Just FYI for those interested in the fee split models employed by AMC's. There are, generally speaking, two models - a flat fee model and a dynamic fee model (although I'm sure there are other monikers for those models). Under a flat fee model, the AMC charges a 'flat fee' to the lender for the provision of the AMC services. There is no set fee has to be negotiated, but I've typically seen it between ~ $100 and $150 depending on the AMC's overhead. It's the dynamic fee model that, it seems to me, causes appraisers the greatest angst. This is a model where the AMC is incentivized to find the 'lowest cost provider' as the AMC is then able to maximize their fee. Per esempio: AMC charges bank $600 for the appraisal. Under the 'flat fee' model, there is no incentive to use low fee appraisal providers as the AMC margin is fixed (at say $150). $450 goes to the appraiser, $150 goes to the AMC. Unlike the dynamic margin model - used by most of the bigger culprits - wherein if the AMC is able to find an appraiser willing to do the service for $200, they pocket $400. Both models are legal - one model is, however, immoral (IMO).
