More AMC and PDC Bull

[Zoe]

Here is kicker that is going on. Some major lawsuits are being instigated by borrowers. The lawsuit in California was instigated by a borrower. It will probably take a long time to resolve because so many truth in lending disclosures have to be subpoenaed by the lawyers from banks and AMCs. If a judge grants the subpoena, the lawyers will the get the records from HUD or lender or AMC or somebody.

I don't even know if a GSE has truth in lending disclosures on AMCs and appraisal fees. I know HUD and lender do.

 

[George Hatch]

Much of the reason AMCs have to herd cats is that they are entirely focused on their own profitability while completely dismissing the profitability of appraisers. Look no further than the almost universal, 27-page engagement letters that are prevalent throughout that industry. Most of them are automated and redundant, with conflicting provisions, and no one at the AMC can figure out what they meant by half the requirements. Most of the screeching in your childish rant could be resolved by using engagement letters that someone at the AMC read for content and context, but you know and we know that won't happen. Anyone anywhere near more than one or two appraisals understands fully that there is no once size fits all in any aspect. Yet, there you and your brethren are, jamming square pegs in round holes while denigrating those you are screwing blind and whining about how tough your jobs are. Do your job and it will bet easier. But it might take a little time outide the 10-second, computer generated, 27-page engagement letter that proves morons were behind it.

Easier to develop, refine and post a written appraisal policy on the website and include a line to the effect of "comply with written appraisal policy at ***.AMC.com. Maybe even post a couple sample reports to demonstrate what that lender or that AMC is expecting.

If we know from the outset that - our instructionals in the training to the contrary - a lot of appraisers work for the form instead of making the form work for them then it behooves us to show them examples of the form that we want them to emulate.

 

[frogman]

Appraisal fees actually peaked in year 2000 at $350 to $400.00 and 26 years later many independents are still collecting those same fees.

The only real increases were during the Covid-19 lockdown period when we say $500 to $800.00 fees being paid but after Covid the fee's began to quickly go back down to the prior fee's and settled in California in the $500.00 to $550.00 range.

Now with the biggest refinance slowdown seen in many years local appraisers are accepting fees as low as $350.00 and even lower on the bids. Hungry appraisers will grab $300.00 orders all day long on easy cookie cutters just to keep the lights turn on.

Appraisal fees actually peaked in year 2000 at $350 to $400.00 and 26 years later many independents are still collecting those same fees.

The only real increases were during the Covid-19 lockdown period when we say $500 to $800.00 fees being paid but after Covid the fee's began to quickly go back down to the prior fee's and settled in California in the $500.00 to $550.00 range.

Now with the biggest refinance slowdown seen in many years local appraisers are accepting fees as low as $350.00 and even lower on the bids. Hungry appraisers will grab $300.00 orders all day long on easy cookie cutters just to keep the lights turn on.

When is the last time you did an appraisal. I'm guessing it's been a while. Easy cookie cutters don't exist anymore.

 

[JM2187]

Easier to develop, refine and post a written appraisal policy on the website and include a line to the effect of "comply with written appraisal policy at ***.AMC.com. Maybe even post a couple sample reports to demonstrate what that lender or that AMC is expecting.

That would be great if the AMC has one client. We have hundreds. Every client is different, and the lenders make the reporting requirements. We provide extra documentation with every unique client highlighting unusual requirements, and do provide samples.

I can't speak for the competition, and I have seen some pretty confusing engagement letters out there, but if you aren't sure what your client wants, per USPAP you should be asking.

 

[glenn walker]

I don't think that's true. I believe that working by yourself gives one autonomy to do other things they want to do. Not because "I don't work well with others".

For me, it's not anti organization either. It's "unfair competition".

You have no competition there's no shortage of low fee appraisers in California taking your orders.

That in itself proves outside of no competition or fixed set fee's most one or two man operations are no longer profitable to continue operating at good rates of return.

When we first entered I had two real estate offices and many of the old timers sold insurance and did tax returns there was almost no full time independent appraisers other than real bank staff who were W-2 employees.

 

[TerryRohrer]

That would be great if the AMC has one client. We have hundreds. Every client is different, and the lenders make the reporting requirements. We provide extra documentation with every unique client highlighting unusual requirements, and do provide samples.

I can't speak for the competition, and I have seen some pretty confusing engagement letters out there, but if you aren't sure what your client wants, per USPAP you should be asking.

Do you think having requirements that apply specifically to appraisers in one state included in every engagement letter to every appraiser in every other state might be problematic for an appraiser? Do you think including reporting requirements for each of your hundreds of clients in every engagement letter might be problematic for appraisers? Do you think having requirements for 2055 reports, 1073 reports, 1004D reports, hybrid reports, desktop reports, etc, in every order for a traditional 1004 report might be problematic for appraisers? Of course, your "if you can't figure out what the idiots mean, ask" attitude sums it up in a nutshell...you don't give a damn how much of someone else's time that takes, as long as it isn't yours. In theory, it could be done if someone with a brain and any understanding of the appraisal process designed it and made even a minimal effort to make it clear and consistent.

 

[glenn walker]

When is the last time you did an appraisal. I'm guessing it's been a while. Easy cookie cutters don't exist anymore.

In So California there are hundreds of thousands of cookie cutters in tracts and large developments BUT now waivers and limited reports are replacing appraisals.

So YES your correct many now are only getting Complex or Oddballs which are two times harder and their only getting an extra $100.00 bucks and often the hungry guys doing them at low cookie cutter prices.

 

[JM2187]

Do you think having requirements that apply specifically to appraisers in one state included in every engagement letter to every appraiser in every other state might be problematic for an appraiser? Do you think including reporting requirements for each of your hundreds of clients in every engagement letter might be problematic for appraisers? Do you think having requirements for 2055 reports, 1073 reports, 1004D reports, hybrid reports, desktop reports, etc, in every order for a traditional 1004 report might be problematic for appraisers?

Not sure who you're working for, but it sounds like a mess, sorry. We don't work that way.

 

[George Hatch]

That would be great if the AMC has one client. We have hundreds. Every client is different, and the lenders make the reporting requirements. We provide extra documentation with every unique client highlighting unusual requirements, and do provide samples.

I can't speak for the competition, and I have seen some pretty confusing engagement letters out there, but if you aren't sure what your client wants, per USPAP you should be asking.

I obviously agree with "if you don't know then ask".

But I also think every lender should have their own page, specific to their requirements. I would go so far as to suggest that if an AMC has a client that doesn't have their own written policy then that's a service the AMC could provide to their client.

One-size-fits-all policies are how appraisal myths get started and extrapolated. IMO. They lead to a whole lot of unnecessary redundancies. Why should any appraiser be required to include extras which that particular lender never asked for and doesn't expect?

 

[DWiley]

Sauce for the goose.....

Engagement letters should be specific. On the other hand, so should appraisal reports.