Senate discussion of 2452 today.

[PropertyEconomics]

....the bond amount and its corresponding fee structure would be porportional to the dollar risk.......the bond amount would not have to cover the entire amount of the appraised value........after all none of could miss an improvement 100%, could we?......for example, each $100,000 of valued amount which should have some relationship to sales price would require a $5000 bond whose cost would not be 3% to 6% per $100,000......the "public trust" difference would be that those who had any history of a proven malfeasence would find their bonding fees increasing or not available for purchase......just like liability insurance with a good vs. bad driving record and/or resulting claims..........now the market has the "performance tester" and its resulting enforcement by the costs to the perpetrator......the states appraisal boards could continue to do the near "staffless" works and if there were non-functioning boards, the insurance man could get the crook after ONCE...........
and I still say bring on the bonding, jail and/or fines, increased educational requirements, earned experience, and product history examinations as real judgements for appraisal quality......not just a copy of a license and three completed appraisals as being "qualifiers for work referrals......the illegal have always won without resulting, earned punishments' application....best to all........rs

The way I understand the bill it would require an appraiser to bond for 1% of the total dollar amount they appraised in the prior year (VALUE not INCOME). In searching sites I have found bond costs to be 1% - 20% of the amount bonded with the majority showing a cost of 3% - 5%.

 

[Michigan CG]

The way I understand the bill it would require an appraiser to bond for 1% of the total dollar amount they appraised in the prior year (VALUE not INCOME). In searching sites I have found bond costs to be 1% - 20% of the amount bonded with the majority showing a cost of 3% - 5%.

What if this were to spread to commercial (the way I read it does not)?

My last appraisal was $2,000,000. One on my desk will be about $1-1.3M, the other will be I am guessing in the $2-2.5M range. Say in total I have $5,500,000 for these three reports.....1% of that is $55,000....4% of that is $2,200. So for 4 reports I would have to increase my fees by an average of $550????

What happens when there are two appraisers signing? Do they each get a bond for the report? How about appraising Market Rent? What value do you use. The value of the leasehold, the leased fee, the initial 10-year term, or do the 5-year options count too?

This will not pass muster.

 

[PropertyEconomics]

What if this were to spread to commercial (the way I read it does not)?

My last appraisal was $2,000,000. One on my desk will be about $1-1.3M, the other will be I am guessing in the $2-2.5M range. Say in total I have $5,500,000 for these three reports.....1% of that is $55,000....4% of that is $2,200. So for 4 reports I would have to increase my fees by an average of $550????

What happens when there are two appraisers signing? Do they each get a bond for the report? How about appraising Market Rent? What value do you use. The value of the leasehold, the leased fee, the initial 10-year term, or do the 5-year options count too?

This will not pass muster.

Its in congress .. anything can happen Tim. I am as worried about it as all others.

 

[Elliott]

I do about $100 million per year. That would mean Sen. Dodd's
insurance companies will make $40K per year off of me!
Those insurance companies lobbyist got their money's worth.

"What this f***in $1,000 fee for a Dodd Bond on my closing statement!!
I've never missed a a house payment!! %#^&**! Appraisers!!"

 

[Michigan CG]

Its in congress .. anything can happen Tim. I am as worried about it as all others.

If you look at appraisers right now, especially residential in certain states (Florida, some parts of California, Arizona, Colorado, Indiana, Ohio, Michigan), these folks have seen drops in their income of upwards of 50-75A%. This would be the nail in their coffin. You could see a drop in appraisers of 50% in those areas with this law.

There most likely should be a reduction in appraisers...20%???...I don't know...but you drop it 50% in some of these areas and the fees would double and then the bond fee would be added. Let's discuss $900 appraisal fees on homes worth $100,000.

This is good for the consumer and the American public? I don't think so. Because some of those who would survive would be the very people who helped cause this mess in the first place.

 

[Mystery man3]

Money for a bond

I don't think your right about skippy appraisers having money for a bond. These appraisers for the very reason they are cheating on appraisals are short sighted or desperate. They know they could be sued so why would they have a lot of money laying around. I would bet most have no assets and horrible credit. Which is why they don't care if they are releasing overinflated appraisals. What do they have to lose?

 

[lisagruhot]

I don't think your right about skippy appraisers having money for a bond. These appraisers for the very reason they are cheating on appraisals are short sighted or desperate. They know they could be sued so why would they have a lot of money laying around. I would bet most have no assets and horrible credit. Which is why they don't care if they are releasing overinflated appraisals. What do they have to lose?

Honestly, I do think that the skippies are the ones that will have the money for it. They are the ones who have had the lion's share of the work over the last few years because the loan officers wanted a team player. Most of them have way more money, way better credit, and way more assets than me.

I have much fewer appraisals to complete and much less cash because I won't be a team player. My credit is also worse than it was when I started appraising because of this. I think the ones that have been hurt as far as money, assets, and credit over the last few years have been the appraisers that have tried to do the right thing, not the skippies.

 

[kerrylanger]

Chin Up!

Chin up Lisa. Things are going to turn around eventually. Hang in there and have some pico de guyo sp? I make mine now with avacado... remember there are others out there that will reap what they sowed.

BTW we had another baby today....black with fluffy feet and a yellow bottom..soooo cute. The other babies are in the house still and I have to find a home for them.

I am positive those that harmed you will get what they deserve. It is only right....

 

[kerrylanger]

Karma - what comes around will go around............

 

[lisagruhot]

Chin up Lisa. Things are going to turn around eventually. Hang in there and have some pico de guyo sp? I make mine now with avacado... remember there are others out there that will reap what they sowed.

BTW we had another baby today....black with fluffy feet and a yellow bottom..soooo cute. The other babies are in the house still and I have to find a home for them.

I am positive those that harmed you will get what they deserve. It is only right....

I know. You know how things have been for me the last few years. I swear sometimes I think if I didn't have bad luck I wouldn't have any luck. lol I try to always stay optimistic, but then my stupid fridge went out, and that did it. lol Stupid reason I know, but it has put me in a really bad mood the last couple of days.

Its Pico de Gallo by the way. lol