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  #1  
Old 10-18-2010, 06:26 PM
HF Mudd's Avatar
HF Mudd HF Mudd is offline
 
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Default C&R: October 20th = April 1st

The Federal Reserve has just issued a press release stating that compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act is mandatory effective April 1st, 2011.

see the link for the press release

http://www.federalreserve.gov/newsev.../20101018a.htm
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  #2  
Old 10-18-2010, 06:50 PM
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Default

Read it and.....
Well, here it is attached


.
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Last edited by Riick : 01-04-2011 at 07:02 PM.
  #3  
Old 10-18-2010, 07:16 PM
Denis DeSaix Denis DeSaix is offline
 
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I think this is the significant section everyone will want to read (p. 9):

Quote:
Customary and reasonable rate of compensation for fee appraisers. Under the interim
final rule, a creditor and its agent must pay a fee appraiser at a rate that is reasonable and
customary in the geographic market where the property is located. The rule provides two
presumptions of compliance. Under the first, a creditor and its agent is presumed to have paid a
customary and reasonable fee if the fee is reasonably related to recent rates paid for appraisal
services in the relevant geographic market, and, in setting the fee, the creditor or its agent has:
Taken into account specific factors, which include, for example, the type of property and the
scope of work; and
Not engaged in any anticompetitive actions, in violation of state or federal law, that affect the
appraisal fee, such as price-fixing or restricting others from entering the market.

Second, a creditor or its agent would also be presumed to comply if it establishes a fee by relying on rates established by third party information, such as the appraisal fee schedule issued by the Veteranís Administration, and/or fee surveys and reports that are performed by an independent
third party (the Act provides that these surveys and reports must not include fees paid by AMCs).
As I read this, this is what I understand:
An AMC (or other entity) is presumed to pay R&C fees if
One: (a) it is based on recent fees within the geographic area and considers assignment and complexity, and (b) there is no evidence of collusion to hold fees to a certain price, or
Two: The AMC/entity can adopt VA or other independent fee survey schedules.

What I do not interpret this to mean is that an AMC must adopt VA or other published schedules.
What is implied (to me) is that the R&C rate is based on what the market will bear and is negotiated and accepted by the appraiser.

Does anyone have a different interpretation?
  #4  
Old 10-18-2010, 07:30 PM
kevco kevco is offline
 
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Default

Quote:
Originally Posted by Denis DeSaix View Post
I think this is the significant section everyone will want to read (p. 9):



As I read this, this is what I understand:
An AMC (or other entity) is presumed to pay R&C fees if
One: (a) it is based on recent fees within the geographic area and considers assignment and complexity, and (b) there is no evidence of collusion to hold fees to a certain price, or
Two: The AMC/entity can adopt VA or other independent fee survey schedules.

What I do not interpret this to mean is that an AMC must adopt VA or other published schedules.
What is implied (to me) is that the R&C rate is based on what the market will bear and is negotiated and accepted by the appraiser.

Does anyone have a different interpretation?
Nope! It looks like the banks and their lobbyists got what they wanted. Did you ever think it would be any different?
  #5  
Old 10-18-2010, 07:32 PM
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Winston Wolf Winston Wolf is offline
 
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Quote:
C&R: October 20th = April 1st
Let me fix it for you...C&R: October 20th = $185.00 because those who have the gold make the rules.

You all need to get out of mortgage appraising.
  #6  
Old 10-18-2010, 07:35 PM
kevco kevco is offline
 
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Quote:
Originally Posted by Winston Wolf View Post
Let me fix it for you...C&R: October 20th = $185.00 because those who have the gold make the rules.

You all need to get out of mortgage appraising.
Like I have been saying on this forum for months and months but most wouldn't listen. Fees are going down not up. Washington was just telling Marion what she wanted to hear and did whatever they wanted anyway.
  #7  
Old 10-18-2010, 07:40 PM
Denis DeSaix Denis DeSaix is offline
 
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Default

I just spoke to a very knowledgeable person in the industry, and he/she has pretty good take:

She/he reads the announcement and thinks this is good news (or, at least, not all bad news) for appraisers.
The AMCs are not "off the hook" as far as R&C goes. And, the banks (who are ultimately responsible) can choose to tell the AMCs,
"Look, we don't want any regulatory risk, pay these guys VA fees and be done with it".
This person has some other good insights, which lead me to believe that the ruling of non-adoption may not be as terrible a thing as it first sounds.

What I do think is also good is this: Up to this point, appraisers have been pushing-back on fees. And, per many forumites, fees have been going up. So, the push-back has worked. No need to stop on that front (which is a market-driven solution).
  #8  
Old 10-18-2010, 07:44 PM
Highlander416 Highlander416 is offline
 
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I think that I do see it a little differently.

The govt is not going to simply impose, for example, the VA fee schedule on all lenders nationwide. I see the second part that mentions the VA fees as more of a "safe harbor" provision. For example, if a lender decides to use the VA fee schedule, they are safe from dealing with the fee issue at that point. In other words, if you don't want to go thru the trouble of arguing over what a C&R fee is, you can just use the VA fees and be done with it.

I don't think the AMC's will be able to argue they just ignored the C&R fee section about using surveys that do not include AMC fees, by simply saying they did a survey, which included just looking at their own fee schedule and agreeing with it, and just doing business as usual.
  #9  
Old 10-18-2010, 07:47 PM
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Flygirl 152 Flygirl 152 is offline
 
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Default

Quote:
Originally Posted by Denis DeSaix View Post
I think this is the significant section everyone will want to read (p. 9):



As I read this, this is what I understand:
An AMC (or other entity) is presumed to pay R&C fees if
One: (a) it is based on recent fees within the geographic area and considers assignment and complexity, and (b) there is no evidence of collusion to hold fees to a certain price, or
Two: The AMC/entity can adopt VA or other independent fee survey schedules.

What I do not interpret this to mean is that an AMC must adopt VA or other published schedules.
What is implied (to me) is that the R&C rate is based on what the market will bear and is negotiated and accepted by the appraiser.

Does anyone have a different interpretation?
Denis, when I first read this section, I thought it meant that during the interim period, it is assumed that appraisers are being paid C&R until the April 11th deadline. Further determination would then be made after public comment and fee studies.

Your interpretation has changed my mind though, and I am now leaning away from my initial thoughts.
  #10  
Old 10-18-2010, 07:53 PM
Highlander416 Highlander416 is offline
 
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In addition, this sets up a situation where appraisers can really bombard their Congressman and Senate members. A letter with the VA fee survey and AMC fee schedule attached showing fees $200 apart. Before now, we could call and claim we thought VA represented the C&R fee, but it was a matter of opinion. Now, we have a law that clearly states the VA Fee IS considered a standard for C&R fees to the extent it was even referenced in the law itself.
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