Nc To Use VA Fees For C&R

[Eli]

Show me your compliance with C&R.

That will open Pandora's box when complaints start pouring in.

Prove to me how you are doing C&R. Our job is to enforce it. Where you from? Obviously not here?

You still actualy believe in Santa Claus and the Tooth Fairy, don't ya?

Where you from? Call Louisiana. I double dog dare you.

 

[Eli]

NC is opening the door for phone calls. Maybe Tim should text if he is too scared to call.

 

[DWiley]

Show me your compliance with C&R.

Lack of support for their payment methodology may bite some AMCs. In the LA case, the problem wasn't the amount they paid - in fact, in some of the cited instances the AMC actually paid more than the rate on the state's own survey. The problem was that the AMC had no documented methodology or analytical support for its C&R methodology. That is a common issue with small AMCs, because they often do not have the resources (including the math knowledge).

 

[timd354]

Show me your compliance with C&R.

How many times do I have to tell you that I don't run or work for an AMC, so C&R is not applicable to anything I do? There is something seriously amiss with you.

 

[Meandering]

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.

.

 

[Eli]

Lack of support for their payment methodology may bite some AMCs. In the LA case, the problem wasn't the amount they paid - in fact, in some of the cited instances the AMC actually paid more than the rate on the state's own survey. The problem was that the AMC had no documented methodology or analytical support for its C&R methodology. That is a common issue with small AMCs, because they often do not have the resources (including the math knowledge).

I am not going to promise all AMCs will pass the test regardless of size.

Some of the biggest banks are getting in the most trouble.

 

[Michigan CG]

You still actualy believe in Santa Claus and the Tooth Fairy, don't ya?

Um, yeah, um..............10 days to Santa.

 

[Eli]

Um, yeah, um..............10 days to Santa.

Mine is going to be in a red bikini.

 

[hastalavista]

I am not going to promise all AMCs will pass the test regardless of size.

I'm sure there are some that won't; and I suspect it would be for the same reason that Coester didn't (they didn't maintain the necessary documentation to support the fees they paid).

But I would make this suggestion (or thought experiment, if you prefer):
IF: Assume that the larger, more sophisticated AMCs do document their fee-rates as per the requirements and therefore can support the fees they pay as C&R
THEN: Like it or not, the larger, more sophisticated AMCs are paying C&R rates. The fees that you or I (and many others) consider too low and would not accept are C&R for that market and property type, are being accepted, and meet the C&R requirement

This is why the C&R, as a rally cry or mechanism for higher fees, is a non-starter (IMNSHO).

 

[Eli]

Um, yeah, um..............10 days to Santa.

Mine is going to be in a red bikini.

I'm sure there are some that won't; and I suspect it would be for the same reason that Coester didn't (they didn't maintain the necessary documentation to support the fees they paid).

But I would make this suggestion (or thought experiment, if you prefer):
IF: Assume that the larger, more sophisticated AMCs do document their fee-rates as per the requirements and therefore can support the fees they pay as C&R
THEN: Like it or not, the larger, more sophisticated AMCs are paying C&R rates. The fees that you or I (and many others) consider too low and would not accept are C&R for that market and property type, are being accepted, and meet the C&R requirement

This is why the C&R, as a rally cry or mechanism for higher fees, is a non-starter (IMNSHO).

I don't totally agree because of the antitrust references in the law and other reasons that I don't have time to reference right now.

I will tell you that AMCs imnsho are fixing to be regulated far more than they already are. I am sure LA has ongoing investigations currently.