The Appraiser Shortage Myth Part 43

[Deleted member 130081]

Federal Register, October 28, 2010, Federal Reserve System, 12 CFR Part 226, Truth In Lending; Interim Final Rule

Could someone please post a link if this is not the law we are referencing? I found what looks like the damn thing, but if its called interim? WTF?

QUOTE]

So, is this the most current thing or what?

 

[Meandering]

I believe the final rule is much the same-allowing two different presumptions for determining C and R fees. Net result is two very different sets of fees: with AMC 's paying significantly lower fees fees than fees paid out from non AMC entities for similar work in a same market area.

The exceptions are the oft mentioned 3 COW states, where a shortage of appraisers has leveraged AMC's to pay a C and R equivalent to non AMC fees paid in those areas.

Don't believe


KNOW!


DANG IT ALREADY.


READ


WHAT GOOD IS A COLLEGE EDUCATION IF GRADUATES REFUSE TO READ AND CONTINUE TO RUN AROUND SPOUTING OPINIONS ABOUT THINGS THEY KNOW NOTHING ABOUT???????


Didn’t college teach appraisers how to do research papers to answer questions they don't know about??????


1. The Dodd Frank required the Interim Final Rule.


2. It was Interim because it was going to be finalized without any changes, after the public comment period.



3. The Dodd Frank required the rule as the FEDERAL interpretation of Appraiser Independence that was put into the Dodd Frank.



4. The Fed Board put in the presumptions about paying appraisers C&R fees, because in their mind, what the Dodd Frank said was much too broad, and every financial law has a safe harbor, which was lacking in the Appraiser Independence section of the Dodd Frank.




5. There are NOT two different sets of fees.


6. There are two different presumptions that consider the evidence an AMC and Lender can present, as indicators that the fees they paid were C&R.


AMCs pay lower fees because idiot lemming appraisers have not read, nor comprehended what they read in the laws, nor, have they filed for enforcement of the laws, but instead, have looked to their hero appraisers to tell them what is in the law. Or, only read as far as C&R and suddenly decided the government was setting a fee, and they were all in support of market fees.

Only appraisers can stop low fees. Because appraisers have to notify the authorities that they are only being paid low fees. And guess what, appraisers can report every low fee appraisal they were paid for since 4/1/2011 to the state for enforcement. It does not matter if you accepted the low fee. There is no conspiracy contingent in the law between the appraiser or their client. Only the CLIENT and NAMED intended user for a covered transaction are liable for the fee paid.

Not all transactions are COVERED by the appraiser independence laws. If you accept a low fee for those transactions, that's one you and don't you dare expect the state to prosecute a client over those fees.


Someone told me you can't fix stupid. You let it go until it kills them. However, I never thought I would see such a large group allow themselves to be called "professionals" yet succumb to their own laziness and stupidity.


.

 

[Meandering]

I believe the final rule is much the same-allowing two different presumptions for determining C and R fees. Net result is two very different sets of fees: with AMC 's paying significantly lower fees fees than fees paid out from non AMC entities for similar work in a same market area.

The exceptions are the oft mentioned 3 COW states, where a shortage of appraisers has leveraged AMC's to pay a C and R equivalent to non AMC fees paid in those areas.

Don't believe


KNOW!


DANG IT ALREADY.


READ


WHAT GOOD IS A COLLEGE EDUCATION IF GRADUATES REFUSE TO READ AND CONTINUE TO RUN AROUND SPOUTING OPINIONS ABOUT THINGS THEY KNOW NOTHING ABOUT???????


Didn’t college teach appraisers how to do research papers to answer questions they don't know about??????


1. The Dodd Frank required the Interim Final Rule.


2. It was Interim because it was going to be finalized without any changes, after the public comment period.



3. The Dodd Frank required the rule as the FEDERAL interpretation of Appraiser Independence that was put into the Dodd Frank.



4. The Fed Board put in the presumptions about paying appraisers C&R fees, because in their mind, what the Dodd Frank said was much too broad, and every financial law has a safe harbor, which was lacking in the Appraiser Independence section of the Dodd Frank.




5. There are NOT two different sets of fees.


6. There are two different presumptions that consider the evidence an AMC and Lender can present, as indicators that the fees they paid were C&R.


AMCs pay lower fees because idiot lemming appraisers have not read, nor comprehended what they read in the laws, nor, have they filed for enforcement of the laws, but instead, have looked to their hero appraisers to tell them what is in the law. Or, only read as far as C&R and suddenly decided the government was setting a fee, and they were all in support of market fees.

Only appraisers can stop low fees. Because appraisers have to notify the authorities that they are only being paid low fees. And guess what, appraisers can report every low fee appraisal they were paid for since 4/1/2011 to the state for enforcement. It does not matter if you accepted the low fee. There is no conspiracy contingent in the law between the appraiser or their client. Only the CLIENT and NAMED intended user for a covered transaction are liable for the fee paid.

Not all transactions are COVERED by the appraiser independence laws. If you accept a low fee for those transactions, that's on you, and don't you dare expect the state to prosecute a client over those fees.


Someone told me you can't fix stupid. You let it go until it kills them. However, I never thought I would see such a large group allow themselves to be called "professionals" yet succumb to their own laziness and stupidity.


.

 

[Meandering]

Are you still confused?

Here's how it works.

Your direct engagement lender pays YOU specifically, $600 to appraise a typical Res property appraisal for a purchase transaction. Your "favored" AMC client pays you only $300 for a typical Res property appraisal for a purchase transaction.

You have direct evidence of the C&R from the direct engagement lender.

You take both sets of fees and letters of engagement to the state and complain the AMC is not paying C&R, you have direct evidence, and, you can match AMC to lender jobs, month over month, year after year.

The state will go to the AMC and say that the AMC has not paid C&R.

The AMC will whine, "We're following presumption 1".

The state will say, "We don't care if you're following Twitter 24/7, you owe this appraiser this price difference, unless you can show that what you were paying for this type of appraisal, in this specific geographic area, to other appraisers with similar education and experience as this appraiser, is similar to what direct lenders were paying and/or a government fee survey was paying, but NOT what an AMC was paying, because, C&R is DEFINED as not including AMC fees. C&R is not presumed, it is evidenced by the two step process contained in the IFR, bearing in mind that the Federal Law (Dodd Frank) includes that C&R is not based on what AMCs pay.

So if found in violation of C&R, you the appraiser, ARE STILL OWED the C&R fee, and the state gets to fine the AMC and the LENDER, $20k for the first day you were not paid C&R and $10k every day after that.

The Lender will say, "We don't have a written agency agreement with that AMC" our agency is determined by the common law definition so, we don't owe anything because it's the AMC that did not follow the law, not us.

And the AMC will promptly go belly up.

Just like dominos.


That's it, that's the short version.

.

 

[Terrel L. Shields]

because idiot lemming appraisers have not read

 

[J Grant]

http://www.appraisalinstitute.org/a...t/washington-report-state-news-current-issue/

The proposal to replace or repeal DF , there will still be regulations, looks like the regulations ( #3) makes it worse for appraisers, and particularity worse for commercial appraisers.

As far as final rule, Idk anything more than the next person who can search the internet. I'll let Marion be the winner if she wants to proclaim expertise in all things regulatory. I am an appraiser, not a regulations expert as a career. The latest version, ( final or interim final,??) is on the cfpb website and has the two presumptions of compliance in place. Any rational person, would know my statement of "two sets of fees" did not literally mean I believe there are two sets of fees. That was a figure of speech., to describe the very different fees paid by AMC's and for work not originating from AMC's.

"I'm one of "those people" who have not taken the time to read everything and every update. I've survived a long time and have a large number of good friends in the industry who respect my work. I didn't get here by insulting my peers"

I copied the above from Micheal P Jacobs MAI, response in a Dodd Frank thread.

Now if this thread can get back on topic ( though all the side roads were interesting )

Topic was appraiser shortage, if one exists it is in 3 states only and temporary there if work slows down. Any shortage would be a lesser # of in new entrants or those willing to train- which is appropriate- indicators of change forecasts less volume as well as less lucrative changes to a portion of work with the possibility of bifurcated appraisals ( other to inspect and appraiser will do desktop portion for peanuts) .

Appraisers will still be needed for res lending in some capacity and traditional appraisals ordered for a portion of work; appraisers who can handle complex orders and reviews will in demand,so it will sustain a living for those left standing - at this point in time not an encouraging landscape to bring on a trainee. .

 

[Meandering]

It is now about winning or losing or who has the most popular opinion.

It is about this:


COMPETENCY RULE

The appraiser must determine, prior to accepting an assignment, that he or she can perform the
assignment competently. Competency requires:

Being Competent

1. the ability to properly identify the problem to be addressed; and

2. the knowledge and experience to complete the assignment competently; and

3. recognition of, and compliance with, laws and regulations that apply to the appraiser or to the

assignment.

Comment: Competency may apply to factors such as, but not limited to, an appraiser’s
familiarity with a specific type of property or asset, a market, a geographic area, an intended

use, specific laws and regulations, or an analytical method. If such a factor is necessary for an
appraiser to develop credible assignment results, the appraiser is responsible for having the
competency to address that factor or for following the steps outlined below to satisfy this

COMPETENCY RULE.
For assignments with retrospective opinions and conclusions, the appraiser must meet the
requirements of this COMPETENCY RULE at the time of the assignment, rather than the
effective date.


READ


READ


READ

Show that “education” is worth something.


.

 

[J Grant]

I's say appraisers participating in this thread have read more regarding C and R and the pertinent section of Dodd Frank than peers Fees are part of appraisal business, not appraisal practice. A lender or AMC can be in violation of C and R, that regulation relates to their compliance, not an appraiser's (though M may argue otherwise)

Familiarity with regulations for competence on an assignment would mean being familiar with regulations pertinent to the assignment such as FHA, Fannie, and general appraisal practice. Common sense would indicate that .

If the thread goes back to the topic that would be great- in any case it lasted an epic 73 pages.

 

[CigarDad]

I attended a Fannie Mae Webinar last week (08/23/2017) for appraisers. In the four slides attached Fannie Mae justifies why there is an Appraiser shortage and why they are pushing alternative valuations.

 

[hastalavista]

I attended a Fannie Mae Webinar last week (08/23/2017) for appraisers. In the four slides attached Fannie Mae justifies why there is an Appraiser shortage and why they are pushing alternative valuations.

What is "inelastic" is Fannie or Freddie's ability to purchase mortgages and, consequently, turn-time or fee is not of consequence to them. They purchase loans with appraisals regardless what the price of the appraisal is or how long it takes to complete an appraisal.