1004p

[J Grant]

Let's just hope other appraisers refuse the low fee. If quicken wants to do 1004P let them, but why at our expense? If they still need the appraiser for the 1004 P, then charge X or decline. . Of course their staff appraisers have no choice and will produce 1004 P, fine, let it be a staff product, but if sent out to fee appraisers than pay a decent fee.

Otherwise it makes no economic sense to maintain the investment of being a fee appraiser, if 1004P becomes a larger share of appraisal orders at such low fees. The volume of work will not increase, which means appraisal income is cut in half or by two thirds. Which might make it okay for a part time income, if it even makes sense to maintain licenses and stress levels for part time income. Might end up with a lot of ex appraisers doing the inspection part .

 

[Renee Healion]

I was listening to the radio while driving yesterday and the topic was changes in FHA buyer qualifications. In passing, it was said that Quicken has a very large portion of the FHA loan market.

It is almost hard for me to care about this latest mess so I may be missing some things, or conflating them. It seems the underlying idea of these things--and waivers--is shift focus from deeper collateral examination to borrower creditworthiness. It is obviously so in the case of waivers, and may be so only in that case. I just do not see this format as being as comprehensive as one person doing the inspection, research, analysis, and report. So if this FannieMae move takes hold as predicted, what is next? In particular, if the administration of FHA tightens the buyer qualification side, will they next go lite on the collateral, too? It seems counter to their mission.

 

[ramrcdk]

Let's just hope other appraisers refuse the low fee. If quicken wants to do 1004P let them, but why at our expense? If they still need the appraiser for the 1004 P, then charge X or decline. . Of course their staff appraisers have no choice and will produce 1004 P, fine, let it be a staff product, but if sent out to fee appraisers than pay a decent fee.

Otherwise it makes no economic sense to maintain the investment of being a fee appraiser, if 1004P becomes a larger share of appraisal orders at such low fees. The volume of work will not increase, which means appraisal income is cut in half or by two thirds. Which might make it okay for a part time income, if it even makes sense to maintain licenses and stress levels for part time income. Might end up with a lot of ex appraisers doing the inspection part .

Agree with everyone's same perspective, part-time, & end outcome!
HOW do we shout it from the roof-tops and to those that still are NOT even aware?
How are Realtors reacting or in mass do they even know, care?
Currently, how can we be PRO-active? Just say NO to the low FEE !
Set a Fee range for the products which includes "your expenses in operating a business".
Since Appraiser's must fill-in these Forms, we have VALUE.

Let's share Fee ranges = operating a business in today's appraisal world.
So they are telling us what they will pay, sounds anything BUT Independent. cough, choke again.
It really is NOT about the Form Ordered but what will it cost to maintain an office based upon Low Fees?

Fact: after the "non-licensed inspector" does their "no repercussions whatever" (inspection),
it is the lender that decides IF on the type of Form product for their needs.
What percentage will this impact? The proposed answer: FDIC initial notification:
965,000 or 72%.
We must all say NO to the LOW Fee and broaden the VALUE of the Overall Appraisal Operation.
Presently known, that is all we can do & WE ALL must support one another.

IF appraiser's start accepting $125 per as fair & reasonable we are all in the cheese line.

 

[George Hatch]

IF appraiser's start accepting $125 per as fair & reasonable we are all in the cheese line.

That's the biggest challenge right there - how to prompt appraisers to refrain from choosing to work for a lower hourly rate. I think that if appraisers price these assignments fairly and based on the time they're spending on them to get them to spec that the lenders will find out real quick that they're paying more for the two-service combo than they would if they stuck to the single service conventional 1004s.

 

[J Grant]

Appraisers should not fall for subtract by your hourly the time for inspection formula,because 1) the 1004 work is not an hourly based product 2) even if you divide it by an avg # of hours, AMC work is already so discounted it means that formula will put appraisers in the poor house.

A realistic discount from typical AMC fees should max out at $ 50 A bigger discount will not sustain an appraiser since fees at this point from many AMC;s are rock bottom and a discount off rock bottom drives you out of business. The volume of orders will not increase , and likely will decrease , so there is no way to "make it up in volume"

If direct lenders paying good fees now use the 1004 P it will be interesting to see their fee for it.

 

[ucbruin]

$150/inspection would seem okay....

 

[George Hatch]

Okay, let's say an appraiser is getting hosed with $250 fees (actually I've heard it's less than that for some assignments in my region). $250/7 is $35/hr, so if it takes 1-1.5 hours to do all the field work then a $50 discount does fit. Regrettably.

The appraiser is still getting hosed on their fee (IMO) but no worse than any of their other assignments. Meanwhile the lender is paying for the appraiser and the inspector at whatever the inspector's rate is AND they're paying for the 3rd party management of both assignments instead of just the one assignment. So unless those inspectors are working for no more than $25 there can't be any no fee savings for the lenders, and even if there was it wouldn't be worth the hassle of dealing with 2 services instead of just one.

 

[J Grant]

Okay, let's say an appraiser is getting hosed with $250 fees (actually I've heard it's less than that for some assignments in my region). $250/7 is $35/hr, so if it takes 1-1.5 hours to do all the field work then a $50 discount does fit. Regrettably.

The appraiser is still getting hosed on their fee (IMO) but no worse than any of their other assignments. Meanwhile the lender is paying for the appraiser and the inspector at whatever the inspector's rate is AND they're paying for the 3rd party management of both assignments instead of just the one assignment. So unless those inspectors are working for no more than $25 there can't be any no fee savings for the lenders, and even if there was it wouldn't be worth the hassle of dealing with 2 services instead of just one.

It's appalling how low some fees by AMC;s are - if an appraiser is getting $250 they are crazy to give any discount, but since they are already compromised, then if they are able to hold the line at a $50 discount, they are still starving but at least not driving around. If the AMC or their lender sees no discount they might drop the 1004P . My prediction is the 1004 P is far better suited to staff appraiser work so it might become more concentrated there.

 

[Proactive]

Okay, let's say an appraiser is getting hosed with $250 fees (actually I've heard it's less than that for some assignments in my region). $250/7 is $35/hr, so if it takes 1-1.5 hours to do all the field work then a $50 discount does fit. Regrettably.

Uber drivers from Los Angeles and Orange counties plan to gather in Redondo Beach today at 11 a.m. to protest a recent 25 percent wage cut and will demand that drivers earn at least $28 an hour.

The Uber driver analogy I'ver seen joked around here apparently isn't that far off in So. Calif. Sad.

 

[George Hatch]

I had someone (local) tell me a couple months back that the AMC he was getting most of his work from lowered their base fee from $275 to $235. Because they could. Now granted he is a junior appraiser with less than 10 years in, but when the fees are that low you know it's because we still have too many heads chasing too few assignments.