Why lender's appraisal fee cap is so low?

[alebrewer]

Honest, innocent question... Appraisers understand markets and supply/demand. Appraisers see apparent rampant opportunity in AMCs taking good compensation for seemingly little effort (cough* sounds like I'm talking about realtors *cough), so... how difficult is it to enter the market as an AMC?

It's the regulatory costs that are the burden. SOC filings, bonds, license fees, mandatory review requirements (depending on the state), panel fees to the ASC and various states, etc.

 

[George Hatch]

sure do know alot of AMC heads...

I've had thousands of appraisers come though my courses over the years and I am still getting calls from appraisers on nearly a weekly basis. Just a couple years back I delivered a keynote speech to an Assessor's conference on appraising complex properties because one of them thought I had something to offer. State DOT appraisers, appraisers from a couple of the federal agencies, bank staff at all levels up to the chief appraisers, AMC "staff" appraisers, appraisers from the big nationwide appraisal firms. The whole spectrum.
.
And AMC appraisers. Sue me.

 

[djd09]

I've had thousands of appraisers come though my courses over the years and I am still getting calls from appraisers on nearly a weekly basis. Just a couple years back I delivered a keynote speech to an Assessor's conference on appraising complex properties because one of them thought I had something to offer. State DOT appraisers, appraisers from a couple of the federal agencies, bank staff at all levels up to the chief appraisers, AMC "staff" appraisers, appraisers from the big nationwide appraisal firms. The whole spectrum.
.
And AMC appraisers. Sue me.

its all good...i just bookmark that one

 

[APOLLO77]

Got an quote from AMC yesterday, I asked $100 extra fee since it is rush. But lender came back to say sorry their cap is $750 appraisal fee max. After $300 AMC, I only have $450. I didn't take it since it will be about $40 hourly rate. If all lenders keep the appraisal fee cap so low, how our industry can stand? We can't negotiate AMC cut off, right?

I just received a quote from an AMC for a Dix Hills High End Property that would require 2 trips and the AMC fee to me was $290. This is a joke typically in my area this is a $425 to $500 Assignment. I asked $350. and I was turned down.

 

[APOLLO77]

Got an quote from AMC yesterday, I asked $100 extra fee since it is rush. But lender came back to say sorry their cap is $750 appraisal fee max. After $300 AMC, I only have $450. I didn't take it since it will be about $40 hourly rate. If all lenders keep the appraisal fee cap so low, how our industry can stand? We can't negotiate AMC cut off, right?

The AMC are Taking Advantage an Example A non disclosed amount of $1,180 was paid to the AMC The Appraises was paid $370. and had to pat a Tec Fee of $10.00. Is this supposed to be fair and how do they get away with this. Why are the not Regulated to death like the Appraisers?

 

[djd09]

The AMC are Taking Advantage an Example A non disclosed amount of $1,180 was paid to the AMC The Appraises was paid $370. and had to pat a Tec Fee of $10.00. Is this supposed to be fair and how do they get away with this. Why are the not Regulated to death like the Appraisers?

this is what they call up holding the public trust...ask GH or DW....

 

[Surf Cat]

In addition to cost savings, AMCs help ensure that banks are getting the most qualified and accurate appraisals/valuations from their appraisers. Asset quality is the foundation of solid and profitable mortgage lending, so this is a crucial area where appraisal management companies can benefit lenders.

That sounds sooo nice......Tremendous outcomes for all! The public trust is saved! Just look at the stellar reviews from satisfied home owners of how these providers of appraisal management are doing!

Nationwide Appraisal Network​

1.9 (9 reviews)

Clear Capital​

1.0 (6 reviews)

"These people are crooks and should be investigated for fraudulent business practices" Thanks Stephanie!

Servicelink​

1.0 (1 review)

"These guys are so arrogant they do not feel any obligation to correct a mistake they made on an appraisal" Awww come on Tony.....the dude was getting half fee, cut him some slack!

Nationwide Property & Appraisal​

1.0 (7 reviews)

"this company is the shadiest people on the planet...they know you cant continue your process till they do there job ..." King! The dude had to drive a hundred miles to get there because he was the cheapest! Too bad your local appraiser wasn't used....Oh well.

Solidifi Reviews​

19 • Poor

2.3

"What a clown show. Unfortunately zero stars is not an option. The mortgage company chose these guys for my refi - I should have researched them, they have terrible reviews online". Now Now Thomas....you know you can't believe everything the internet says. Have a public trust of a day sunshine!

CoreLogic​

1.3 (32 reviews

"Let me start by stating I'm a real estate professional for over 30 years in the Orange County area helping other real estate agents...when Title cannot ( RESPA VIOLATIONS) look up specific owner information...REI SOURCE of CoreLogic is a go to...But NOT ANY LONGER... they are HORRIBLE..." David...thank you for your service....oh wait, you're not in the military....you're in real estate....YOU know very well that it's hard to fly straight in RE when everyone is flying sideways. Oh, and don't budge with that 3% commission....

Effort Appraisal Group​

1.0 (1 review)

"Aside from the fact that the appraiser showed up wearing a mask... on his chin and refused to wear it correctly, although he was walking all through my home, I am giving them 1 star because they grossly undervalued my home". Oh Fred.....the dude couldn't breath okay....if the lender trusts him.....you should too!

Dart Appraisal​

1.1 (14 reviews)

"Worst appraisal management company EVER. Takes them way too long to assign appraisers. They do not return e-mails. They tell you the appraiser has left messages for the client when that is clearly not the case. STAY AWAY!" Oh Leah.....public trust is worth waiting for!



So there you have it.....randomly chosen AMC reviews on how well they are doing upholding the public trust.

 

[George Hatch]

this is what they call up holding the public trust...ask GH or DW....

Nobody said they were holding up the public trust. What they're doing is selling to the lenders what the lenders want to buy.

It's the lenders who don't think appraiser lives matter.

 

[Non Sequitur]

Nationwide Appraisal Network​

1.9 (9 reviews)

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Edit: On second thought, I don't want to be involved.