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.
- AMCs Overcharging Consumers? Morgan & Morgan Investigates - February 14, 2025
- Appraisers Freed from DEI Propaganda - January 23, 2025
- The Shadowy AMC Fees Draining Billions from Homebuyers - January 9, 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.
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.
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.
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.