When Customary Fees Become Unreasonable

[bnmappraisal]

Put a cap on the amount they can charge as the secondary service on blended fee imo would be a cleaner way to address the issue .

Wouldn't this get into restriction of trade?

 

[J Grant]

Exactly. The verbiage I posted with FHA link might be theri more recent regarding managment fee/secondary fee vs primary fee which may be older and not in play anymore.

They clearly identify what the AMC fees for services are supposed to be. Where is the investigation or enforcement of what C and R for a management company should be, based on this HUD RESPA statement that lays out what AMC is supposed to charge for (actual services provided)

On another HUD RESPA disclosure the appraisal fee is defined as a fee paid to an appraiser for an appraisal.

I don't deny that an AMC performs a service or that they should profit from their service, but we should not be subsidizing that profit at expense of our fee. The lenders should pay them for a profit they need to make above services actually provided if their lender client wants to. Stop mixing it in with our fee and misleading borrowers and manipulating appraisal ordering to provide it.

 

[J Grant]

Regulated loans is all about restriction of trade, with caps on points, closing costs, the TRID acting as an influence on our fees as well as that loan officers prohibited from direct ordering which affected our ability to do business.

A business or professional chooses to participate in the highly regulated environment of govt backed lending, but the regulations and enforcement should be applied fairly, not draconian to some (appraisers) and lax to others (lenders/AMC's)

 

[Eli]

Price floors were put in the agricultural market during the great depression because the majority of farmers were in default on their loans. To my knowledge, the price controls have existed in one way or another since the great depression in the AG market.

 

[Digger88]

I will review the proposal this weekend...overall I am in favor, as it is minimum national fees for lender res work only...apparisers are free to set their own fees for all the other kinds of work out there. The only res lending appraisers being paid well on a consistent basis for the majority of assignments is the VA panel, because they do have set minimum fees.

I presume the idea is for minimum fees, and I presume they are not meant to apply to complex res work, commercial work or, non lender work .

here here! 450 should be the minimum which works very well in my market.

 

[Eli]

Regulated loans is all about restriction of trade, with caps on points, closing costs, the TRID acting as an influence on our fees as well as that loan officers prohibited from direct ordering which affected our ability to do business.

A business or professional chooses to participate in the highly regulated environment of govt backed lending, but the regulations and enforcement should be applied fairly, not draconian to some (appraisers) and lax to others (lenders/AMC's)

An appraiser don't have to work doing mortgage purpose appraisals for govt guaranteed mortgages, but if the government says we need appraisals on government guaranteed mortgages and this is the minimum we will pay, then an appraiser can choose to work for them or not. That is pretty much the way the price floors work in the Agricultural industry. Price ceilings would be the same way, if they were capping AMC's.

 

[Eli]

If the govt were to cap AMC's with a price ceiling, AMC's wouldn't have to work doing govt guaranteed mortgage purpose appraisals. They could say I don't want to work for that and go do something else.

Remember that the govt is serving the public.

 

[Meandering]

Wouldn't this get into restriction of trade?

The trade is already restricted by law.

Who doesn't know your trade is already restricted by law????

Both us, and AMCs sell a specialty product to a specialized industry that is restricted by law. Why would you think it is not? and that any more restrictions produce some kind of new thought that there are no other restrictions to begin with?


You can not take on 15 trainees, send them around the country to do work you get a cut off, in an effort to expand your business.

Of course it's a restriction of trade. On purpose.


.

 

[Eli]

The trade is already restricted by law.

Who doesn't know your trade is already restricted by law????

Both us, and AMCs sell a specialty product to a specialized industry that is restricted by law. Why would you think it is not? and that any more restrictions produce some kind of new thought that there are no other restrictions to begin with?


You can not take on 15 trainees, send them around the country to do work you get a cut off, in an effort to expand your business.

Of course it's a restriction of trade. On purpose.


.

Banks will do anything the government says to sell mortgages to them. The system is screwed up for appraisers doing govt guaranteed mtg work. They know it. Many appraisers doing that type work don't know it. They are learning it slowly, the hard way.

The government is in control of most mortgage related appraisal work. If somebody don't feel that way, I feel sorry for them. They will figure it out eventually though. AMC's know it, trust me.

 

[Eli]

Some appraisers are stupid enough to bite the hand that feeds them. Don't worry though, the govt is coming through slowly but surely. The govt needs to hear from YOU. In the great depression, when most farmers were going out of business and bankrupt, they didn't have a problem dealing with the government and price floors. The one's who did have a problem probably no longer farmed. They may have had little niches like many appraisers do today, but that big niche is what many needed to survive.

I guarantee you most AMC's cant survive without that big niche. Banks would be laying off like crazy without it too. Banks would be closing doors and laying off on a big time scale.