Customary and Reasonable

[timd354]

What is the customary and reasonable fee for FHA appraisals in your area?

The truth is that unless you have done a comprehensive fee survey in your market or have access to one that was done by someone else, you have no idea what is customary. Regarding the term "reasonable" in C&R, the term is ill defined and any determination as to what fee is reasonable is arbitrary and capricious and therefore is probably not legally enforceable since whether a fee is "reasonable" is nothing more than an opinion that depends on who you ask.

It is sad that there are still some residential appraisers out there who somehow think that the regulators are someday going to dictate higher fees under the rubric of C&R when C&R has been around for 15 years now and has not made one bit of difference in the fees paid to appraisers. You guys (and gals) who are not making enough money in the residential appraisal business need to come up with a plan other than hoping that C&R is going to bail you out or that AMC's are going to disappear....."hopium" is not a good plan and you would be well advised to either expand your appraisal business beyond mortgage-related residential appraising and/or find other sources of income outside of appraising as the next few years are likely to be rough years for residential appraisers.

I wish everyone luck and I wish that the realities of this business were different, but my wishes do not change the reality of the situation.

 

[timd354]

CFPB and FTC are it. They have to do it. We just can't change it. We as in independent fee appraisers don't have the power that separation of fees on truth lending would have done.

If they grab the ball and there is a lawsuit in CA at the moment with State Govt.

Separation of fees would occur and it would create intense competition of fees between appraisal managment companies.

I don't think that lawsuit in California is gone yet. I think an appraiser did the lawsuit.

If that appraiser wins that lawsuit in California? It could change the whole landscape.

How exactly the separation of the appraiser's fee and the AMC's management fee on the Closing Disclosure going to result in increased fees to the appraiser?

 

[Dale Floyd]

Zoe - Just curious. Why do you submit multiples of posts, one right after another?

 

[Dale Floyd]

How exactly the separation of the appraiser's fee and the AMC's management fee on the Closing Disclosure going to result in increased fees to the appraiser?

It won’t, but it will finally distinguish who gets what when it comes to the appraisal.

The real question should be “Why is there opposition in showing the division?”

They were concerned years ago about other divisions on the HUD, like tax entities, origination fees, doc fees, etc, so why not the appraisal fee divisions?

 

[timd354]

It won’t, but it will finally distinguish who gets what when it comes to the appraisal.

The real question should be “Why is there opposition in showing the division?”

They were concerned years ago about other divisions on the HUD, like tax entities, origination fees, doc fees, etc, so why not the appraisal fee divisions?

I don't oppose disclosure, but am just pointing out that it won’t help appraisers get higher fees, so worrying about it is a waste of time.

 

[J Grant]

The truth is that unless you have done a comprehensive fee survey in your market or have access to one that was done by someone else, you have no idea what is customary. Regarding the term "reasonable" in C&R, the term is ill defined and any determination as to what fee is reasonable is arbitrary and capricious and therefore is probably not legally enforceable since whether a fee is "reasonable" is nothing more than an opinion that depends on who you ask.

It is sad that there are still some residential appraisers out there who somehow think that the regulators are someday going to dictate higher fees under the rubric of C&R when C&R has been around for 15 years now and has not made one bit of difference in the fees paid to appraisers. You guys (and gals) who are not making enough money in the residential appraisal business need to come up with a plan other than hoping that C&R is going to bail you out or that AMC's are going to disappear....."hopium" is not a good plan and you would be well advised to either expand your appraisal business beyond mortgage-related residential appraising and/or find other sources of income outside of appraising as the next few years are likely to be rough years for residential appraisers.

I wish everyone luck and I wish that the realities of this business were different, but my wishes do not change the reality of the situation.

C and R has made a difference at the retail level.

The AMC's taking a cut of the retail fee to pay less to the appraiser , enabled by the corrupt regulators who allowed the second presumption of an AMC version of it, using their own studies, is the problem
C and R came about because residential lending is a unique area with artificial supply and demand due to borrowers and now loan officersbeing unable to order their own appraisal. I am not advocating that borrowers pick the appraisal. I am saying the reality of it caused a huge imbalance to the normal supply and deman,d which sees C and R work out in the market . The artificial S/D balance is why C and R was mandated, but due to the AMC involvement, many appraisers are working at discount fees .

 

[djd09]

America’s largest landlord makes deal with DOJ to settle price-fixing claims​

What Happened: Greystar, the nation’s largest landlord, has agreed to stop using algorithmic rent-setting software that federal prosecutors say could violate laws against price-fixing.

America’s largest landlord makes deal with DOJ to settle price-fixing claims

Greystar, which manages nearly 950,000 apartments, including in South Florida, has agreed to stop using “anti-competitive” algorithms to suggest rents.

www.wlrn.org

gouging the borrowers is part of TAF partners mission to ensure public trust...

 

[timd354]

C and R has made a difference at the retail level.

How?

C&R does not apply to lenders, it only applies to appraisals ordered through AMC's.

 

[Non Sequitur]

Zoe - Just curious. Why do you submit multiples of posts, one right after another?

Our very own bot farm.

 

[J Grant]

How?

C&R does not apply to lenders, it only applies to appraisals ordered through AMC's.

Did the HVCC and Dodd Frank specify that C and R only apply to AMCs?