My prediction on 3.6

[TerryRohrer]

What I actually said was... (please read my post again ) that the AMC took a part of the APPRAISAL fee. (not the appraiser's fee)

What you actually said was:

With the AMC, they don't charge their customer; they get compensated from taking a big split of the appraiser's fee.

But, being all mouth and no mentality, it is no wonder you lose track of the mindless garbage you spew continually.

 

[J Grant]

Prove it. Show me one place I have defended a system that sees low $ go to the appraiser. No AMC has ever taken any part of the fee I have agreed to accept. They ask me what my fee and turn time will be for a given assignment. They either accept that or don't. So only a blithering idiot would argue that an AMC took any part of of this appraiser's fee. Your continuing to be among the stupidest people on the planet does not change that simple fact.

The AMC took a split of $ from the APPRAISAL FEE, which means the remainder amount for your appraiser's fee is lower. You continue to be among the stupidest people on the planet for not realizing that. I normally would not say that, just giving it back in kind. I posted that AMC gets paid a split from the appraisal fee as an answer from AI , so I suppose you can call AI stupid as well.

If the borrower paid appraisal fee was $600, and your appraiser's fee to the AMC was $400, where do you think the other $200 went?

 

[alebrewer]

So tempting... I just have to remind myself that no amount of elucidation is going to penetrate that quagmire. Oh well.

 

[Dublin ohio]

So tempting... I just have to remind myself that no amount of elucidation is going to penetrate that quagmire. Oh well.

Ignorance can be fixed. You can't fix stupid

 

[J Grant]

You still have not answered why you defend a system that sees low $ go to the appraiser - calling me names does not change that.

The AMC may not have ever "gotten" a portion of your fee, but the AMC got a portion of the appraisal fee, which means you got paid less than if that entire appraisal fee had gone to you. God knows, you must be so dumb in order not to understand that reality.

Here is my post 235, where I correctly called it the APPRAISAL FEE. Calling it the appraiser's fee in my other posts was a typo error. Which you might have asked me about, instead of going into an insane rant about how dumb I am. Meanwhile, besides being incredibly nasty, you come off as dumb yourself, since you seem incapable of understanding or acknowledging that the AMC takes a split of the appraisal fee, which means the amount going to the appraiser for their appraiser's fee is lower than when the lender does not use an AMC.

 

[alebrewer]

The AMC does NOT take a split of the appraisal fee. If anything, it's the appraiser taking a split of the appraisal fee. The lender pays the AMC $zzz to fulfill an appraisal request. The AMC (unfortunately) has the option to fulfill that in whatever manner they choose - so long as it meets the lender's expectations. Sometimes they send someone on staff (in which case, the staff appraiser is paid a salary + comp, and NOT part of the appraisal fee), and sometimes they sub the fulfillment out to a 3rd party provider (the indie appraiser).

Regardless of the method of fulfillment, though, the fee paid by the lender to the AMC IS the appraisal fee. The AMC isn't keeping 'part of the appraiser's fee'. IOW - the AMC isn't taking a 'split' of the fee.

Obviously I succumbed to temptation...

 

[J Grant]

The AMC does NOT take a split of the appraisal fee.

AI Overview



Yes. Appraisal Management Companies (AMCs) primarily get compensated by retaining a portion—often ranging from 40% to 70%—of the total appraisal fee charged to the borrower. [1, 2, 3]

My comment: Are you calling the answer from AI a lie?

 

[J Grant]

The AMC does NOT take a split of the appraisal fee. If anything, it's the appraiser taking a split of the appraisal fee. The lender pays the AMC $zzz to fulfill an appraisal request. The AMC (unfortunately) has the option to fulfill that in whatever manner they choose - so long as it meets the lender's expectations. Sometimes they send someone on staff (in which case, the staff appraiser is paid a salary + comp, and NOT part of the appraisal fee), and sometimes they sub the fulfillment out to a 3rd party provider (the indie appraiser).

Regardless of the method of fulfillment, though, the fee paid by the lender to the AMC IS the appraisal fee. The AMC isn't keeping 'part of the appraiser's fee'. IOW - the AMC isn't taking a 'split' of the fee.

Obviously I succumbed to temptation...

Correct if the AMC uses a staff appraiser, the AMC pays a salary , and not a split of the appraisal fee.
If a fee panel independent appraiser accepts the assignment, the appraisal fee is split between the AMC and the appraiser. If anyone said the AMC keeps part of the appraiser's fee, that is in error - on my part, it was a typo in a post.

Either way, the lender is not paying the AMC a cost charge from the lender's funds for the AMC service. Therefore, the AMC does not charge its lender customer a cost, nearly every other business or professional charges their customer a cost. This ability to provide free from a hard cost charge to their customer gives the AMC a huge market share advantage, and that allows them the work volume, creating a manipulated supply/demand which puts the appraiser at a huge disadvantage.

 

[George Hatch]

The appraiser gets paid a portion of the fee. Same as if they were working for a fee shop or for a salary at an employer. The appraiser doesn't sell everything the AMC sells.

The AI vomitron is not an authority on the topic, particularly when appraisers actually are experts on the business by virtue of their direct experience. So I don't know why you're quoting the AI as if it was as well informed as the appraisers.

 

[J Grant]

The appraiser gets paid a portion of the fee. Same as if they were working for a fee shop or for a salary at an employer. The appraiser doesn't sell everything the AMC sells.

The AI vomitron is not an authority on the topic, particularly when appraisers actually are experts on the business by virtue of their direct experience. So I don't know why you're quoting the AI as if it was as well informed as the appraisers.

Correction: The AMC does not sell its service to the lender. The AMC instead gives its service to the lender free of cost to the lender. THAT is what enables their huge market share. The AMC can give its service free of cost to the lender because the appraiser compensates the AMC by taking less $ due to an AMC split of the appraisal fee.

Nobody can name another business that gets this kind of free govt welfare perk. None of us as individual appraisers can offer it either. We have to charge a lender for our appraisal service if no AMC is involved. The fact that a borrower covers it by paying the lender an appraisal fee is beside the point; we still have to charge the lender - the AMC is not charging the lender a separate charge for their service. The AMC hides its lack of charging the lender a cost from the borrower and the public by getting compensated as a split of the bundled appraisal fee,

My sympathy is less with the public who only gets ripped off every few years if they take out a loan - my sympathy is with the appraisers who lose hundreds of thousands of dollars in the course of a career. I mentioned the borrower, as they are the basis of the lawsuits, which correctly call the huge AMC portion of the split unjust compensation.

If the lender had to pay a cost charge out of pocket for the AMC service, do you think the lender would pay an AMC $ 300 to process an appraisal report? More like $50-$75.

AI is pretty good - I quote it as another source. Anywhere you look up the topic, it will return the answer AI gives, and the fee splits are what the consumer lawsuits are based on.