The National Association of Independent Housing Professionals (NAIHP) recently announced that many Appraisal Management Companies (AMC’s) are operating without authority in most states and have failed to pay state income taxes.
No surprise here. I’ve written extensively about the mendacity of AMCs, aided and abetted by the lack of regulation and oversight, and the resulting destruction of the appraisal profession. Appraisers who accept work from AMCs should check to see if they are registered in the appraiser’s state, and if not, file a complaint with their state regulator. But most appraisers will not, because they are cowed into submission by threats of withdrawal of future assignments.
Full article here.
Among the deceptions perpetrated by AMCs is the failure to disclose to borrowers the actual appraisal fee breakdown. Appraisers might be paid $250 out of the $500 to $750 that is charged to the borrower, the balance skimmed by the AMC.
The Consumer Financial Protection Bureau released the second proposed version of a new Consumer Disclosure Form that includes clear disclosure of any fee paid to a “Local Appraisal Company” and to an “Appraisal Management Company.” Predictably, AMCs are vigorously opposing this requirement, as it would likely result in evaporation of this lucrative income stream.
Complete article here.