FANNIE bonds with AMCs, over your dead low paid body.

[George Hatch]

Why are you against mandatory disclosure of the fee in all states? Of course, the real question is why support the fee split system at all, since it creates numerous problems. The lender should pay a cost to the AMC for their AMC service and leave the appraisal fee out of it.

I wasn't aware that DW or the GSEs had any objection to mandatory fee disclosures. Perhaps the other question to ask would be why the GSEs don't require it.

 

[Dublin ohio]

I don’t care about fee disclosure hidden on page 65 of a report that the public was never going to read. If they want to be transparent, they would charge the public two fees - an appraisal fee and AMC fee. Then I guarantee you can sit back, pop some popcorn and watch the fireworks.

It would just be another line item on the trid or closing statement. Honest question: What would be the borrowers recourse if they did throw a fit

 

[DWiley]

There are only a handful of states with the breakdown discloses - and there are lawsuits working their way through the courts now wrt AMC fee splits and borrowers so they do care -

I can not do a study on states with disclosure and no disclosure, I have no access to that. Perhaps the fee splits are less egregious in states where disclosure is mandatory?

In addition, the reasons that consumers might not care that much is because a simple numerical fee breakdown still does not reveal HOW - their appraiser was chosen - in a flea market style bid .

Those lawsuits you refer to - are they filed by consumers or by appraisers?

And what about my question on CE and instructor fees? As a student, do you care what the instructor makes, or are you content to just know the course price?

 

[George Hatch]

Back when I was teaching live CE courses nobody ever asked me what my split was (in my case I got paid a flat rate for the day whether the provider broke even or not)

 

[DWiley]

Why are you against mandatory disclosure of the fee in all states?

Please cite any post where I have expressed that view. I will save you the time - there is no such post.

 

[DWiley]

Back when I was teaching live CE courses nobody ever asked me what my split was (in my case I got paid a flat rate for the day whether the provider broke even or not)

Same for me. I had my rate. If the provider did not want to pay that rate, then I did not teach for them. If they did pay my rate, then I did not care what they made (or lost). Pretty simple, really.

Same approach when I did legal work. My rate is $X/hour. I don't care what the final judgment is or what the attorney charges.

 

[Sandra Koutsopoulos]

Two things:

First, you do know that fee disclosures are required in appraisal reports in many states. What consumer reaction has occurred in those states, and how does it compare to consumer reaction in states where no such disclosure is required?

Borrower needs a thing, an appraisal. The method of that appraisal being in the hands of the lender is the part where borrowers have no say, but are paying whatever the price they're told, without opportunity of choice. If I'm not mistaken, the disclosure of cost breakdown comes AFTER they're sucked in and have no choice in fee variation nor purveyor. Too late then.

If the consumer bought a couch, and the store said it must be delivered by store-approved delivery entity, the total financial outlay for that couch could vary significantly depending on which mover delivers it. If the consumer had the choice to pick name/cost of delivery from a list of approved delivery organizations, that would promote fair trade and competition. But if the delivery service can name their own fee, and furniture company insists that delivery outfit is their only authorized company (which is in business to make as big a PROFIT as they can extract from the consumer), then the consumer's rights and options are cut off.

 

[Dublin ohio]

If required in their state, I can't think of a reason why the appraiser couldn't include that disclosure atop pg 3 of the URAR. No need to bury it anywhere unless a client required it to be buried on pg45. .

I can put it anywhere I choose. The top of page 3 is as good as any. But I doubt most borrowers ever look at page 3 closely enough to notice

 

[Zoe]

I wasn't aware that DW or the GSEs had any objection to mandatory fee disclosures. Perhaps the other question to ask would be why the GSEs don't require it.

I can answer that one. They are not in a position to. I like Danny. I just hope one of these lawsuits gains ground in California or Florida or wherever in separation of fees on Truth in lending disclosures.

 

[TC]

I always figured anyone teaching for the AI was getting screwed, money-wise.