Customary and reasonable fees - 90 days

[DMZwerg]

It says that what they pay you must be in line with surveys. So if surveys have a varience of actual fee prices, they cannot pay you more or less than the range of fees.

Per assignment or per hour?
What is C&R for some appraisals would be per assignment, but for complex should be per hour. Just mentioning.

 

[ezradams]

NS-



One thing I didn't consider before but did during the presentation- regarding the C&R fees.
Regulatory language is very carefully crafted. I was told this by an FDIC supervisor at a conference I was at and had an opportunity to ask her some questions. She was reviewing a directive FDIC had issued, and the language had a lot of "should", "shouldn't", and "may"s in it. I asked her why not use specific language like "must", "shall", or "cannot"? She told me that laws and regulations are intentionally written with careful use of the words. Shall and must mean exactly what we think: one has to do something or must do something. Words like may or should don't have that same force, and it allows some interpretation by those who are regulated and those who enforce the regulation.

(my bold)

The law, as I read it, does not require that C&R be set by objective third-party studies. It simply says surveys or studies are one way they can be set. And, if they are used, then they must (shall) exclude AMC fees.
But the "must" is only requirement if the surveys are used. And since they may be used (but not must be used), its anybody's guess if they will or will not be used.



:new_smile-l:

Denis,

Excellent point! I had discussions with Kanjorski's office regarding this around the time the bill was being voted on. I was arguing that "Evidence for such fees may be", should read: "Evidence for such fees shall be consistent with." (Legislation typically does not use the language must or should.) "Shall be consistent with" is often found in federal legislation. I was too late with my comments and the bill was passed as is.

Although this may seem like a do or die issue, I believe the intent of the law is still clear. The legislators expect lenders and third parties to rely on independent surveys and government schedules. (Why else were they so specific with the parameters?)

 

[Mike Kennedy]

http://appraisersforum.com/showpost.php?p=2025408&postcount=5

 

[NC Appraising]

ezradams & Rhodes for President!!


Thanks for all your doing!!

And for everyone else "behind" the scene, thanks as well!!

 

[Hondo]

Marion thanks for all your hard work, you have made a difference. My understanding of this law is that the borrower will pay a “reasonable and customary” fee and the appraiser will be paid a “reasonable and customary” fee for Fannie & Freddie work. The appraiser will be paid the same amount as the borrower paid and the AMC will bill separately for their fee - no more skimming our fee. I think this point should be emphasized over and over; borrower pays C&R – appraiser receives C&R - AMC gets their fee somewhere else.

There are several posts of appraisers concerned about government setting fees and complex assignments, remember this law only covers loans going to Fannie & Freddie and their loan limits are $417,000 except in high value areas are up to $730,000. These are typically not complex properties, I can’t remember the last complex appraisal I had that was going to Fannie. As for the government setting the fees, I would much rather have a reasonably fair system than the one now of bidding against the low ballers. Orders for complex properties will be handled outside of this law, I get a couple orders a month outside the HVCC that are not going to Fannie, some are even COD.

Another thing that needs to be addressed along with reasonable & customary is that the base fee is for a Fannie report, if the lender wants additional work such as aerial maps, MLS printouts, reviewing an AVM printout, extra comps, etc the lender has to pay extra for these items. The TAT also should be at least 7 days with anything less subject to a rush fee.

 

[George Ellerman]

No sense in agonizing over C&R and interpretations of the FinReg bill now !
Let's just wait till the effective date of 10-20 or so and see what pans out. There are generally three sides to everything : Your side. My side & the right side. My advice is to chill out and start getting your new fee sheets ready. Contrary to what some pessimist oppine here, I think it's all going to be an appraiser win in the long run. The money grubbing-do nothing AMC's and lenders will get their piece of the pie and appraisers will also be getting a bigger piece of the pie ! RELAX !! It's All Good !

 

[kevco]

No sense in agonizing over C&R and interpretations of the FinReg bill now !
Let's just wait till the effective date of 10-20 or so and see what pans out. There are generally three sides to everything : Your side. My side & the right side. My advice is to chill out and start getting your new fee sheets ready. Contrary to what some pessimist oppine here, I think it's all going to be an appraiser win in the long run. The money grubbing-do nothing AMC's and lenders will get their piece of the pie and appraisers will also be getting a bigger piece of the pie ! RELAX !! It's All Good !

George,

You must be on vacation in fantasyland.

 

[Mike Kennedy]

My understanding of this law is that the borrower will pay a “reasonable and customary” fee and the appraiser will be paid a “reasonable and customary” fee for Fannie & Freddie work. ...... remember this law only covers loans going to Fannie & Freddie .

Buddykat please post support from the Law for your statements above.

Thanks.

 

[Green Hornet]

George,

You must be on vacation in fantasyland.

kevco,

I assume you are a good guy/gal and a legit appraiser. That said, I swear that if you were told that you just won the lottery, you would find some reason to be negative about it.

If I were an AMC trying to demoralize appraisers, I would hire your to post to this forum.

Your negativity may turn out to be correct, however, always being on the negative side insures that nothing will ever change.

I truly hope that your real life has more light in it than your posts to this forum.

 

[George Ellerman]

George,

You must be on vacation in fantasyland.

　
Hey Kev, (FWIW)

Not sure if you grew up watching Winnie the Pooh but there was this one character named Eeyore. He was a perpetually depressed donkey, whose tail kept falling off. Nothing seemed to go right for him—ever.
Life for Eeyore was just one tragedy after another. He called his home "Eeyore’s Gloomy Place" and every episode his house, which was more of a tent, would always collapse. Based on his constant streak of bad luck, Eeyore lived under the assumption that life sucked. Period, end of story and there was nothing he or anyone else could do about it. It was just the way things were.
Sound familiar Kev ?
Chances are most of us know someone who exhibits similar character traits. I have labeled this condition "the Eeyore complex." This is for people who are always down on themselves and life in general. You know, that person who never looks at the bright side of things, puts themselves and others down (usually unintentionally) and just trudges through life with a ho-hum attitude.
Now, it would be totally unfair to call these kind of people "party-poopers" or "bores," but they can be quite depressing to hang around. Their constant state of solemnness is an automatic mood killer and can bring down the energy levels of even the most affable Tigger.
Tigger was a character that was the complete opposite of Eeyore. He was always happy and excited about the simplest of things, like bouncing on his tail, which was made of springs. But the most wonderful thing about Tigger is that Tiggers are wonderful things.
Now a tailless Eeyore can never be a bouncy Tigger ("There’s only one T.I. Double Guh-Er"), but maybe Eeyore can learn something from his striped friend. Life is what you make it. Tigger lives in the moment and grabs life by the proverbial tail. But Eeyores tend to sit back and watch life pass them by. They let the problems of the day weigh them down until slothfulness kicks in. They never smile because they never allow anything positive to happen to them.
A shroud of gloom is their defense mechanism. Expect nothing so when you get nothing it means nothing. But if Eeyore never goes after anything how can he ever get even the smallest piece of something?
Maybe Eeyore’s depression isn’t caused by life itself but how Eeyore himself chooses to drown in doubt and worry. Yeah, life is far from a bed of roses, but there’s a thing called free will that allows us to adapt, change and control our own destiny.
There’s a little bit of Eeyore in all of us, it’s just a matter of how much Tigger we balance that out with.

P.S. There are two Fantasylands. One is in Florida and the other is where you live, if I'm not mistaken.