More on AMC's and Fighting for Your Fees

[Frank John]

I received an order late last week from one of my clients at National City (a client who I hadn't heard from in quite a while). He mentioned that they have, at least temporarily, gone back to using NAS for appraisal management. NAS pays our full appraisal fees. He described a "nightmare scenario where we were forced to use a new system that only paid the appraisers $175 and we were getting assignments sent to appraisers who had limited skills. " Here is an excerpt of my response:


Thanks. Yes, I am familiar with the situation. I understand some appraisers were even coming down from Pennsylvania...for $175???? Is it true that some of the loan officers threatened to leave if they didn't go back to NAS? The next few months will be interesting with the planned implementation of the HVCC. You guys are well positioned with the move back to NAS. I believe one of the largest banks in the U.S. is using one of those Appraisal Management Co's that is collecting the full fee from the borrower and then paying the appraisers half or less... No good, experienced, appraiser will accept those terms. In my opinion, a very dangerous move by financial institutions in this climate, particularly where there is so much uncertainty about the real value of real estate assets. With all of this attention by the administration, congress, the media, etc., if it comes out that your competitors, these big giant banks, are essentially stripping appraisal fees and using incompetent appraisers, and doing it this late in the game, at some point the executives are likely to be profiled on CNBC's "American Greed."

Warm regards,

Frank