More AMC and PDC Bull

[Zoe]

The best thing is get rid of the stupid fee split system and eliminate bidding.

The idea of appraisers charging for bids makes sense but most appraisers would be too scared to try it. However, they could try it and put the AMC;s on the back foot for a change. Charge $10 -$25 per bid, payable by credit card. ( as the AMC makes the appraiser pay a portal charge of $10-$25 to submit an appraisal report. )

If an appraiser wins the bid and gets the order, they can deduct the bid charge from the fee.

I put it out there more as a hypothetical - it costs the appraiser time to research a property and respond to a fee bid request - and their own bid is used against them by the AMC to find a cheaper appraiser. Thus, the bids have value to the AMC, yet they are getting them for free.

If fees were separated on truth in lending disclosures, it would accomplish some major things:

1. Borrower would know where their money was going.
2. The market structure would change.
3. Appraisal management company would not be motivated for "fastest and cheapest".
4. Separation of fees would create intense competition between appraisal management companies. Perhaps ruinous competition.
5. Appraisal management companies would have no financial incentive for fastest and cheapest because the fee would already be disclosed to borrower in good faith estimate. A good faith estimate is required upon application for home mortgage loan. I think lender has like 3 days to give good faith estimate upon borrower application for home mortgage loan. I may be off on timing of good faith estimate but there is a time limit on good faith estimate. Lender can only vary from good faith estimate within certain items. Some items have to be concrete on good faith estimate to a borrower.

 

[George Hatch]

I want you to be happy. But I think you're going to need a little help

 

[Carnivore]

Back before I became an appraiser I managed a RE estate sales company often times I would attend the closings,
What I observed is the buyers rarely really kooked at the HUD-1 or read all the details. The para legal with the attorney told the borrowers theycan take all the time they want to read it. she would then say to them: What all this says /means that if you don't pay You Don't stay

 

[Carnivore]

Truthfully I don't think a borrower gives a rats rats phooey what the appraiser AMC split was paid

 

[George Hatch]

No evidence so far that they do care.

 

[J Grant]

Truthfully I don't think a borrower gives a rats rats phooey what the appraiser AMC split was paid

It seems they do care, based on several major lawsuits proceeding currently regarding borrowers and AMC/appraiser fee split disclosure.

Back in the day, when I accepted orders from AMC's ( right after the HVCC - it took over 5 years to claw back direct work ), anyway, back then many borrowers asked about the appraisal fees - which I was instructed not to discuss by verbiage in the engagement letter. The borrowers had a feeling something was off, but did not know what it was.

While the borrower might care more about a total amount than a fee split, if they knew how the fee split influenced the appraiser selection, their interest would increase.. Borrowers are not informed when they apply for a loan if an appraiser will be selected by an AMC using an auction type bid or comparison, to find the cheapest or cheaper fee- (to profit the AMC ) , said process might mean the AMC does not assign to more experienced or geo competent, even though their fee is well covered by what the borrower paid the lender .

 

[Carnivore]

Well seems your right about the law suites below is what AI found I must have missed this in this thread

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You’re absolutely right — and the emerging litigation makes it clear that regulators and courts do care. Multiple major class‑action lawsuits in California and Florida are now directly challenging the AMC/appraiser fee‑split model, alleging deceptive bundling, unfair competition, and consumer harm. These cases are already reshaping the conversation around transparency in appraisal fees.

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What the Current Lawsuits Are Alleging​

Here’s what the major cases have in common:

1. Hidden or deceptive AMC fee skimming​

Borrowers are charged a single “appraisal fee,” but AMCs allegedly keep 60–80%+ of that fee while paying appraisers only a fraction. Borrowers are not told this.
Appraisers Blogs

2. Misrepresentation on mortgage disclosures​

Plaintiffs argue that Loan Estimates and Closing Disclosures mislead borrowers by implying the full fee goes to the appraiser, when in fact AMCs retain a large portion.
Working RE Magazine Garris Horn LLP

3. Unfair and deceptive business practices​

Lawsuits claim violations of state consumer protection laws, unjust enrichment, and fraudulent or negligent misrepresentation.
Appraisal Institute Garris Horn LLP

4. Lack of borrower choice or market competition​

Borrowers must pay the AMC chosen by the lender and cannot negotiate fees — a dynamic plaintiffs say distorts the market.
Christensen Law

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️ Key Cases Moving Forward​

Timmins v. Clear Capital, Core Valuation Management, and Rocket Mortgage (California)​

• Claims AMC fee skimming and deceptive bundling.
• Argues borrowers are misled about the true cost of appraisal services.
• Highlights AMCs retaining up to 84% of fees in some cases.
  Working RE Magazine Appraisers Blogs

Florida Class Action (filed Dec 2025)​

• Targets two AMCs and a major wholesale lender.
• Claims AMC fees provide “no tangible benefit” to borrowers.
• Challenges whether TRID disclosures adequately protect lenders.
  Garris Horn LLP Christensen Law

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Why These Lawsuits Matter​

These cases are the first serious legal challenges to the long‑criticized AMC fee‑split model. They could:

• Force unbundling of appraisal and AMC fees on disclosures
• Increase transparency for borrowers
• Shift pricing power back toward appraisers
• Pressure regulators (CFPB, states) to revisit disclosure rules

Given the scale of the allegations and the parallels to other real‑estate transparency lawsuits (like the NAR settlement), the industry is watching closely.

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​

 

[Carnivore]

OK no wonder I was out of the loop I retired jan 1 123 but I hang out here with all you wild and crazy guys

 

[Zoe]

OK no wonder I was out of the loop I retired jan 1 123 but I hang out here with all you wild and crazy guys

One of these lawsuits gains ground and the FED will step in. FTC has control over all the banking regulators.

I won't swear a State banking regulator could not have authority over all within their boundaries.

 

[Dublin ohio]

One of these lawsuits gains ground and the FED will step in. FTC has control over all the banking regulators.

I won't swear a State banking regulator could not have authority over all within their boundaries.

I think the lenders will be released from the lawsuits. They have no control over what the AMC does and as long as they disclose what they are required to disclose by law, what responsibility do they legally have.