Customary and reasonable fees - 90 days

[rcsone]

...just a thought on VA assignment fees, they are the same whether easy or difficult due to distance, informations, etc. You have no choice as to proper accomplishment. Hopefully the "good and the bad" will even out. This is no different than fruit pickin" when sometimes you just have to spend too much time on the ladder. Fee "fairness" has to be established over time for both parties. This price and time criteria has replaced other demonstated competencies and we have become strangers to the lenders. And who can trust a stranger in either direction?.....best to all......rs

 

[Adios]

fin reg title 14

I am meeting with the Collateral Risk Network( CRN) next week in DC. There will be a bunch of regulators in the room as well as lenders and AMCs. There will be about 90 people in attendence. For the agenda go to www.collateralrisknetwork.com.

I've already compiled a summary of FIN REG that I will be reporting in the Appraisal Buzz and in a webinar in late August.

Reasonable and customary will be determined by- academic studies, independent surveys and govt agency schedules. The regulator will be the not yet formed CFPD and State Attys General. Everyone wants to be the next Andrew Cuomo. The penalties are steep, appraisers are angry, and it would be frankly a high risk plan of action to attempt to evade this regulation. Anyone wishing to challenge it in court would be taking a tremendous risk.

The law takes effect 90 days from July 21.

It is likely that fees will be determined by the lender. It would be practically impossible to establish a bid system. Lenders practically can't collect a different fee for each and every order. AMCs will set a fee for their services and it won't be contingent upon the fee the appraiser charges.

HVCC will be sunset but the tenets of appraisal independence will remain. Likely the GSEs will adopt the Code into their policy and you will see appraisal independence inserted into the Interagency Guidelines.

No doubt there will be some unintended consequences in FIN REG. I do believe the onerous registration fees will be passed through to appraisers. That will likely favor the large AMCs and be harmful to smaller ones.

ASC has a whole bunch of new responsibilities.

Although not perfect I think there are a number of positive things in FIN REG. But it is all about enforcement.

Now that assignments won't go to the lowest bidder you better be prepared to deliver quality and service. Appraisers will be held accountable for their work.

Joan Trice
jtrice@allterragroup.com

 

[hastalavista]

Now that assignments won't go to the lowest bidder you better be prepared to deliver quality and service. Appraisers will be held accountable for their work.

That's long overdue and I hope you are right.

Thanks, Joan.

 

[NC Appraising]

AMCs will set a fee for their services and it won't be contingent upon the fee the appraiser charges.


Joan Trice
jtrice@allterragroup.com

First of all, thank you for posting.

Secondly, I would like to think everyone for keeping this professional, as we are professionals.

That being said, the above is the best news I have heard yet, and I hope it plays out that way. AMC's setting their fees with the lender is the way it should have been all along. AMC's set their fees with the lender, and the lender pays the appraiser a reasonable and customary fee. What the lender pays the appraiser should be out of the hands of the AMC and the AMC should not have a say.



Lastly, I'm no HVCC expert but the AMCs need to downsize and take on less responsibility in the transaction.

The spirit of the HVCC was created to make a firewall between the appraisers and loan officers/mortgage brokers. I see nothing wrong with that.

My problem is the AMCs became our employers, the Client, the UW's, and controlled the entire appraisal process. They have to much control over the appraiser, which is a bad thing. In my opinion, this was not the intent of the HVCC.


So how can they lower costs? Do what the intention of the HVCC was set up to do, act as a firewall between the broker and the appraiser. Nothing more nothing less.



If companies like Solidifi, Mercury, and AP can do it, all the the AMC's can do it.



By the way, I have spoken with several high ups at Solidifi, and appraisers charge around $300-$400. Technically, they are an AMC. They do business as Joan has described above. Maybe the other AMC's need to ask them how they do it, because it can be done. I'm not buying the AMCs "dire straits" story one bit.

 

[Lloyd Bonafide]

No doubt there will be some unintended consequences in FIN REG. I do believe the onerous registration fees will be passed through to appraisers. That will likely favor the large AMCs and be harmful to smaller ones.

Actually I think the new will hurt all AMCs large and small, (maybe severely), because more lenders will not use them at all. I don't know about the largest banks, and I don't work for them or their AMCs at all, but it seems like more and more medium and smaller lenders are using a direct ordering process, or companies like Mercury Network where the lender can specify that their own select group of appraisers be used on a rotating basis. They are finding that using an AMC is completely unnecessary.

 

[residentialguy]

My problem is the AMCs became our employers, the Client, the UW's, and controlled the entire appraisal process. They have to much control over the appraiser, which is a bad thing. In my opinion, this was not the intent of the HVCC.

So how can they lower costs? Do what the intention of the HVCC was set up to do, act as a firewall between the broker and the appraiser. Nothing more nothing less.


If companies like Solidifi, Mercury, and AP can do it, all the the AMC's can do it.

By the way, I have spoken with several high ups at Solidifi, and appraisers charge an average of $300-$400. It can be done.

Bravo, NC. Took the words out of my mouth. All of my clients go through a firewall and I decide the fee. You said this can't be done, yet it is being done. Explain why can't that be done, again? It appears that my clients model are proving in real life, that the notion that "Lenders practically can't collect a different fee for each and every order." is false. Does your Dr collect the same fee, no matter the scope of work? Does your maintenance man?

 

[residentialguy]

Actually I think the new will hurt all AMCs large and small, (maybe severely), because more lenders will not use them at all. I don't know about the largest banks, and I don't work for them or their AMCs at all, but it seems like more and more medium and smaller lenders are using a direct ordering process, or companies like Mercury Network where the lender can specify that their own select group of appraisers be used on a rotating basis. They are finding that using an AMC is completely unnecessary.

yep...for good reason.

 

[Adios]

reasonable and customary

Bravo, NC. Took the words out of my mouth. All of my clients go through a firewall and I decide the fee. You said this can't be done, yet it is being done. Explain why can't that be done, again? It appears that my clients model are proving in real life, that the notion that "Lenders practically can't collect a different fee for each and every order." is false. Does your Dr collect the same fee, no matter the scope of work? Does your maintenance man?

Well actually they do thanks to HMOs which are no different than AMCs.

The largest lender in the US isn't going to have their loan officer quote each borrower a unique fee. How would that process begin? Mr Borrower here are the terms of your loan and we will get back to you in a few weeks after we have put your appraisal out on bids? It very well may occur at smaller lending institutions but it would be an operational challenge. And aprpaiser selection still must ensure reasonable and customary fees.

Joan Trice

 

[Ken B]

RIMS

http://www.exactbid.com/products/RIMS/

AI designees get free listings as a benefit.

 

[residentialguy]

Well actually they do thanks to HMOs which are no different than AMCs.

The largest lender in the US isn't going to have their loan officer quote each borrower a unique fee. How would that process begin? Mr Borrower here are the terms of your loan and we will get back to you in a few weeks after we have put your appraisal out on bids? It very well may occur at smaller lending institutions but it would be an operational challenge. And aprpaiser selection still must ensure reasonable and customary fees.

Joan Trice

hmmm....never considered US Bank a "small lender" Probably within the top ten in the country. Not near that of BOA or Wells, but not small, by any means.

and voted best bank probably isn't a coincidence http://www.bnet.com/blog/financial-business/us-bancorp-america-8217s-best-big-bank/3453