Louisiana Is Getting Ready To Settle With The Ftc Whether The La. Board Likes It Or Not

[Eli]

The funny thing about the two presumptions that everyone skims over, is,

they both have qualifiers.

We can presume one thing so long as you haven't engaged in these other things.

It would seem to me, that any board so dedicated in preserving Appraiser Independence, would really harp on that "proving" you did not do any of those other things, before we decide if you qualify for a "presumption". After all, a presumption only holds until proved differently.

And proving you did not do any of the things you are not allowed to do to qualify for a "presumption" for EVERY appraiser fee paid, has got to be much more expensive than just paying the fee the board initally wanted as a minimum.

So much fun,
so little time.


.

Remember "public" trust and "market power" on price. Very central to antitrust law.

Like an appraisal with an AMC is $1,000 and without is $600. That is a total hypothetical but you get my point if they are on opposite street corners. It's deeper than even that on Antitrust no doubt.

VA and HUD and their success rate is in too!

Banks don't have a good track record in general. There were too many bad apples in the bunch. They are still there. There are many good apples.

 

[Evincere]

LA Board seeks FTC stay, so it can rewrite its AMC law relating to fees.

https://www.housingwire.com/article...le-state-repeals-controversial-appraisal-laws

Righto. Looks like the Opera really is in intermission.

 

[hastalavista]

The funny thing about the two presumptions that everyone skims over, is,

they both have qualifiers.

We can presume one thing so long as you haven't engaged in these other things.

It would seem to me, that any board so dedicated in preserving Appraiser Independence, would really harp on that "proving" you did not do any of those other things, before we decide if you qualify for a "presumption". After all, a presumption only holds until proved differently.

I agree with you. And would reassert that is what the LA board did do re: Coestar.

Let's think about this: Larger, more sophisticated AMCs can put the processes in place to be able to meet the 1st presumption. I cannot say based on first hand experience, but I can say based on what I know (from those who have first hand experience... and I rely on these contacts) that certainly the larger AMCs have the bandwidth to document and support their compliance with Presumption #1. That doesn't mean there are not incidences with non-compliance. What it does mean (IMO) is that these AMCs have a process in place to demonstrate structural compliance (just like an appraiser, out of 100 appraisal reports, there is probably going to be an issue which results in a violation of something).
Coestar has demonstrated, by any reasonable measure, that up to now, it prefers to skirt the regulation and operate in a non-compliant manner.

AMCs (again, the larger ones for a fact) get audited by their clients. One of the things the clients do is evaluate how the AMC determines the fee (evidently, that failed with regard to Coestar). Everyone is sensitive to the C&R issue and the compliance requirements. The smaller AMCs whom, one might argue are the better paying ones, suffer a higher compliance-cost burden because of their scale. That is unfortunate, but unavoidable given the current regulations.

 

[Eli]

I really look for the FRB to separate fees. They really should. That will be step one. C&R will still be required to enforce C&R due to market power on price .

LA is simply saying we will manage our risk and public trust. That is my opinion.

 

[DWiley]

And proving you did not do ...

Have we moved away from another presumption - the presumption of innocence?

I was under the impression that in the U.S. it was the accuser who had to prove the case. I have heard of countries where an accused had to prove innocence, but did not realize that we had gone that way.

 

[jay trotta]

The funny thing about the two presumptions that everyone skims over, is,

they both have qualifiers.

We can presume one thing so long as you haven't engaged in these other things.

It would seem to me, that any board so dedicated in preserving Appraiser Independence, would really harp on that "proving" you did not do any of those other things, before we decide if you qualify for a "presumption". After all, a presumption only holds until proved differently.

And proving you did not do any of the things you are not allowed to do to qualify for a "presumption" for EVERY appraiser fee paid, has got to be much more expensive than just paying the fee the board initally wanted as a minimum.

So much fun,
so little time.

.

So if the Fee Paid is consistently the same.......??

 

[Meandering]

So if the Fee Paid is consistently the same.......??

Price fixing not allowed under Sherman 2, presumption 2 and most likely not allowed to price fix under state laws. You're still an independent business and the AMC is standing between you and your customer. Price fixing is not allowed

.

 

[Meandering]

So if the Fee Paid is consistently the same.......??

The other thing about this, that must carefully be considered is.........

https://www.ftc.gov/tips-advice/com...titrust-laws/single-firm-conduct/refusal-deal

So if I apply to a bunch of AMCs, stating my minimum fee is $525, 'cause I'm a CG with more classroom hours than many CRs with the same tenure in the industry, and I recieve no work from some/most/all/a few AMCs,

Guess what!

Oh yes, these kinds of things could get very expensive for AMCs, maybe make them wish they shut up and just bent over like they expect from so many appraisers.

And oh my, if I find 4 other appraisers in the same situation that they can't bid up a price, or that they aren't receiving any work, even though they applied to a panel..............

It could get very, very ugly expensive.



.
.

 

[Eli]

It'll be the borrower that rises out. I really look for the FRB to separate fees. Fastest and cheapest is not good for risk or the borrower. I told you about my Grandaddy playing checkers. He wasn't the fastest. He wasn't the slowest either. He was just one of the best. It's just hard to be the best on appraising without being one of the slowest. It takes time, which is good for individuals and public trust:

 

[peturner]

Oh, and don't forget the subpoenas!!
Both sides got them. Which group ALWAYS meets behind closed doors?
The fat lady has not sung yet!
It's gonna get fun.