More AMC and PDC Bull

[J Grant]

Well after reading a lot of this The lawsuits are real and it appears they have legal weight' he consumer‑protection agencies could get involved, and the lawsuits are basically pushing them in that direction

Indeed, the lawsuits echo points I have been making on the topic for a long time - it will be interesting to see the outcome.

 

[djd09]

laws only apply to the peons...not 15th st partyers

 

[glenn walker]

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.

90% to 95% of registered AMCs are owned by licensed appraisers which have more appraisers then allowed before your required to register as a AMC.

These were previously known as the large fee shops that engaged many appraisers before the rules on how many appraisers changed-allowed under one licensed supervisor.

The 5% to 10% of the well known AMCs are the ones that control volume going through the major lender's and money center banks and the other AMCs are many small fee shops.

 

[djd09]

i mean really...what is the function of the AMC...to separate the appraiser and the mortgage broker...but now it is better...the mortgage broker can just estimate value without a license via waiver

 

[sputnam]

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?

There are AMC regulations. They are supposed to follow their regulations and laws the same as we are supposed to follow ours. A law or regulation just lays out what people and companies are supposed to do. It can't make them do it. Laws... all laws... are only effective if someone enforces them.

You're right... no one forced AMCs to get into the appraisal business. Just like no one forced bakeries to get into the bread business. A change in the law.. made by Congress.. created the opportunity and some people took it.

 

[Zoe]

Indeed, the lawsuits echo points I have been making on the topic for a long time - it will be interesting to see the outcome.

Yeah, people have posted stuff on here where they knew the appraisal fee disclosed to the borrower was high. Like maybe $1,000 and the appraiser got like $200 or $250. I don't know how they got their hands on that data but people have posted things like that. Yeah, that lawsuit in CA is definitely focused on the consumer. There is one going on in another State or 2 that is similar. They will take a while to settle because of all the data the lawyers are going to want from the bank and AMC.

I read a little bit about the lawsuit in CA. The article I read mentioned Morgan and Morgan law firm. They focus on consumer rights.

 

[DTB]

It looks like your state board backed out of a fight they didn't think they could win

If everyone backed out of a fight they didn't think they could win...where would we be?

 

[DTB]

I know of one lender who does appraisal fee rate studies once a year so that their LO's can tell their borrowers that their appraisal fee is less than the competition

What a minor and stupid attempt at a selling advantage. Are their clients really WOWED by saving $50?

I wonder if they go the mechanic that says "We use the cheapest parts, come see us!"

I don't price shop my CPA, Attorney or Banker. (I won't pay junk fees but quibbling over pennies likely will cost me dollars)

 

[George Hatch]

If everyone backed out of a fight they didn't think they could win...where would we be?

That's a good point except the question at hand is why they backed out. Because they don't back out when the appeal or counterargument is coming from an individual appraiser. If you want to say the reason they back out (when it's the FTC or the AMC cabal) or proceed (individual appraiser) is due to the imbalance of resources and nothing else then that argument is as applicable when its the state board that has more resources.

A state board just banned an AMC over conduct stemming from a single appraisal report. If there's an appeal it will be argued by the attys in front of a judge. The state board wasn't intimidated by that possibility.

 

[djd09]

misleading..