I'm not surprised..

[RCA]

This all sounds like nothing more than making excuses for the current and past appraisal system. Rather weak.

The entire appraisal system is rotten through and through from head to foot.

It is full of eensy weensy termites who have bee chewing away at it for years and decades.

We had the mortgage brokers - and now the AMCs. And there were always the ubiquitous corrupt supervisors. Termites averywhere.

And let's not forget those poor attorneys trying to make a fast buck when- and wherever they can when the opportunity arises.

 

[djd09]

the unethical stakeholders are a virus...they need a host (you)...they will keep making us sick until you grow a pair and COD

 

[djd09]

look...the same thieves that steal your money and over charge borrowers, like abena and marin city, call appraisers racists from the other side of their forked tongue mouths

 

[alebrewer]

$12.14T in mortgage debt. 70% of consumer debt in the US is mortgage debt. Just like power: money corrupts and LOTS of money corrupts absolutely.

 

[BRCJR]

The pass thru may net zero the lender, but the lender still has to order the appraisal (so it still costs them money to operate)...and they do pay for the appraisal when it is REO. Further, the bank and AMC may settle on a set price and if a regulated bank, they are supposed to collect the appraisal fee UP FRONT from the borrower. I think @BRCJR can weigh in on that, but at least my bank says they collect the fee up front. How it shows on the closing statement is a different matter. In one bank instance I know from years ago, the AMC offered to provide appraisals for a set fee of $385 (back when the typical fee was $325) so they netted $60 per report but the bank rejected the offer because their internal costs were under $40 per report.

The lender is ultimately responsible for payment to an Appraiser. If the attorney does it at closing or an AMC does it, the lender is still on the hook if either one of their third-party vendors do not perform.

We do not use an AMC, everything is done inhouse for the entire appraisal process assignments.

I think most lenders have a standard fee through a contractual agreement with an AMC.

 

[alebrewer]

I think most lenders have a standard fee through a contractual agreement with an AMC.

Exactly. And exactly because of disclosure requirements. Appraisers do work for the 'same' fee with all lender direct engagement platforms I'm aware of.

And... it seems to me that IF a lender allowed appraisers to charge different fees for the (essentially) same service, they could possibly be creating a compliance issue with respect to disparate impact...

 

[djd09]

any rules they must follow is their problem...appraisers never agreed to some 'set' fee...are you free americans or what

 

[RCA]

I think most lenders have a standard fee through a contractual agreement with an AMC.

So, when the market is slow, the AMC still charges the $850/appraisal but the slack in orders is paid by the appraiser through lower percentage split. That is so convenient for the AMC.

Now, honestly, you can't blame the AMCs - they are just trying to stay in business.

But then again, this is what I am arguing - that the system as a whole is engineered for those with the most political clout, rather than those who do the actual work.

AMCs do "make work." That is to say, they do very little real work. They are not vital, - or rather would NOT be vital with a properly engineered appraisal system.

The current system is inefficient, corrupt, even decadent, - designed for a realatively small number of fat pigs so they can survive through thick and thin.

 

[Terrel L. Shields]

The lender is ultimately responsible for payment to an Appraiser...

We do not use an AMC, everything is done inhouse for the entire appraisal process assignments.

I think most lenders have a standard fee through a contractual agreement with an AMC.

I used to go thru RIMS for 2 banks that are regionals - Arvest (Walton family) is big around here. They have a staff of appraisers who review and order appraisals from those on their vendor list. But when they get out of an area familiar with, they use an AMC. The gal I know that is an appraiser there said "I hate 'em. They never get the job done when they say they will."

Simmons OTOH has a vendor list but their ordering department (I think both Arvest & Simmons call 'em "credit dept.") is run by some loan secretaries that have nary a clue about what appraisers are good for what assignments - despite having to fill out 3 pages of crap explaining what and where you work. Despite what I wrote they had me down for only vacant land in one county...thanks to RIMS I might add. RIMS wanted extra money to be listed in 2 or more counties...

 

[DWiley]

. Why does the AMC get to keep the overage and not the borrower.....if it is really about saving borrowers money...ie reducing the borrowers cost?

I think an AMC would say that they get to keep the overage because they are also absorbing the loss when it occurs, and they have to have the overage to offset the loss. Again, that is very similar to appraisers - we don't refund fees on the easy ones, because those help offset the harder ones where we can't charge more.

The real issue is the re-disclosure requirement. If that were changed, things would be very different.