Fellow appraisers, please visit http://mfford.com/html/c___r_fees.htm

Apologies for using my personal site but logistical and time constraints made it necessary.

It is to read a draft proposal for minimum national appraiser fees. I appreciate some believe no one other than themselves should set fees, and I concur. Except, in the real world of today where someone (lenders and AMCs) are ALREADY SETTING your fees. If not directly, then through ruinous less than customary OR reasonable fee competition.

Im interested in your meaningful, constructive feedback as well as comment & discussion here.

For those that insist ONLY regional fees are practical, this same system works for the lowest to highest regions of America. Subtract 13% for low cost areas; add up to 9%+- for higher cost areas.

Operating premises were:

1. AMCs are here to stay. Liked or hated, they are part of the chain now.

2. LENDERS want AMCs to offer one size fits all pricing. This MAY come close to doing so baring complex assignments. Even there, an inferred hourly equivalent is suggested.

3. If WE don’t set “reasonable” minimums for ourselves, then others will do it for us (or to us).

4. Framework allows for and includes inducements for trainees or less than certified appraisers-who have been largely excluded or ignored by AMCs in recent years.

In addition to posting here, PLEASE also email comments to JanBellas@appraisersguild.org

We are going to start reaching out to state coalitions and other appraiser peers groups. We hope to incorporate helpful comments or views in that effort. In the meantime our parent union is already being contacted to see how we can best proceed.

Thank you for taking the time to read and respond. Mike Ford, AGA; OPEIU/AFL-CIO

“The appraisers responsibilities extend only to the original lender client; and authorized assigns of FNMA where the decision to buy a loan is based primarily on the credit worthiness of the buyers; in conjunction with advance analyses and acceptance of the adequacy of collateral for a non defaulted loan. Use of the appraisal for any purpose constitutes explicit agreement that  the appraisers responsibility does not extend beyond the holders, insurers or guarantors of the original non defaulted loan. More specifically, it does not extend to speculative investors purchasing discounted securities or notes with discounts greater than 10% of the existing balance.”

Does a lender even have an ability to sell a right to suit? Is my appraisal not then being used for a purpose for which it was never intended? What are the standards of appraisal that the purchasers THINKS they have acquired? Are they provided with a copy of the original appraisal order so that the SOW is clear?

E&O insurers need to be counter suing or cross complaining about ‘frivolous’ lawsuits. Its beyond the abilities of most individual appraisers, but if there have already been 200 such cases, it seems reasonable that E&O carriers would end the flood by filing cross complaints in every single case.

It’s pretty clear that they are going after the E&O insurance folks. That’s bad enough because those suing are nothing more than financial parasites. Legally entitled to sue, but basically pond scum never the less.

We ALL need to make sure our work is more defensible; and hope our E & O providers know how slippery the settlement slope is, and fight for us every time. But, that’s not always realistic.

THAT is why you ALSO need to join the American Guild of Appraisers! We stand by our members. That help may be in the form of assisting your E&O providers in defending certain aspects of the appraisal, or helping you with your response to the state. You MAY find that you need someone that is on your side dealing with your E & O provider as well.

Call BEFORE it is too late! Email Janbellas@appraisersguild.org now.

Last item, if YOU are getting less than customary and reasonable fees in your area, we want to know about it! With Coester VMS recent consent stipulations back east, and B of A s huge settlement announcement NOW IS THE TIME for us to be looking for someone to represent us in a class action suit! I’m especially interested in assignments that paid low but required more than 8 working hours work start to finish.

And new appraisers appear to be more intelligent as well; intelligent enough to stay at least 10,000 away from this “profession”.

oh, thats right – appraisers are getting OLDER.

sorry, i forgot.