Be the Driver, rather than just a passenger of your appraisal practice

[lopregi]

Question.... How many appraisers would sign up for a class action lawsuit against AMCs for getting paid more the appraiser and not disclosing the fee break down to the borrowers.
Example AMC Foggy Capital sends out an appraisal assigment with a fee for the appraiser for a standard 1004 to be paid $206 then the AMC adds on a $15 Technology fee for again the appraiser to pay. The AMC bills the Bank and the borrower $700. How is this not Fraud ? Every other fee has to be broken down on a HUD. Homeowners are angry and again the appraiser is being help responsible for high appraisal fee's. There should be a regualtion that states an AMC can not receive a high fee than the actual appraiser. Would you join that class action lawsuit??

 

[Sadie]

Question.... How many appraisers would sign up for a class action lawsuit against AMCs for getting paid more the appraiser and not disclosing the fee break down to the borrowers.
Example AMC Foggy Capital sends out an appraisal assigment with a fee for the appraiser for a standard 1004 to be paid $206 then the AMC adds on a $15 Technology fee for again the appraiser to pay. The AMC bills the Bank and the borrower $700. How is this not Fraud ? Every other fee has to be broken down on a HUD. Homeowners are angry and again the appraiser is being help responsible for high appraisal fee's. There should be a regualtion that states an AMC can not receive a high fee than the actual appraiser. Would you join that class action lawsuit??

They already do: But most people don't really read those things.

Separate Itemization of Appraisal Fee and AMC Fee​

August 6, 2020 BY MQMR Blogger​

Question:
Must a lender separately disclose (or itemize) the Appraisal Management Company’s (“AMC”) fee from the actual appraisal fee on the Loan Estimate (“LE”) and Closing Disclosure (“CD”)?

Answer:
Yes, the TILA-RESPA Integrated Disclosure Rule (“TRID”) and commentary thereto specifically use the appraisal fee and the AMC fee as examples of fees that should be itemized separately on the LE and CD:

• Loan Estimate – 12 CFR Part 1026.37(f)(2) requires under the subheading “Services You Cannot Shop For” an itemization of each amount, and a subtotal of all such amounts, the consumer will pay for settlement services for which the consumer cannot shop and that are provided by persons other than the creditor or mortgage broker.
  • The Official Interpretation to this section specifically uses the appraisal fee and AMC fee as examples of the services and amounts to be disclosed pursuant to this section. Further, Supplement I to Section 37(f)(2) requires creditors to label loan costs using terminology that describes each item using clear and conspicuous language that describes the service or administrative function the charge pays for in a manner that is reasonably understood by consumers.
• Closing Disclosure – 12 CFR Part 1026.38(f)(2) indicates that under the subheading “Services Borrower Did Not Shop For” a creditor must include an itemization of the services and corresponding costs for each of the settlement services required.

 

[George Hatch]

Question:
Must a lender separately disclose (or itemize) the Appraisal Management Company’s (“AMC”) fee from the actual appraisal fee on the Loan Estimate (“LE”) and Closing Disclosure (“CD”)?

Answer:
Yes, the TILA-RESPA Integrated Disclosure Rule (“TRID”) and commentary thereto specifically use the appraisal fee and the AMC fee as examples of fees that should be itemized separately on the LE and CD:

• Loan Estimate – 12 CFR Part 1026.37(f)(2) requires under the subheading “Services You Cannot Shop For” an itemization of each amount, and a subtotal of all such amounts, the consumer will pay for settlement services for which the consumer cannot shop and that are provided by persons other than the creditor or mortgage broker.
  • The Official Interpretation to this section specifically uses the appraisal fee and AMC fee as examples of the services and amounts to be disclosed pursuant to this section. Further, Supplement I to Section 37(f)(2) requires creditors to label loan costs using terminology that describes each item using clear and conspicuous language that describes the service or administrative function the charge pays for in a manner that is reasonably understood by consumers.
• Closing Disclosure – 12 CFR Part 1026.38(f)(2) indicates that under the subheading “Services Borrower Did Not Shop For” a creditor must include an itemization of the services and corresponding costs for each of the settlement services required.

A lender wouldn't be able to itemize these services in their disclosures as required unless the AMC is already providing that info to them.

 

[DWiley]

Question.... How many appraisers would sign up for a class action lawsuit against AMCs for getting paid more the appraiser and not disclosing the fee break down to the borrowers.
Example AMC Foggy Capital sends out an appraisal assigment with a fee for the appraiser for a standard 1004 to be paid $206 then the AMC adds on a $15 Technology fee for again the appraiser to pay. The AMC bills the Bank and the borrower $700. How is this not Fraud ? Every other fee has to be broken down on a HUD. Homeowners are angry and again the appraiser is being help responsible for high appraisal fee's. There should be a regualtion that states an AMC can not receive a high fee than the actual appraiser. Would you join that class action lawsuit??

Just curious, how could one hold an AMC accountable for disclosure to the borrower when the AMC has no contractual relationship with the borrower? When I was at an AMC we always made disclosure to the lender (our client). We made no disclosure to the borrower because we collected no money from the borrower.

Lenders' disclosures to borrowers are created and controlled by the lenders. Just sayin'

And, if you want to impose limits on AMCs' fees, would you support a similar limitation on appraisers' fees?

 

[glenn walker]

Question.... How many appraisers would sign up for a class action lawsuit against AMCs for getting paid more the appraiser and not disclosing the fee break down to the borrowers.
Example AMC Foggy Capital sends out an appraisal assigment with a fee for the appraiser for a standard 1004 to be paid $206 then the AMC adds on a $15 Technology fee for again the appraiser to pay. The AMC bills the Bank and the borrower $700. How is this not Fraud ? Every other fee has to be broken down on a HUD. Homeowners are angry and again the appraiser is being help responsible for high appraisal fee's. There should be a regualtion that states an AMC can not receive a high fee than the actual appraiser. Would you join that class action lawsuit??

A bunch of people who don't know the law. While there is no exact number needed for a class action lawsuit, it is difficult to form a class to receive certification with less than 20 members. Then a Judge has to certify it to move forward. 90% are dismissed and go nowhere. BUT with appraisers are mostly self employed independnt contractors or Vendors. Not going to happen no matter how many people sign a petition.

 

[glenn walker]

Just curious, how could one hold an AMC accountable for disclosure to the borrower when the AMC has no contractual relationship with the borrower? When I was at an AMC we always made disclosure to the lender (our client). We made no disclosure to the borrower because we collected no money from the borrower.

Lenders' disclosures to borrowers are created and controlled by the lenders. Just sayin'

And, if you want to impose limits on AMCs' fees, would you support a similar limitation on appraisers' fees?

This is all nothing but a emotional issue and each time the business slows down the cry baby's come out of their holes. Nobody but them cares about the their desperation of separation of fees. The borrowers don't care they know how much they paid for the appraisal, the Loan Officer tells them it includes appraisal management, and 99% of the time the borrower says, fine how fast can we close this bad boy. My advice to those who need to make a living is don't waste time and energy on Hills that are not worth dying on.

 

[djd09]

Question.... How many appraisers would sign up for a class action lawsuit against AMCs for getting paid more the appraiser and not disclosing the fee break down to the borrowers.
Example AMC Foggy Capital sends out an appraisal assigment with a fee for the appraiser for a standard 1004 to be paid $206 then the AMC adds on a $15 Technology fee for again the appraiser to pay. The AMC bills the Bank and the borrower $700. How is this not Fraud ? Every other fee has to be broken down on a HUD. Homeowners are angry and again the appraiser is being help responsible for high appraisal fee's. There should be a regualtion that states an AMC can not receive a high fee than the actual appraiser. Would you join that class action lawsuit??

why doesn't the independent appraiser start a site collecting data on fees and such, for public trust sake

 

[George Hatch]

I think we should start a gofundme to solicit just enough in atty fees to consult with a lawyer who specializes in class action lawsuits. Pitch the facts to them of the "AMCs stole our fees" issue and see what comes of it from a legal expert.

I'd be willing to contribute to that fund, if for no other reason than to settle the viability of the "class action lawsuit" once and for all. That would be totally worth it.

 

[glenn walker]

I think we should start a gofundme to solicit just enough in atty fees to consult with a lawyer who specializes in class action lawsuits. Pitch the facts to them of the "AMCs stole our fees" issue and see what comes of it.

I'd be willing to contribute to that fund, if for no other reason than to settle the viability of the "class action lawsuit" once and for all.

No real class action attorney would spend 10 minutes on this its just another pipe dream LOL

 

[George Hatch]

C'mon now. I think any atty worth their salt could figure out how to milk it for at least 7-8 billable hours.