How to Fight AMC Abuse of Appraisers

[alebrewer]

So there's been an entire mountain range of complaining and whining about how evil the AMC's are - much of which I don't disagree with. One poster even encouraged folks to 'fight like your life depends on it'. So in the spirit of 'fighting like our lives depend on it', how 'bout some concrete ideas on HOW to fight? I laid down one option that, to me sounds like it could gain traction - namely that of doing your own C&R study, documenting both lender and AMC fees, and presenting that information to your elected representatives. Of course another tactic would be refusing to accept AMC work, but unless that was enjoined en masse, you're only costing yourself business. Then there's always the option of whining on AF, but again - no real threat to the model. Any other ideas?

 

[Terrel L. Shields]

Seems to me that the vendors of software have a really big dog in this fight as more and more people are leaving the industry. I mean it means many fewer cost books for M & S to sell, it means appraisal software, drawing software, mobile apps, etc. are slowly losing customers, not to mention all the new adjustment programs. So, I guess I have a question about when they realize that they need to be lobbying congress to rein in the GSEs and AMCs both. Without the GSEs there would be few, if any, AMCs.

 

[Larry Phillips]

Good day, Our policy is that an AMC requests a quote from the appraiser. We quote our appraisal fee, without regard to the suggested fee. They have the option of accepting our fee. We also quote a turn time that considers the environment as of the quote date. This considers work load, staff conditions, weather, etc. We do not get all the business we quote, which is okay with us. Best regards

 

[alebrewer]

Seems to me that the vendors of software have a really big dog in this fight as more and more people are leaving the industry. I mean it means many fewer cost books for M & S to sell, it means appraisal software, drawing software, mobile apps, etc. are slowly losing customers, not to mention all the new adjustment programs. So, I guess I have a question about when they realize that they need to be lobbying congress to rein in the GSEs and AMCs both. Without the GSEs there would be few, if any, AMCs.

Hadn't really thought about that angle. Certainly the waivers would affect business volume for the ancillary companies. And you'd think at least some of those providers would be sensitive to the AMC's running folks out of the business due to low fees. Wonder if there is any potential for strategic partnerships with the likes of Jeff Bradford?

 

[alebrewer]

Good day, Our policy is that an AMC requests a quote from the appraiser. We quote our appraisal fee, without regard to the suggested fee. They have the option of accepting our fee. We also quote a turn time that considers the environment as of the quote date. This considers work load, staff conditions, weather, etc. We do not get all the business we quote, which is okay with us. Best regards

Pretty much how I operated when I was in the field - and more often than not, my fee was accepted by the AMC...

 

[NC Appraising]

Seems to me that the vendors of software have a really big dog in this fight as more and more people are leaving the industry. I mean it means many fewer cost books for M & S to sell, it means appraisal software, drawing software, mobile apps, etc. are slowly losing customers, not to mention all the new adjustment programs. So, I guess I have a question about when they realize that they need to be lobbying congress to rein in the GSEs and AMCs both. Without the GSEs there would be few, if any, AMCs.

That is what I was wondering.

With the new 97%, why would any company invest so much money when their number of customers will decline dramatically.

Unless they plan on raising software fees 3x.

As for the OP thread, right on. There are several appraisal organizations in my state...I do not hear crap from them about this. Atleast throw us a bone and tell use that they are lobbying for us.

Every single appraiser should be lobbying to the new FHFA director and their state reps (against AMCs and waivers, hybrids).

How about on a state level making a law that requires an appraiser to do the property portion of the appraisal?

Or a federal law requiring the gses to only utilize appraisals.

Fresh in my email just now
Coming Soon: Expanded Hybrid Appraisal Policy
In collaboration with Fannie Mae, we’re planning to expand our hybrid appraisal policy in Q2 2025. Look for more details in the February Single-Family Seller/Servicer Guide (Guide) Bulletin.

ACE and ACE+ PDR Expansion Effective Date Now February 24, 2025
We originally announced March 24, 2025, as the effective date for the expanded eligibility for automated collateral evaluation (ACE) and ACE+ PDR (property data report). However, the effective date is now February 24, 2025. The new effective date will also be announced in the February Guide Bulletin.

 

[alebrewer]

Or a federal law requiring the gses to only utilize appraisals.

Ya know, I was on board with the hybrid/desktop stuff. I personally would prefer to do analysis as opposed to strapping homes. But the dramatic increase in waiver offerings? It's gonna be a disaster - and the taxpayers WILL be the ones to bail them out yet again.

 

[George Hatch]

IMO, the only lever that will work on the GSEs or the lenders is govt intervention. To impose further restrictions on these lenders and the GSEs as to what they are/are not permitted to do WRT valuations.

If so then that makes the govt the primary target for the fee appraisers to advocate their economic interests. Getting articles posted in the news outlets is one way to generate constituent interest and pressure on the bureaucrats and politicians.

Case in point: Fernando's hero from the FHFA parroted some of the talking points that were fed to him by the activists - he sure doesn't know enough of what he's talking about to come up with any of those questions on his own. It also doesn't look like he made any effort to verify or cross check them or to solicit the other side of that argument. That's an example of acting in furtherance of the appraiser's special interests. It is the counterpart to how the lenders advocate for their interests - at the politicians and bureaucrats.

 

[alebrewer]

IMO, the only lever that will work on the GSEs or the lenders is govt intervention.

Agreed. Further - I don't think most elected officials have any idea what is going on - it's just not on their radar. The question is, what would incentivize elected officials into becoming interested? And it seems to me our 'advocacy groups' for the most part do little more than have happy hours and CE training. Data is what will drive change and there is absolutely no doubt that the GSE's are actively spinning their data to support their narrative - anyone would. Those elected officials somehow need to be exposed to data that disputes that narrative (if it exists).

 

[J Grant]

Get the word out to the public. Dry studies and getting govt intervention is time-consuming and often a dead end.

If we got the word out directly to the public, as well as to RE agents on MLS to the nation in an open letter, we suggest they cupcake we could ask for these folks to sign a petition. Many RE agents I have dealt with over the years dislike the AMC system and commented the far-away, clueless approach that got sent out

I would like to help write the letter -it should be brief and outline the remaining points in plain language, not in dry, arcane appraiser verbiage.

Stakeholders don't care about appraisers, but they care about the public perception. Airing the dirty laundry in a neutral letter that does not name any names but informs of the issue would embarrass them. Govt and politicians do not care about a few impacted appraisers, but if they saw a petition from regular folks,, or letters from their constituents, that would impact them.

I believe a minimum number of names on a petition results in a bill that the public can vote on., or at least a study on certain issues.