Upcharging for appraisals.

[Bemis Pownall]

That same uploading service company sent me this today;

This email is being sent in regards to the completed report for this order.
Our client had contacted us inquiring about the value that this appraisal
came in at. The following is an email from our client:

Hello, I received this appraisal earlier this week. The value came in at
$220,000 which is considerably lower than the requested $300,000. Please
advise why I was not notified of the value issue earlier, as I don't think
my client will be able to use this appraisal at this lower value. Thanks for
your help with this.

If you could, please submit an addendum that explains the reasoning for the value coming in so low.

Thanks so much!




My response....priceless.....

 

[Frederick R. Ruffell]

Bemis,
I hope you explained that the value is not low but dead on in your opinion and it is their clients expectations that are high.

 

[airphoto]

Bemis ..

Actually, you need to ax these folks why they're so stupid as to not understand that an addendum is not necessary to explain the report ..

 

[Verne Hebert]

fred--

I am dealt with this for years, and per USPAP I make the rules not clerks ordering work from my office.

Whoever orders, distributes a check after collecting a fee from their client. They are brokers--we are subcontractors effectively (they call us vendors---on a good day).

If they are ordering for B of A the lender client line should read: B of A/Appraiser.com

Also as a USPAP compliancy issue I further, explicitly, state the client relationship and purpose in the condition of appraisal section of the report (for the really hardheaded clerk, or end user). For example.........................for the client, Appraiser.Com for B of
A mortgage transaction purposes only.......................

I have had hundreds of AMCO clerks tell me I have to change this--------------b______t. Good try. But this format is correct. The previous comment about Illinois is a good example. The government is stepping in to further enlighten "us".

USPAP and Smith-Bliley say, as a result you cannot entertain an inquiry from B of A without the consent of your client, Appraiser.com. And I don't entertain the calls even if asked, to anyone other than the client (I also build this into the conditions of appraisal). Let them work for their fee and attempt to translate or forward my response.

 

[Frederick R. Ruffell]

Thanks Vern, This is how I have typically done this for AMC Where I have an agreement with them as to a fee split. In this case it is my understanding that there is no split. I get my full fee and there is another fee charged to the Lender. Furthermore if we have to certify that our fee is not contingent upon a predetermined outcome why not state what that fee is? If the Agent is adding legitimate amounts for service rendered then what is the problem, However if they are gouging the lender I would rather not be associated with that.

 

[Larry Lyke]

Fred --

Sometimes I'm pretty dim on certain things. Please straighten me out:

You say that if your client the broker is conning the borrower, you stipulate your fee in the appraisal report, but if the broker is gouging the lender you would rather not know about it?

How so?

 

[Frederick R. Ruffell]

Now Larry,
I never used the word "Broker". I do very little work for brokers. I do most work directly for lenders. This seems to be a unique case as Dayone AKA appraisal.com is neither a broker nor a lender, it seems to me they are the lenders agent. But I don't know i am not a lawyer. I have listed my name Dayone/appraisal.com in the hopes of getting some appraisal orders. Because the appraisal request comes to me via appraisal.com and I pay them a fee does that make them my client especially when they specifically require the lenders name in the "Client/Lender" field of the appraisal report and to not include an invoice with the report ???? I do not know that is why I am asking. It smells fishy and I do not need the lawsuit. Is there any thing written in the law or USPAP that specifically prohibits an appraiser from disclosing the fee within in the body of the report?

 

[slacker]

If they are ordering for B of A the lender client line should read: B of A/Appraiser.com

Isn’t this Dot Com just another form of an appraiser shop that sends out split fee orders? The Dot Com is collecting the fee but is not actually ordering the appraisal. How is this different than if you are sending work from zzz Mortgage to one of your split fee appraisers? Aren’t you collecting the fee and then paying your appraisers? In either case it is the client “zzz Mortgage” that initiates the order.

If I’m wrong, then do my split fee appraisers need to enter my name on the “Client” line because I sent the fax? Seems like the Dot Com in this case is just a big fax machine and not actually ordering the appraisal.

 

[Frederick R. Ruffell]

Right Slacker, in which case I should be able to send an invoice to the lender (i.e. discloses my fee). But the dot com has said it will "delay" payment if I do enclose an invoice. Sooooo I think they are up to something. Soooo I feel I should disclose my fee in some manner to the "client/lender".

 

[slacker]

Sooooo I think they are up to something.

FR,

The LO or other contact is usually listed on the order. Next time you get one, blow a call into them and ask them what they paid the Dot Com. Maybe you have something here.

If they give you the same amount as the Dot Com then I guess the question will be answered. If it's not the same amount, I guess your question will be answered too.