On being on the VA panel as a fee appraiser.

[Alsie35]

That is just insanely low fee-wise. Good on you to inform them of the huge amount that they are selling themselves short by. The Lender or AMC is never going to let them know, out of the goodness of their hearts. And I thought $450 was low…

Out here in central NorCal-land, $450 was what direct lenders were paying a year and a half ago, and, outside of the VA, those were pretty much the "best fees in town". Some good Mercury AMCs like Apex were paying about the same, some of the local ones less than that.

Then the pandemic hit and % rates were artificially cratered. Fast forward a year and a half.

Direct lenders are now paying between $500-$800, and the AMCs are all paying $400-$450 or better, as they scramble to find appraisers to get their orders filled. And it looks like fees are still going up as the Summer heats up. Its a welcome change.

Got two months to earn some decent "pocket money" before we move and take the rest of the year off ...

 

[Tru Red]

Expounds?

Weight lost after you have been dieting.

 

[Tru Red]

You can apply for a fee increase for complex properties.

More than 15 years on the panel and so far with maybe 10 tries.....zero fee increases for the most complex properties from the people in Arizona.

 

[Zoe]

The following is straight out of horse's mouth:

"The VA realizes that some assignments are more difficult than others and that an appraiser may believe a higher fee should be paid based on an expanded scope of work where more research is required. The VA determines standard fees for a typical assignment in geographic areas based on market surveys conducted and an aggregate average is used that would be considered fair for both the fee appraiser as well as the veteran. Just as the VA would not require the fee appraiser to take a reduced fee for quick simple reports, the same would hold true for the more demanding reports.



VA cannot authorize a fee increase, but the lender and veteran can, mutually agree to it; if you both so choose. With that said; the veteran can only pay the published fee, which is $ for a stick built or modular home.



The following is from the VA Lender’s Handbook, chapter 10, (effective 06/09/19) item 10.24h: (complex properties):



h. Complex Properties VA fee and timeliness schedules cover fees for typical appraisals. Appraisal assignments that are complex in nature may require additional resources and time. If an assignment is determined to be complex in nature, appraisers may negotiate additional fees with the lender, subject to VA approval. Fee should not exceed what is reasonable and customary for a similar complex property type in the market area.



All of this is outside of VA; therefore, our policy is that we won’t “approve” it, but we have no issue with any additional fee that is agreed upon by all 3 parties; the appraiser, lender and veteran. We do suggest that the appraiser get the mutually agreeable fee increase in writing and that he/she break-down the fee(s) on the invoice."

 

[Zoe]

Have a national lender on one now. I forwarded information to lender with request. We will see how it goes. 1st ever request. Been on panel for years. 28 acres, huge house, rural, complex detached facilities, etc, etc.

We will see what they think is customary and reasonable. I quoted my fee request.

 

[Zoe]

I wish I would not have quoted a fee because I would love to know what this national lender thinks is customary and reasonable. I will still ask later but wish I would have over quoted what I think and seen what they thought was customary and reasonable. Dang, I missed a chance.

 

[Tru Red]

Interesting ZOE.
The fee increase has to be approved by the lender, appraiser and veteran. The veteran would most likely not want a fee increase. Ever. The lender probably would not care as the monies are between the veteran and the appraiser. And of course the appraiser wants it, if justified by complexity.
There needs to be a clear mechanism allowing the appraiser to decline a job if the standard fee is clearly way too low. I have had 10 or so of those over the years.
Being on the VA panel has it's good days and bad days.

 

[Zoe]

Interesting ZOE.
The fee increase has to be approved by the lender, appraiser and veteran. The veteran would most likely not want a fee increase. Ever. The lender probably would not care as the monies are between the veteran and the appraiser. And of course the appraiser wants it, if justified by complexity.
There needs to be a clear mechanism allowing the appraiser to decline a job if the standard fee is clearly way too low. I have had 10 or so of those over the years.
Being on the VA panel has it's good days and bad days.

I missed that customary and reasonable chance to just say what do you think is customary and reasonable on this assignment?
It's very complex. Trust me. Major national lender. Major. I dropped the ball.

My bad.

I never should have quoted period. I should have asked the lender what they think is customary and reasonable? I should have asked for how they support that?

I'm stupid sometimes. I'll still get a chance probably. I want the answer one way or another.

I see VA's position. I am good with that. I want to know lender's position. Veteran is taken care of with VA on fee. Not worried about veteran.

 

[Zoe]

Interesting ZOE.
The fee increase has to be approved by the lender, appraiser and veteran. The veteran would most likely not want a fee increase. Ever. The lender probably would not care as the monies are between the veteran and the appraiser. And of course the appraiser wants it, if justified by complexity.
There needs to be a clear mechanism allowing the appraiser to decline a job if the standard fee is clearly way too low. I have had 10 or so of those over the years.
Being on the VA panel has it's good days and bad days.

You read from the horse's mouth. Veteran is taken care of in both guarantee and appraisal fee and other benefits. Best loan program in nation for veterans imho. A very well-deserved benefit.

 

[James Mpls]

The following is straight out of horse's mouth:

"The VA realizes that some assignments are more difficult than others and that an appraiser may believe a higher fee should be paid based on an expanded scope of work where more research is required. The VA determines standard fees for a typical assignment in geographic areas based on market surveys conducted and an aggregate average is used that would be considered fair for both the fee appraiser as well as the veteran. Just as the VA would not require the fee appraiser to take a reduced fee for quick simple reports, the same would hold true for the more demanding reports.



VA cannot authorize a fee increase, but the lender and veteran can, mutually agree to it; if you both so choose. With that said; the veteran can only pay the published fee, which is $ for a stick built or modular home.



The following is from the VA Lender’s Handbook, chapter 10, (effective 06/09/19) item 10.24h: (complex properties):



h. Complex Properties VA fee and timeliness schedules cover fees for typical appraisals. Appraisal assignments that are complex in nature may require additional resources and time. If an assignment is determined to be complex in nature, appraisers may negotiate additional fees with the lender, subject to VA approval. Fee should not exceed what is reasonable and customary for a similar complex property type in the market area.



All of this is outside of VA; therefore, our policy is that we won’t “approve” it, but we have no issue with any additional fee that is agreed upon by all 3 parties; the appraiser, lender and veteran. We do suggest that the appraiser get the mutually agreeable fee increase in writing and that he/she break-down the fee(s) on the invoice."

This exactly. I have been operating under this practice for years. Complex assignments that require additional time to complete warrant higher appraisal fees, which need to be approved by all 3 above mentioned parties before proceeding. Same basic procedure as most other clients, you just have to take a bit of time to outline why the additional fee is requested in an email or portal note.