$599 Waiver to Save the Borrower Money?

VaCAP Board

VaCAP Board

Coalition of Appraisers in Virginia at Virginia Coalition of Appraiser Professionals
Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.
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$599 Appraisal Waiver to Save the Borrower Money? - Appraisers BlogsThe consumer is being fed yet another lie! Remember when we heard an appraisal waiver will save the borrower money? Do you recall all those videos from loan officers and mortgage companies encouraging borrowers to obtain an appraisal waiver to save them money? News flash – they lied! But you already knew that.

Well, fellow appraiser and blogger Krystal Schware of Paragon Appraisal Services has a story for you: “The Danger of Saying Yes to an Appraisal Waiver”.

“For only $599, we will grant you an appraisal waiver to help you avoid having an appraisal that ‘comes in short’.” **

…you will be charged $599 for a waiver, which is more than the cost of an actual appraisal in most situations (or charged whatever waiver fee your particular lender offers as a fee). You may pay the same or more than the cost of an appraisal, just to to give up your rights to have an appraisal. You pay to lose the security of having a sound mind that you are making a good investment, and not overpaying for your new home…

(** ‘Comes in short’ is a common phrase in today’s market. What it actually means is that the house you want to purchase is ‘overpriced’, or that the market does not show data and analysis to support the sales price)

AMC License Suspended – VaCAP has learned the North Carolina Appraisal Board has officially suspended the license of CoesterVMS. The Board cited 7 complaints in which CoesterVMS failed to respond. The CoesterVMS surety bond was previously cancelled in North Carolina on 12/31/2018 and the claims against the bond exceeded the face amount.

What is the point of suspending CoesterVMS’s license? It will make it extremely difficult for CoesterVMS and the owner to obtain a license to operate, not only in North Carolina, but in every other state as well. Every state should follow the lead of North Carolina. See the official suspension order here.

LREAB vs FTC decision is in! The decision by the Fifth Circuit Court of Appeals has been released to the public.

For the foregoing reasons, the petition is DISMISSED for lack of jurisdiction.

The way we understand the next step, the case will go back as an administrative proceeding through the FTC. See the nine page decision. VaCAP will keep you posted as the case further develops.

 

Image credit flickr - Bryan Rosengrant
VaCAP Board

VaCAP Board

Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.

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15 Responses

  1. Avatar Dave says:

    We appraisers are all in a dying occupation. I told my 23 year old son to find a different occupation other than appraising. We can all shout and scream to the end, but we are outnumbered and truly have no chance. We were always a necessary evil, until they decide we are no longer necessary….

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    • CaliHaus Appraisals on Facebook CaliHaus Appraisals on Facebook says:

      any professions to switch over to that you would recommend? I am scared as an appraiser that I will not have a job that I worked so hard to be able to have. As a mom, this gave me a chance to have a professional career with flexibility to be in their lives. That is being stripped away.

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      • Look into Machinery and Equipment appraising (M&E); or insurance adjuster; personal property (antiques); gems, and even business valuation if you are willing to spend some money. EACH is an unlicensed unregulated activity in states despite TAF pretending to set their standards. It’s only appraisers that MUST follow USPAP – the rest can do so if it pleases them…or not.

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  2. Avatar Doug Cross says:

    Dave; I don’t necessarily agree with our profession being a “dying occupation”. I have a son that is 2 semesters away from graduating from LSU with a degree in Finance/Real Estate of whom plans to work for my company. I have spent almost 25 years building this business with good clients and will not bow down to these low fee paying AMC’s. Diversification, I believe is the answer to longevity and financial success in this profession. Appraising for attorneys, CPA’s and Financial Consultants helps a lot as well as buying and selling a few properties as flips or rentals. We as appraiser’s have to join forces a lot more than in the recent past to have power as a group so as to pump “life” in our profession. Always enjoy your post though!

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  3. Baggins Baggins says:

    Perhaps a clearer ethical regulations definition regarding sow related to real property? The most valuable asset. The most valuable licensed professional. For related questions there are some very interesting self education programs on learn to code. All possibly negative context aside, the idea as a possible alternative career choice has merit. I’m drawn to it as a side effort at least, because I should not be forced to feel confused about the data I’m transmitting. What is html exactly? ytb coding tutorial, and that sort of thing. Very interesting, I’ve recently been watching crash course series pbs. The educational model as we know it may not hold up and related considerations like licensing and specialty may follow in quick order. Still trying to digest the legalese sub context of the lreab vs ftc deal. Needs a full article to cover. Thank you.

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    • Avatar William R Temple says:

      Baggins, looking in to coding myself.

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      • Baggins Baggins says:

        It’s a time drain though. Stats point to a higher average income for people whom have self taught ahead of formal education. Perhaps I’ll dip into sales but these dang desk fees. I talked to a big box listing agent and he’s paying 12k to 15k a year in all leads and desk fees. If the de minimis does not happen I’ll hopefully stick it out for a few more years here, hopefully. The above linked rebuttal about legislative intent was very well thought out, hopefully will go somewhere and hopefully someone is willing to write a detailed explanative link for the laymen.

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    • Baggs; I didn’t seek nor do I want a career in I.T., including coding. There is already enough of a learning burden involved with ongoing real estate appraisal.

      I think a bigger challenge for appraisers is attempting to stay on topic and develop constructive solutions to appraisal problems once identified.

      Consumers having to pay $599 for an appraisal waiver seems like a pretty big deal to me.

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      • Baggins Baggins says:

        My new business model; Helping consumers fill out appraisal waiver forms. $599 service cost.

        Hell if lenders are going to rip off consumers without blinking, there is no reason we can’t get in on that.

        Waiver consultation from experienced licensed certified real estate appraisers. $599.

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  4. May Villareal on Facebook May Villareal on Facebook says:

    Sarah Teng-Chavez

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    • Sarah Teng-Chavez on Facebook Sarah Teng-Chavez on Facebook says:

      May Villareal, thanks for sharing this article. This appraisal waiver is such a disservice to the borrower. sad

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  5. Avatar certresidential says:

    Please clarify. Is the Bottom line to save the Borrower money Fannie is now collecting $600 for an Appraisal Waiver?

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$599 Waiver to Save the Borrower Money?

by VaCAP Board time to read: 2 min