AMC's

[Craig Goldstein]

LSI & RELs fees are now paying $150.00 in my area for a full 1004. Rels wants a shortcut appraisal for $75.00 and claims it takes 30-45 min. to do. This requires two additional comps & two listings with review of another appraisers work attached. This is just plain stupid !. This industry is done and polluted by AMC's killing our fees.

[Tim Ferguson]

Yes it is, but the sad thing is there are appraisers doing it for this. I do work for RELS, refuse to do work for LSI. I do take a reduce fee, but no where near the $150,000. Maybe I am lucky because of my rural location. I do not take everything they send me. I am picky on what I accept from them. By doing this, I can make some money, not a lot. Yes the industry is hurting, but if you look back over the history. It will pull itself out, my not be like it was before, but I honestly believe it will pull out of this.

[Tom Molinari]

Do you have any idea what the borrowers are being charged for appraisals in your area? I'm not sure that people know (even the loan originators and underwriters) how much the LSIs or RELsof the world are taking from the appraisers for processing appraisal orders. Most assume that the appraiser is being paid the full market appraisal fee for the area, or close to it. Yes, AMCs deserve to be able to make money but it should be in the form of a fair processing fee for services rendered and not a major cut of the appraiser's market fees for the area.

Now if the borrower or originating lender wants the cheapest, least experienced appraiser available to do their appraisal then I'm sure that they expect to pay a cut rate price. If I had to guess, the borrowers and lenders are being charged the full market fee with LSI pocketing the balance. I believe that if the end users knew the truth that they woud be as outraged about this situation as everyone is about AIG today. Isn't LSI a division of FNC? Aren't these the same fine people that brought AppraisalPort to us? People react in disbelief when I mention to them that appraisers are being charged $10 to upload files when it can be done essentially free. Who siced FNC on the appraisal world anyway? Why do they play appraisers to be suckers?

[Michael Tabor]

Another way that appraisers could unify for the common good is to have a regularly updated database of AMC fees and conditions.

This would level the playing field for folks who want this kind of work, because AMCs would not be able to use our ignorance (about what everyone else is making) and uncertainty against us.

[Brian K. Frawley]

check this out!

read my reply at the end!


Date Assigned: May 21 2009 5:44AM
Ref Info
Report File Number CA090513 Lender Number (Please Include In Report):
Case #: Tracking #: 61559-05090031
Client Info

Client See Notes Below
Client Address n/a

n/a, CA n/a
Loan #
Borrower Info
Name Property Type Multi (3)
Address 817, 819 & 821 EAST OHIO AVENUE Report Type 1025 - Units
City FHA No
State CA Loan Type Refinance
Zip Sale Price
County Estimated Value
Loan Amount
Billing Info
Method of Payment Bill
Contact Info
Contact Name Home Phone
Work Phone Other Phone
Appraiser Info
Appraiser Brian Frawley
Appraiser Fee $225.00
Inspection Scheduled date Time
date Needed 5/25/2009
Notes / Special Instructions Hi Brian, please call borrower today and update with status on site. I'll update your delivery date once I know the inspection date/time. Thanks! Let me know if a problem taking this order...


*Please attach license and E&O

*Please do not attach your invoice to the report



This is a normal $600.00 dollar job and you want to pay $225, (I am sure you are charging normal pricing)!
This means you are making $375 on all my work!
Not only is that an outrageous payment for the amount of work that needs to be done for this project it is a slap in the face to any appraiser that has worked their ass off to get to the point I am at!
I think I will use this order as a case study to show how to shit the appraisal industry is going to go because of management companies such as yours!

This needs to be addressed at a national level!
This type of crap will screw the industry all to hell!
We are already getting the finger pointed at us for the entire mortgage flop!
Now they want to front and back end us!

We need a strong voice that will be listen too!
It appears to me that none of the appraisal controlling bodies want to stand up for us and go toe to toe with this entire process!

I couldn't find anything at all about any type of lawsuits blocking any of this stuff being thrown at us!

[Brian Davis]

I've got a couple thoughts on this thread:

First . . .I'm big on the "Tribes" concept. There's an Appraiser Tribes group on the Water Cooler that describes the process and how powerful it is. It's as old-as-time . . .and works! We don't need an "organization" or to be national in scope. I think it actually works best when applied locally.

Second . . . I've seen several (many over the years) statements and letters sent to clients, and even one that supposedly went to the President of the US, that are less than professional. What's WORSE is when they get posted to forum or the Internet. Those things then become timeless! Facebook, Tweets, MySpace and all of the other social media are discoverable and searchable. My long time advice is to never post comments or remarks that you wouldn't send to you "Mom"!

BTW: NAR supports regulation of AMC's, primarily through FIRREA and the existing appraisal regulatory infrastructure http://tinyurl.com/q3phwh

[Cynthia]

Brian

I so agree. If we communicate as tho our mothers, pastors, loved ones etc heard everything we said we would more careful and respectful in our communication. Once we attack communication typically stops. The AMC's can offer work for any fee they want, that does not mean it has to be accepted. A respectful "bid" on the work and turning it down if they do not meet what the appraiser feels is a reasonable fee works well. Does that mean some will be hungry for work, likely so. Remember that you clients ANY of your clients can read this site and see how we conduct our business. Constructive comments and positive attitudes build businesses.

[Joe The Appraiser]

Isnt posting the order a violation of Gramm Leach Bliley?

[Brian Davis]

I'm not the "GLB Police" or authority . . .but looking at the post I don't see any confidential information or even the name of a city. But, your point is well taken. When posting examples, we DO have to take care of the information we reveal.

I just saw a news story today where the producers of CSI are being sued for being a "little" to literal in their snatched-from-the-news story involving two REALTORS.

As in my post above . . . everything we blog, post or email is discoverable.

On the news this morning, there was a segment regarding "Job Hunting". The experts HR person said that 22% of companies will search an applicant's MySpace, Facebook, and other sources for background information.

[Greg Waters]

Here is an AMC that lets the lenders use their current appraisers and fees. Read the Village Bank story on the left.

http://www.vmcselect.com/09news/index.html

[Joe The Appraiser]

who needs HVCC when you have an AMC like that. Its only a matter of time before they all figure a work around..

[Greg Waters]

The lender still doesn't decide who is given the assignments (the system does so randomly) - they can only provide a list of approved appraisers and there must be multiple appraisers to rotate in every market the lender serves. I'm not sure I'd classify that as a "work around"