Proof, We have a over supply of appraisers, we need PAREA

[TerryRohrer]

Active Licensees as of October 1, 2022: 9,374

https://brea.ca.gov/pdf/Newsletter2022FALLWINTER.pdf

Although I would guess the results will be different a year from now, it is interesting that the number of licensess in California actuall increased (very slightly) between late '21 and late '22.

 

[George Hatch]

Since a lender can not benefit from a fee split, why would they care which AMC supposedly delivers for less ? I don't think any the AMC's pass along a lower fee to the lender. The lender quotes borrowers set fees for a region. The lender passes along the fee to the AMC and leaves the AMC fee split between the AMC and the appraiser.

Why would they care? Because they compete with each other, in part on fees. You never saw the commercial "when banks compete, you win"? What do you think they're competing on, if not rates and fees?

We're seeing reports of lenders laying workers off by the thousands, particularly in their mortgage operations. We see reports of AMCs laying workers off and even some going out of business. All of these events run completely counter to your apparent assumption that appraisers are the only ones who compete by fees and that the AMCs and lenders are isolated from market conditions and from competition with their respective peers.

 

[shrubberyvaluation]

Since a lender can not benefit from a fee split, why would they care which AMC supposedly delivers for less ? I don't think any the AMC's pass along a lower fee to the lender. The lender quotes borrowers set fees for a region. The lender passes along the fee to the AMC and leaves the AMC fee split between the AMC and the appraiser.

In the cases where a lender owns the AMC as a division, often there is a cost plus uniformity of fees to the appraiser. Otherwise, it is the horrific system we see, with lower-fee appraisers getting most of the work. This punishes the appraiser and is a redistribution of wealth to the AMC taken out of the appraiser -in your lingo -by the government perk of the HUD split fee.

Idk how lenders pick an AMC. None of them charge a dime to the lender in cost, a govt perk making in unfair competition to the appraiser. Is none of them charge a cost to the lender when what does that leave? Turn time and quality control. If the AMC is returning any portion of a fee split back to the lender that is illegal. Which may not stop it from happening if well concealed. I have no idea if it happens or not. But lenders do not reduce the appraisal fee (typically ) to a borrower just because an AMC negotiated a better fee split out of an appraiser.

A lender should care if the AMC is trying to get the cheapest appraisers, its just going to cause them problems.

 

[shrubberyvaluation]

Just saw an appraisal for a property in my neighborhood. Appraiser came from 3 hours away.

If there is an oversupply of appraisers why would they get someone 3 hours away....lower prices...or this is one of the best appraisers in the state....I'll take a guess.

 

[CCAAMO]

Lots of apartments in LA so i would guess the percentage of homes and condos for the population is lower than in other counties

 

[glenn walker]

Lots of apartments in LA so i would guess the percentage of homes and condos for the population is lower than in other counties

True but also larger by population then the other large Counties.

 

[J Grant]

Why would they care? Because they compete with each other, in part on fees. You never saw the commercial "when banks compete, you win"? What do you think they're competing on, if not rates and fees?

We're seeing reports of lenders laying workers off by the thousands, particularly in their mortgage operations. We see reports of AMCs laying workers off and even some going out of business. All of these events run completely counter to your apparent assumption that appraisers are the only ones who compete by fees and that the AMCs and lenders are isolated from market conditions and from competition with their respective peers.

They didn't mean the banks compete on appraisal fees in that commercial!!!

Use your head, it meant to compete on interest rates or points. Those are the big-ticket items borrowers care about.

And I did not make the assumption that AMC are immune to a market downturn or competition. If any of them are folding now it is because of lack of volume. What makes you assume it has anything to do with the fees they charge lenders? The AMC's are suffering just the way any other business suffers when Res RE slows to a crawl. The AMC's are hurt by the waivers too. Without enough of a volume of appraisals to "manage", their business can become unstainable, especially because they do need at least some staff to operate and have to keep paying them.

 

[shrubberyvaluation]

They didn't mean the banks compete on appraisal fees in that commercial!!!

Use your head, it meant to compete on interest rates or points. Those are the big-ticket items borrowers care about.

And I did not make the assumption that AMC are immune to a market downturn or competition. If any of them are folding now it is because of lack of volume. What makes you assume it has anything to do with the fees they charge lenders? The AMC's are suffering just the way any other business suffers when Res RE slows to a crawl. The AMC's are hurt by the waivers too. Without enough of a volume of appraisals to "manage", their business can become unstainable, especially because they do need at least some staff to operate and have to keep paying them.

They don't need that much staffings when it slows to a crawl, and when it picks back up they can attract people that would of worked at fast food otherwlse.

 

[ZZGAMAZZ]

I have heard exactly what Glen said: That there is a MASSIVE number of appraisers in LA County, hence there is little competition and fees will be low. NorCal Sacramento county, OTOH, and nearby counties towards the coast (Solano, Yolo and Napa) are not overpopulated with appraisers, are growing, and (I am told) appraiser work is still plentiful there.

Edit: Just searched on BREA and came up with 2567 active appraisers in Los Angeles County (out of about 9375 that are active state wide). That's 27%. I am guessing if you throw in the counties to the North and South you'd pad that number quite a bit.

Wondering whether I should return "home" to Weirton, WV, research revealed 3 licensed appraisers in the entire County--although it's a weird scenario because one can drive from Ohio through WV and into PA in 20 minutes, so multi-state reciprocal licenses are in play. Nevertheless, there is NOTHING about the Inland Empire section of SoCal that is desireable (even though my appraisal Review Master flags me for the use of the word "desireable.")

 

[glenn walker]

Wondering whether I should return "home" to Weirton, WV, research revealed 3 licensed appraisers in the entire County--although it's a weird scenario because one can drive from Ohio through WV and into PA in 20 minutes, so multi-state reciprocal licenses are in play. Nevertheless, there is NOTHING about the Inland Empire section of SoCal that is desireable (even though my appraisal Review Master flags me for the use of the word "desireable.")

Yes you should go but I thought you said you were getting married to a women from Thailand ? There is no future in Riverside but more traffic and dirt