- Report: #1458076
Complaint Review: Appraisal Management Companies - Nationwide
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Appraisal Management Companies
Nationwide, United States
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Appraisal Management Companies Residential Appraisals
I have been a residential real estate appraiser for over 22 years and in my opinion, this industry has been decimated by Appraisal Management Companies (AMC’S). This ripoff report is being written to inform the consumer of the money being paid to appraise your residential homes, be it for a purchase or for any other federally bank related transaction needing an appraisal. (AMC’s) have been around for a number of years.
However, they never really started taking control of the appraisal industry until after the real estate market crashed. Ever since that time (AMC’S) have multiplied across this country. A very large part the consumers do not realize the total cost they are being charged for the appraisal does not go to the appraiser. I have firsthand knowledge of one instance where the fee that was charged to a consumer was over $880.00. The appraiser was paid $450.00. AMC’S have been put in place to keep the integrity between the processors, mortgage brokers and bankers as to not influence the appraiser when it comes to the final estimate of value for the home.
I will admit this has been great, however, as a professionally trained certified residential appraiser it is my duty as well as any other appraiser to have the ethics and morals to stand your ground and not be influenced by any third party. (AMC’s) receive the appraisal from the appraiser, the (AMC) does a quick review by what may or may not be an appraiser that is employed by the (AMC) and forwards that appraisal to the lender. At that point it is reviewed by the underwriter and/or the banks appraiser, if an appraiser is on staff at the bank for any questions that may arise.
(AMC’s) for the most part forward the completed appraisal report to the lender with very little action needed on their part. In my opinion, taking $430.00 (based on the above figures) to transmit the appraisal to the lending institution is a total ripoff to the consumer. AMC fees should be no more than 20% of the total fee collected with the balance being paid to the actual person (the appraiser) doing the work. By using this model, (AMC’s) would than put more attention on hiring appraisers that have years of experience rather than possibly hiring an appraiser that does not have the experience and willing to work for a lot less money and padding their pockets with the appraisers hard earned money.
2 Updates & Rebuttals
Robert
United StatesMissing the point
#2Author of original report
Sat, October 06, 2018
You are missing the point, as consumers, we are forced to pay a higher fee for an appraisal due to the middleman (AMC'S). Without the AMC's, the fee would in fact be less.
Common Sense
Irvine,California,
United States
To put this another way
#3Consumer Comment
Fri, October 05, 2018
To put this another way. You don't want them to charge less, you want a bigger piece of the pie. Based on your numbers that comes out to about $704 of that $880 instead of the $450 you are getting paid.
I think homeowners would beg to differ with that idea and would probably prefer to be charged less.
