Alamode/Mercury Fee report

[valuequestor]

Dave Biggers.Hola from Monterey Bay

Dave H,..........Wellll..........we're waiting!? (Just did my best Judge Elihu Smails).
---------------------------------------------------------------------------- So Mr. Dave B. I just received an FHA order from an AMC and they are paying the full stated fee without argument. Do you think FHA and Commissioner Stevens are getting the word out that they are serious about "Reasonable and Customary Fees" for FHA appraisals? A month ago I would have been haggling with this particular company. Is anybody else seeing a change in AMC behavior yet?

 

[dbiggers]

Dave H,..........Wellll..........we're waiting!? (Just did my best Judge Elihu Smails).
---------------------------------------------------------------------------- So Mr. Dave B. I just received an FHA order from an AMC and they are paying the full stated fee without argument. Do you think FHA and Commissioner Stevens are getting the word out that they are serious about "Reasonable and Customary Fees" for FHA appraisals? A month ago I would have been haggling with this particular company. Is anybody else seeing a change in AMC behavior yet?

I sure hope so. I have nothing against AMCs per se, but I have a lot against fees that are pushed to absurdly low levels through exploitation of the HVCC's firewall provisions -- and apparently FHA did too. You may be working with a good AMC, or indeed there may be a sea change taking place.

It would be nice to hear how other appraisers are seeing the fee battle playing out in their areas.

Dave Biggers
Chairman
a la mode, inc.

 

[jnordquist]

I sure hope so. I have nothing against AMCs per se, but I have a lot against fees that are pushed to absurdly low levels through exploitation of the HVCC's firewall provisions -- and apparently FHA did too. You may be working with a good AMC, or indeed there may be a sea change taking place.

It would be nice to hear how other appraisers are seeing the fee battle playing out in their areas.

Dave Biggers
Chairman
a la mode, inc.

Dave Biggers,

This is a post from another thread that I posted 2 weeks ago, should tell you some AMC's playing the game.


Post from another thread:
Well, I spent the weekend updating fees. Yesterday, I get a call from the regional manager of RELS,

RELS: "The fees you provided are above the competitive rate for the market, your request is denied"
ME: "Those are my fees, I wanted to update my profile, I understand that I will not get a high volume of work from you, but if you need me for an occasional assignment, this eliminates me calling to counteroffer"
RELS: " There is no use in me inputting these fees because you will not get any assignments from us"
ME: "So you are capping what I consider reasonable and adequate for my buisness model?"
RELS: "Well I'm saying that you will not get any assignments with those rates, and it takes manpower hours to update your profile so it is a waste of time, and if we cannot agree on a fee contract I may have to remove you from the panel"
ME: "Well then just leave the fees alone except for the FHA and I will continue to counteroffer"
ME: "My FHA fee is $3XX", that is reasonable and customary for the market"
RELS: "The FHA guideline is open to interpretation, our corporate attorney advised us that reasonable and customary is what the market appraisers will accept"
ME: "WRONG", explanation of real meaning
RELS: "The reasonable and customary fee for an FHA in your market is $195, that is what appraisers are accepting
ME: I'm sure that you have appraisers completing the assignements for your "competitive fees", but I put too much time and research into my reports to accept those rates. I need $3XX"
RELS: Why would I pay more for the same product?



I really don't care about what RELS thinks, because I do maybe 1 or 2 assignments per year for them, but this just shows how the AMC's are interpreting 'reasonable and customary'

Thanks for being on our side

Jon Nordquist

 

[OSU Beavers]

Damn J, RELS pays $325 for a 2055 Exterior out here.

 

[jnordquist]

Damn J, RELS pays $325 for a 2055 Exterior out here.

You must be appraising on Neptune or Pluto

JN

 

[valuequestor]

A Few Good Things Happening

As I stated in another thread, many AMCs, especially the big guns like Rels and Landsafe are probably going to do whatever they want until ordered to do otherwise by a federal or state agency with sufficient power over them. I think its encouraging that some AMCs are becoming more responsible on their own. Maybe they can feel the change in the tide coming. AMCs run the entire spectrum of behavior. You have to be very careful who you work with. I agreed to do a spot appraisal in King City for a company in LA. I said I would do it for my standard full fee for going all the way down the valley....end of discussion. After they agreed I receive this email package of paperwork to fill out. (TRIMAVIN) In it there is a statement that states "Upon acceptance of the assignment, the appraiser agrees that the rate of compensation for this report, which is disclosed on the Order Form, is customary and reasonable for appraisal services performed in the market area of the property being appraised." Not bad on the surface but they also send a "Standard Fee Schedule" with THEIR standard fees printed ($250 for 1004, $300 for FHA). In fairness they do state that the fees are subject to adjustment based on complexity and other factors that you bring to their attention prior to accepting the order. This is far better than iMortgage, PCV/Murcor, Valuation Partners, Rels, Landsafe and others with broadcast orders to 100s of appraisers at $150 to $200. Fastest mouse wins.:Eyecrazy:

 

[Lobo Fan]

Dave Biggers,

This is a post from another thread that I posted 2 weeks ago, should tell you some AMC's playing the game.


Post from another thread:
Well, I spent the weekend updating fees. Yesterday, I get a call from the regional manager of RELS,

RELS: "The fees you provided are above the competitive rate for the market, your request is denied"
ME: "Those are my fees, I wanted to update my profile, I understand that I will not get a high volume of work from you, but if you need me for an occasional assignment, this eliminates me calling to counteroffer"
RELS: " There is no use in me inputting these fees because you will not get any assignments from us"
ME: "So you are capping what I consider reasonable and adequate for my buisness model?"
RELS: "Well I'm saying that you will not get any assignments with those rates, and it takes manpower hours to update your profile so it is a waste of time, and if we cannot agree on a fee contract I may have to remove you from the panel"
ME: "Well then just leave the fees alone except for the FHA and I will continue to counteroffer"
ME: "My FHA fee is $3XX", that is reasonable and customary for the market"
RELS: "The FHA guideline is open to interpretation, our corporate attorney advised us that reasonable and customary is what the market appraisers will accept"
ME: "WRONG", explanation of real meaning
RELS: "The reasonable and customary fee for an FHA in your market is $195, that is what appraisers are accepting
ME: I'm sure that you have appraisers completing the assignements for your "competitive fees", but I put too much time and research into my reports to accept those rates. I need $3XX"
RELS: Why would I pay more for the same product?



I really don't care about what RELS thinks, because I do maybe 1 or 2 assignments per year for them, but this just shows how the AMC's are interpreting 'reasonable and customary'

Thanks for being on our side

Jon Nordquist

This is exactly the proiblem. Appraisals are a commodity with no difference from one appraiser to the next. Appraisers must guarantee a minimum level of quality or face board sanctions. AMCs have no interest in quality. Quality is just another layer of overhead.