Law firms begin addressing AMC fraud

[chad hampton]

The definition of AMC’s changed with HVCC and DF. If the AMC is allowed to have staff appraisers and no longer be the middle man, then fee appraisers should be able to work for mortgage brokers again. All appraisers ever wanted was a level playing field. But the GSE like those hedge fund backed AMCs. Can’t help but think what kind of kickbacks they might be getting. We can save that discussion for another day. A lot will be exposed soon. Don’t delete those emails.

 

[Mejappz]

Don’t delete those emails.

Bleach Bit is flying off the shelves at REVVA.

 

[George Hatch]

The definition of AMC’s changed with HVCC and DF. If the AMC is allowed to have staff appraisers and no longer be the middle man, then fee appraisers should be able to work for mortgage brokers again. All appraisers ever wanted was a level playing field. But the GSE like those hedge fund backed AMCs. Can’t help but think what kind of kickbacks they might be getting. We can save that discussion for another day. A lot will be exposed soon. Don’t delete those emails.

AMCs themselves weren't regulated and AMC usage by the lenders was never regulated prior to D-F. So there was no "the definition" to be changed. The AMC model had already been going for years prior to licensing, let alone the HVCC. Inclusive of some of them running internal staff depts.

Maybe one or more of the states have prohibited lenders and state agencies and insurance companies and AMCs from employing appraisers and reviewers directly instead of engaging them as outside contractors but I've never heard of such. I don't even know how a state agency or one of the regulators would even go about doing that. I have heard of the IRS going after fee shops for not treating their appraisers as employees, though. That move killed most of the residential fee shops in this region.

I suppose if a state could figure out a way to prohibit a company from employing appraisers instead of engaging fee appraisers then the company's next step would be to spin their appraisal dept off into a separate fee shop. With both entities being under the same holding company. Some of the AMCs already engage appraisers who are working for outside fee shops.

The bank I worked for toyed with the idea of spinning the appraisal dept off into an AMC so they could write off all their overhead and also solicit outside business, but the "solicit outside business" part was too much of a hassle so they just gave up on the idea. I suppose you could say I came within a couple weeks of working for an AMC, but they never followed through. It wouldn't have changed anything on my end because I was already working for a split.

Besides, it wasn't the states that prohibited the lenders from using MB-controlled appraisals so the states couldn't fix your problem even though a couple of them might want to. It was the GSEs and the various federal regulators that told the lenders that they cannot use an MB-controlled appraisal. Appraisers can still work via MB engagement or in house with MBs on non-GSE type deals; the GSEs and their feeders just won't accept those appraisals for their usage.

 

[glenn walker]

Bank America...Wells Fargo had AMCs 30 years ago. Some here talk like they just showed up 15 years ago. Remember reviews by Foster Ousley in the mid nineties they sent us reviews on a fee basis. The AMC is going away the same time residential appraisers go away because one can't live without the other.

 

[Essexfenwick]

God help AMCs if they donated to Harris

 

[Mejappz]

Morgan & Morgan, a prominent law firm, is currently investigating the practices of Appraisal Management Companies (AMCs) and their potential role in driving up the cost of appraisals for consumers. The firm is actively seeking input from individuals who believe they have been overcharged or misled about the allocation of their appraisal fees between the AMC and the appraiser. At the heart of this investigation lies the concern over a lack of transparency, inflated costs, and questionable value that AMCs bring to the appraisal process.

The Appraisal Regulation Compliance Council (ARCC) has conducted extensive research on this matter, revealing alarming findings that underscore the significant impact on consumers. According to the ARCC, the median average fee charged by AMCs to borrowers constituted a staggering 65%of the total appraisal fee. In some egregious cases, AMCs pocketed up to 84% of the total fee, leaving appraisers with a disproportionately small share. This means that consumers have been essentially overpaying for appraisals, with a substantial portion of their fees lining the pockets of AMCs rather than compensating the appraisers for their expertise and services rendered.

https://appraisersblogs.com/AMCs-overcharging-consumers-morgan-morgan-investigates/

 

[glenn walker]

The ship sailed get on a new one that's will make you money. There won't be a AMC problem in 3 years the business model is changing.

 

[George Hatch]

Bank America...Wells Fargo had AMCs 30 years ago. Some here talk like they just showed up 15 years ago. Remember reviews by Foster Ousley in the mid nineties they sent us reviews on a fee basis. The AMC is going away the same time residential appraisers go away because one can't live without the other.

Foster-Ousley was one of our CE clients, dating back to before they even went by that name. They didn't come to our venues for that instruction, we went to their offices. Teaching the courses to their employees. No outside fee appraisers present.

 

[chad hampton]

Sure, back then AMC‘s for 20% of the market in they weren’t your competition. These days after they realized there would be no punishment for hiring staff (which they only did because they couldn’t find a way to play with the rules), they are your direct competition and they have access to the clients. This will be corrected Eventually, it just takes time. Takes a few people fighting the fight that aren’t cowards. Fortunately, we have a few that are willing to fight.

 

[George Hatch]

Citation needed.

Where do you come up with this stuff? Why would anyone ever think they could be punished for something that was never prohibited in the first place? Same with the 80% splits you seem to have conjured up in your mind. Never say never, but even if such had occurred back then it certainly wasn't common, let alone the default.

The intent of the Appraiser Independence issue in FRTs 30 years ago was not to separate the engagement or employment of the appraisers by the (real) lender. It was to isolate the appraiser from the control and input of the in-house loan officers and the outside loan brokers. All it should take you to understand that is to actually read the verbiage for what it says instead of what you wish it said.

Here, let me help you become more familiar with what you're talking about. Maybe you'll stop saying stupid stuff.

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