Stop Accepting Unreasonable Fees

[Zoe]

I'm likely going to come in under on contract price on single family I am working on for VA. I hate it for the seller. The veteran buying will be happy if seller agrees.

I focus on subject property and real property rights and market value definition. Those terms on my end are rock solid. Always focus on real property rights.

 

[Surf Cat]

The problem is the clients--banks, GSEs, and ultimately investors in the paper who are basically saying we don't care--we just want a number that supports the sales price.

This is the crux of the matter.....if the laws weren't in the books that an appraisal is required for a federally related transaction, the "profession" would be gone already.....Yes, I know....specific exemptions and thresholds have been in flux under current regulations allowing waivers, desktops, PDC's instead of an old school valuation as we all know it.

It's like sinking in a quicksand.... the appraiser thankfully was able to reach a Vine and started pulling himself out.... but the vine snapped and now they're sinking again.....it's a slow death.

 

[John Hassler]

‘Show me a lender who uses an AMC and I’ll show you a lender who doesn’t care much about the competency of the appraiser.’ That truism is as relevant today as it was in the late 1980s when I first noticed the appearance of stand alone appraisal ordering firms (they weren’t called AMCs back then). The lenders who use AMCs have created high-demand for low-competency appraisers, and that’s okay.

If you don’t believe me, if it was your own money on the line (say you inherited a property a few states away) and needed an appraisal would you: 1) personally research/interview appraisers; 2) use the Appraisal Institute’s directory; or, contact an AMC?

 

[Dublin ohio]

‘Show me a lender who uses an AMC and I’ll show you a lender who doesn’t care much about the competency of the appraiser.’

So, any appraiser that takes an assignment from an AMC is not competent?

 

[DWiley]

‘Show me a lender who uses an AMC and I’ll show you a lender who doesn’t care much about the competency of the appraiser.’ That truism is as relevant today as it was in the late 1980s when I first noticed the appearance of stand alone appraisal ordering firms (they weren’t called AMCs back then). The lenders who use AMCs have created high-demand for low-competency appraisers, and that’s okay.

If you don’t believe me, if it was your own money on the line (say you inherited a property a few states away) and needed an appraisal would you: 1) personally research/interview appraisers; 2) use the Appraisal Institute’s directory; or, contact an AMC?

And what would you do if you inherited 1,000 properties a day, spread all over the country? I mean, if you want to do an analogy, make it realistic

 

[John Hassler]

And what would you do if you inherited 1,000 properties a day, spread all over the country? I mean, if you want to do an analogy, make it realistic

So you are saying AMCs are unable to manage at scale. My response to that is, okay, they are therefore unfit for their role of managing appraisers. You don’t get a ‘pass’ just because it’s hard work.

Thankfully, airlines are able to manage pilots at scale with the 1,000s of flights they have spread all over the world. I mean, if you want a realistic analogy.

 

[John Hassler]

So, any appraiser that takes an assignment from an AMC is not competent?

Nope, not at all. The AMC model is not designed to seek out competency. They get competent appraisals every day despite being AMCs.

 

[Joe Flacco]

AMC's suck at panel management. End of story.

 

[Joe Flacco]

That is where the fee battle is going to be. AMC vs the appraisers doing 2-3 per day.

 

[J Grant]

And what would you do if you inherited 1,000 properties a day, spread all over the country? I mean, if you want to do an analogy, make it realistic

Banks and lenders can use an AMC for their 1000 properties a day. But why should the appraiser subsidize it through a low appraiser fee split from the appraisal fee? Let the lender pay a cost ot the AMC.

If a private person inherited 1000 properties a day, it would not be realistic. Clearly a private person in that position would PAY for some kind of management. The operative word is pay. A lender does not pay a hard cost to the AMC. It is a split of the appraisal fee, which is covered by the borrower (without their knoweldge or consent - the basis of borrower consumer lawsuits ) I bet if lenders had to pay a hard cost they would either pay very little, or go back to running and managing their own panel.

Appraisers get chided for wanting some form of govt relief - but where is the chiding for an AMC that takes egregious amounts from the appraisal fee due to the govt perk they get from their service covered by the borrower (without the borrower's consent or knowledge of the amount the AMC keeps) thanks to the govt bundled appraisal fee on the HUD...most borrowers assumed the appraisal fee went to the appraiser. Most had no idea an AMC was keeping a big chunk of it. They would be even more upset if they knew about the sleazy flea market bidding of their appraisal

The borrowers who asked questions and managed to find out what is going on are filing lawsuits. Good for them.