Ted Cornwell’s recent blog on appraisal management companies stirred up quite a bit of feedback this week. Here’s a sample.
Name: D
Love the comments. I don't know what anyone is thinking writing an article such as this about an AMC. As a broker, my experience is predominantly appraisers are underpaid and jobs are bid to the cheapest appraiser. Then appraisers wait up to 90 days or more to be paid. This article lays it out very clearly. AMCs are a money machine and many are for the banks that own them. AMCs are absolutely zero help in determining accurate values or assisting consumers in getting accurate valuations. I will note I've had no experience with this AMC, but 100% of them I have been "forced" to use by lenders are dismal. I just had two loans lose locks because one appraiser took seven days to even call for an appointment; the AMC took a week to review, add in another week for preparing the garbage. So unfortunate that homeowners are being taken to the cleaners so AMCs can rake in the dough.
Name: KGR
25 million in annual revenue?? So, the company gross income is what...about 10 million or so? Am I missing something here? I'm in the wrong end of the business.
Name: Another Honest Joe Appraiser
With 6,000 appraisals a month and $25M in annual revenue, you'd think they could pay their appraisers on time. Their payments consistently take 50% longer than they promise and when you eventually have to call them to ask where your money is, you get attitude from their accounts payable people (probably b/c every call they take is for the same thing). I've stopped taking assignments from them. The longer the payments take...the more I smell another AppraiserLoft-style meltdown.
Name: DL
I am surprised NMN would do a feature on an AMC. This is a puff piece to solicit business. AMCs are nothing other than blood sucking leaches. I told this to a group of LOs and they told me I was being too nice. What value does administering an appraisal order offer, $200 an appraisal which is customary, $250? Dodd-Frank doesn't require AMCs be used, they require appraisal independence. Every lender should set up an internal appraisal department to make sure appraisers get paid and they get good work.
