I Took 'the Survey'

[Scott McCallum]

Quote from the letter sent prior to the survey:

"The purpose of the survey is to estimate a customary and reasonable fee for appraisals of residential properties including single-family residential homes, residential condominium units, and two to four unit multi-family apartment properties for each county in the State of Illinois where the assignment does not involve an Appraisal Management Company."

 

[ExplainDNA]

Ah, then that's solved, thank you very much.

Just delving in a bit more, why would C&R for only non-AMC assignments be called for when it seems to me that AMCs placed orders are dominant?

In good conscience I filled that survey out, but I'm not clear on why AMCs assignments were to be excluded.

 

[bnmappraisal]

For example, today I received an appraisal done for ACT Appraisal, a hack AMC if ever there was one. 8 comps, the appraiser got $250.00. THAT is the unspoken C & R that this survey will never know, as no one working for chump change like that will ever admit it.

(my bold) when I was part of their "volume guarantee" a couple years ago that was the fee they were paying. Looks like that hasn't changed. Imagine that

Side note: I will say, when I was part of the volume guarantee (minimum 15/mo @ $250/report) I didn't want to admit that on here. We can be pretty brutal to each other at times.

 

[Meandering]

Ah, then that's solved, thank you very much.

Just delving in a bit more, why would C&R for only non-AMC assignments be called for when it seems to me that AMCs placed orders are dominant?

In good conscience I filled that survey out, but I'm not clear on why AMCs assignments were to be excluded.

Dave,
C&R is defined in the federal law as NOT what AMCs pay. It has nothing to do with AMCs controlling the bulk of assignments. It has everything to do with recognition of the possibility that an AMC may not be paying appraisers as much, or are paying more than what other clients are paying appraisers. Because lending has consolidated into too few TBTFs that control the majority of residential loans, there needs to be data that shows those lenders, through their agents are not depressing competition and compensation.

That's all it is. It establishes a baseline acceptance of fees from non-AMCs to be used to judge AMC fees later.

.

 

[ExplainDNA]

I get that, Marion, but it doesn’t change reality. Reality is the majority, and since the majority accept AMC fees we have folks taking $250.00 a pop more than not. (Brave ofvyou to be so honest, BNM.)

Since we use no AMCs all my answers were truthful, but not in keeping with Chicagoland’s REAL C&R.

C&R is not a subset of C&R, that’s all I’m saying.

 

[Meandering]

Here's what you don't get Dave.

First C&R is the Federal Law, not some guideline or regulation.

2nd, if there is only ONE lender in an area not using AMCs, Guess what,
they are the only basis to establish what C&R is, by law.
It doesn't maker if 10k AMCs are operating in an area. What matters is the lenders not using AMCs.

Now,
The C&R law was in effect since 4/1/2011.

The fine for breaking that law is very steep, and is levied per appraisal assignment, per day the C&R fee wasn't paid.

Now,

Once Appraisers can show the state that their appraisal fees paid to them by AMCs are less than the fees paid to them directly from lenders, the state can go back and fine those AMCs ;million and millions and millions of Dollars. A big bonus for states that need money. The AMC gets to make up the $50 or $100 they shorted you and the state gets to keep the fine money. Dumb azz AMCs.

You can verify what I'm saying here in the Dodd Frank, the Truth in Lending, The Interim Final Rule and the AMC Final Rule. And please note that the Dodd Frank called for the IFR, which makes the IFR part of the Dodd Frank Law.

 

[ExplainDNA]

Thank you very much for that, but C&R as a "law" seems about as valid as the IVPP having our back. (Sorry, I'm a cynic, always have been.)

All I know is what WE get. I get fair fees, from what I understand better than most, nothing under $400.00 for a 1004, most between $425.00 and $475.00. We've been getting $725.00 regularly for 1025's.

That is MY C&R, but it sure doesn't seem to be the case for 90% of the other appraisers out there. And our clients are class acts, so I guess we're blessed.

By the way, your argument that states need the money is true, I live in Illinois and we're bleeding to death, as I'm sure you've heard. My concern is that these things just never go as planned, but everyone gets all jiggy about it during the interim.

I belong In Missouri.

Best,

Dave...

 

[bnmappraisal]

The survey would be far more meaningful if AMCs handed over invoices. Hoo wee, then you'd really see something.

Dave...

Thankfully I have since quit the "guarantee" and have raised my fees - even again starting 1/1 of this year.

But I do agree with you, Dave, in the above - although I'm not licensed in IL and have no knowledge of the survey you are talking about - I believe if agencies were to see some of the invoices or fees the AMCs are paying many appaisers, they would be surprised

 

[Meandering]

Thank you very much for that, but C&R as a "law" seems about as valid as the IVPP having our back. (Sorry, I'm a cynic, always have been.)

All I know is what WE get. I get fair fees, from what I understand better than most, nothing under $400.00 for a 1004, most between $425.00 and $475.00. We've been getting $725.00 regularly for 1025's.

That is MY C&R, but it sure doesn't seem to be the case for 90% of the other appraisers out there. And our clients are class acts, so I guess we're blessed.

By the way, your argument that states need the money is true, I live in Illinois and we're bleeding to death, as I'm sure you've heard. My concern is that these things just never go as planned, but everyone gets all jiggy about it during the interim.

I belong In Missouri.

Best,

Dave...

Always a pleasure Dave,

I think many are waiting on the LA FTC thing.

But here’s something to make you grin,
PA law says that ever solicitation for appraisal services must include the fee the AMC is expecting to pay. Now do you want to guess how many AMC emails I’m sitting on that only ask for fee bids? Hundreds.

.

 

[ExplainDNA]

Hah!

Again, thank you for laying all that out, Marion.