More AMC and PDC Bull

[chad hampton]

$100 bucks for the property data collection part is a much better deal then doing "what appraiser's do best" and analyze the data for not much more than the PDC is getting.... more risk, less reward = no bueno.

They always say that in such a condescending tone too. These are world class scumbags we deal with.

Everything they do is a scam. Anytime they open their mouths its a lie. So a normal appraisal is $500. But break it out into 2 portions and you pay a uber drive $75, you'd assume that means $425 for the appraiser to "do what they do best", the critical "analysis" portion of the report. But then they say, it only takes an hour, so we will pay you $125. That's $125 per hour, pretty sweet deal, right?

What bull**** artists. I wish you all could see these narcissists in action live in person.

 

[ilsindaco2628]

The appraisal portion is way less than $250.

I am just speaking from recent experience. I get paid $100-125 per PDC appointment... and I just completed the appraisal side of a hybrid (basically a desktop appraisal for a purchase using someone else's PDC report) and got paid $250 for it.

 

[alebrewer]

Here's what I don't understand. They are paying a property data collector $100 for an inspection then paying an appraiser $250 to do a desktop appraisal based on the PDC report. Why not just pay an appraiser $350 to do the whole thing?

If those products are going through an AMC, then the AMC is making margin on both transactions - hence the impetus to split them up. If the lender is employing direct engagement - I'm with ya. No reason to separate. Can't speak for any other lenders, but we discourage folks from ordering 'hybrid' appraisals - they end up taking longer and costing the borrower more (relative to a 'traditional' assignment) due to having to procure the PDC.

 

[ilsindaco2628]

If those products are going through an AMC, then the AMC is making margin on both transactions - hence the impetus to split them up. If the lender is employing direct engagement - I'm with ya. No reason to separate. Can't speak for any other lenders, but we discourage folks from ordering 'hybrid' appraisals - they end up taking longer and costing the borrower more (relative to a 'traditional' assignment) due to having to procure the PDC.

I imagine there's a fee reporting requirement. An engagement letter I am looking at right now says "AMC Fee- $165" and I get $100. So pocketing $65 I guess which goes to their review and staffing costs.

 

[alebrewer]

I imagine there's a fee reporting requirement. An engagement letter I am looking at right now says "AMC Fee- $165" and I get $100. So pocketing $65 I guess which goes to their review and staffing costs.

You're gonna get J started if you're not careful. You're correct, though - for assignments that are procured utilizing the services of an AMC, the lender pays the AMC $zzz, then the AMC sources the assignment to an actual appraiser for something less than the $zzz paid by the lender. The difference in what the appraiser keeps and what the lender paid is the AMC margin. Some AMC's utilize a 'flat fee' model and some utilize a 'screw the appraiser' model. The 'screw the appraiser' model is the one where they source to the lowest fee provider to maximize their margin.

 

[ilsindaco2628]

You're gonna get J started if you're not careful. You're correct, though - for assignments that are procured utilizing the services of an AMC, the lender pays the AMC $zzz, then the AMC sources the assignment to an actual appraiser for something less than the $zzz paid by the lender. The difference in what the appraiser keeps and what the lender paid is the AMC margin. Some AMC's utilize a 'flat fee' model and some utilize a 'screw the appraiser' model. The 'screw the appraiser' model is the one where they source to the lowest fee provider to maximize their margin.

In my experience it depends on the relationship you have with the AMC and your history.

There are two AMCs either myself or my father/our company has worked with for 15 years and we get auto assigned orders frequently. There are some AMCs that ask for fee/turn time quotes on EVERYTHING. Then there are some (the worst of the worst) that send out broadcast orders... basically here's the fee and turn time. First appraiser to click on it gets the order. No time to research the property, pull over to the side of the road, or check your schedule.

There are some that will send over a 1004 purchase at $325. Then you look up the property and see it's a 6,500 SF GLA house under contract for 3.4 million. Common in New Jersey. Then you have to provide a paragraph about why you deserve a higher fee for the assignment.

 

[ilsindaco2628]

As we speak I just got an e-mail that a 2055 servicing order is available for a fee of $225. Here's the house. I shall pass, thank you very much.

 

[chad hampton]

I realize appraisers haven’t set their fees in many years, but who in the hell are you working for that has these fees? 225 is about what I accepted drive-by orders for 20 years ago.

 

[frogman]

Does anyone have a recent PDC that they can post.

 

[Carnivore]

Well what does 2055 instructions say ? something about data? So I would counter with a higher fee and likely request and upgrade to a 1oo4 or a 3.6 or turn it down and the AMC will just find some other sap to take the assignment. Thein lies the problem. Excess labor

The other metric is it is likely a low risk borrower. and or the loan is so low that risk is very low