My prediction on 3.6

[Dublin ohio]

Why is it improbable?

The lender charges a C and R fee to the borrower for the appraisal. Without the AMC getting a cut from a fee split, the appraiser would get that entire borrower-paid fee. The lender is not allowed to keep a portion of it.

It's a marketing thingy.

 

[J Grant]

There is no indication that the AMCs will ever stop shopping by fee. And again, you've been TOLD for years that the lenders have pitted AMCs against each other by fee. Which the lenders wouldn't do unless the amount of the total mattered to them.

If the AMC had no profit-related intersection with the appraiser's fee, why in the world would the AMC shop by fee?

The system is wrong, and I am tired of wasting my time fighting off appraisers who keep defending it or questioning how it could be fixed.

 

[DWiley]

Why is it improbable?

The lender charges a C and R fee to the borrower for the appraisal. Without the AMC getting a cut from a fee split, the appraiser would get that entire borrower-paid fee. The lender is not allowed to keep a portion of it.

It is improbable because the AMC provides services that the appraiser does not (panel management, QC, etc.)

 

[J Grant]

It is improbable because the AMC provides services that the appraiser does not (panel management, QC, etc.)

I understand that.

Imo, the lender should pay for the AMC services that the AMC provides (panel management, etc.) since those services benefit the lender.

Why should the compensation come from the appraiser receiving less money as a split of the appraisal fee, when the lender is supposed to provide ??? (panel management, QC etc ) If the lender wants to outsource i those services, that due diligence a lender is supposed to perform,. Then the Lender should pay a cost charge for that service, apart from and in addition to the appraisal fee, which should go to the appraiser ( the appraisal fee goes to the appraiser in full, or in large part, when no AMC is used )

It is incredible that the dinky appraisal fee, hundreds of dollars, not thousands of dollars...that the appraisal fee, one of the lowest fees in the RE system, for the most labor-intensive product, is split so the appraiser receives a starvation amount in order for the lender to be spared the cost that they the lender should be paying for the AMC services benefits the lender.

If the lender wants to pass that AMC cost charge on to the borrower, so be it.

In addition, for the way things stand now, the lender should be required to disclose the AMC charge $ amount that the borrower will cover as part of the appraisal fee, when a split fee exists on the HUD for an appraisal fee and an AMC is used. This disclosure should happen upfront, when the borrower applies for a loan.

 

[Dublin ohio]

If the AMC had no profit-related intersection with the appraiser's fee, why in the world would the AMC shop by fee?

The system is wrong, and I am tired of wasting my time fighting off appraisers who keep defending it or questioning how it could be fixed.

So you are proposing that the lender dictate how much the appraiser gets paid? If so, they can already do that if they choose to.

 

[alebrewer]

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?

You've already demonstrated your rudimentary AI skills ad nauseum, but thanks.

 

[alebrewer]

It is incredible that the dinky appraisal fee, hundreds of dollars, not thousands of dollars...that the appraisal fee, one of the lowest fees in the RE system, for the most labor-intensive product, is split so the appraiser receives a starvation amount in order for the lender to be spared the cost that they the lender should be paying for the AMC services benefits the lender.

By 'RE system', I assume you're talking about a loan transaction. In which case, the appraisal is one of the higher fees in said bundle. Typically around 4-6 in order of magnitude behind origination, discount points (if paid), title insurance, survey, and escrows. Fees that are typically lower than the appraisal are credit report, flood, tax service, VOE, VOD, IRS transcripts, notary, closing fees, HOA transfer fees, recording fees, and other transfer fees (to name a few).

Maybe stick to stuff you actually understand, J. Or, if you do understand and are being intentionally duplicitous, please stop. There are folks reading these posts that might actually believe you. Doubtful, but possible.

 

[Sadie]

It's plausible deniability for the GSE's not to add an additional certification, which they have the power to do, a cert that says an appraiser must also manually review the AI results when they use AI to pick comps, make adjustments, or write the narrative.

IMO it is not necessary for an additional certification, just have appraisers write a USPAP compliant report. Also, have a more robust review department. Already they nit pick, why not a little QC?

 

[J Grant]

By 'RE system', I assume you're talking about a loan transaction. In which case, the appraisal is one of the higher fees in said bundle. Typically around 4-6 in order of magnitude behind origination, discount points (if paid), title insurance, survey, and escrows. Fees that are typically lower than the appraisal are credit report, flood, tax service, VOE, VOD, IRS transcripts, notary, closing fees, HOA transfer fees, recording fees, and other transfer fees (to name a few).

Maybe stick to stuff you actually understand, J. Or, if you do understand and are being intentionally duplicitous, please stop. There are folks reading these posts that might actually believe you. Doubtful, but possible.

If you read my post , I said the appraisal is a low fee for one of the most, if not the most, labor-intensive services. Pulling a credit report or a recording fee is not labor-intensive.

If you were capable of reading for context, I commented on fees becaue the entitiesiously claim they are making changes to appraisals to save borrowers money - perhaps at most a few hundred dollars - which pales in comparison to the thousands and tens of thousands borrowers pay for loan points, origination fees, and RE agent fees.

Nothing duplicitous about my post. People read with context. You frequently comment in a manner that focuses on extraneous details while managing to miss the main point.

 

[alebrewer]

If you read my post , I said the appraisal is a low fee for one of the most, if not the most, labor-intensive services. Pulling a credit report or a recording fee is not labor-intensive.

If you were capable of reading for context, I commented on fees becaue the entitiesiously claim they are making changes to appraisals to save borrowers money - perhaps at most a few hundred dollars - which pales in comparison to the thousands and tens of thousands borrowers pay for loan points, origination fees, and RE agent fees.

Nothing duplicitous about my post. People read with context. You frequently comment in a manner that focuses on extraneous details while managing to miss the main point.

My bad. I completely misunderstood this post:
"It is incredible that the dinky appraisal fee, hundreds of dollars, not thousands of dollars...that the appraisal fee, one of the lowest fees in the RE system."

I should have known better. When you said the appraisal fee is 'one of the lowest fees in the RE system', I thought you meant, 'the appraisal fee is one of the lowest fees in the RE system'. I must have overlooked the part about it being low for the amount of labor involved (or maybe, just maybe, you didn't actually say (or think) that)...

So sorry for my obtusity.