U.s. Regulators Ready To Ease Check On Property Values

[George Hatch]

The HVCC does nothing of the sort. This has been the AMCs business model since before licensing. All the HVCC did was strip the scumbag MBs of control of the appraiser. Stripping you of the advantage of selling door to door in a more diffused market was just an unintended detail of no consequence (to them). Your business interests weren't of enough concern for them to even notice, let alone care.

As for the AMCs changing their business model, what do you think that's going to take? As of 2018, what do you think appraisers can do about it?

Maybe what appraisers should be doing is getting jobs at AMCs, where they get paid in line with other employees in the banking industry.

 

[chad hampton]

When someone is only capable of regurgitating the words 'supply and demand', it tells me maybe they took a entry level econ class. But didn't go much farther.

And some on here say college is bad? This board is sometimes a glaring example as to why college coursework should still be a requirement.

 

[J Grant]

The HVCC does nothing of the sort. This has been the AMCs business model since before licensing. All the HVCC did was strip the scumbag MBs of control of the appraiser. Stripping you of the advantage of selling door to door was just collateral damage. Your business interests weren't of enough concern for them to even notice, let alone care.

They did notice, Mr Spin doctor, they noticed with regulation about C and R. The fact that the regulation was later changed by AMC interests to allow their surveys and is difficult to enforce is another matter.

They "cared" about appraisers business concerns to correct the abuses seen post HVCC with the C and R provision in Dodd Frank. That it is failing due to AMC machinations around fees is not a good thing and though it might take time, I predict there will be a change regarding it in future.

 

[George Hatch]

D-F came after the HVCC, by which time the banks had already made their choices WRT appraisal engagement. And as you say, how C&R was implemented at the effective level is a matter of record.

Personally, I hope C&R does work out for you guys. But at this point the only way that's going to happen is if the government intervenes in the market - on your behalf and exclusively for your interests alone.

The question that comes next after that is how long you think such a gov't intervention will protect your economic interests. That advantage granted by the hand of government can be taken away just as easily.

 

[George Hatch]

When someone is only capable of regurgitating the words 'supply and demand', it tells me maybe they took a entry level econ class. But didn't go much farther.

And some on here say college is bad? This board is sometimes a glaring example as to why college coursework should still be a requirement.

 

[J Grant]

D-F came after the HVCC, by which time the banks had already made their choices WRT appraisal engagement. And as you say, how C&R was implemented at the effective level is a matter of record.

Personally, I hope C&R does work out for you guys. But at this point the only way that's going to happen is if the government intervenes in the market - on your behalf and exclusively for your interests alone.

The question that comes next after that is how long you think such a gov't intervention will protect your economic interests. That advantage granted by the hand of government can be taken away just as easily.

The banks made their choices based on a RIGGED system that allows them free of cost service. Wouldn't you choose a free service rather than pay for it? Even so, the AMC's are doing such a lousy job of getting and keeping good appraisers that banks concerned with quality are turning down the free service and going back to using their own panels. Of course some will use an AMC unless it is no longer feasible, besides getting free service they might own an AMC as a side division or own stock in it .

Maybe there will be a govt correction of blended fee/HUD , maybe not. But at least appraisers, and other readers on this board should understand the dynamics of what is going on, as well as the history of AMCs (formerly mainly title companies with appraisal management as a side service and thus higher fees to appraisers, ) they changed post HVCC to profit centers pressuring appraiser fees as low as possible due to the HUD bundled fee provision allowing them to offer their service at no cost to the lender . In this manner the system of appraisal ordering has been corrupted to a degree the regulators assuming the AMC's profit incentive could be mitigated with C and R did not anticipate.

 

[timd354]

Flagstar Bank is now direct order and some more regional banks might follow; the big banks will never go to that model but as their AMCs compete for appraisers they will have to adapt which gets back to the basic premise of supply and demand.

When it comes to mortgages, Flagstar is one of the big banks as it is one of the top 10 largest mortgage lenders by volume. Additionally, while Flagstar may be using a direct order panel for some their appraisals, they are still using AMC's for many of their appraisals.
My guess is that Flagstar is using panel appraisers for its retail mortgage operation, while their wholesale/correspondent operation still uses AMC's and I my understanding is that Flagstar's wholesale/correspondent mortgage business is many times larger than their retail mortgage business.