Comments on: Appraisers Landmark $36M Settlement with BofA

By: John

John — Thu, 05 Sep 2024 16:52:31 +0000

I was working as a real estate appraiser for BofA at the time of this lawsuit, and I had been working there for several years prior. This lawsuit was a travesty and a disservice to all appraisers, I refused to join as a plaintiff and to this day think the outcome was ridiculous. Due to this lawsuit appraisers across the county, which are an independent group who choose their own work schedules, became clock punchers over night. The lawsuit claimed real estate appraisers were not “professionals”. Every single appraiser at the time was working on a commission basis, with a clear compensation contract renewed annually. I think this should have gone to trial and dismissed as the farce it was.

By: Mike Ford CA AG; SCREA, AGA, GAA, RAA

Mike Ford CA AG; SCREA, AGA, GAA, RAA — Tue, 27 Oct 2015 17:05:08 +0000

Well, I’ve seen a few TURD quotes and its as bad as anyone thought. Essentially a $50 across the board hike in the fee paid by bank to AMC (about $550). On a good day, appraisers MAY get $400 of that, though AMCs will likely still try to capture low fee bidders at around $350.

In my state, the Official Bureau of Real Estate Appraisers website merely refers anyone inquiring about C&R fees back to the CFPB because in their words

“Customary and Reasonable Fees

BREA has no legal authority to enforce provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 related to Customary and Reasonable Compensation for Fee Appraisers. The Dodd-Frank Act established the Consumer Financial Protection Bureau (CFPB), and many of the pieces of the Dodd-Frank Act relating to the CFPB went into effect on July 21, 2011. For more information, please go to: http://www.consumerfinance.gov/.

Until such time as the CFPB’s enforcement authority is fully implemented, violations of Customary and Reasonable Compensation provisions should be reported to:

Board of Governors of the Federal Reserve System
Division of Consumer and Community Affairs
(202) 452-2412″

So the roughly 10,000+ appraisers still surviving in California are essentially on their own when it comes to enforcing C&R. We regulated AMCs but neglected to include meaningful provisions about C&R fees. Our ONLY recourse is via CFPB.

Anyone still think we do not need a default MINIMUM C&R fee schedule? How many other states are among the +-33 states that have some form of AMC regulations but do NOT have enforcement mechanisms?

I’ve reposted what I think the most probable solution is. Adoption of the fees proposed at the following link as default C&R in all states where no other common metric exists; where the studies are outdated (over three years old), or are in dispute. http://mfford.com/html/c___r_fees.htm

By: Bill Johnson

Bill Johnson — Fri, 23 Oct 2015 19:22:42 +0000

Update. My original appraiser trainer who has been a staff appraiser with Landsafe since 2008, just received an update as to the minimum settlement they will receive. As a high volume producer in the state of CA the minimum payment amount will be $139,000 and could be much higher depending on lawyer costs. Where is the respect when it comes to treating the staff and independent appraisers fairly?

By: Mike Ford CA AG , SCREA, AGA, GAA, RAA

Mike Ford CA AG , SCREA, AGA, GAA, RAA — Mon, 07 Sep 2015 00:23:54 +0000

TURD (or TRID), should not be as bad on fees as I feared, though the jury is still out on that one. I too am concerned that it will produce de facto price fixing across the country.

I am about 80% of the way through a fairly comprehensive (possible) suggestion on how to establish a MINIMUM National “Reasonable” fee in all states that takes into account local cost differences.

I calculated everything nearer the lower end of overhead and benefit ranges so I could be an easy 5% low, on some basic assignments, but I think all will pretty much agree with FHA & Condo fees. Income Property fees probably need to come down-tough I am envisioning real income analysis instead of the silliness that passes for income property appraisals today under FNMA-maybe a two tiered range for 2 to 4s.

Hope to have it posted by end of week. Needs some clean up and double checking right now. IF we can get a consensus here, then I’ll have it put on the AGA web and reach out to each of the State Coalitions; and possibly to the various appraiser professional peer groups & organizations. It WONT be perfect but IF we can get a general consensus, then it IS possible we can get it adopted; and SOON!.

By: Bill Johnson

Bill Johnson — Fri, 04 Sep 2015 22:18:10 +0000

When is the last time a lender client and or AMC called you to ask your opinion on how new regulations are going to effect your business (appraising)? With in essence non negotiable appraisal fees set to take place with TRID implementation, have they offered a solution to address complexity fees discovered after the appraisal fee has been locked in? Are they offering to raise the fees to offset the times complexity fees can’t be charged? Has anyone been contacted from a lender saying they are raising FHA appraisal fees based on the new regulations? The answer is of course NO. As it relates to BOA and Landsafe, when they pay a split fee for production and a higher percentage for the more work you do, are they asking how many hours it takes to make this happen? Does it matter to them that they pay you as an employee (staff appraiser) but to produce to a high standard of work you may work 12 hour days to make it happen? With the average settlement to each staff appraiser estimated to be $64,000, BOA will NOW say it matters. Good news to CA appraisers as the state has a longer statute of limitations, thus the portion of the payout will be higher than most states.

By: Mike Frd, CA AG, SCREA, AGA, GAA, RAA

Mike Frd, CA AG, SCREA, AGA, GAA, RAA — Fri, 04 Sep 2015 00:09:42 +0000

I think anyone at similar companies; especially the so called “reconciliation ” companies that require 8 AM to 10 PM, 6 days a week should also be contacting these folks directly. I understand there re restrictions where they may not be able to ASK people to “come on down and sue”, but I cant imagine them not being able to respond to individuals who believe they have suffered similar abuse. Im thinking of one “reconciliation company” that was owned by a large title company, and located in Orange County last time I heard about them.

Contrary to popular belief, review appraisers are people too; and should be treated fairly. Perhaps if they didn’t have such unreasonable expectations foisted on them, WE would see fewer ridiculous reviewer issues.

By: Retired Appraiser

Retired Appraiser — Thu, 03 Sep 2015 19:00:52 +0000

California is on a roll this week! Charlie Sheen would be proud of his home state.

WINNING!