A hill to die on.  That sounds way too serious for a real estate appraisal podcast, right?  These are supposed to be about USPAP, and education, and more practical stuff.  But I’ve been studying on this topic for some time.  Frankly, what AMCs do (or don’t do) does not bother me as much as it does some appraisers.  Those appraisers complain that AMCs do not distinguish between their gross fees and the proration of that fee that goes to the appraiser.  That’s true.  But when you buy a car, the dealer does not make transparent the contributory cost of the spark plugs and drive shaft, either.

And the fees the AMCs pay are not, in my opinion, a hill to die on, at least not right now.  That time is coming – soon.  So, unless the AMC withholds some pertinent information from the appraiser, or somehow misrepresents the situation, then the appraiser sets the fee by accepting it.  But there is a hill to die on when it comes to AMCs.  And that hill is USPAP, of which all AMCs, you’d think, would be aware.  But while the GSEs are pushing appraisal waivers, it also seems AMCs are stressing appraisers to accept lower fees for the same quantity of work, all to sustain the AMCs’ fee structure.  Remember, the AMC can ask the appraiser anything it wants to ask.  If, however, that request includes a knowledgeable request to violate USPAP, then it is time the appraiser should fire that AMC and get a new client.

Today, right now, get out of AMC work and into private work.  I’ll be happy to consult with you on that.  And make sure your E&O insurance is as relevant as possible.  It will help to have expert legal counsel in your phone’s directory, too!