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Why not blame the appraiser for the highest closing costs in the nation?

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Eli Weiss

Thread Starter
Senior Member
Joined
Nov 28, 2005
Professional Status
Certified Residential Appraiser
State
New York
I have seen many many closing statements in NY through my career, half of them do not list an appraisal fee, due to COD, and the other half that lists an appraisal fee, is rather the only fee that a consumer will agree on as justified and legit, which is why the following statement puzzles me.

The overall higher fees can be attributed to lenders asking appraisers to do more time-consuming, careful work, Bankrate says. During the housing boom, the company says, lenders preferred appraisers who did the job fast and inexpensively.
http://albany.bizjournals.com/albany/stories/2008/08/04/daily48.html?jst=b_ln_hl

If so, I wonder why my fees are being cut day by day....:shrug:

I missed it when it was originally reported on Aug. 8, but I searched for it, after reading a statement in a local magazine that stated that New York has one of the highest closing costs due to high appraisal fees...

Can you explain any of these fees?

amc2up2.jpg
 

panappr

Elite Member
Joined
Dec 5, 2007
Professional Status
Certified Residential Appraiser
State
California
Yea, but it didn't state what the average appraisal fee was. For a $200,000 loan it couldn't have been over $300.00 from any AMC for a drive-by. And the appraiser gets........Ummm $125.00?. The traveling notary makes more than that!!!! I hate being used as an excuse, this has been the "dog pile" the appraiser year.
 

OSU Beavers

Elite Member
Joined
Jan 10, 2007
Professional Status
Licensed Appraiser
State
Oregon
Brokers, title companies and escrow closers only get paid if a loan closes so they have to pad each transaction with junk fees to make up for the ones that do not close. The appraiser gets paid every time, yea right, so our fees are lower.
 

Eli Weiss

Thread Starter
Senior Member
Joined
Nov 28, 2005
Professional Status
Certified Residential Appraiser
State
New York
Besides the point that the statement does not make sense at all, last time I checked lenders still prefer "appraisers who do the job fast and inexpensively"....
and I'm still waiting for the day when lenders will pay for "time-consuming and careful work"....
 

OSU Beavers

Elite Member
Joined
Jan 10, 2007
Professional Status
Licensed Appraiser
State
Oregon
Eli, that is how the "Doc Prep" and other BS fees were explained to me. I got my local lender to wave the one percent loan origination fee on our first home since it WAS going to close and she did not need to charge us to make up for other people that backed out. The docs came from Portland and still had the 1% on there. I made that poor girl bust her @ss over the next 24 hours to get the docs reissued without the fee.

At closing I read EVERY document and found two other errors, one a statement to the IRS that we were buying non-owner occupied and something else.
 

Kevin Mc

Elite Member
Joined
Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
I have seen some HUD-1 forms that were flat out amazing. $3000-5000 in junk fees. Processor, Doc Prep etc... you name it, it was on there. Typical $300K subprime loan in NY a couple of years back would have closing costs in the $25-30K range. How these folks were allowed to do business was beyond me.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I have seen some HUD-1 forms that were flat out amazing. $3000-5000 in junk fees. Processor, Doc Prep etc... you name it, it was on there. Typical $300K subprime loan in NY a couple of years back would have closing costs in the $25-30K range. How these folks were allowed to do business was beyond me.

I have never seen closing costs that high.....unless some liens or back taxes are involved. The sneaky fee...."yield spread premiums" are where they get you because it is not a "closing cost" but an increase in the interest rate that a loan agent would likely have called, "unavoidable."

Those fees on your list are what I would call garbage fees. No justification whatsoever.
 

William K

Senior Member
Joined
Sep 21, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
Wouldn't it be great if the appraisal process started with an
"attendance fee" of $200!:laugh:
 

William K

Senior Member
Joined
Sep 21, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
Maybe thats what we need to do, start charging junk fee's?

"Sure I can do an appraisal for $100. My attendance fee is $200 though., and the delivery fee is $200, and then there is the processing of the order fee which fluctuates from $200 to $300 depending if there is a contract involved!":new_multi:
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Maybe thats what we need to do, start charging junk fee's?

"Sure I can do an appraisal for $100. My attendance fee is $200 though., and the delivery fee is $200, and then there is the processing of the order fee which fluctuates from $200 to $300 depending if there is a contract involved!":new_multi:


That would make good business sense. A bank charged me $10.95 to fax a payoff for my loan. Next they will be chargeing you a fee when you call them for anything. Even if its a wrong number. :new_all_coholic:
 
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