More AMC and PDC Bull

[Carnivore]

I received my one lousy little check from an AMC I also received 5 bulk mail rays of checks from that AMC, All the other checks had my address BUT the payee's were all that AMC expenses thundreds of other companies like attorneys utilitiees you name it

 

[J Grant]

The borrower pays for everything, not just the appraisal. They always have. Some of the payment comes up front and the rest is built into the monthly payment. There is no element of the deal that the borrower doesn't pay for. No element that is free to the borrower. That includes the AMCs fee, whether the borrower pays up front or over time - and with interest - over the life of the loan.

The cost of doing business is just that...business. The borrower wants to borrow someone else's money and it is on them to meet the various terms and conditions upon which the loan approval is granted. It is not on the lender to subsidize those costs of the transaction on behalf of the borrower.

Fine, the borrower can get charged for the AMC fee - JUST STOP BUNDLING IT WITH THE APPRAISAL FEE - (since bundlign the AMC fee into the appraisal fee badly affects the appraiser's fee as a split )

You don't care about that, but we do.

Cost dodging businesses, fine, we don't care what the borrower or lender does with regard to the borrowers' loan charges - we just want the AMC to stop getting compensated as a split of the appraisal fee.

 

[George Hatch]

I agree that other than preventing the most egregious spits, imo the disclosure of the fee breakdown might accomplish little , as long as the appraisal fee includes the AMC fee as a bundled fee.

Which is why, as I have said hundreds of times in my post, I advocate for NO MORE BUNDLING OF THE AMC FEE WITH THE APPRAISAL FEE.

Make the AMC fee, when the lender uses an AMC , a separate line item charge, and if the lender passes that charge on to the borrower, so be it.

Here's what that disclosure will look like:

$300 - AMC fee​

$350 - Appraiser's actual fee​

---------------------------------​

$650 - "Appraisal related fees"​

Except that there will be some volatility in the appraiser's fee over time, depending on market conditions in each market area.

It's like Darth Vader of the Sith said:

"Search your feelings, Luke. You know it to be true." ​

 

[Zoe]

Where artificial intelligence will move in is where all the data from HUD, and whoever is fed on consumer protection and fair housing laws relative to appraisals.

Artificial intelligence can correlate it all in many different scenarios in a few months. Artificial intelligence needs the data.

I would not swear HUD won't have to turn over data in the lawsuit in California.

 

[Surf Cat]

The borrower pays for everything, not just the appraisal. They always have. Some of the payment comes up front and the rest is built into the monthly payment. There is no element of the deal that the borrower doesn't pay for. No element that is free to the borrower. That includes the AMCs fee, whether the borrower pays up front or over time - and with interest - over the life of the loan.

Of course. That said, the borrower should know that they are paying $150 for the appraisal, and $450 to the middleman which, if the AMC is owned by the lender, the lender gets a piece of. If this were mandatory, this is where you would see the cream rise to the top of what an appraiser is truly worth to the market. Not that bundled, hidden, bs.

You know..... transparency..... public trust.

This rules for me and not for thee on the most expensive purchase of most people's lives is abhorrent.

 

[Zoe]

I will give possible small example. Appraiser fee to borrower $1,500. Appraiser got paid$250.

Feed that into artificial intelligence.

Let's put any discriminatory basis in the mix and watch what artificial intelligence can do. HUD collects data.

 

[J Grant]

Here's what that disclosure will look like:

$300 - AMC fee​

$350 - Appraiser's actual fee​

---------------------------------​

$650 - "Appraisal related fees"​

Except that there will be some volatility in the appraiser's fee over time, depending on market conditions in each market area.

It's like Darth Vader of the Sith said:

"Search your feelings, Luke. You know it to be true." ​

I have explained hundreds of times by now that the disclosure of fee breakdown is not the answer - the anwer is STOP BUNDLING THE APPRAISER'S FEE AND THE AMC FEE TOGETHER under the apprasial fee.

Have the borrower pay a spearate AMC charge to the lender of whatever $ the lender charges for it. s. I highly doubt the lender would quote a borrower a $350 AMC fee as a stand alone. I have an idea! The lender could make the fee bid with the lowest one qetting the order !! ( sarcasm intended but if it is good enough for appraisers...))

The point is, no longer bundle the AMC and appraisers fee under the appraisal fee. The AMC fee as any fee charged a borrower is listed on the good faith estimate on the HUD and quoted to the borrower at time of loan applicaiton. It would no longer have any relation to the appraiser's actual fee.

 

[George Hatch]

Nobody is saying anything different. The lender should make the disclosures and the borrowers deserve the transparency.

As for

... If this were mandatory, this is where you would see the cream rise to the top of what an appraiser is truly worth to the market.

I dunno about the cream rising to the top but I think the possibility exists that a lot of appraisers might not like the market's answer to the last part that question.

 

[George Hatch]

I have explained hundreds of times by now that the disclosure of fee breakdown is not the answer - the anwer is STOP BUNDLING THE APPRAISER'S FEE AND THE AMC FEE TOGETHER under the apprasial fee.

Have the borrower pay a spearate AMC charge to the lender of whatever $ the lender charges for it. s. I highly doubt the lender would quote a borrower a $350 AMC fee as a stand alone. I have an idea! The lender could make the fee bid with the lowest one qetting the order !! ( sarcasm intended but if it is good enough for appraisers...))

The point is, no longer bundle the AMC and appraisers fee under the appraisal fee. The AMC fee as any fee charged a borrower is listed on the good faith estimate on the HUD and quoted to the borrower at time of loan applicaiton. It would no longer have any relation to the appraiser's actual fee.

If we are to believe in the possibility of AI eventually being used extensively by the AMCs to more efficiently manage and expedite their own internal workloads the outcome for that might look like this instead:

$79 - AMC fee​

$347.50 - Appraiser's actual fee​

---------------------------------​

$426.50 - "Appraisal related fees"​

Hooray for the borrower.

 

[TerryRohrer]

I have explained hundreds of times by now

Maybe you are mansplaining! Nobody gonna listen to that!