I am being 100% honest with you; you think I am not because of your deep belief in things that are demonstrable false.
You have built positions from false premises, and you think you know more about AMCs than people who have actually worked in senior management at multiple AMCs. So, you just keep believing whatever you wish. I promise you that I will not try to confuse you with actual facts any longer. If you want to ignore basic economics and live in a fantasyland where a small handful of folks control the work, that is fine. But you will never be able to bring about real change as long as you start from a position that is fundamentally wrong. In the meantime, many appraisers will keep lowering fees, because that is the only way they know how to market.
Peace.
Tell me exactly what is false that I have posted about how AMC 's are paid ( they get compensated from a split of the appraisal fee ))
Or how it allows lenders a free-of-cost service.
Please cite what is false that I have posted.
Wrt your being honest, maybe that was a bit harsh- but my impression is that due to your long history of managing a large AMC and current position, you may have to frame the information a certain way.
Basic economics is that when the AMC gets compensated from a fee split out of the borrower-paid appraisal fee ( the bundled fee on the HUD ) rather than their lender customer paying a cost out of their own operating funds for the AMC service, that gives the AMC a huge market share. I asked you if you thought the lenders would use AMCs in the volume they do if the lender had to pay a cost to the AMC and you did not answer.
A relatively small number of AMC companies do control a large volume of lender work. AI and other sources that track mortgage work confirm it. It stands to reason, given that individual loan officers can no longer select the appraiser and the lenders outsource to a limited number of AMC's. Even if hundreds of AMC's are registered, that is still a very limited number of ordering channels, and the fact is that a smaller number of the largest AMC's order more of the volume.
Blaming it on the appraisers for lowering their fees because it is the only way they know how to market, I asked where else the work is outside of the AMC's for most res appraisers, and there was no answer.
When a bulk of work is driven by selecting for low fees, then the response is that certain appraisers will lower their fees. I wish they would not- hwoever it is hard to reconlie why appraiser selection for taxpayer-backed mortgages worth hundreds of thousands of dollars each have been reduced to a flea market of bidding where lower fees win an order to profit an AMC, because often the more experienced appraisers are bypassed and many competent appraisers refuse to do AMC work, which deprives borrowers of their services.
Switching to the lender pays a cost for the AMC service would solve the fee issue, and the AMC can select them based on quality, expeirence, geo proximity, etc.
www.consumerfinance.gov
