AMCs Overcharging Consumers? Morgan & Morgan Investigates
Morgan & Morgan, a prominent law firm, is currently investigating the practices of Appraisal Management Companies (AMCs) and their potential role in driving up the cost of appraisals for consumers. The firm is actively seeking input from individuals who believe they have been overcharged or misled about the allocation of their appraisal fees between the AMC and the appraiser. At the heart of this investigation lies the concern over a lack of transparency, inflated costs, and questionable value that AMCs bring to the appraisal process.
The Appraisal Regulation Compliance Council (ARCC) has conducted extensive research on this matter, revealing alarming findings that underscore the significant impact on consumers. According to the ARCC, the median average fee charged by AMCs to borrowers constituted a staggering 65% of the total appraisal fee. In some egregious cases, AMCs pocketed up to 84% of the total fee, leaving appraisers with a disproportionately small share. This means that consumers have been essentially overpaying for appraisals, with a substantial portion of their fees lining the pockets of AMCs rather than compensating the appraisers for their expertise and services rendered.
These revelations have ignited a broader conversation about the pressing need for enhanced regulation, transparency, and fairness within the appraisal industry. The ARCC’s groundbreaking work has been instrumental in shedding light on these critical issues and advocating for reforms that would safeguard the interests of both appraisers and consumers alike. Appraisers have long voiced their concerns about the unfair practices employed by AMCs, which result in a larger share of the appraisal fee being siphoned off by these firms instead of rightfully going to the individual appraiser. They argue that the lack of transparency in how the appraisal fee is presented on closing documents, often as a lump sum rather than itemizing the AMC’s cut, allows these companies to take an unjustifiably high percentage. This, in turn, has contributed to the rapid decline of the appraisal profession, as it has become increasingly challenging for appraisers to make a living in the field, leading to a drastic reduction in the number of practicing appraisers nationwide.
- HUD Investigation Leads to Illegal Break-In & Evidence Tampering - February 26, 2025
- AMCs Deceptive Fee Skimming Exposed in Lawsuit - February 25, 2025
- AMCs Overcharging Consumers? Morgan & Morgan Investigates - February 14, 2025
The high costs of cheap appraisals
https://appraisersblogs.com/uncovering-flaws-in-fha-appraisal-n-loan-review-process/#google_vignette
Well said, you all have my full support and prayers. We also need an update on Shane Lanham case?
Have you tried to reach out directly to Shane. I’m sure he could use a word of encouragement
Hoping to get a decent update for all of us to hear
Shane’s father posted the following comment a couple of weeks ago:
“The summary judgement portion is scheduled to end February 24. The judge will then review the arguments and hopefully render a judgement in Shane’s favor. I have a right to be biased but i promise you this case is not even close. As you all know this case has been on going pushing 3 years. I believe a GSE of some sort has been bankrolling the Relman Colfax law firm that’s prosecuting the case. These people have resorted to lies and misrepresenting the facts that to me seem unethical. Shane’s lawyer’s are doing a great job, wish they were pro bono, but you can read the summary arguments on the court docket case #1:22-cv-02048. We as family and friends have our fingers crossed and continue to pray. Again, thanks for your support !!”
Good move!
it is a sad day when you trust the old mortgage brokers more then the regulators…
The brokers were difficult, espeically the “pre-comps”…. but it was pretty cool getting paid at the door – in advance!! Everyone knew who the 2-3 crooked Appraisers were in the area, especially the MB’s. Problem I found is when they were provided proof of these “Appraisers” manipulating and omitting comp data to inflate values… the Regulators would not finish the job and discipline or remove the license. They would punt and say “why should they be “superzapped” for doing little things that all Appraisers do” !!! I don’t manipulate or omit comp data to “make it fit”… but my Regulator told me we ALL do it. This was over a decade ago but still blows my mind. In the end the Appraisers I knew were cheating have taken their cash and moved on to better things.
Isn’t it just amazing how there is a preumptive belief “all appraisers do ir”? Kind of like “all appraisers are racist”. They spew these lies as though they are fact with no supporting evidence to the point it gains credibility when in fact it is nothing more than a lie. It is akin to saying all lawyers are racist or all doctors are racist. There are racists in all professions but to label ALL with the same brush because of a few bad apples ? is a miscarriage of sensibility.. Common sense will tell you it would need to be a conspiracy of epic proportions.
little things, eh?…i knew one appraiser who photo shopped a house on a vacant lot…and also turned .79 acres into 7.9 acres
I hope you reported it?
maybe they should put bounties on the heads of these appraisers like the philippines do to drug dealers…
Oh wow, what a shocker—Appraisal Management Companies (AMCs) are taking massive chunks of appraisal fees and doing next to nothing? Who could’ve seen that coming? Oh, right… every appraiser ever.
For years, AMCs have been acting like glorified email-forwarding services, skimming fat off the top while actual appraisers do the real work. They swoop in, slap their name on the process, take a huge cut, and leave the appraiser with whatever crumbs are left—sometimes less than half of the total fee. And for what? A few automated emails and some generic, copy-pasted revision requests?
The real kicker? Consumers are completely in the dark about this scam. They think they’re paying for a professional real estate appraiser when, in reality, a big chunk of that fee is going straight into the AMC’s pockets instead of to the person actually doing the job. And let’s not forget their incredible ability to push for the lowest bidder, making sure appraisers get paid peanuts while still expecting quality work on tight deadlines. It’s a miracle any of us are still in business.
Sacramento Real Estate Appraiser
As will all communist “enterprises”, AMC’s are designed to ruin us while they play big shots. I hope the Trump administration ruins all of them legally, financially or both.
I will say this, the “required” chief appraisers at these management companies have lost their way and are also part of the problem. In discussions with them, due to appraisal difficulties, they come across, very strongly, as an advocate for the lender. They are obviously protecting their position and livelihood by taking orders from the top. If you can’t do your job impartiality get out of the way or risk your license.
Rut Roh
There is no reason for AMC’s to exist except for extortion of what should be our fees. They’re getting wealthy for doing nothing while we struggle to make what we made 20-30 years ago. It’s time to end them forever. Most are utterly incompetent anyway. I’m lucky to get the correct address and or correct contact number and or correct contact. They refuse to answer simple questions as in which of the five properties with the same address is my assignment? Basically anything and everything I get is nothing up front but a WTF?! All of you young guys and gals out there thinking it’ll get better … it won’t, unless Trump pulls some miraculous rabbit out of his hat.
Ill agree to what your saying but young appraisers are butchering the market themselves by doing appraisals for $250 , $350. My fees used to average over 500. Still have one client that pays 650 minus a minimal fee. Get up in appraisal meetings ask the whores to leave
I still haunt has to lower my fee from the VA Panel fees for WA. Yes the new appraisers are killing the market.
The young can’t process the fact they are and have created built-in obsolescence for their livelihood. They don’t understand life could be so much better if they weren’t pricing themselves out of existence for the quick buck. Talk to the old bucks (inclusive of women) in this business before they go the way of the Edsel and you youngins are left holding the bag.
If I recall correctly, the Illinois Dept of Licensing revoked all AMC’s ability to conduct business in the state because none of them could substantiate an actual service provided to the borrower. Said department received a denotation and the AMC’s were back up and running one week later. This was about 10ish years ago.
Win some, lose some: Appraisers wrestle with the CFPB’s dismantling
Appraisers may have to take their battle against AMCs in a different direction if the bureau is rendered inoperable
Some housing industry professionals have cheered the Trump administration’s actions to disable the Consumer Financial Protection Bureau (CFPB), but appraisers have mixed feelings about it.
On one hand, they welcome the end of the Property Appraisal and Valuation Equity (PAVE) Interagency Task Force, the federal effort to investigate racial bias in appraisals for which the CFPB was a stakeholder. But the unraveling of the CFPB would also mean the bureau won’t issue final rules on complaints from appraisers. They allege that appraisal management companies (AMCs) take an unfair share of the fee that homebuyers pay to have their home’s value determined — and that they deliberately hide it from the public.
https://www.housingwire.com/articles/cfpb-trump-appraisers-appraisal-management-companies-fee-disclosures/
the cfpb is no friend to the independent appraiser…so it is a win win
Per your article link; Schiffman also believes that the drop in the number of appraisers is not because of the added role of AMCs but a byproduct of record-low home sales. He also said that smaller appraiser fees are simply a result of the market for appraisers, in which REVAA plays an active role.
Straight faced liars. Approximately 75% of all licensed appraisers boycott the amc industry and have for a very long time. 50% of all remaining appraisers are either holding onto licenses but not appraising, part timing, preparing for retirement, or have found relief outside of service to the American mortgage consumer seeking frt’s from gse’s, in litigation, estate, or other government valuation work. Amc companies redirected a substantial portion of work which used to go to primarily only appraisers, send that to realty and non licensed persons instead. This allows them to maintain the illusion full appraisals should cost less, even though they pay similar amounts for no valuation service products to non appraisers at frequencies which these days likely exceed actual appraisal volume. The amc trade groups have been at the forefront of advocating for alternative to appraisals and third party inspection services, aka; unlicensed pdc or property data collectors. The term amc management company is a misnomer, they’ve carved out regulatory work arounds performing many lending related services, without any real oversight as their state licensing only encompasses state authorities monitoring ‘appraisals’.
A history of the C&R issues. Here; Thank you.
https://appraisersblogs.com/fighting-tooth-n-nail-4-consumer-protection-n-the-appraisal-industry/#comment-38688
The below image; What Alamode was doing before the forced buy out by Corelogic whom was also an amc at the time, continues to utilize stolen appraisal data for private company profit from the Alamode appraisal software, and Scope systems, and scrapped the median fee report program. “my day as an appraiser’ 2017 article reference on this site.
Cindy Chance, former CEO of the Appraisal Institute, had some interesting comments about the AMC’s and appeared to be looking into the lack of transparency of the appraisal fee [which included the AMC’s portion] on the Regulation Z forms. Sadly, the Appraisal Institute fired her last year. That job was never finished, sadly.
Only if I am desperate, would I work for an AMC. I would be very surprised if the current administration has the desire to help appraisers. I hope I am incorrect.
She would certainly be a good source for Morgan and Morgan however it may be career suicide to go down that path. They have us coming and going.
I encourage anyone who thinks there is potential fraud and misuse of funds by the GSEs to contact DOGE and request an investigation. Nothing but a miracle will help me retain my business after April, however, perhaps it will help other appraisers have a future. I don’t get enough work to even pay living expenses at this time, let alone the software, and MLS memberships. I am very saddened after nearly 25 years in the business – love the work, not the reports, continuously added commentary, GSE crap, etc.
Sad to hear. I can appreciate your predicament and wish you well. I’m surprised the E&O insurance companies, appraisal organizations and software providers are not more vocal as their customer base is shrinking exponentially. Seems everyone one of the industry providers have either gone to the dark side (haven’t yet figured out why) or jumping ship. OREP where are you?
What on earth justifies taking 84% of the fee? Even the median average is unbelievable. 65%? If a middleman needs to exist, ok. But there has to be a better way than this.
There are better ways to manage this, but you have the good ok boys club between lenders and AMCs, plus you have mortgage companies that do not want the expense of an appraisal department, which allows them to dump the responsibility onto the AMC, although, ask Loan Depot how that worked for them.
You are absolutely right. If you’ve spoken to a AMC almighty, unflawed, arrogant “CHIEF” appraiser you may get the distinct impression they are advocates for the lender. Hey, wait one minute. That can’t be true though because everything says they need to be impartial so I must be wrong. I guess I misunderstood the distain in their voices and the direction they wanted me to go. I know one in particular that needs be thrown under the bus. Time for accountability,
They can’t stop us from listing our fee within the report. That’s your appraiser’s independence. Then they can answer the consumers questions about the difference between what your fee is in report and listed on HUD statement. Quiet protest.
It is mandatory reporting in the new UAD 3.6. It will literally be GSE required and no AMC can stop it unless they order the report on the old legacy forms.
I laughed my ask off last night while watching 2 men from the CFPB crying on the national news about losing their jobs. I called their office today to express my hope that the entire agency is shut down. I told the shocked woman their agency failed for nearly 15 years to protect consumers and appraisers from AMCs and they deserved to go hungry for a few years. I encourage each of you to call their office this week to ask them how it feels.
Number please? Thanks. Just want to make sure I hopefully reach the same person.
855 411-2372 a bit of work getting past the automated junk
Retired can you go round two and record the conversation?
There was a local CO news article last night; IRS under performing workers and an array of new probationary hires being walked out the building. Camera’s everywhere recording them walking out. Interviews; No severance no subsidy, just fired, we worked so hard! The people are going to wait forever now.
Me; Those are the people handling my taxes? Whom had better job opportunities than me? They can barely speak english and are dressed like they just got out of bed. I really should have gotten those late taxes done last year. Who knows how long I’ll wait this time…
Strengthening Appraisal Oversight: Progress at the Appraisal Subcommittee
ASC implements new oversight measures including hearings, rulemaking, and updates to monitoring policies.
By Zixta Q. Martinez – JAN 17, 2025
Share & print
I am very pleased to provide this informal report on the progress made by the Appraisal Subcommittee (ASC) since I became Chair. Before detailing our successes, I would like to acknowledge and thank Jim Park, whose tenure as ASC Executive Director just ended on January 1, 2025. I want to express my gratitude for his service to the ASC for more than 15 years.
When I assumed the Chair of the ASC on April 1, 2022, I set several priorities:
Collaborating with all stakeholders to ensure appraisals are performed accurately and without bias and to promote a qualified, diverse, and plentiful universe of appraisers across the country;
Completing the required Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) rulemakings and actions, especially the one related to creating a system of prompt corrective action for the oversight of state appraisal regulatory agencies;
Improving oversight and accountability of The Appraisal Foundation (TAF or Foundation) and State appraiser and appraisal management company (AMC) regulatory programs;
Improving ASC governance and accountability; and
Ensuring appropriate and adequate ASC staffing to effectively discharge agency responsibilities and adapt to enhanced expectations and regulatory changes.
https://www.consumerfinance.gov/about-us/blog/strengthening-appraisal-oversight-progress-at-the-appraisal-subcommittee/
bye bye zixta….and bye bye park
ASC? Have you ever read through the ASC website and read their own rules and regulations?
https://appraisersblogs.com/appraisers-freed-from-dei-propaganda/comment-page-2/#comment-44510
Is that one of the people responsible for HUD complaints against appraisers? Related.
https://appraisersblogs.com/appraisers-freed-from-dei-propaganda/comment-page-2/#comment-44603
Wells Fargo’s Vikram Rai on the privatization of Fannie Mae and Freddie Mac
https://www.cnbc.com/video/2025/02/19/wells-fargos-vikram-rai-on-the-privatization-of-fannie-mae-and-freddie-mac.html
the banksters call it affordable housing…
“FHA has done a phenomenal job at increasing housing affordability.”
The new game in town; Move people on lower rates to higher rates with loan mods to cover arrears, or if they’re on higher rate programs, keep them tied up with delays and cost tacking on the back end for meager savings just enough to keep them paying and not walking away.
Your article appeared to be the talking heads influencing an opinion that higher rates will hurt the market and the people. If we slow everything way down and force people to be actually more responsible, limit their access to credit over the longer term, they’ll stop being so credit reliant, save more, and make more responsible decisions. Subsequently lower turnover volume, a decreased acceleration of pricing.
You won’t hear lenders saying radical things like it may be better to wait and save, take less credit, be more responsible. When they say affordable housing what they’re really projecting is just barely affordable loans for the highest possible tolerance of peak home pricing.
I’ve got ‘affordable housing’ in the suburbs on a decent home with a quarter acre lot, privacy, a garage, no hoa. We did not need to select a condo, townhome, or some high density housing situation to get there. The life hack to affordable housing is to always pay down and never borrow more. ‘Affordable housing’. They should give that a rest. How about better financial education for the people on the dangers of debt, the benefits of saving, avoiding the traps of welfare systems.
Current status of GSE managers; Tap dancing on a bubble; cigar and whiskey in hand. It’s going to be more than a decade before the refinance market lights up again. They went too low with negative rates for too long. Pushed too many subsidies. Drove housing costs too high. You know what is going to stick around; Higher taxes.
Retired, what a shake up right? It’s going to take years for everything to play out. Never thought I’d see the day that anyone dared try and reign in the waste and abuse. Absolutely remarkable. As usual, the small business appraisers will be an after thought nobody pays much attention to. Nobody is going to care about the sacrifices the appraisers made to protect the consumers, and only consumers will get any benefit of class action suits. The real kicker will be if all the appraisers whom crossed the amc boycott picket line all these years, those whom facilitated the the consumer harm by agreeing to scope of work terms to conceal their true fee from consumers get retroactive back pay.
Shutting down the cfpb also comes with the automatic re implementation of the DF reg Z C&R rule though right? The cfpb was the primary reason most appraisers ended up walking away, as the cfpb group provided the safe harbor rule which allowed an appraisers acceptance of a fee to indicate that was a fair market fee. Rather than having to pay minimum fees based on fee surveys which as DF reg Z specifically prescribed; were not to include amc fees, or use the VA standard fee schedules.
By the time anyones phones ring again, new forms will be out. Waivers expansion already happened. Many appraisers have already effectively retired even if they retain active licenses. The avm final rule rushed into place in anticipation of a political shift. And now we’re hearing talk of a $5k DOGE refund check. What was the point of saving any money and trimming the budget if they’ll just turn around and give that amount out freely to everyone like some massive welfare subsidy? Can we have lower taxes and an increased value of the dollar instead? Prosperity through debt. Central planning never works.
Here comes all the beggars with their hands out. Oh government, you saved so much money, can we have some of that savings for free ourselves instead? Ron Pauls economic theories win again. The government is not capable of producing anything of value. Their only claim to fame is the ability to distribute other peoples money to an ever shifting landscape of special interests and favored constituents. Creating more dependency, while fewer and fewer people bother to save. ‘Don’t steal. The government hates competition.’
Well said as usual Bags – but remember they are only just “considering” any refunds. It’s far from a done deal. And if the $ regains it’s value – how does the Real Estate industry adjust “market values” when suddenly it takes less $’s to buy a home rather than the current e$0.42 value? Is FNMA gonna start requiring “cost of a $ time adjustments”. Asking for a friend 😉
Thanks. Those are complicated questions. First off the concept of cost of money adjustments does not work in real estate, because that’s where the strategy comes in. The concept of smart money vs costly money. Otherwise people could borrow their way to success with no skin in the game. And responsible people with substantial equity and low debt profiles could not be rewarded with increased mobility or rewarded opportunity through hard work and responsible debt management and debt avoidance. Which is a negative condition similar to what happens with stimulus and incentives, responsible people are wedged out by aggressive competition relying on debt and subsidy, artificially low costs of money. Politicians call this economic stimulus. Economists whom know what they’re doing like Mises call this artificial market inflation and over valuation.
Consider the opposite; How did the pricing get this high in the first place? The trends of the market. The availability of credit. The value of the dollar. Give it time, the ebb and flow of the pricing will follow the value.
This touches on the gold standard argument. There was an interesting statement the other day via a talk show caller. The topic being discussed was doge demanding an audit of fort knox to see if the gold was still there. The callers counter; What does it matter, we clear through that much gold in terms of government expenditures on a yearly basis and then some. A true gold standard would probably mean one of two things; Gold would have to have an equivalent jump such as moving to 50k-100k an ounce, the relative balance against fiat spending. Or the money supply would need to be diminished to the point the relative value of gold once again at least loosely aligned with the dollar. In all likely probabilities the value of gold will rise instead, kick the can down the road another day.
Really wished I could have afforded investments like that, but I’m only a residential appraiser, lucky to get by check to check. Got a quote for hardwood installation in my ranch house, approx 800 or so sq ft worth for most areas but not all. Over $30k. For standard oak with stain full plank… The economic pressures can not be answered with stimulus. Really glad to see audits finally happen. Nobody dares answer the question; what exactly is wrong with low prices? I thought in times of economic prosperity, things cost less, not more. The prosperity through debt program plays on.
The most responsible among us are consistently disregarded and penalized by the never ending political play to buy constituent favor with stimulus and free money. Honk, if I’m still paying your PPP loans, your student loans, your wildly over inflated home values loan subsidies and modification write downs, your original mortgage, your ebt food benefits, free college for illegal migrants, corporate welfare, funding the military, etc, etc. Our entire lives; Taxation without representation.
It looks Mark Calabria is back in the mix.
https://subscriber.politicopro.com/article/2025/02/calabria-hired-for-white-house-budget-office-detailed-to-cfpb-00205065
That being said, considering he said the following about expanded eligibility for appraisal waivers, is there hope the plug will be pulled?
https://x.com/MarkCalabria/status/1851039452900012099
And.
https://www.workingre.com/fhfas-massive-expansion-of-appraisal-waivers-what-it-really-means/
Seek the truth.
Image of his statement. Thanks.
what do you think is going to happen when appraisers keep standardizing the mailing address…their forms, their rules, appraisers lose…
Good to see some investigation here. We’re fortunate enough to work exclusively with lenders through their panel directly. The AMC fees on residential work are just way too high to make it worth it in a lot of cases.
Ohio, Bill, ARCC, whomever may be interested. Want to play the management skills cut up game for other amc’s? Think you may identify a similar pattern of leveraging poached talent, insider connections, various conflicts of interests?
(silence in a dimly lit alley, the moon glimpses from behind stormy clouds, lightning flashes, disconcerting sounds echo ominously from distant locations, thunder claps.)
(taps microphone repeatedly) Hello? Hello? Is this thing turned on?
https://appraisersblogs.com/class-valuation-brags-about-maximizing-rov-conversion-rates/#comment-44718