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Appraisal Management Fee???

Valued Contributor

Appraisal Management Fee???

I am shopping around for a mortgage.  Plugged in some numbers at Capital One.  The program spit some numbers back at me.  I noticed there is an Appraisal Fee AND an Appraisal Management Fee.

 

What the heck is an Appraisal Management Fee???

 

Message 1 of 13
12 REPLIES
Member

Re: Appraisal Management Fee???

It's an extra charge, that's all.  It means that CO is making you pay for them to oversee the appraisal process.  I would avoid all the big banks and internet call centers.  You need a mortgage professional.  Find out what they offer in rates and fees before you even get pre-approved.

 

Scott Drescher

Message 2 of 13
Highlighted
Moderator

Re: Appraisal Management Fee???

Yes, its a junk fee.

 

Some brokers and banks have figured out another way to add revenue to their origination fees. The appraisals today are ordered through an AMC (required) and usually the AMC gets their payment by taking a large portion of the fee that goes to the actual appriaser. Most lenders have an ownership interest in an AMC and naturally that is who they order the appraisal through.

Message 3 of 13
Super Contributor

Re: Appraisal Management Fee???

the federal govt makes lenders order thru an appraisal management co(amc)......   an independant 3rd party

 

amc is not a non-profit co..... they have to pay employees so they charge a fee

lenders arent going to eat the cost

appraisers are already seeing a pay cut

 

legit fee. we ALL have it.... whether disclosed or disguised as something else.

 

 

 

Retired Lender
Message 4 of 13
Valued Contributor

Re: Appraisal Management Fee???

Thank you for all the responses.

 

Now to find a lender that doesn't charge those fees....

 

I wouldn't use Cap 1 unless it was totally the last resort and they don't like me already.  (BBB is MY friend, not theirs!)

Message 5 of 13
Super Contributor

Re: Appraisal Management Fee???

 
Retired Lender
Message 6 of 13
Super Contributor

Re: Appraisal Management Fee???


IOBA wrote:

 

 

Now to find a lender that doesn't charge those fees....

 

 


 

dont pick a lender based on one small fee.

it is a legit fee..... though some dont agree that the amt is necessary

 

if a lender doesnt show that fee on the hud..... then it is hidden in the price of the appraisal.

 

some lenders do not seperate the fees onn the hud... we dont. we include it in the price of the appraisal. less confusing.

 

 

Retired Lender
Message 7 of 13
Moderator

Re: Appraisal Management Fee???

Right, it doesn't matter if the figures come out the same.

 

IME, the figures don't come out the same. But it is still worth going through the whole estimate because they might be less on something else.

Message 8 of 13
Valued Contributor

Re: Appraisal Management Fee???

The owners have decided to do owner financing...so I am going through the learning curve on this one.  I have checked into owner financing before, but recently.  

 

Any advice?

 

We agreed to a purchase price, down payment, loan term, interest rate, and a balloon payment.  We have not agreed on a monthly payment.

 

 

Message 9 of 13
Regular Contributor

Re: Appraisal Management Fee???

How much does an appraisal cost?  It's hard to see how an appraisal management fee could be a significant issue.

 

Message 10 of 13