I'm not surprised..

[Zoe]

Separation of fees on truth in lending disclosures would pretty much create ruinous competition between AMCs.

Plus it would be truthful to borrowers

 

[NC Appraising]

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.

Okay. Is that your personal view or just playing devis advocate?

In the real world, you take the loss and move on or go out of business. You do not get to make it up on the next bid? You can try, but your competition will more than likely have a lower bid.

This way of thinking only happens in AMC land where a few control the masses. Private equity...


If I accept an order and I take a loss, I do not get to go to the lender and tell them that the Borrower of the next order will have to pay me an extra $200 to recoupe the loss from the prior? True competition does not allow for that.


As for the disclosure statement, got me thinking...if they have staff it doesn't make a hill of beans. They pocket all.

 

[Dublin ohio]

As for the disclosure statement, got me thinking...if they have staff it doesn't make a hill of beans. They pocket all.

It's not just the "cost" of drawing up a new disclosure. It is the time lost. It basically bring everything to a halt until the borrower is provided the new disclosure and acknowledges receipt

 

[DWiley]

Okay. Is that your personal view or just playing devis advocate?

I think that would be the view of any rational business person. I also think they AMCs) would be happy to refund "overages" if they could also recoup costs on the ones that are losses. In fact, they would prefer that. From a business perspective, it would be far better to know you were going to gross $X per order, rather than trying to average it out, he way it is commonly done now.

 

[NC Appraising]

I think that would be the view of any rational business person. I also think they AMCs) would be happy to refund "overages" if they could also recoup costs on the ones that are losses. In fact, they would prefer that. From a business perspective, it would be far better to know you were going to gross $X per order, rather than trying to average it out, he way it is commonly done now.

I just put a bid on a $40k job at a local mall to replace their back flow preventer and rusted out pipes.

So if I take a loss on this one I'll just increase my bid on the next one to recoupe my loss...I'll tell you how that works out.

 

[RCA]

Happy this and Happy that. No on here has come up with a system that would work. It is just Happy this and Happy that.

 

[RCA]

This wouldn't work, that woudn't work. So, - what is your solution?

 

[RCA]

I think that would be the view of any rational business person. I also think they AMCs) would be happy to refund "overages" if they could also recoup costs on the ones that are losses. In fact, they would prefer that. From a business perspective, it would be far better to know you were going to gross $X per order, rather than trying to average it out, he way it is commonly done now.

Sometimes, rarely, the owner knows his property is going to be difficult to aprpaise and will himself pay extra for a very good appraiser. --- I get the impression here, that you you think AMCs swallow the cost. I don't believe that at all. Not one bit.

 

[NC Appraising]

I also think they AMCs) would be happy to refund "overages" if they could

Clear capital or any of the other private equity owned AMCs that just gobbled up their competition.


Thanks for the laugh. I needed that.


If I accept an appraisal order and I take a loss, I do not get to go to the lender and tell them that the Borrower of the next order will have to pay me an extra $200 to recoupe the loss from the prior? True competition does not allow for that.

 

[DWiley]

So if I take a loss on this one I'll just increase my bid on the next one to recoupe my loss...I'll tell you how that works out.

You keep saying that, but that is not how it works, the AMC has to charge the same fixed fee - they don't get to charge more on the next one