Are Appraisal Service Co's operating legally ?

[Anonymous]

At least for HUD/FHA appraisals, I have found the following info:

National Housing Act. 203 (E) (4) Briefly, it goes on to explain about appraisers, assignments, and "appraisers" splitting fees, understandably, which is legal. Intending to mean an appraiser might split his fee with his trainee or supervisor, etc.. In other words, they spell out WHO is qualified under that law.

However, it says, about the "appraisers" or "appraisal companies" who may split the work and/or the fee: They must meet the qualifications and Standards for appraisers. I presume that's Federal and State qualifications.

HUD is dumbfounded by my inquiry, BUT, I would think that an appraisal management company, Corp. etc., that calls YOU for an appraisal and takes half of your fee---------IS NOT qualified and has not met the Standards, according to the "definition of an appraiser" in that law. Following that logic, they would also not be qualified for a State license, and are operating illegally. They are also "accepting an appraisal fee" on the loan app. and Respa statement.

You can ask for a copy from the HUD site. Have at it gang.

 

[airphoto]

Ron,

At least in NY only a warm-bodied, living and breathing human being may hold an appraisal license/certification. There are no LLC's, LLP's or corporations of any form eligible to hold an appraisal license .. only their owners or officers ..

 

[Anonymous]

Bill:

Look around. You mean WElls Fargo doesnt do mortgages in NY ?
They have their own appraisal management Co., that takes a piece of your fee, among many others.

My point is, I believe they are not living up to the letter of the law. Not qualifed appraisers !

Ron

 

[airphoto]

Ron,

Doesn't my post support your position?

Incidentally, I've only done two appraisals since the first of the year for lenders .. without exception I hate the SOB's and their AMCs .. and am working very hard to do only 'other' bidnez. Would only do a lender/AMC appraisal when there's nuttin' else more important. "More Important" includes flying .. visiting on the phone with my children .. dinner ..

 

[jtrotta]

Ron;

Not intending to burst your bubble here, but from the info I've gathered, some companies (Wells Fargo) has a licensed and/or certified appraiser in each area, possibly each state. I've spoken with several of them, and if you need to you can check with your local Appraisal Commission and see if their regestered within your state. They are in mine 8O

A few years back, had a run in with one of these national review companies, had a major blowout with these idiots and wound up fileing a complaint with the commission and sent a copy of the whole thing to the Foundation in DC, as they had no one licensed within the state. They had to stop, until they could provide proof of an instate licensee.

8)

 

[Doug in NC]

How about disclosure of all lender fees? I was asked (didn't accept the assignment) to appraise a local property for an AMC. They asked me my fee and I told them what it was. Then, they told me their policy was for me to collect my fee along with their $75 add-on fee COD. The check was to be made out to the AMC of course.

I wonder if it is ever disclosed that what all the borrower is paying for is not just for an appraisal? Fellow appraisers, don't be afraid to charge an AMC full fee for an appraisal. They will get their cut. When we cut our fees we hurt not just ourselves, but also our fellow appraisers by unnecessarily holding our fees and incomes down.

What really makes me sick is the fact that the AMCs are probably getting their $75 PLUS whatever is left over after they pit appraiser against appraiser (as they try to find the lowest fee that some desperate appraiser is willing to work for). It is really a sad situation for the appraiser who works for them. First of all, he is cutting himself or some other appraiser out of a full fee account by assisting the AMC. Then, he is giving away part of the fee that he earned to someone who makes his life harder by demanding rapid turnarounds.

 

[Residential Appraisal Ser]

Foorum: There is a bill in Congress for all fees not only to be disclosed by there can be no upcharging of fees.
We can use your help on this vital bill.
Also any appraiser that has had their fee upcharged and it has been on a FHA loan. Please contact me.

William Sentner
President
American Guild of Appraisers OPEIU AFL-CIO
RESASINC@aol.com

 

[Anonymous]

OK, I'll try one more time. Yes, the individual appraiser "they call" to do the actual appraisal, and receive half the fee, IS licensed and qualified.

The CORP., appraisal management Co., is putting themselves out as "appraisers", calling one of us, actually collecting the full "appraisal fee", and paying the actual appraiser half the fee. Even informing buyers or lenders that they are an "Appraisal Company."

As I read the Housing act, the Corp. is NOT qualified, as the "other appraiser" getting part of the fee. The ACT says, "Qualified appraisers" may split the fee. It says, two "qualified" appraisers can agree to split a fee. Get it ?

It doesnt say, a company can split a fee and call themselves appraisers, and not be State licensed/Certified and qualified.

Simply, could you open an office, call yourself an appraiser, without any license or USPAP qualifications, and perform the appraisals and charge a fee, according to our State license law ? Regardless of whether people accept your appraisal, or dont care.

 

[Farm Gal]

Simply, could you open an office, call yourself an appraiser, without any license or USPAP qualifications, and perform the appraisals and charge a fee, according to our State license law ? Regardless of whether people accept your appraisal, or dont care.

Don't know about IL... wonder about other states... In the State of KS
YES. The resultant piece of s... errr work, WORK cannot be used in a Federally related transaction, but that has to do with other rules and regs...

Of course this IS the state in which it is legal to tag "Inc." on the tail end of a business name and NOT be a legally incorporated entity :roll: but rather do so because you thought it 'looked better'... 8O