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Martinez, HUD support 'volume discounts,' packaged services

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Matt Barr

Freshman Member
Jan 23, 2002
Professional Status
General Public
Speaking to the National Press Club in Washington, DC today, Department of Housing and Urban Development (HUD) Secretary Mel Martinez launched his agency's "Homebuyer Bill of Rights," a sweeping reform proposal that would substantially re-work the Real Estate Settlement Procedures Act (RESPA). The new regulatory scheme, to be published in the Federal Register within a month and be open for public comment for 90 days thereafter, would allow lenders to accept volume discounts from providers of services like appraisals and title.

Currently, HUD's enforcement of RESPA treats such volume discounts as illegal kickbacks.

Under the plan, borrowers will be able to shop for "guaranteed mortgage loan packages" -- closing and settlement services -- in the same way they may now shop for rates and points. Settlement and closing costs would be more rigorously limited to the Good Faith Estimate (GFE) provided borrowers upon rate lockdown.


Farm Gal

Elite Member
Jan 14, 2002
Professional Status
Licensed Appraiser
OK FINE! They can DO that :evil:

And another good FHA appraiser bites the dust!

And another ones gone, and another ones gone, and another one bites the dust....

soon only the three monkeys will be doing this work: see no evil, speak no evil, and hear no evil (no matter what they see hear or find in thier 15 minute fly-through inspection process....) :evil:


Jan 15, 2002
Professional Status
Certified Residential Appraiser
New Jersey
HUD appraisals require so much more work (for a competent, honest appraiser) that most can't be bothered with them unless they are the majority of your market.

Therefore, the "pool" of appraisers who will perform the appraisals is small to begin with.

Now, give them to a "middleman" who takes from both ends (legal or not); charges the applicant a "package price" which inflates all services and then cuts the appraiser's fee----perhaps with the promise of Volume, a phrase all of us have heard before.

Throwing more and more people into the mix who need to make money only serves to increase and inflate the costs of borrowing.

Wish I had an answer, but all attempts to reduce costs to borrowers only make it more challenging to the crooks to be creative instead of making the system more honest.

What I DO KNOW is that of all of the people who could help, the POLITICIANS are at the BOTTOM of the knowledge list.

By the way, the TV NEWS just said that gas masks are being handed out to the (same) Politicians in Washington. Guess they win, after all !!!!


The Harder I Work, The Luckier I Get

Larry Lyke

Senior Member
Feb 2, 2002
I don't see how Mel thinks HUD can cut the appraisers out of the loop or shave their prices unless the costs to make the loans are controlled at the settlement phase. Which seems highly unlikely.

The loan brokers (which include ALL the major banks like Wells Fargo, Bank of America) are both making and buying their loans from the "depot" brokers. BUT they are only sponoring loans. They are packaging and re-selling too.

I never fear the big appraisal companies in my area, because their product is mostly low-end production with a price to match. I sent a potential new client to them today. The LO was new to this employer and didn't have an appraisal YET for a loan she's closing Friday! They'll promise it for Friday and deliver it next week sometime! I don't do that.

By the way, making the system more complicated makes fraud easier.

Paulette in Texas

Sophomore Member
Jan 24, 2002
We can either agree to work for ridiculous fees or stay home and read a good book. The book doesn't cost that much, but the cost to get to the assignment, E&O rates, software, insurance, car...now that's something else. Only weak minded and desperate appraisers are going to settle for volume. Like you can now work 8 days a week to make 25% less. Sure in the pigs eye. It will take an awful lot of suckers willing to agree before they can carry it off. Stand up and say NOPE, we are NOT willing to work for less than a fair wage for the risk and work we are asked to do. Paulette in Tx
Rotts rule and Shih tzus fine too...go w...
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