I'm not surprised..

[Joe Flacco]

I wouldn't say never on that. When I appraise SFRs for the regulated lenders they always ask for a bid.

It is only the very complex or perceived to be very complex properties. For my clients it is probably if the estimated value is greater than $5 million.

Community banks do request bids for residential development projects the same as they do for commercial.

 

[Mejappz]

Feed the Tiger:

Consumer Financial Protection Bureau

The CFPB's vision is a consumer finance marketplace that works for American consumers, responsible providers, and the economy as a whole.

www.consumerfinance.gov

They have all I've posted. The question is, will they act and stop the unabated corruption or are they in on it? The evidence is overwhelming and I've only posted less than 1% of what exists.

 

[George Hatch]

There is an overhaul - get rid of the AMC fee split model, which creates the AMC incentive to seek low bids ( because the lower the appraiser fee, the greater the AMC profit is)

Appraisers do not have to bid against each other for direct lender orders and they do not bid against each other for VA orders - VA and lenders pay a set fee ( tupicalluy_ that is C and R in a region, the same fee to all their panel for regular work- the direct lender only asks for a fee/bid on complex high-value orders.

Direct lenders can not fee split with themselves so they have no incentive for competitive bidding for a regular order They have a set rate they charge borrowers in a region . The third-party ( an AMC ) can split the fee, thus their incentive.

You can separate the disclosures and fix their end all you want, it isn't going to stop them from shopping by fee. If you don't believe me then just ask them.

And I've told you 100x over the years; what some podunk credit union that's doing 10 deals a month does has no bearing on the economy of scale at which the high volume lenders operate. Flacco just commented about the same happening at the community lenders. I have several of those among my clients. The reason I have several of those as clients instead of just one is because none of them do enough business to keep me busy.

In the small volume lenders the appraisal reports all get read for content by the actual decision makers. That's one reason they operate differently from the high volume lenders who are using automated reviews and rigid rulesets and such.

 

[Mejappz]

‘‘(2) INTERIM FINAL REGULATIONS.—‘‘(i) CUSTOMARY AND REASONABLE FEE.— ‘‘(1) IN GENERAL.—Lenders and their agents shall compensate fee appraisers at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised.

Funny I received an order from some AMC who I never worked for before called Tamrack yesterday in Port St Lucie. The problem is Port St Lucie is over 200 miles away from me.

 

[Mejappz]

I am sure the borrower will be pleased that an AMC blasted an order to every appraiser in FL.

 

[George Hatch]

Make the complaint and show them the damages. Maybe that'll work.

 

[Joe Flacco]

When you receive an email from the AMC, just block and mark as spam. That way you don't have to be offended. My inbox stays real clean. Some days the only email I get is the housing notes at 2 pm.

 

[Joe Flacco]

I'm slow like everybody else but working with AMC is a choice made by the appraiser. We all know what their model is.

 

[J Grant]

You can separate the disclosures and fix their end all you want, it isn't going to stop them from shopping by fee. If you don't believe me then just ask them.

And I've told you 100x over the years; what some podunk credit union that's doing 10 deals a month does has no bearing on the economy of scale at which the high volume lenders operate. Flacco just commented about the same happening at the community lenders. I have several of those among my clients. The reason I have several of those as clients instead of just one is because none of them do enough business to keep me busy.

In the small volume lenders the appraisal reports all get read for content by the actual decision makers. That's one reason they operate differently from the high volume lenders who are using automated reviews and rigid rulesets and such.

I have told you here many times that direct lender orders ( others have told you the same ) , that orders where a lender or bank does not use an AMC, including volume lenders DO NOT FEE BID for regular non complex orders.

It is not a podunk credit union; these are high-volume lenders on a national scale. Why do you deny that is the truth? Come look at my work files any time you want to.

BTW, it is not about the size of the lender or the bank. It is whether they use an AMC or not. It is that simple . And many small podunk credit unions these days use an AMC.

 

[J Grant]

When you receive an email from the AMC, just block and mark as spam. That way you don't have to be offended. My inbox stays real clean. Some days the only email I get is the housing notes at 2 pm.

I have not renewed my credentials with most of the AMC's so they stopped sending me their stupid fee bid requests. A few still do anyway.