Here Is Why FHA Fees Go Up $150

[CANative]

This is not your fathers FHA appraisal though. Even though not much has really changed, their expectations that the appraisal will be to their standards is going to be much higher and more thoroughly enforced.


Of course I don't know this. But I sense it strongly. The jack wagons are going to stay at the drag and eat dust.

 

[Elliott]

CAN said, ...their expectations that the appraisal will be to their standards is going to be much higher and more thoroughly enforced.

FHA use to require a federal-style test and a detailed 4-page VC sheet, then they threw it out the window, along with handrails and auto-reversing garage door openers.

FHA standards are a notch above conventional, but not significantly different, and in the long run, they won't reduce their losses because of a more stringent attic/crawl space inspection or including a 3-year comp history. It will all be interesting to see what the net, net is, but I sense it won't be much different.

 

[Elliott]

9876543210

 

[Non Sequitur]

This is not your fathers FHA appraisal though.

It's not our fathers business climate either. With greedy AMCs in the mix, fees to the consumer will push close to $1K per report if appraisers stand by their demand of $600+ a report (a common fee thrown around in forums). And remember FHA was the original C&R champion, how did that work out?

Even though not much has really changed, their expectations that the appraisal will be to their standards is going to be much higher and more thoroughly enforced.


Of course I don't know this. But I sense it strongly. The jack wagons are going to stay at the drag and eat dust.

I agree, there is an expectation. But reality is going to hit FHA in the face; What they want isn't going to happen. If they push QC to hard they will lose market share and once they start losing market share the expectations will come back down to earth.

If anyone expects the same appraisers who never identified the proper intended use or users in an FHA report, never took an original comp photo until called out by an AMC, never entered an attic or crawl space until lenders started demanding photos, never bothered to learn the protocols concerning lead based paint, were never motivated enough to read the handbook, etc. to change their ways because of a new handbook.....they are going very disappointed. I predict the only changes will be boilerplate, updated templates and a few more photos. The appraisers who never took the time to properly verify 12 month transfer history for comps aren't going to start properly verifying a 36 month transfer history in the future, they'll just change their boilerplate.

I do hope you're right CAN, I would love to jump back into FHA work for appropriate fees, but there's no real world indication that's going to happen.

 

[Duke 73]

I won't be wasting my time on FHA crap any longer.

 

[bnmappraisal]

It's not our fathers business climate either. With greedy AMCs in the mix, fees to the consumer will push close to $1K per report if appraisers stand by their demand of $600+ a report (a common fee thrown around in forums).

It's easy to throw around $500-$1,000 fees here on the forum. It's another to actually get them from an AMC (in the RES world). I've gotten them before, but not on a regular basis. I'm in a pretty densely populated area with a "lot" of competition. So yea, it'd be easy for me to throw out $750 for an FHA under the new rules/regs ... It's another thing to land the job

(Edit: Not directed at you Non Sequitur)

 

[Non Sequitur]

It's easy to throw around $500-$1,000 fees here on the forum. It's another to actually get them from an AMC (in the RES world). I've gotten them before, but not on a regular basis. I'm in a pretty densely populated area with a "lot" of competition. So yea, it'd be easy for me to throw out $750 for an FHA under the new rules/regs ... It's another thing to land the job

(Edit: Not directed at you Non Sequitur)

I agree. None of this happens in a vacuum, if AMCs weren't in the mix and running our profession into the ground we may have a chance at consistent $500-600 FHA fees. But given the market FHA serves I don't see appraisers getting $500-600 consistently if any AMC is in the mix, the total cost to the consumer is just to high.

 

[Michigan CG]

.............. I don't see appraisers getting $500-600 consistently if any AMC is in the mix, the total cost to the consumer is just to high.

Let's say the economy does really well and there is plenty of non-FHA work out there and no one wants the FHA work.......supply and demand will kick in. All it takes is for a few AMCs to do what was in my original post and no one will want to do them.

 

[bnmappraisal]

Let's say the economy does really well and there is plenty of non-FHA work out there and no one wants the FHA work.......supply and demand will kick in. All it takes is for a few AMCs to do what was in my original post and no one will want to do them.

I agree with you MCG. Stips like that will drive many appraisers away from FHA work, but sadly there will be a few out there who will still take it at that lower fee. That's all the AMC needs. They'll promise the lower fee appraiser a ton of work and probably provide it.

I personally just got a call (literally within the past 30 mins) regarding a potential FHA from one of my main 2 clients (yes, an AMC - they called b/c the coordinator was "training" a new person! imagine that) I told them that due to the new rules/regs, etc that my fee increased as of yesterday. I talked with the "team lead" (she does have control over fees, etc and we've been working together almost 3 yrs now) She said, "I understand. We do have to call around and see if we can get it done for cheaper, but if not, I'll get the fee approved" ... gotta love the AMC system!!!

 

[bnmappraisal]

I agree. None of this happens in a vacuum, if AMCs weren't in the mix and running our profession into the ground we may have a chance at consistent $500-600 FHA fees. But given the market FHA serves I don't see appraisers getting $500-600 consistently if any AMC is in the mix, the total cost to the consumer is just to high.

The $500-600 is probably what the AMC's are charging the borrower! So of course they won't pay the appraiser that much. We'd probably be lucky if they paid $400 of that $500-600 fee!