NAR on AMC's

[Terrel L. Shields]

Just separation of fees would solve the problem.

I don't think so. But I do think separation of the fee and mandatory disclosure of that fee in the report would at least allow the appraiser to defend themselves against claims of gouging by lenders and borrowers.

NAIFA, which you were involved with fought hard for separation

And went broke doing it. Jousting with the windmills is counter-productive.

NAR don't want appraisers that are not competent.

That is perhaps correct but again they are confident in their own valuations usually. So, they don't agree with appraisals that come in low. Only a time or two did an agent tell me the offer was too high, and they expected the value to be lower and then they could convince both parties that the "right" price was lower.

I recall a chicken farmer who was not doing well and was offered enough to get out from under the property with enough for a good downpayment on a house...maybe $50,000 or so (the Realtor told me after the deal folded) but the guy wanted $100,000 because he could buy a house for that. Finally, the bank foreclosed, and no other offers were made. The guy walked with no money and the bank ended up selling the farm for a fraction of what the original offer was. The buyers turned the chicken houses into hay barns.

 

[djd09]

'Historically, the number of complaints against AMCs has been very low. However, AMCs that act inappropriately may not be reported to state boards by the appraiser victims due to fear of negative repercussions, including loss of work from the reported AMC. '

taf calls that public trust...

 

[Zoe]

I don't think so. But I do think separation of the fee and mandatory disclosure of that fee in the report would at least allow the appraiser to defend themselves against claims of gouging by lenders and borrowers.

And went broke doing it. Jousting with the windmills is counter-productive.

That is perhaps correct but again they are confident in their own valuations usually. So, they don't agree with appraisals that come in low. Only a time or two did an agent tell me the offer was too high, and they expected the value to be lower and then they could convince both parties that the "right" price was lower.

I recall a chicken farmer who was not doing well and was offered enough to get out from under the property with enough for a good downpayment on a house...maybe $50,000 or so (the Realtor told me after the deal folded) but the guy wanted $100,000 because he could buy a house for that. Finally, the bank foreclosed, and no other offers were made. The guy walked with no money and the bank ended up selling the farm for a fraction of what the original offer was. The buyers turned the chicken houses into hay barns.

Sir, with all due respect, separation of fee to the borrower would change the market structure., It would put AMC against AMC in a fee war. AS smart and as big of a country boy, I know you can grasp that truth.

 

[Zoe]

Come visit me. I will explain what separation of fees would do to change the market structure. I will feed you.

I need a new puppy by the way. My boss said after easter. Bring a good puppy with you and I will explain market structue to you.

 

[Non Sequitur]

Anything short of killing AMCs is useless.

 

[Non Sequitur]

Until NAR or anyone else speaks out against this mess (below) everything else falls woefully short:

 

[Zoe]

Let me lead you back. Me and Joan Trice had a love hate relationship. She is a beautiful blonde. I can't write a novel.

Separation of fees would change the whole market structure of the appraisal industry.

Another question?

 

[Zoe]

I'll expand for your pleasure. Truth in lending disclosures were made for a reason.

 

[Carnivore]

My thinking on separation of fee's on the HUD 1 is it should have been done a long time ago. You see AMC's don't just manage appraisers. They also arrange inspections, repairs and a host of other stuff that goes on in the loan process. It does cause Closing agents more work. I am just about disclosure to the parties to the transaction. They deserve that transparency. Think about it, that is the sole purpose and reason for the HUD-1.

But we have no real power. Most borrowers probably don't give a rat's patooey about the HUD-1, they just want their money.

Speaking of RE Brokers , something came down recently about Realtor commissions and the NAR /DOJ lawsuit I can't recall the details, but the DOJ said the Realtors got it wrong. or what ever. What a mess lawyers cause in our society.

 

[Zoe]

What is right for the borrower is right. NAIFA almost went broke fighting for separation of fees and compensation for proprietary information.

You are not useless. Don't get me going like Joan Trice.