears you have (based on your assertion that you don't do AMC work). Don't blame others for your lot in life. It serves absolutely zero purpose.

 

[chad hampton]

I didn’t know that one of the methods for determining customary, and reasonable fees was throwing out the lowest fee possible, and hoping that some appraiser who is struggling to feed his family will take it. That seems to be the definition of unreasonable and uncustomary.

 

[J Grant]

Appraisers have just as many options as anyone else in this great country - probably more than most, as appraisers (typically) have four year degrees, have experience analyzing data, etc. Why are you pigeonholing appraisers into ONLY being able to appraise?


I have NEVER defended the vile AMC practice of price gouging - you're welcome to point me to one of my posts where I did, though. What I have said - and will continue to say - is that AMC's are a legal form of business activity, and even the vile practice of price gouging is legal. Until that changes, what the heck are you going to accuse them of? Being law abiding citizens? Are some of the AMC practices moral? Absolutely not. Are politicians moral? Absolutely not - yet you break your neck to defend folks like Joe Biden, whose wealth increased from $7M in 2020 to over $15M in 2024.

Just take ownership for your own life - which it appears you have (based on your assertion that you don't do AMC work). Don't blame others for your lot in life. It serves absolutely zero purpose.

Sorry, you just did !

That perhaps was not your intention, but you wrote the appraiser did not get screwed, because the Appriaer agreed to the AMC fee etc

My lot in life is just fine - I am concerned for others in the profession. I have no personal reason to post as much as I do wrt AMC fees ecepc to counter the false narrtrive about them - of course in a distant way they are an existential threat to any appraiser.

 

[alebrewer]

The whole C&R thing is a complete joke. On the lender side, we're required to perform annual due diligence to ensure we are paying C&R, yet it's clear that AMC's aren't paying appraisers C&R fees. You really want to find some traction in getting the AMC's to pay higher fees? Do a fee analysis for your state - lender fee schedules aren't difficult to find using Google. Then compare that to the fees the AMC's are pimping and send that report to your state and federal representatives.

 

[J Grant]

I didn’t know that one of the methods for determining customary, and reasonable fees was throwing out the lowest fee possible, and hoping that some appraiser who is struggling to feed his family will take it. That seems to be the definition of unreasonable and uncustomary.

The schism wrt C and R haspepend related to the original HVCC, when corrupt regulators bowed to the lender and AMC interests and permitted a second C and R provision for AMC fees, which was not present in the original HVCC legislation proposal

The original had fee surveys from lenders, VA, Govt and private - then the AMCs;s lobbied to have THEIR fees as a second C and R for their own segment - and it was a nightmare ever since

Normal C and R is no problem outside of the AMC realm.

 

[J Grant]

The whole C&R thing is a complete joke. On the lender side, we're required to perform annual due diligence to ensure we are paying C&R, yet it's clear that AMC's aren't paying appraisers C&R fees. You really want to find some traction in getting the AMC's to pay higher fees? Do a fee analysis for your state - lender fee schedules aren't difficult to find using Google. Then compare that to the fees the AMC's are pimping and send that report to your state and federal representatives.

Good idea -s since the AMC's do not advertise their sh**t low fees, appraisers whole have to assemble invoices and fees from ACMs and build up enough data, which would take some work. Not sure I am motivated enough to take it on but it is a good idea.