Maybe we have worked for the same AMC. After I responded with my extensive engagement letter explaining the complexities of the property they sent me a cancelation check for preliminary research. I include a cancellation fee among my Customary and Reasonable fees. Having good clients is important both for you and the clients

Well said, what’s next? always changing. Some mortgages are full recourse and some are in foreclosure. this may bring a different kind of appraisal work. Again!

The lender sets the appraisal fee. Saying “C&R is $550” without knowing the specific complexity of the property is without context and essentially meaningless.

IF I quoted a $1,000 fee, I would not knowingly allow more than 10% to be diverted as an AMC fee. Additionally, I’m not even trying to schedule an appointment until after the AMC has collected the fee.

I rarely do AMC work. When I do its for only one AMC that I trust. I’ve bid more than they collected on a few occasions. Sometimes for their best client they will absorb the fee loss. They know I won’t.

An appraiser friend just had a borrower cancel when he called to schedule the appointment. The borrower stated the AMC wanted a $1,050 and they were not paying that much for an appraisal. The C&R fee for the area is $550, so yes the rest of the money is going to the AMC for what IDK. Just crazy!

I always put my fee in the additional comments section in every report. That’s the best we can do for now I’m guessing.

Current practices of AMC forcing appraisers into nondisclosure agreements needs to stop. If the consumer asks the appraiser how much they are getting paid, the appraiser should be required to disclose. Current practices set by the AMCs prohibit the appraiser from providing that information.

Florida seems to have some challenges overcoming a certain amount of apathy toward organized cooperation…or at least visual evidence of any local efforts being made. I KNOW Florida appraisers care about their profession.

Partly. Though over simplified.. FNMA has stated in policy that they will not buy any mortgage where the borrower has directly paid the appraiser. THAT is why Field-Collect that we all used to use, disappeared. Now what we have are Powerful AMCs backed by even more powerful lenders holding appraisers fees hostage until after reviews are completed and they have had every opportunity to attempt to unduly influence the development…or at least conclusions contained within the uploaded appraisals.

“WHY are amc’s allowed to continually TAKE our fees?”

Answer: Because they can.

Yes, I will reach out to Jan Bellas. I have only seen a little happening in Virginia or Connecticut but not here in Florida where I am. Thanks for the info!

Lisa, respectfully where have YOU been hiding for the past three to five years?

The number of state coalitions working on this has grown considerably. Legislation they (and we) helped to get passed in several states resulted in mandatory C&R fees. You may have read about one states effort at enforcement; Federal Trade Commission V Louisiana.

Additionally, The American Guild of Appraisers (AGA); The American Society of Appraisers (ASA) and National Association of Independent Fee Appraisers (NAIFA) have all been working on this. Both individually and collaboratively with others.

Have YOU joined ANY of these to volunteer your time, as we all do? Why would you think it is always OTHER people’s responsibility to create organizations and volunteer at associations \?

It’s a numbers game Lisa. We have ALL been calling for more members that will volunteer their time for years. We still have room for you if you are seriously interested in doing something…or trying to. Contact janbellas@appraisersguild.org. She can get you started.

I had another situation where a friend of mine was getting a loan through a broker we deal with who also uses the amc we are “contracted” with. HE WAS PISSED when I explained that we do NOT receive the entire appraisal fee and that the amc was keeping half or more. We not only get robbed by the amc, but then to try and explain WHY we are getting screwed with no lube… that’s another subject.

So often the lender pays an AMC, who does little more than take a chunk of the fee and pass it on to another AMC, who does little more than assign the work to an appraiser and proofread it.

Makes sense right?

This is from an AMC called Single Source, they broadcast it out.

Wow, great history lesson. Quite right very astute about demand. And inflation carries onward, more dollars these days for the same silver quarter. We’re not experiencing home appreciation, we’re experiencing inflation. A consequence of the political gridlock imposed on more sensible approaches like maintaining more consistent currency valuation and allowing for the market to self correct through more responsible terms and long term corrections based on consistent policy. The beat skips on.

Seinfeld; [on stage] “What’s the deal with political advocacy on behalf of vested interests in real estate, I mean like what about the buyers?” (from audience; ) “That’s what she said!” (audience laughs, Jerry points at the heckler, smiles, and bows). [curtains].

In other news, most disagree with me that manual is better, oh well, I’m stuck in my ways and like it that way.

Baggs, I remember the days of 10% down payments and 10% seller carried second TDs. The reason for them was simple.

Far more people wanted to sell houses than those that wanted to buy them AND had 20% plus (then) 3% closing costs. ONLY alternatives then were VA or FHA and seller paying typically 3% in points.

Initially sellers would say “If they can’t afford 20% down, then I wont sell to them!”. Then when sellers decided they REALLY wanted to sell rather than merely list for sale, they’d get realistic. Less than 5% to 10% of potential buyers had cash DP. If you wanted the other 90% you either had to take a second TD back, or pay points for VA/FHA financing.

After 1972 “ish” 5% and 10% DP with  no secondary financing insured loans popped up (and disappeared overy few months) until the PMI companies lost more than planned.

We all have to remember that its hard to put the Genie back in the bottle once it/he is out. Effective Demand still drives the R.E. market…not simply demand for new housing like the media would have us all believe.

Demand, absent ability is not demand at all.

Me? No, you don’t want me in charge of real estate. Some sweeping policy changes, to 80% max ltv, audit the fed, increase to 700 score & eliminate cc requirements because proving you have risky credit is a poor criteria, eliminate fdic insurance in flood areas and make them pay special risk assessment fees instead, limit gse lending to 15yr or shorter terms and move the rest to private hard money, well, I’d kill more deals in one pen swoop than any appraiser in history.

In CO they have preferred panels and min panels.  Some appraisers are getting 750 standard from them.  The national amc’s have this data and this is a key point why they won’t disclose national fee surveys, open the books to prove fairly balanced payment, etc.  It’s unlikely that our cost of living in Colorado is literally twice compared to the location of this articles fee data.

Paper rules!  My order is stapled on paper to a manila folder with each and every order, on clipboard.  When I’m reviewing data with owners and talking for a moment, the standard deal is to show my order, fee and due date always highlighted.  It’s art of the deal and appraisers who can’t sell themselves have no business judging the sales terms and pricing points of others.  Appraisers should be expected to be superior sales terms analysts, claiming non advocacy as the ultimate defense.  I never have understood the value amc’s supposedly provide because being a decent salesman myself, being thusly qualified to take on the high responsibilities involved with non advocate analysis of terms and value, I can’t grasp the concept of needing help to sell my service.  It’s an easy sell; Triple whammy method;  call, email, online app.  All at once, take notes, qualify, repeat.  I can land a new direct client in a week flat if necessary, and I flip them for the next if they treat either me or their own borrowing customers poorly.  On an additional confidence inspiring note; the amc’s sales guys are really weak, they compete by price not quality.  Easy to upsell against those guys.  They blew the money on tech, not quality sales people.  Amc’s should have hired appraisers to do the selling, they dropped the ball big time. Knowledge is power.