Lawyers suing AMCs

[NC Appraising]

If the AMCs are all operating off the same limitations as each other then contributes to a more level playing field between them.

I think the assumption is subject to challenge that separating the fees in the disclosures will result in appraisers being paid the entirety of the amount formerly described as "appraisal fee" or whatever term they're currently using.

2025 disclosure:
"Appraisal fee of $700"

2026 disclosure:
"Appraisal fee of $300"
"AMC fee of $400"

The sum is the same, the split is the same, only the disclosure itself is different. Even if the borrowers push back on the amount of the AMC fee that doesn't mean they're going to agitate for an increase to the appraiser's fee. I believe most people outside the lending business already think appraisers get paid too much.

The change is for a cost plus system.

The problem now is that most lenders set a fixed price and AMCs have a incentive to find the appraiser with the lowest fee.

A cost plus model would force AMCs to be more competitive on their price with one another, thus reducing the cost to the borrower. Most lenders have 2-5 AMCs that they use.

Lastly, if the lender paid the appraisal fee and not the borrower, which system would they be more likely to select? Cost plus or the current AMC skimming scheme?

Due to the borrower not being able to pick the appraiser and shop for the best price, the cost plus model is the best model for the borrower. It potentially saves them money and increases the likelihood that the best appraiser was selected.

 

[ActionKWL]

Slightly off-topic, but is anyone here owed appraisal fee money from Appraisal Nation? I haven't been paid for a report I submitted in early December 2025, and now they're not returning emails or phone calls. That's the first time in about 20 years that has happened to me. I tried to post this to the "Deadbeats" section, but couldn't get anywhere with it.

 

[Surf Cat]

Lenders and AMCs oppose full disclosure of appraisal fees primarily because it would expose the significant profit margins they retain from the total fee paid by consumers.

Everyone here who has worked for AMC's know they keep 50% to 70% or more of the total appraisal fee, with only a fraction paid to the appraiser. By bundling AMC fees with appraisal fees on disclosures they obscure this financial arrangement, allowing them to charge higher overall fees without transparency.

REVAA and similar AMC backing ilk argue that transparency would be burdensome. A cheap tactic to protect profits and maintain a system where consumers are misled about true costs.

Oh, but it's the appraiser who can't disclose the fee paid by the AMC per the vendor agreement. And.... it's the appraiser who gets hit over the noggin constantly about public trust.

Remember.... appraisers are racists, but the lenders who redlined neighborhoods are angels.

It's been said here many times. No other formal industry with licensed providers operates like this.

 

[ucbruin]

"It has nothing to do with appraisal fees. It's about protecting the borrower..."


During 2020 & 2021....
I doubt protecting the borrower was on anyone's agenda....

 

[Mike Ault]

"It has nothing to do with appraisal fees. It's about protecting the borrower..."


During 2020 & 2021....
I doubt protecting the borrower was on anyone's agenda....

The borrower is not even an intended user.

 

[djd09]

if you want to make serious cash...whistle blow...ask laglow

 

[ZZGAMAZZ]

Sorry, but that is they exact opposite. I am not complaining about the appraisers fee. If you go back and read any of my posts on this, my belief is that the overage should be returned to the borrower.

What I want is a cost plus system

It has nothing to do with appraisal fees. It's about protecting the borrower and full transparency. The whole Schick was lowering the cost for the borrower, but appraisers got 100% of the blame. When borrowers see a appraisal bill for $700 they think that is what the appraisers got.

If the AMC can find an appraiser for $300 and all else is equal, so be it. Free market. Return the overage to the borrower. Remember, for PDCs, appraisals, hybrids, etc., the borrower is not allowed to shop for the lowest price. This is how AMCs can pocket or skim their money.

A lot of appraisers complain about AMC reviews n conditions, but I never once experienced in the 2000+ AMC appraisals I conducted. But if so, the AMC role could be perceived as integral to the appraisal process...