When Customary Fees Become Unreasonable

[Meandering]

cat with toilet

 

[NJAPRAZE]

First - let me say upfront that I haven't read thru all 28 pages of posts here, so if I'm redundant - I apologize.

As I'm seeing more & more "bid" requests as the new norm way of AMCs doing business -> which are obvious attempts at shopping for the lowest bidder and/or pitting appraisers against each other to earn a wage, I'm for a regulated "minimum fee" requirement for appraisers - but on a State basis, not national basis.

For instance, in PA, the title industry is similarly regulated whereby pricing is set by the state -> to protect consumers; regarding appraisals - perhaps min. fees can be based on VA fee table, etc... that way, if regulated on a state basis, AMC fee will effectively be segregated (since fed govt doesn't have balls to do so by effecting such chg on updated HUD-1 form).

 

[nstanbru]

For instance, in PA, the title industry is similarly regulated whereby pricing is set by the state -> to protect consumers; regarding appraisals - perhaps min. fees can be based on VA fee table, etc... that way, if regulated on a state basis, AMC fee will effectively be segregated (since fed govt doesn't have balls to do so by effecting such chg on updated HUD-1 form).

I'm not familiar with the PA regulations for the title industry, but I would guess they set the maximum price(s). Just my opinion, but in order for states to regulate appraisal fees, they would have to set a minimum fee because that is the issue for appraisers that rely on AMCs for the majority of their work. I believe that would be a major obstacle to overcome.

 

[NJAPRAZE]

exactly... because the management fee "premium" that is charged above/beyond appraiser fee would become exposed, as all a consumer would need to do is essentially subtract the min appraisal fee from what they're "being charged for an appraisal"

 

[NJAPRAZE]

pricing burden would shift from appraisers to AMCs - i.e. in how they compete for lender business; marginalize the middle-man, not the service provider!

 

[RSI]

I commend you Mike in your efforts, and to all the appraisers who have the luxury of being able to "Set" you own fees and actually getting those fees, good for you, but in reality my fees have really not increased in 18 years, however since the implementation of the C&R , I have been a victim of theft of services, at least it feels as such, If I do not accept the crumbs from the AMC, well I cant eat, in reality the AMC does not contribute to my report and basically offers to pay 1/4 -2/3 of the fees I would normally charge; and when prompted to "bid", I never get a call back. I DO NOT feel that I should be paying for a MAJOR bank's sister AMC company to do absolutely nothing but collect a fee for work that they did not contribute. I do not feel that I should be responsible to pay the AMC overhead out of my pocket. It has forced appraisers to slash prices in order to work. Some AMC's charge half or more of the appraisal fee, some charge $10 fee. There should be a set minimum in pricing to the appraiser consistent with some national standard, or at least a higher percentage rate split like 95% of total fees charged by AMC, or a flat fee of $10 across the board forcing the AMC to pay its own bills. This inconsistency in the AMC market is completely repulsive. I am basically paying a middle man to upload a report. Words cannot express my frustration with this current industry.

 

[J Grant]

Either a set benchmark fee for res lending GSE appraisals (Which was supposed to be the VA fee as benchmark in original DF before it was changed), OR, a cap on the % of borrower fee an AMC or lender ordering division could charge from the consumer paid fee, such as 20% .

 

[Eli]

Either a set benchmark fee for res lending GSE appraisals (Which was supposed to be the VA fee as benchmark in original DF before it was changed), OR, a cap on the % of borrower fee an AMC or lender ordering division could charge from the consumer paid fee, such as 20% .

You can't be nice to an oligopsony or a monopoly. They are a living breathing economic entity. There is no human element. It is money that keeps the entity alive. It has no conscience. That is the reason the Sherman Antitrust Act was written.

 

[J Grant]

You can't be nice to an oligopsony or a monopoly. They are a living breathing economic entity. There is no human element. It is money that keeps the entity alive. It has no conscience. That is the reason the Sherman Antitrust Act was written.

 

[J Grant]

Money aka profit can still be made with a conscience, there is plenty to go around for all. When ethics and conscience is removed from a balance then the means to make profit can become grotesque. Read watercooler thread the topic of AG GAG laws regarding animal welfare on corporate owned factory farms to see how grotesque the making of profit divorced from conscience can become ( our issues pale in comparison)