Here Is Why FHA Fees Go Up $150

[Non Sequitur]

In the past 30 minutes, I've gotten 3 phone calls for FHA appraisals. 1 is in the middle of a national forest, about 55 miles from my office; 2 are in areas I don't work. I declined each of the assignments, nicely saying that I hadn't settled on what an appropriate fee for an FHA appraisal was. Two of the callers laughed, saying they're hearing a lot of that.

I was very pleasant.

I may have the theme from "Deliverance" as background music for my phone.

I have no doubt some appraisers are feeling their oats right now, but that's because business is good not because they're finally going to make a stand. Trust me, this too shall pass.

 

[Rick Stillman]

Edit: Michigan CG I understand your hopes that something will finally happen to right the appraisal business, but this isn't it. The only thing IMO that will help is the elimination of AMCs. Before the bust most knew that mortgage brokers controlling the ordering process wouldn't last and had to be changed, we're at the point where AMCs dominating the ordering process can't last much longer and has to be changed too. I'm not sure what we'll end up with but change is desperately needed.

For those that can't, or won't, see the big picture, here is how things work;

Lenders don't want to manage appraisals - they don't want to order them, track them, or review them. Nobody can blame them for that.

AMCs come along and do all of that for - can you handle the truth? - for free! You can't handle the truth! Yes, it's the truth.

AMCs gladly expand into multiple states, and save the lenders a ton of time and work. Can you handle the truth?

AMCs play the appraisers against themselves and have a list of appraisers that they know will do the work for X dollars. You or I alone can't stand up to that or change it.

So who is change desperately needed for, exactly? Who cares? Not the lenders. Not the AMCs. You don't like it, go collect grocery carts from the parking lot for a big grocery store - but you'll be showing up every day you are scheduled to work, at a precise time, and you're going to like it. If you don't do all of that, you won't be there, and they will replace you with someone that WILL like it. Your choice.

Learn the system - and work the system. I rest my case, your honor. No further questions.

 

[Duke 73]

There are proposals on the table to gut experience requirements. Basically if you have the magic "4 year degree" some feel you should be able to jump into "appraising."

A little info about what the AQB has on the table:

http://appraisersblogs.com/appraisal/is-AQB-potentially-changing-course-on-appraiser-qualifications/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+AppraisersBlogsAppraisalNewsAtAppraisersblogscom+(Appraisers+Blogs+»+Appraisal+news+at+AppraisersBlogs.com)

If they don't require a person to apprentice under an existing appraiser, they are asking for a complete nightmare.

 

[Duke 73]

There are proposals on the table to gut experience requirements. Basically if you have the magic "4 year degree" some feel you should be able to jump into "appraising."

If they don't require a person to apprentice under an existing appraiser, they are asking for a complete nightmare.

 

[Non Sequitur]

If they don't require a person to apprentice under an existing appraiser, they are asking for a complete nightmare.

I agree, experience is what makes an appraiser an appraiser. But the die has been cast. IMO we're probably 2-3 concept papers/proposals and about 5 years or so away from it. With a bachelors and a few classes you'll be able to walk right in on the residential side, I doubt it will ever happen on the general side; They're to smart to let it happen.

 

[gbrown]

It doesn't say that. I just took the course. The assumption is that if the scuttle is big enough you are to get your entire body into the attic. I have a newer home and I could easily get my entire body through that door. But even at that, in most newer construction or if the house has been newly insulated you will never get that scuttle open. They are not meant to be opened and closed. The primary purpose of a scuttle door is for accessing the attic only if necessary for fire or wiring if necessary. It is not meant to be opened and closed just to look into the attic.

What if it's 150 degrees in the attic during summertime, I can see someone passing out in the attic. So you people afraid to raise your fee can have all of the FHA appraisals, I will be glad to send you all my clients who don't want to pay more but for me to do it you must pay more or go someplace else.

 

[Deleted member 128537]

What if it's 150 degrees in the attic during summertime, I can see someone passing out in the attic. So you people afraid to raise your fee can have all of the FHA appraisals, I will be glad to send you all my clients who don't want to pay more but for me to do it you must pay more or go someplace else.

I talked to another FHA approved appraiser and he's not going to do them. So in my county that means maybe one other appraiser to do FHA. And he is over 70. You think he's going to crawl around in attics and crawl spaces. Either the fees have to sharply increase or good luck getting an FHA appraiser.

 

[gbrown]

I got the same request - Monday morning, instead they sent it over for $275 and I said "uh no" - at least $400 and they approved it - after many, many hours. I do not even do conventional appraisals for that low. Now the "Liaison" at the AMC has called and left me a message that I am charging too much for FHA appraisals and I stand to loose a lot of their business......really? Are there really appraisers out there who are accepting FHA orders below $400?

None that I know will

 

[gbrown]

Make one that folds out to a 12' ladder and comes with an oven/fridge thermometer and I'm in!

Ask "Do they have a casket model"

 

[Deleted member 128537]

By the way I turned down my first FHA today. I have plenty of work. I also got $450 on a conventional today from an AMC. And it isn't a hard appraisal. I think AMC's will get the message. We have to be persistent. I'm even getting begged by RELS to do some work for them. And my fee for it is $700! Two weeks ago Wells Fargo called and wanted a desk review. The paid me $400! They are getting the message. If they want quality work they have to pay quality fees.