HVCC A Burden On Buyers?

Dirk E. Schneider argues that the HVCC rules increase the cost of appraisals without gaining any benefit in exchange.

A consumer (mortgage borrower) will typically pay from $300 to $500 for an appraisal, but out of that the AMC takes their "split," leaving maybe $150 to $225 to pay the appraiser. The AMC uses the lowest-price appraiser, who likely has the least experience, schooling and knowledge. Consumers believe they are paying a professional fee but are paying administrative fees for the management of ill-qualified appraisers. The banks no longer bear the cost of managing the appraisal process and ultimately get to pocket the money.