Flagstar Bank Eliminating AMCs
Flagstar Bank’s Direct Vendor Appraisers
I have just learned from reading a forum that Flagstar Bank is doing away with the AMCs they use, and bringing appraisal ordering back in-house.
However, you must agree to this:
PLEASE NOTE: We only pay via ACH (automatic deposit twice a month on the 1st and 15th) so your bank information is also mandatory. There are no other payment methods available at this time so if you prefer not to use automatic deposit we unfortunately cannot add you to the panel. Also effective July 24th, 2017 there will be a click fee charge of $10 per appraisal and $6 per updated appraisal type (not revised revision request). You will have to maintain a Credit Card on file to upload each appraisal.
The red info is something you’d better pay attention to, because a USPAP reporting requirement is to reveal in the report when you ‘pay a fee’ to accept an appraisal assignment. Both the fees noted above meet that criteria.
Some appraisers don’t realize that when you MUST pay an upload report transmittal fee in order to get the assignment, that also means you have had to ‘pay a fee’ to RECEIVE the assignment, and the fact you have had to pay a fee MUST be disclosed.
An appraiser must disclose that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment.
Comment: The disclosure must appear in the certification and in any transmittal letter in which conclusions are stated; however, disclosure of the amount paid is not required. In groups or organizations engaged in appraisal practice, intra-company payments to employees for business development do not require disclosure.
Rather than argue about this, just do it! Put a statement into your addendum about the procedure. When you have not paid any kind of fee, just remove that statement.