Where To Report Clients For Violations Of Appraiser Independence

[Evincere]

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!

One solution is for lenders to hire qualified staff, knowledgeable and familiar with property research, who would know in advance and identify which properties have the potential to be problematic, atypical, unusual size, location, etc. They all claim to have reviewers and underwriters, who send back stips, let them do accurate property searches when they take the applications. Let them quote borrowers appraisal fees properly, in advance vs. one flat fee fits all as they do now. Let them not do a sloppy appraisal request as they do now which is to merely obtain a property address (often incomplete, inaccurate, single family when its income, etc. etc.)

Let them renegotiate their SLAs with AMCs in advance, stating that if their advance property research proves to be inaccurate the cost of the appraisal difference will be split between the AMC and Lender and not deducted from the appraisers fee. Why should appraisers pay the penalty of inaccurate Lender quotes to Borrowers?

Let them do all the above - which in imho IS their responsibility and you will see how quickly they mitigate their TRID problems.

 

[J Grant]

Why should appraisers pay the penalty of inaccurate Lender quotes to Borrowers?

Exactly. There is no law prohibiting lenders from paying appraisers from their own funds, above borrower paid fee, is there? Let the lender pay the $ as opposed to us losing the $. If they don't volunteer that an option , they will see more appraisers pulling out of jobs and deadline/delivery problems.

Lenders reserve pitching in $ above borrower paid only for extreme rush situations. Since they are so cheap when it comes to fees, they will see delivery problems from the TRID.

I've see appraises not finishing assignments here more and more. ..getting an increasing number of frantic phone calls because the "other" appraiser dropped out. Suddenly, the client is willing to pay a rush fee. Perhaps if they had agreed to pay a proper fee the first time they would not be in this position. I don't advocate appraisers not finishing an order but the current system puts them in an untenable position. How long are appraisers expected to subsidize borrower or lender or AMC interests by losing money on our end?

How nice for borrowers they may no longer pay 10% more, where does that leave us? Our fees have already been shaved down to unprofitable levels to accommodate profit to AMC or lender division. Will admit I get a perverse satisfaction, sorry to say, from these appraisers dropping out of orders and the frantic phone calls of last minute capitulation to paying the kind of fee that should have been there the first time.

 

[Tom D]

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

not true big cat, doing FHA with cir. the buyer is paying for it with my lender. matter of fact owner is paying cir on refi to. haven't had i issue with that. haven't had an issue with, once in a while, asking for a fee increase cause they didn't know it was a $4,000,000 house. most beatiful house i ever saw. a brand new house which looked like a 1700 manor house in england. they were attorney's. such a bad life choice i took.

 

[Elliott]

I nominate this to made a sticky. I take care of the occasion pressure situations, but I can see this could be useful for many.