Where To Report Clients For Violations Of Appraiser Independence

[Evincere]

These links are for C&R or any other violations of Appraiser Independence.

Many thanks to moderator for agreeing to make these links a sticky reference for Appraisers.

Interagency Appraisal Complaint Forms:

This link

http://www.federalreserveconsumerhelp.gov/appraisal/appraisalComplaintForm.pdf

and This link

https://www.FDIC.gov/consumers/assistance/protection/mortgages/appraisals/index.html

 

[DiverMike]

These links are for C&R or any other violations of Appraiser Independence.

Many thanks to moderator for agreeing to make these links a sticky reference for Appraisers.


http://www.federalreserveconsumerhelp.gov/appraisal/appraisalComplaintForm.pdf

This link

https://www.FDIC.gov/consumers/assistance/protection/mortgages/appraisals/index.html

Does anyone know of a single case where CFPB or any other federal agency has involved itself to investigate or punish lenders / AMCs for inappropriate pressure? Some states that regulate them will do it. Others, just shrug it off referring appraisers to file civil suits instead. A very few like Virginia; Louisiana, NC and possibly SC have taken pretty strong positions in defense of appraisers.

 

[Meandering]

Last I could find was a 2013 article, that said a "few".

Mostly, appraisers did/do not know where to report, and are looking for the 800 number of the IVPI.

These links are "new" information to most appraisers, so how well they work remains to be seen.

If appraisers don't report, nothing happens. Are you surprised?

.

 

[Evincere]

Does anyone know of a single case where CFPB or any other federal agency has involved itself to investigate or punish lenders / AMCs for inappropriate pressure? Some states that regulate them will do it. Others, just shrug it off referring appraisers to file civil suits instead. A very few like Virginia; Louisiana, NC and possibly SC have taken pretty strong positions in defense of appraisers.

Mike, The wait has been very long and the patience very thin, but keep in mind that the CFPB is rather new and that prior to the last few years, AMCs were not regulated by anyone. Hence, states could take no actions.

Also keep in mind that just the few states you mention who have taken actions did so in what I would consider a very reasonable time frame. That time frame being when they were given the authority to do so. They may be few now, at this time, but presented with a place to actually file bona fide complaints, there may be many many more coming down the pipeline in the future.

Federal agencies issue final rule on standards for appraisal management companies

May 6th, 2015

http://www.cfpbmonitor.com/2015/05/...standards-for-appraisal-management-companies/

As of November 2014, 38 states have passed an AMC licensing and registration law. Thus, with the issuance of the final rule, the federal agencies are stepping up the pressure on the remaining states to adopt a regulatory structure for AMCs.

 

[DiverMike]

Mike, The wait has been very long and the patience very thin, but keep in mind that the CFPB is rather new and that prior to the last few years, AMCs were not regulated by anyone. Hence, states could take no actions.

Also keep in mind that just the few states you mention who have taken actions did so in what I would consider a very reasonable time frame. That time frame being when they were given the authority to do so. They may be few now, at this time, but presented with a place to actually file bona fide complaints, there may be many many more coming down the pipeline in the future.

Federal agencies issue final rule on standards for appraisal management companies

May 6th, 2015

http://www.cfpbmonitor.com/2015/05/...standards-for-appraisal-management-companies/

Evincere, you are of course correct re time and authority. My concern is that it has been six years since the curse of HVCC hit us. In all subsequent legislation, the voices of the AMCs and MBA/ABA have been listened to while appraisers have been largely ignored. Six years and only 38 states adopted any regulations for AMCs. Of these 38, few pursue improper influence cases, though like you say, it is growing. Far fewer deal with less than customary or reasonable fees. To my knowledge only Louisiana and North Carolina have taken meaningful action in this regard. Right now Coester VMS is operating without all the necessary valid licenses and approvals in the State of Virginia, yet that states Appraiser Board has deferred taking any enforcement action until December, 2015 based on advice of their state AG. These are the folks whose own website claims they brought the 'single fixed national AMC fee' to the world of banking and AMCs.

So in six years since HVCC where are we? HVCC was repealed but the infrastructure it created was left intact as the new appraisal ordering paradigm. C&R was included in Dodd-Frank, but it was left intentionally ambiguous so that giant loopholes of unenforced LESS than customary and nowhere close to reasonable fees could become the norm. Many appraisers recognized that their interests are being left out of legislative considerations. 19 to 21 state appraiser coalitions were formed. A very few have had quite commendable successes, but most have been largely ineffective in instituting meaningful changes. It is NOT their fault! Our system of governance has two personas. The one for public consumption; and the one that works behind the scenes. It is the latter one that gets anything done, IF that "anything" can be shown to have benefit for the legislators doing "it" . State coalitions rarely know how to maneuver in that environment. It takes time to learn and a LOT of money. Lobbyists just milk the money tap of those few able to afford them. That's why they usually only seek single item issues and tell their clients to wait until later for related second or third issues that SHOULD be resolved all at once.

THAT is exactly why I proposed a minimum national GSE fee with the full intention of having the nations oldest NON-GOVERNMENT employees union carry it forward. THEY have experience, money and ten to thirteen million members and their families with which to influence legislators. We (appraisers) only have 75,000 to 80,000+- DIVIDED appraisers across the country to carry any messages. Rhetorically, who do you think will have the best chance of effecting a meaningful change? Please read the proposal at the following link. If in agreement, please notify the Guild of your concurrence. Thank you.

Mike Ford (714) 366-9404

http://mfford.com/html/c___r_fees.htm

 

[Meandering]

Title 12: Banks and Banking
PART 226—TRUTH IN LENDING (REGULATION Z)
Subpart E—Special Rules for Certain Home Mortgage Transactions

(f) Customary and reasonable compensation—(1) Requirement

(2) Presumption of compliance

(ii) The creditor and its agents do not engage in any anticompetitive acts in violation of state or federal law that affect the compensation paid to fee appraisers, including—

(A) Entering into any contracts or engaging in any conspiracies to restrain trade through methods such as price fixing or market allocation, as prohibited under section 1 of the Sherman Antitrust Act, 15 U.S.C. 1, or any other relevant antitrust laws; or

(B) Engaging in any acts of monopolization such as restricting any person from entering the relevant geographic market or causing any person to leave the relevant geographic market, as prohibited under section 2 of the Sherman Antitrust Act, 15 U.S.C. 2, or any other relevant antitrust laws.
http://www.ecfr.gov/cgi-bin/text-id...3257d8c2&mc=true&node=se12.3.226_142&rgn=div8

Banks and AMCs can not price fix or black list.

so I was thinking how come nobody turned this in to the OCC and Inter Agencies?

CoesterVMS Flat Fee Schedule

http://www.firstmortgage.com/Web Content/Wholesale/Wholesale Forms/AppraisalFeeSchedule.pdf

Where's JT on this?

 

[glenn walker]

The flat fee is the future and no law broken because the flat fee can be based on C & R for different areas, markets, States, etc. The new TRIN is forcing lenders to go flat fee because once the borrower is given the disclosures the price of the appraisal cannot go up . If the appraiser comes back and wants more money after the order is accepted the lender takes the hit and that's not going to happen in most cases.

 

[Evincere]

The flat fee is the future and no law broken because the flat fee can be based on C & R for different areas, markets, States, etc. The new TRIN is forcing lenders to go flat fee because once the borrower is given the disclosures the price of the appraisal cannot go up . If the appraiser comes back and wants more money after the order is accepted the lender takes the hit and that's not going to happen in most cases.

Lenders prerogative to offer a flat fee. Appraisers business decision to accept or decline. There is NO LAW, NOR CAN THERE BE ANY LAW, that would mandate otherwise, not now or in the future, to accept any set or particular fee.

TRID is the lenders problem.

 

[glenn walker]

TRID is now going to become another appraisers problem if he goes back a Week later and wants another $150.00 I guess we can DIAL 1-800-TRID 1-800-C & R 1-800-HVCC

 

[hastalavista]

Lenders prerogative to offer a flat fee. Appraisers business decision to accept or decline. There is NO LAW, NOR CAN THERE BE ANY LAW, that would mandate otherwise, not now or in the future, to accept any set or particular fee.

TRID is the lenders problem.

I agree; but like a lot of other problems, some lenders will try to offload their problem onto others' shoulders.

Some large lenders already have a set contract-price with their AMC vendors. The price is the price, the AMC has to make its profit on "average"; it will make money on some assignments and lose on others. If it loses more than wins, it goes out of business; that isn't good for the appraiser or the lender.
TRID, it seems to me, gives the remaining large lenders incentive to do the same thing.

Smaller, regional/local (community banks) would seem to be able to be more nimble in managing the fee-quote process, but they have to compete with the big boys on price, so why they can be more flexible in setting specific fees, there is still a benchmark of the large-lender fees (especially in the more populated urban areas where more transactions take place).

It is going to get messy before (if ever) it gets fixed. But, I could be wrong!