Customary and reasonable fees - 90 days

[Green Hornet]

MichiganCG: You might be enlightened if you were to seek the reasons why "many just choose to ignore it."

Would you care to share with the class? Or is the journey necessary for understanding to occur?

 

[WorkingTogether]

If you have come this far on the appraiser journey and you really do not understand, your reply is considered affirmation of the situation.

 

[KenAZ]

If you have come this far on the appraiser journey and you really do not understand, your reply is considered affirmation of the situation.

Sounds like something I heard in "Karate Kid" or was it "Kung **?"

My memory is getting fuzzy. I need a nap

 

[residentialguy]

I just got an order from a new AMC.

Here's how I'm going to respond. Any thoughts? I believe we all need to start doing something like this. I think it's a step in the right direction. Stop accepting low fees!


Hello Erik,

You are requesting a full FHA appraisal with MC for $325? That is well below what is customary and reasonable. Maybe you are not aware of recent events regarding this. The Dodd-Frank Wall Street Reform and Consumer Protection Bill, which has just passed and signed into law by President Obama on July 21, 2010, states that there is a $10,000 fine per offense for failure to comply in regards to not paying what is normal and customary for appraisal services. Fees are set according to the scope of work and complexity of assignment.

Minimal fee for a FHA 1004 is $425 plus $25 for 1004MC, which is typical, customary and reasonable for this area according to all credible reports. I suggest that Transconvalue and your clients take heed to this bill. $10,000 per offense can add up quickly.

I will accept the assignment if you want to comply to this. If not, this correspondence will be submitted to the enforcement agency of the above mentioned protection bill.

Thank you,

 

[David Brauner]

TAMVA Fighting Back

If you have not seen the lrecent etter from TAVMA to Fed Chairman Ben S. you can find it at www.workingre.com (Sidebar: TAVMA's Letter to Delay CRF Requirements.)

This is the gist: ”This (customary and reasonable fee requirement) is at best a vague standard lacking any coherent definition.” They are asking for a delay in implementation and believe HUD has it right, which is "lowest bidder."

In my humble opinion, I think this reinforces the need for an independent CRF survey (such as the one we’re publishing at WorkingRE.com) FOR appraisers to populate and reference, that will serve as an open book record for AMCs, lenders, the Feds and other interested parties to measure their policies on fees and turn times.

 

[AngelEyes359]

It will be even more fun sending this after October if things evolve in a favorable way. The only thing I would add is that you intend to forward a copy of correspondence to the specifically named client.

 

[prasercat]

I just got an order from a new AMC.

Here's how I'm going to respond. Any thoughts? I believe we all need to start doing something like this. I think it's a step in the right direction. Stop accepting low fees!


Hello Erik,

You are requesting a full FHA appraisal with MC for $325? That is well below what is customary and reasonable. Maybe you are not aware of recent events regarding this. The Dodd-Frank Wall Street Reform and Consumer Protection Bill, which has just passed and signed into law by President Obama on July 21, 2010, states that there is a $10,000 fine per offense for failure to comply in regards to not paying what is normal and customary for appraisal services. Fees are set according to the scope of work and complexity of assignment.

Minimal fee for a FHA 1004 is $425 plus $25 for 1004MC, which is typical, customary and reasonable for this area according to all credible reports. I suggest that Transconvalue and your clients take heed to this bill. $10,000 per offense can add up quickly.

I will accept the assignment if you want to comply to this. If not, this correspondence will be submitted to the enforcement agency of the above mentioned protection bill.

Thank you,

Something along that type of response is exactly what we need to pursue, especially when the deadline hits on Oct. 19th, 20th. While I would tend to be a bit more diplomatic in wording, I particularly like the indication that their assignment request will be part of the record in regard to their ordering behavior as it will be forwarded to the enforcement agency.

We will need clarification on where we need to send this information, perhaps we can create a repository or record in our own computer systems until one is clarified if not by the deadline. I think it is the job of the appraiser to inform them politely of the new rule, what a reasonable and customary fee is (or even its range when its not black and white) and perhaps a gentle reminder that appraisers are keeping track of whether the assignment is provided at a C&R level or not and forwarding non-compliant cases to the enforcing agency. That way, they can choose not to assign the order to you if they choose (its their right); however, this particular assignment order will still be "on record".

 

[eld2310]

FYI it's "not more than" $10k a day for the first offense and $20k a day for subsequent offenses. I know my State is having a budget shortfall and would probably love to hand out some fines.


‘‘(k) PENALTIES.—
‘‘(1) FIRST VIOLATION.—In addition to the enforcement provisions referred to in section 130, each person who violates this section shall forfeit and pay a civil penalty of not more than $10,000 for each day any such violation continues.‘‘(2) SUBSEQUENT VIOLATIONS.—In the case of any person on whom a civil penalty has been imposed under paragraph (1), paragraph (1) shall be applied by substituting ‘$20,000’ for ‘$10,000’ with respect to all subsequent violations.

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A link to HR4173 for those who don't have it: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h4173enr.txt.pdf​

The Appraisal Activities section starts on page 810.​

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[Green Hornet]

If you have come this far on the appraiser journey and you really do not understand, your reply is considered affirmation of the situation.

WoTo,

I have seen too many posts on this forum in a similar style as your's. Upon further questioning, it turns out that they really have nothing to say or contribute other than poking.

Wise man say...when others do not understand what you are saying, maybe it is you that is the idiot.

Enjoy the weekend

 

[LA Woman]

"The “customary” fees that appraisers are paid in the current environment are not “reasonable.""

I agree.