We need to clean up FNMA and Freddy

[Dublin ohio]

Maybe holding AMC's to a standardized set of appraiser selection metrics? Holding AMC's responsible for poor appraiser performance?

To me that is a lender problem. As long as the lenders are willing to accept skippy work the AMCs have no reason to change.

 

[alebrewer]

To me that is a lender problem. As long as the lenders are willing to accept skippy work the AMCs have no reason to change.

It was a response to SurfCat's desire to regulate AMC's. Agreed that it's a lender problem, but when your business model is such that appraisal quality is sacrificed at the alter of speed and profit, I'm ok with imposing regs on the bad actors.

 

[George Hatch]

More regulation of the conduct of the various parties means more govt action. In case you were thinking about asking for that.

 

[alebrewer]

More regulation of the conduct of the various parties means more govt action. In case you were thinking about asking for that.

Regulation is integral to the proper function of society. Both over - and under - regulation are detrimental to society.

 

[George Hatch]

Agreed. OTOH, the magic word of the day is Dept of Govt Excess wherein the current administration want's to cut loose the Kraken. Possibly to include kicking the GSEs out of the warm embrace of the federal govt.

 

[Dublin ohio]

Regulation is integral to the proper function of society. Both over - and under - regulation are detrimental to society.

A I see it. Any regulation holding the AMCs responsible for the quality of appraisals and appraisers would effectively put them in the same category as a lender. They would end up functioning as part of the actual appraisal review and underwriting process. Does anybody really want somebody like CC or Class doing that.

 

[alebrewer]

A I see it. Any regulation holding the AMCs responsible for the quality of appraisals and appraisers would effectively put them in the same category as a lender. They would end up functioning as part of the actual appraisal review and underwriting process. Does anybody really want somebody like CC or Class doing that.

Isn't that part of the service they purport to provide anyways? Don't tell me you've never had an appraisal reviewed by someone at the AMC...

 

[Dublin ohio]

Isn't that part of the service they purport to provide anyways? Don't tell me you've never had an appraisal reviewed by someone at the AMC...

If you consider a check box review a real review. My two preferred AMCs actually have appraisers that I can talk to that do their reviews. But you and I both know that most AMCs might have 1 or 2 appraisers that work for them and they are not the ones doing the "reviews". Checkbox monkeys are not typically appraisers. They know just enough to waste your time.

 

[alebrewer]

If you consider a check box review a real review. My two preferred AMCs actually have appraisers that I can talk to that do their reviews. But you and I both know that most AMCs might have 1 or 2 appraisers that work for them and they are not the ones doing the "reviews". Checkbox monkeys are not typically appraisers. They know just enough to waste your time.

My point wasn't really about who at the AMC does reviews. AMC's ARE currently tasked with monitoring appraisal quality - something they absolutely do not perform on a consistent basis. You believe they shouldn't be involved with that function, and I believe that, as they already are involved with that function, they should be required to adhere to that SLA. Meh. Look - if we're going to alleviate them of one of the more critical roles they're tasked with, why not eliminate them all together? After all, what other value adds do they perform? Maintaining the appraiser roster for lenders? Technology can do that now. Other than those two value adds, there really isn't much else the AMC's bring to the table. Maybe SME for the lenders too small to afford to keep one on staff, but that's no hill really.

 

[Zoe]

If CFPB makes lenders separate appraisal management company fees and appraisal fees, many AMCs will go broke. Lender A will sell their stock in an AMC and fire them.

AMCs would be in a death race to the bottom on cutting AMC fees.