I'm piling on....F the AMCs

[J Grant]

Blacklisting for non-cooperation occurs with probably most client types. MBs do it, too; and so do legal and accounting clients. It's not specific to AMCs or lenders. . I'm just pointing out that it's the lenders who drive that in AMC engagement loop even if they're not doing it directly.

Agree, however, the reason the AMC's were supposed to exist was the firewall against value pressure, and that has been a failure, - PLUS the appraisers lose half their fee. No wonder hardly anyone is entering the res license end despite PAREA and lowering the education bar. Which is unfortunate in many respects.

 

[George Hatch]

There's really no way to ever make appraisers happy. By nature most are extremely negative people and bitched and moaned years before licenses had been required. That's why most were divorced or living alone and everyone was out to get them they don't play well with other.

I don't blame appraisers for being unhappy with the business environment. They're getting squeezed from all sides and they're looking for relief. Somebody give me a break.

Unfortunately I think it's going to get worse for most appraisers. Myself included

 

[J Grant]

I don't blame appraisers for being unhappy with the business environment. They're getting squeezed from all sides and they're looking for relief. Somebody give me a break.

Unfortunately I think it's going to get worse for most appraisers. Myself included

It did not have to be that way on the res lending side. The greed and the entities and regulators caving to the greed over public trust are depriving borrowers and investors of future smart, talented people from entering the appraisal field to do residential mortgage work.

 

[George Hatch]

Agree, however, the reason the AMC's were supposed to exist was the firewall against value pressure, and that has been a failure, - PLUS the appraisers lose half their fee. No wonder hardly anyone is entering the res license end despite PAREA and lowering the education bar. Which is unfortunate in many respects.

"Failure" would be if appraisers were still getting shopped for values every day and getting stiffed when they came up short. If that situation has improved at all from where it was when the loan sales types controlled the appraisals then from a safe/sound lending perspective we could call that improvement a success, not a failure.

Lemme ask you: do you actually anticipate finding a whole bunch of properties that were grossly overvalued at the time they were appraised as a result of how the AMCs operate? As opposed to the appraisals that were via direct engagement.

As for the future, we haven't even reached parity with the existing supply/demand yet and there ain't none of us seeing the likelihood of that in our foreseeable future. Get back to me when everyone is backed up 2 weeks and the lenders are competing with each other - with higher fees - to get their deals done.

You'll know things are actually getting tight for the lenders when they start accepting appraisals where the supervising appraiser checked the "did not inspect" box. Which they have always been allowed to do but just chose not to because they had so much oversupply to choose from.

 

[J Grant]

"Failure" would be if appraisers were still getting shopped for values every day and getting stiffed when they came up short. If that situation has improved at all from where it was when the loan sales types controlled the appraisals then from a safe/sound lending perspective we could call that improvement a success, not a failure.

Lemme ask you: do you actually anticipate finding a whole bunch of properties that were grossly overvalued at the time they were appraised as a result of how the AMCs operate? As opposed to the appraisals that were via direct engagement.

Wrong. This is a failure. First of all, it was pretty rare for an appraiser to be stiffed for coming in short. That never happened to me nor to anyone I knew. It was easy to say no to a mortgage broker or find another if one dropped you.

This is worse imo - the value pressure is done silently on the back end, with the work stopping with no explanation after coming in low. With a far more limited set of clients to replace with. I can not answer nationwide with regard to properties grossly overvalued with AMCs used, however, I suspect it happens often enough from reports I see from time to time.

 

[George Hatch]

All RE is local, I suppose. Back when I was working for the fee shops we got stiffed on a regular basis. I got stiffed at the door or a bounced check a couple times a month. And a couple of no-shows for the appt because the borrower found a better deal with a different lender.

And then the MBs would drop the entire shop once their unfunded fee balance exceeded $1500 or so. They'd claim some catastrophic failure by an appraiser on the one deal ruined their relationship with the lender and that would be it.

Maybe they moved differently back east.