Nc To Use VA Fees For C&R

[Bob Ipock]

Does not every state that regulates AMC's allow appraisers to file complaints against an AMC? I don't see how that is anything new.

No. In NC up until a couple of months ago the NCAB had no statutory authority to set fees in any way and had no basis to handle fee complaints. Now they do BUT,,,,,BUT it will take several months before the legalities are finished . A public rule change process will have to take place. The board will have to set up some rules before anything can happen. The NCAB only
meets 6 times a year. I doubt they will get it all done before the June meeting.

Board Meeting Schedule
2017 Meetings

February 22
April 25
June 20
August 22
October 31
December 5

Note: Meetings begin at 9:00 am at the Board's office and will continue to the following day if needed.



Even after regulation are put in place, there will have to be complaints filed. I know plenty of appraisers who would not be brave enough to file a complaint.

 

[hastalavista]

Even after regulation are put in place, there will have to be complaints filed. I know plenty of appraisers who would not be brave enough to file a complaint.

You are probably a better judge of this than I am, but I expect a spike of complaints after the new year. Some by appraisers who legitimately think there is an issue (and there may be) and some who will use this as a release mechanism to vent their frustration (I'd call it complaint-harassment but I'd be flamed on the forum for daring to say an appraiser can harass an AMC ).

 

[Michigan CG]

a phone monkey can tell you that everybody who is getting work is charging $200 so for you to get any work you need to charge $200.

Multiple times over the years I have had them say that to me to which my reply is "if you have cheap appraisers why are you calling me me; call them".

 

[Eli]

Multiple times over the years I have had them say that to me to which my reply is "if you have cheap appraisers why are you calling me me; call them".

It's deeper than that on the lenders side. The very fact that a phone monkey can say that could really bring problems when looked at under a microscope.

 

[Eli]

There are many legal ramifications that state governments are dealing with here. That's what Marion tried to point out earlier.

 

[Eli]

When the phone monkey says that is what everybody is charging so unless you take that you won't get any work!!!!

How do they know what everybody is charging? What gives them the right to tell me that?

Plus, choosing an appraiser based on fastest and cheapest is like bad from a lenders standpoint based on the regs.

And antitrust issues.

 

[Eli]

Appraisers,
including those on state boards,
need to stop and carefully READ and CONSIDER ALL the qualifiers for determining what C&R is.

From Tim's copy and paste: I'm going to change his highlights just a bit.

http://www.consumerfinance.gov/eregulations/1026-42/2013-30108_20150718#1026-42-f-2-ii)

Requirement to provide customary and reasonable compensation to fee appraisers. In any covered transaction, the creditor and its agents shall compensate a fee appraiser for performing appraisal services at a rate that is customary and reasonable for comparable appraisal services performed in the geographic market of the property being appraised. For purposes of paragraph (f) of this section, “agents” of the creditor do not include any fee appraiser as defined in paragraph (f)(4)(i) of this section.


· Presumption of compliance. A creditor and its agents shall be presumed to comply with paragraph (f)(1) of this section if:

The creditor or its agents compensate the fee appraiser in an amount that is reasonably related to recent rates paid for comparable appraisal services performed in the geographic market of the property being appraised. In determining this amount, a creditor or its agents shall review the factors below and make any adjustments to recent rates paid in the relevant geographic market necessary to ensure that the amount of amount

1. 1. The type of property,
   2. The scope of work, Does VA, FHA, USDA and conventional all have the same scope of the work?
   3. The time in which the appraisal services are required to be performed, What is TAT for VA work compared to other work?
   4. Fee appraiser qualifications, Where are the fee differentiations for designated appraisers? Organizations wasted their lobby money?
   5. Fee appraiser experience and professional record, and Where are the fee differentiations for the old guys?
   6. Fee appraiser work quality; and
2. The creditor and its agents do not engage in any anticompetitive acts in violation of state or Federal law that affect the compensation paid to fee appraisers, including:
   1. Entering into any contracts or engaging in any conspiracies to restrain trade through methods such as price fixing or market allocation, as prohibited under section 1 of the Sherman Antitrust Act, 15 U.S.C. 1, or any other relevant antitrust laws; or
   2. Engaging in any acts of monopolization such as restricting any person from entering the relevant geographic market or causing any person to leave the relevant geographic market, as prohibited under section 2 of the Sherman Antitrust Act, 15 U.S.C. 2, or any other relevant antitrust laws. black lists, sharing of black lists. The MARI list would be a prime candidate here. READ THAT THE GEOGRAPHIC MARKET IS NOT DEFINED IN THE LAW, so is it the market that is defined by AMC XX in North Cack? Ghee, or is it all of North Cack and All AMCs that could or do need an occasional appraisal there? Or is it all the FHA appraisal possibilities in North Cack? Someone needs some definitions.

· Alternative presumption of compliance. A creditor and its agents shall be presumed to comply with paragraph (f)(1) of this section if the creditor or its agents determine the amount of compensation paid to the fee appraiser by relying on information about rates that:
is based on objective third-party information, including fee schedules, studies, and surveys prepared by independent third parties such as government agencies, academic institutions, and private research firms;

1. Is based on recent rates paid to a representative sample of providers of appraisal services in the geographic market of the property being appraised or the fee schedules of those providers; aren't fee schedules a form of price fixing under federal law?? It just depends what's in those fee schedules, which the state should be reviewing if they are going to enforce C&R. SEE ALSO #2 ABOVE. And In the case of information based on fee schedules, studies, and surveys, such fee schedules, studies, or surveys, or the information derived therefrom, excludes compensation paid to fee appraisers for appraisals ordered by appraisal management companies.

It is a bunch more work for state regulators than just saying, we accept the VA fee schedule.

.

This touches it pretty good but not totally. I am glad the antitrust law is mentioned but banking regs are also closely tied.

 

[Meandering]

Yeah but,

Once the states get their act together they can look at fees AMCs were paying since 4/11/2011. Can't be ignored as the law was in effect.

.

 

[NC Appraising]

I would not be surprised at all to see that - at least at first. But, as I have said many times, the driving force behind fees is the appraisers, not the AMCs or the lenders. If all appraisal fees were automatically raised to the VA rate at midnight tonight, within 10 seconds some appraisers would start cutting their fees, because they know no other way to market.

Man come on. It is about respect!! AMC's have no respect for appraisers and it is all about profits and paying you $160,000 a year.

5/3? They pay a respectable fee of $400 per order. 5/3 sets the fee, not the appraiser!!

Another regional bank I work for pays $450 per appraisal. No AMC. I do not set the fee they do!!

A local bank that uses a AMC's software program only pays a fee of $400. Again, the bank sets the fee and not the appraiser!!!

Another national lender that uses AP pays $450 per appraisal...they set the fee and not the appraiser!!

See where I am going with this? AMC's that you work for are the slums of the earth!! ALL OF MY CLIENTS PAY A HONARBLE AND REPSECTFUL FEE TO BEGIN WITH!!! They respect appraisers relationship and pay them well.

So what is the difference????????? AMC's are in it only to make a profit!!! All of the lenders I work for does not turn the appraisal into a profit stream. The borrower pays $450, I get $450.


AMC's are pieces of crap that needs to be put out of business!!! It is all about making the appraisers fight against one another like salivating dogs so that the AMC's cut is HIGHER!!!

And yes, I received a call from some guy at ServiceLink about 2 weeks ago wanting me to join. It will be a cold day in hell before I work with Coreloginc, ServiceLink or Streetlinks.

 

[NC Appraising]

Eli,

What is your beef with Timd354? You guys are being way to harsh. He is one of the nicest people on the forum and is right most of the time. Maybe that is why you give him so much grief? Due to where he use to work and now works, brings inside knowledge of various situations. You guys act like he works at a AMC??