Law firms begin addressing AMC fraud

[Mejappz]

104. Defendant Rocket Mortgage participated in and controlled the fraudulent conduct of Defendants Clear Capital and Core Valuation Management, as set forth above. Defendant Rocket Mortgage is also vicariously liable for the fraudulent practices of Defendants Clear Capital and Core Valuation Management, because they are agents of Defendant Rocket Mortgage with respect to the purported services they perform in connection with borrowers’ appraisal fees, and because

 

[Mejappz]

In California's court's it will take over a year even if it advances into full scale litigations and class action slows things down even more. 90% if these are settled outside of trial's and attorney's grab their fees and run so don't get too excited. We have seen cases linger for 3 to 5 years and not something Ca AG has time to mess with. You and i will be in adult day care facilities before the AMC are gone.

If you read the lawsuit, you will see that the plaintiffs are seeking an immediate injunction against AMC's practices. Stop trolling and read the document.

 

[Mejappz]

Make a grave for the unknown soldier
Nestled in your hollow shoulder
The unknown soldier....

 

[Mejappz]

Delete

Duplicate

 

[glenn walker]

If you read the lawsuit, you will see that the plaintiffs are seeking an immediate injunction against AMC's practices. Stop trolling and read the document.

The injunctions if granted doesnt shut the AMCs down...at best the AMC will include a separation of fee breakdown which is just one line on the lender's HUD 1 and it has no operational effect.

 

[Mejappz]

The injunctions if granted doesnt shut the AMCs down...at best the AMC will include a separation of fee breakdown which is just one line on the lender's HUD 1 and it has no operational effect.

And where did I say it would down the AMCs? Nowhere, of course.

 

[Mejappz]

 

[glenn walker]

The AMCs will disappear at the same attrition rate as appraisers who are retiring.. quiting and dying. There os virtually no new apprasers entering because it's a declining business model and ten years behind in fees but more importantly net profits are too low for young people to live on.

The remaining older ones are part time cherry pickers. The AMC is all that keeps many alive as lender's don't want to deal with their own fee panels which are not profit centers.

The AMC now order many different product's besides appraisals and so the large integrated ones can survive ups and downs

The appraser is a one trick pony who has nothing else to offer. So the fact is the end of AMCs will hapoen about the same time the GSEs end the required use of Appraisals and use waivers and limited inspection products using non license people or realtors. Only complex and rural will be using traditional appraisals.

 

[George Hatch]

Legal standing to sue may be an issue. Maybe not.

At these dollar amounts the lender has all the incentive in the world to comb through the online discussions by appraisers about AMCs to identify the true motivations behind this type of lawsuit - which is all about and only about the appraiser's split. That will include anything the individual plaintiff has ever posted on the subject. And what every witness who is testifying has posted.

Borrowers don't control any aspect of the appraisal engagement anywhere in the mtg business, so I'm not sure how "having no alternative" will play out when that topic comes up. I guess we'll see.

As for the law of unintended consequences, the best case scenario for the appraisers is the total being paid to the AMCs is cut. Their end is less. That doesn't mean they're going to stop shopping by fee, though.

 

[glenn walker]

If the AMCs closed that would be the end for most residential appraisers because not enough direct lenders who want to manage appraisers and it's the perfect storm for the money center banks to tell the GSEs and regulators to just raise the deminimus to much higher levels thereby eliminating all but the compex and rural mostly non GSEs anyway.

The lender's are praying for the day to be able to prove their are no longer enough appraisers and a new business model not needling licensed people but $15 per hour inspectors will suffice..The end of the AMC coincides with the end of most residential apprasers as a viable living.