Union Time?

[djd09]

he regulators are MIA or in the pocket of the lending industry to allow this travesty to continue.

The regulators aren't mia, so that leaves door number two. 15th st is a party.

 

[djd09]

Sad that the AF does nothing. They know. AMCs are not licensed for public trust.

 

[hastalavista]

I'm more confident than George that a cost-plus system can be put into motion; but I do think it will require a reworking of the appraisal fee disclosure requirement (not impossible, but certainly a challenge).

 

[George Hatch]

From what I understand of the AMCs, at least SOME of them would prefer Cost+. The AMCs aren't your primary adversary on that one; its the lenders who have outsourced all their overhead into the "appraisal fee" that don't want to move away from the pre-set bundled fee. Those lenders could choose to move to Cost+ anytime they want. The fact that most of them have never done so pretty much speaks for itself.

Which leads us back to the difference between being in the frying pan (working for the AMC) vs being in the fire (working for the big box direct lender that will also shop by price).

If Wells is accustomed to using $300 appraisals from the appraisers who work for an AMC, what makes you think they won't have the incentive - if all their volume gets routed directly through their in-house operations - it takes to get the $300 appraisals from an appraiser their appr. dept has contracted?

 

[Meandering]

The fed is going to divest QE is ending
Interest rates will go up
Refi and sales volume will slow
AMCs will demand a larger fee cut.
Whatever appraisers deide to do
They better make up their minds pretty quickly.

.

 

[J Grant]

From what I understand of the AMCs, at least SOME of them would prefer Cost+. The AMCs aren't your primary adversary on that one; its the lenders who have outsourced all their overhead into the "appraisal fee" that don't want to move away from the pre-set bundled fee. Those lenders could choose to move to Cost+ anytime they want. The fact that most of them have never done so pretty much speaks for itself.

Which leads us back to the difference between being in the frying pan (working for the AMC) vs being in the fire (working for the big box direct lender that will also shop by price).

If Wells is accustomed to using $300 appraisals from the appraisers who work for an AMC, what makes you think they won't have the incentive - if all their volume gets routed directly through their in-house operations - it takes to get the $300 appraisals from an appraiser their appr. dept has contracted?

To do that the lender WF would have to charge the consumer $300, correct? They can't keep portion of consumer paid as unearned profit?

 

[Meandering]

To do that the lender WF would have to charge the consumer $300, correct? They can't keep portion of consumer paid as unearned profit?

Yes they can.
They just have to report the portion they keep on the settlement statement, 3 days before closing.

 

[DonRico]

The long game here is that Appraisers are going to be replaced by Robots and Drones. Not a question of IF but WHEN. Maybe in 5 years, maybe in 10. But it's where the Money wants it to go.....so go there it must.

What does your Appraisal provide to a Decision Maker at a Lender that Artificial Intelligence can' t find on the Internet ?? Verified Subject Tax Data ?? It's out there. Neighborhood Data ?? It's out there. Recent Sales Trends ?? Out there. Accurate Measurements and Photos ?? They'll send out a Drone. Hell, they'll send out a Camera Drone and get a video Walk-Thru of every room, stored with the Digital Appraisal.

Unions won't help the Appraisal Profession....unless it's the Federation of Unionized Computers and Drones.

 

[George Hatch]

Revenues / = profit.

 

[J Grant]

The long game here is that Appraisers are going to be replaced by Robots and Drones. Not a question of IF but WHEN. Maybe in 5 years, maybe in 10. But it's where the Money wants it to go.....so go there it must.

What does your Appraisal provide to a Decision Maker at a Lender that Artificial Intelligence can' t find on the Internet ?? Verified Subject Tax Data ?? It's out there. Neighborhood Data ?? It's out there. Recent Sales Trends ?? Out there. Accurate Measurements and Photos ?? They'll send out a Drone. Hell, they'll send out a Camera Drone and get a video Walk-Thru of every room, stored with the Digital Appraisal.

Unions won't help the Appraisal Profession....unless it's the Federation of Unionized Computers and Drones.

If and when that happens, the level of combined services for the AI and the robot/drone still needs to be paid for. i doubt the companies providing that service will give it away cheap. Until that future time comes, we appraisers are providing the service and we need to be paid for it without diverting a part of the fee to an AMC.