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I'm not surprised..

Sounds like there are sucker (or desperate) appraisers to be found willing to work at low fees.
 
I wonder if the lenders that use those AMCs are getting kickbacks, no other reason to use them except to facilitate fraud. One appraiser I saw did a duplex hybrid for either Clear or Class, borrower paid $250, appraiser paid $25. Appraiser licensed in 7 states. Anyone can see that can't be more than a rubberstamp using their license.
 
There is no appraiser who doesn't understand this situation. The reason it happens isn't because nobody knows any better.
 
shrubberyvaluation said:
I wonder if the lenders that use those AMCs are getting kickbacks, no other reason to use them except to facilitate fraud. One appraiser I saw did a duplex hybrid for either Clear or Class, borrower paid $250, appraiser paid $25. Appraiser licensed in 7 states. Anyone can see that can't be more than a rubberstamp using their license.
Click to expand...
Some of the lenders own the AMC as their captive order department.
Wrt kick backs, I have no idea, I suppose it is possible.

WRt other reasons a lender uses an AMC - I have posted many times that they get this service free of hard cost to them via the HUD govt perk entitlement that allows the AMC to get paid from the appraisal fee split rather than then AMC charging their customer a cost like every other business out there -
A lender using an AMC saves the cost or admin of running their own appraisal panel= though amazingly, some lenders still use their own panel due to better quality control - I also might assume the cost is a lot lower these days to run a panel due to the internet , software and portals -
 
J Grant said:
Some of the lenders own the AMC as their captive order department.
Wrt kick backs, I have no idea, I suppose it is possible.

WRt other reasons a lender uses an AMC - I have posted many times that they get this service free of hard cost to them via the HUD govt perk entitlement that allows the AMC to get paid from the appraisal fee split rather than then AMC charging their customer a cost like every other business out there -
A lender using an AMC saves the cost or admin of running their own appraisal panel= though amazingly, some lenders still use their own panel due to better quality control - I also might assume the cost is a lot lower these days to run a panel due to the internet , software and portals -
Click to expand...
If the lenders have the AMC captive they can set the rates. I'd imagine those using these AMCs are pretty sketchy in terms of following the rules themselves. Maybe its more worth it to pay an AMC $910 to find an appraiser they can browbeat into doing it for $220. What is so valuable about the AMC? Perhaps they can find an appraiser that is ethically challenged easier?

While its true most borrowers don't care about the split, I think they would care about paying over $1,000 when the appraiser is being paid $220. Of course they don't care about the split but they should be furious about paying so much oh and if the report is riddled with errors that prevents them from getting their loan, or perhaps that fee split is necessary to make sure they get a nice number hitter and the borrower likes it.
 
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