Law firms begin addressing AMC fraud

[George Hatch]

Everyone knows the entire issue is really about appraiser splits, not consumer protection. We've been telling them that it was the lenders making these decisions all along and that is where the leverage is most appropriately applied. But that strategy still appears still a long shot at best, leastwise in terms of the appraiser splits.

If there are any damages to the consumers as the result of "non-disclosure" that is on the lenders who are doing the disclosing in their loan docs. Any payments that can be extracted from the lenders would ostensibly go to the consumers. Not to the appraisers. The appraisers were never defrauded or lied to by either the lenders or the AMCs. The appraisers all knew in advance of accepting the assignment what the payment would be. No fraud or deception involved.

Maybe a successful lawsuit prompts the lenders to cut off the AMCs altogether. But if that happens what comes next is not a return to selling appraisals door-to-door to the loan origination brokers. What happens next is engagement goes straight to the lenders; the same ones who were directing their AMCs to shop appraisers by price. And who wield complete control over their respective "do not use" lists.

Meet the new clerk in charge of handing out assignments, same as the old clerk.

 

[glenn walker]

The problem is the ship sailed it's final voyage in about 2012 and it never came back. Dodd Frank sealed the fate of residential apprasers being able to market and sell their sevuces to lenders.

Unless they were or are employed as a bank or direct lender employee they have few option's but to be the AMC vendors.

 

[chad hampton]

Public trust has been the center of thr argument every appraisal organization has ever made over the last 10+ years. The organizations that are tasked with protecting the public trust have failed. Many of them have that exact term in their mission statement. It’s been ignored.

 

[George Hatch]

None of those orgs have any influence on the lenders who make their purchasing decisions.

Whether they're right or wrong about appraisers, when a lender won't pay you any more than they'll pay the lowest priced vendors they're telling you what they think you're worth.