Who is responsible for regulating AMCs for AIR compliance?

[George Hatch]

I dunno how much influence the genius contingent thinks $2500/yr buys, but I'm sure there's plenty of underinformed tinfoil to go around.

ShareFile

appraisalfoundation.sharefile.com

And since there's so much uninformed speculation in lieu of even attempting to know, the IACs role is spelled out in some detail on TAF's website

ShareFile

appraisalfoundation.sharefile.com

It might be helpful for you idiots to at least look before you speculate of the fact-free basis.

 

[djd09]

Enforcement???

Last I heard is the AMC’s can write a $50,000 a year check to be part of an organization that insures they will never have any problems with enforcement agencies

i thought the fee was $125,000...

 

[George Hatch]

Why guess or "feelz" when you can know?

 

[George Hatch]

Oh yeah, and notice this part?

Public Law 111-203
SEC. 1472
``(d) Prohibitions on Conflicts of Interest.--No certified or
licensed appraiser conducting, and no appraisal management company
procuring or facilitating, an appraisal in connection with a consumer
credit transaction secured by the principal dwelling of a consumer may
have a direct or indirect interest, financial or otherwise, in the
property or transaction involving the appraisal.


I guess AMCs aren't collecting that appraisal data to build AVMs either, because they are expecting any day now, after 13 years, that somebody is going to "enforce" that Federal Law.

The same limitation that applies to the in-house appraisal dept at the regulated lenders - that group is required under banking regs to operate completely independent of their loan production operations. And has been for over 30 years. Most Chief Appraisers are VPs of equivalent status to the VP Loan Production, as a means of establishing at least the semblance of organizational parity at the C-suite level.

 

[Meandering]

Lender Employees are not a part of the law. AMCs, however, are not allowed to profit from the transaction. The lender is supposed to pay the AMCs a C&R fee, and no one is supposed to beat down the appraisal fee, except possibly individual appraisers in desperate need of work.

You can under bid C&R, unless it's a complex assignment, then, by the law, the fee goes up.

.

 

[Meandering]

And you wonder why the Dims quit whining about the rule of law.

 

[George Hatch]

Lender Employees are not a part of the law. AMCs, however, are not allowed to profit from the transaction. The lender is supposed to pay the AMCs a C&R fee, and no one is supposed to beat down the appraisal fee, except possibly individual appraisers in desperate need of work.

You can under bid C&R, unless it's a complex assignment, then, by the law, the fee goes up.

.

What do you mean "Lender Employees are not part of the law". The "appraiser independence" conduct for the in-house appraisal depts at the regulated institutions was covered under the law for almost 20 years before D-F came along. D-F didn't change that end of it. D-F just added MBs in with the borrowers and other outside parties as being ineligible sources of the appraisals the lenders were allowed to use.

As for how C&R is actually required to work, the official interpretation of it at the govt regulatory level is what it is. I don't agree with that interpretation, either; but by the same token I'm not going to gaslight its existence. Maybe a lawsuit to force the govt to reverse that interpretation will work. But until it is reversed that's all the regulators have to enforce. I don't see how they have the discretion to act contrary to the existing interpretation.

 

[Meandering]

I was quoting Dodd Frank, as cited in my post.

You want to dig up the law library concerning employees, fine, but the thread, is about AMCs, not lender employees.

 

[George Hatch]

My initial observation was that AMCs are prohibited from the conflict of interest in the same manner as has applied all along to the regulated lenders they work for. There's nothing new or contradictory about prohibiting the conflict of interest in the appraisal engagement loop. Other than D-F bringing more consistency to bear - bringing the SFR mortgages under the same appraiser-engagement controls as the FRT mortgages.

DF excluded regulated lenders from being regulated as AMCs because they were not and still are not AMCs as that term is defined under the law. But that doesn't mean those lenders were ever unregulated, as AMCs used to be. AMCs came under regulation via D-F precisely because they had previously been unregulated. The lenders (including their appraisal depts) had already been under similar controls WRT appraiser independence for many years prior to D-F.

In my state, even conventional fee shops come under AMC regulation if their appraiser count exceeds 12 heads.

Whatever gotcha you are grasping for isn't there.

 

[Meandering]

Not looking for any gotcha. I just find it funny that after all these years, an appraiser is looking for enforcement.

Edit to add,

enforcement of AIR against AMCs. That's what I find funny.