Nc To Use VA Fees For C&R

[Noreen]

The NC Appraisal Board just adopted the VA fee schedule as a presumption of compliance for Customary and Reasonable fees. Scheduled to take effect on January 1, 2017.

An AMC may pay a fee that differs from the VA fee, but must be able to show compliance with SL 2016-61 if a complaint is filed regarding the fee offered or paid to the appraiser.

The minimum fee for a non-complex assignment according to the VA schedule is $500 for eastern North Carolina and the minimum fee in Western North Carolina is $575.
Appraisers can file and customary and reasonable complaints with the board for orders received after January 1, 2017.

I like this idea, it sets a basseline standard. I would love it if all the states ( my states) adopted this approach.

 

[DWiley]

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?...

Yeah, I see where you are going, and I totally disagree.

If, as you state, the lender is in control of the fee, then why is the average appraisal fee for a basic 1004 in the Portland market currently north of $800? If the lender/AMC is in control of fees, then why are they choosing to pay such rates? Do they just love (and "respect") appraisers in Portland more than they love (and "respect") appraisers in your area? No. The answer is that the appraisers in Portland have, as a group, pushed the fees to their current levels. And, when the volume in Portland drops off, it will be the appraisers who will, due to competitive market forces, push fees back to lower levels.

Is your view two-way street? There are PLENTY of appraisers in Portland (and Seattle, Denver, etc.) right now who are grossing over $250,000, or more. Are they "disrespecting" their clients by charging that much, or are they just reacting to current market conditions?

I have had this discussion with appraisers in my own market for over 20 years. I don't understand why appraisers have so much trouble with the simple concept that it is the appraisers who set the fees for appraisal services. All a lender, AMC, or any potential client can do is offer to pay a certain price. It is up to the appraiser to either accept that price, or not. I was a partner/owner in a firm for over 20 years, and I had a lot of potential clients who wanted to pay fees that were less than what I charged, but they had no power whatsoever to make me accept what they were offering.

When I talk to appraisers in Nashville, many still make comments along the line of, "Man, we really hate that you sold your firm - you really kept the fees up in the area." My fee was relatively high, and others would often cite my fee as a basis for their own fees. When I sold my firm they still had the ability to charge whatever they wanted, but many just didn't have the nerve to set the fee high and keep it there. They would just panic at the first sign of market change and reduce fees. That, in my view, is the biggest challenge appraisers face with fees. It is not the clients who drive fees down, it is the appraisers who are willing to produce similar quality at a lower fee. I personally fought that battle for a long time.

I had to have a dental implant last year. The oral surgeon I have been to before quoted me a price to perform that procedure. Being a researcher of market data, I looked around. I discovered another doctor who had just as good a reputation who examined my scans and quoted a price that was $1,000 less than the first guy. Guess who I chose to do my procedure. Was that disrespectful to the guy I had used before? What motivation would I (or anyone) have to pay more for the same result?

 

[Eli]

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??

I never acted that way. C&R is closely tied to a bank's responsibility in hiring an appraiser as well as antitrust legislation and all the other good points including Timd's and yours.

I have public trust at heart and I am not Jesus Christ or Martin Luther King Jr or anybody else along those lines and I have a problem with people who act like they know everything.

I am celebrating the birth of my Savior and the Best Gift of All. He does know everything.

 

[djd09]

I had to have a dental implant last year. The oral surgeon I have been to before quoted me a price to perform that procedure. Being a researcher of market data, I looked around. I discovered another doctor who had just as good a reputation who examined my scans and quoted a price that was $1,000 less than the first guy. Guess who I chose to do my procedure. Was that disrespectful to the guy I had used before? What motivation would I (or anyone) have to pay more for the same result?

Dentists are signing off on 250,000 appraisals? Are Barry Sanders, Jim Brown, Eric Dickerson the same as Eddie Lacy, Christine Michael, or Jerrick McKinnon?

 

[Eli]

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.

.

And, it's not just a time matter. If I broke laws and regs 20 years ago but am only being held accountable for the last 5 years, don't think my penalty won't be worse than if I did it one time.

The antitrust law has been in place a long time and banking regs regarding safety and soundness and regulatory practices have been in place a long time.

Laws protecting the public from unfair trade practices have been in place a long time.

 

[Eli]

Things really didn't fall apart til 2006. It started a few or several years earlier where the public started getting cheated. In the early 1990's the public got a boost but it didn't last real long. Maybe 20 years at best.

A big booster shot is needed.

 

[Eli]

Sorry I was wrong. The booster for the public in 1990 lasted about 20 years at best. A bigger booster is needed now for public trust and that is like asking Santa Claus for it. I have my brunette brown eyed Santa in Red. The public needs help.

 

[Meandering]

Not to worry Eli. We now have the president of law and order. If you would just tweet him a message and get him on board, I'm sure he'll fix all these issues.

.

 

[Eli]

Not to worry Eli. We now have the president of law and order. If you would just tweet him a message and get him on board, I'm sure he'll fix all these issues.

.

Nnnnnooooo. I would 1000 times a day if I thought that had a prayer. I may need to tweet LA and NC and VA that many times a day.

I don't tweet though.

Your point is well taken though. The squeaky wheel gets the grease.

That's what cattle farmers did to Giants. They just filed the antitrust lawsuit and the squeak brought angels.

Ask Mickey D if she loves cattle farmers? Ask her if she even battled an antitrust lawsuit?

Cattle farmers filed the antitrust lawsuit.

But States aren't near as stupid as the Fed sometimes.

 

[Eli]

Ask Mickey D how much she has donated to cattle farmers who filed the antitrust lawsuit due to oligopsonistic market power on price.

A true David and Goliath experience. Mickey D just wasn't as stupid as Goliath. When that smooth small stone hit him between the eyes on his forehead and sunk about an inch or two, it was over. David cut his head off with Goliath's own sword.

Goliath is reported to have been around 9 feet, 9 inches tall. The weight of his armor was unbelievable to the degree no normal man could carry.

Everybody said David you are crazy including his blood brothers. David said I am ready. Let me do it. The King said ok but what is David? Let him perish in other words. Goliath laughed until that smooth small stone punctured his skull. The rest is history.