The Appraiser Shortage Myth Part 43

[timd354]

When you set a minimum or a maximum, be it a dollar amount or a percentage it is price fixing. This is just logic 101.

Logic is obviously in very short supply in some cases

 

[TRESinc]

Res lender fees are limited because most borrowers can only pay so much for an appraisal.

hahahahahahahha

if a borrower can only pay "so much" for an appraisal, say $500, then they have no business taking out a loan for 10s to 100s of thousands of dollars.

 

[J Grant]

When you set a minimum or a maximum, be it a dollar amount or a percentage it is price fixing. This is just logic 101.

That would only be true if the TOTAL price allowed to paid to AMC is the percentage . The AMC is free to charge any additional $ they want on top of the percent as a price to lender for their service.

Borrower paid lender a$500 appraisal fee, 20% capped of that allowed to pass through lender as a payment for AMC service. ( $100) The below are examples,change the price to any amount you want.

The price price AMC charges the lender,: $200. Lender pays AMC $200. ( $100 of the $200 came from the fee split) Since the lender paid the AMC the $200 price the AMC charged them, how is that price fixing?

The price AMC charges the lender: $300 Lender pays the AMC $300. ( $100 of the $300 came from the fee split) Since the lender paid the AMC the $300 price the AMC charged them, how is that price fixing?

TMD, if you can not follow the above logic , then your logic is in short supply. Why don't you answer the question, instead of making a snarky comment: Answer the question, in the above example, since the AMC can charge whatever price it wants to the lender and lender if free to pay it, how is it price fixing?

 

[timd354]

20% capped

how is that price fixing?

The argument that capping fees chargeable to certain parties (i.e., the borrower) at a certain percentage does not amount to price fixing is beyond absurd.

 

[Michigan CG]

TMD, if you can not follow the above logic

There is NO logic, it is cappping which is price fixing. This argument has gone beyond insanity.

 

[J Grant]

hahahahahahahha

if a borrower can only pay "so much" for an appraisal, say $500, then they have no business taking out a loan for 10s to 100s of thousands of dollars.

That may be true, but I am commenting on the reality- appraisal fees are not higher the way RE commissions have , for example, because the appraisal fee is traditionally paid upfront. Some borrowers are limited by income or cash strapped. And no matter how well off a borrower is, lenders compete and want that loan. A lender is fine with an squashing our fees down, but the lender does not want to risk losing a borrower by asking for a higher appraisal fee. The lender wants to keep their customer happy, not us.

I suppose appraisal fees could be much higher if it was not ( real money) paid upfront- if appraisers could charge on an installment plan like a credit card lol....( not feasible for lending work, just saying)

 

[J Grant]

There is NO logic, it is cappping which is price fixing. This argument has gone beyond insanity.

Surely you can not be this dense?????

How can you not understand the examples I just posted ? READ it. The PRICE is not fixed nor capped. The AMC can charge whatever PRICE they want to the lender , and the lender is free to pay it. The only part that is Capped is the % from borrower appraisal fee passed though as part of the price. An AMC can charge $1000 to the lender above the capped pass through of fee from borrower, and lender is fee to pay the AMC $1000 above the cap.

You honestly can not comprehend it?

 

[TRESinc]

That may be true, but I am commenting on the reality- appraisal fees are not higher the way RE commissions have , for example, because the appraisal fee is traditionally paid upfront. Some borrowers are limited by income or cash strapped. And no matter how well off a borrower is, lenders compete and want that loan. A lender is fine with an squashing our fees down, but the lender does not want to risk losing a borrower by asking for a higher appraisal fee. The lender wants to keep their customer happy, not us.

again, using your example, if $500 is too much for a "cash strapped" borrower to pay then they have no business taking out a loan. appraisal fees are not the only things a borrower has to pay up front, and it takes a lot of money to own a house for things like repairs, updating, furnishings, taxes, insurance, etc.

so please, spare us the phony sob story. if $500 is too much how can they afford a house payment that could easily be double to 5 times that amount, monthly?

 

[timd354]

Surely you can not be this dense?????

That is just a priceless comment coming from you, lol.

 

[J Grant]

The argument that capping fees chargeable to certain parties (i.e., the borrower) at a certain percentage does not amount to price fixing is beyond absurd.

That would only be true if the TOTAL price allowed to paid to AMC is the percentage . The AMC is free to charge any additional $ they want on top of the percent as a price to lender for their service.

Borrower paid lender a$500 appraisal fee, 20% capped of that allowed to pass through lender as a payment for AMC service. ( $100) The below are examples,change the price to any amount you want.

The price price AMC charges the lender,: $200. Lender pays AMC $200. ( $100 of the $200 came from the fee split) Since the lender paid the AMC the $200 price the AMC charged them, how is that price fixing?

The price AMC charges the lender: $300 Lender pays the AMC $300. ( $100 of the $300 came from the fee split) Since the lender paid the AMC the $300 price the AMC charged them, how is that price fixing?

Please don's answer in generality such as it is absurd. Please respond to the specif above above examples. Since the PRICE is not fixed, and the AMC is free to charge the lender whatever additonal $ on top of the cap % amount as the AMC PRICE, and the lender is free to pay the AMC that price, how is it price fixing?