More AMC and PDC Bull

[sputnam]

It appears J Grant has hit a nerve and upset more than a few AMC admirers in here, could it be because what she is posting is correct?

I don't think any appraiser admires AMCs. I also don't think that AMCs are 'out to get us'. They are legal businesses trying to earn a profit. Exactly that same as appraisers are.

 

[chad hampton]

Nobody forced AMC’s to get into the appraisal business. Why isn’t there isn’t a set of ethical standards for them the same way there is for appraisers?

 

[George Hatch]

Ahh, a new wrinkle is exposed, similar to a revision request. If the lower paying AMC doesn't have to the capacity to service the lender's volume then those lenders would defect to the AMC that paid appraisers better.

Also 110% true. That why the AMC fees aren't already even lower than they are. If they can find enough appraisers at $340 but they're having problems at $320 then it's expedient for them to stay at $340. Time is money for them, too.

 

[George Hatch]

Nobody forced AMC’s to get into the appraisal business. Why isn’t there isn’t a set of ethical standards for them the same way there is for appraisers?

For the same reason there isn't an ethical requirement for appraisers to work for less, there also isn't an ethical requirement for the AMCs to pay more. Leastwise, not after the feds issued their interpretation of C&R.

 

[alebrewer]

However, when you say things such as that even without an AMC, the lender would continue to shop by fees, that is not true!!

citation, please. In what alternate universe are lenders not concerned about fees? Fees are one of the primary elements of comparison that lenders compete with each other. And yes - even if the AMC was gone, lenders would still shop by fees. Heck - I know direct engagement lenders that broadcast orders. What does that do for your argument?

 

[chad hampton]

For the same reason there isn't an ethical requirement for appraisers to work for less, there also isn't an ethical requirement for the AMCs to pay more. Leastwise, not after the feds issued their interpretation of C&R.

Nothing to do with pay. They are in the appraisal business. They should be held to an ethical standard. Of course, one of the many revaa reps that represented them at state board meetings told them their AMCs have no responsibility for the appraisal reports they produce. Sounded like they liked it that way.

 

[chad hampton]

My 2 direct lenders pay $800 and $1000 per order. The same order from class will be $340.

That's a problem. At least it should be if you care about the quality of the work product.

 

[J Grant]

citation, please. In what alternate universe are lenders not concerned about fees? Fees are one of the primary elements of comparison that lenders compete with each other. And yes - even if the AMC was gone, lenders would still shop by fees. Heck - I know direct engagement lenders that broadcast orders. What does that do for your argument?

Name the direct lenders that broadcast orders.

Lenders compete with each other on the appraisal fee they charge a borrower. First I've heard of it. I used to share office space with mortgage brokers for over 10 years btw, first when I was a RE agent and later as an appraiser rented an office from one as well as my own closings with borrowers as an agent, I am rather familiar with how lenders quote fees on good faith estimates.
Perhaps lenders compete on points or larger fees that borrowers care about.

I can not account for every exception or lender out there, but in general, and per regulations, they have to pay appraisers C and R fees, and most lenders tend to charge borrowers, for regular orders, an uniform same $ appraisal fee at application.

 

[alebrewer]

I used to share office space with mortgage brokers for over 10 years btw, first when I was a RE agent and later as an appraiser rented an office from one as well as my own closings with borrowers as an agent, I am rather familiar with how lenders quote fees on good faith estimates.

Yeah, but have you stayed at a Holiday Inn Express?

I was unaware that officing in the same building with someone in another industry somehow provided folks with the magic of mental telepathy.

 

[Carnivore]

Yes AMC's control the market thats not free market capitalism I don't even totally agree with the below

The idea of C&R is solid. well maybe whoever said that is either a fool or is blowing smoke up your butt Yes the free market does make it messy. God bless America or Welcome to the USSR you decide