customary - Appraisers Blogs

The Great Debate on Appraisal Fees

Isaac Peck — Mon, 28 Oct 2024 12:30:09 +0000

She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee paid by the borrower, which prompted her to stop working with AMCs because of the lack of transparency. The appraisal industry is abuzz with a discussion about appraisal fees. The Consumer Financial Protection Bureau (CFPB) recently issued a Request for Information Regarding Fees Imposed in Residential Mortgage Transactions [Docket No. CFPB-2024-0021] in which it solicited feedback from the public and industry stakeholders on the fees charged to consumers by mortgage providers and related settlement services. The CFPB framed it as...

Appraisal Regulation Compliance Council Exposes… The Appraisal Regulation Compliance Council published a detailed breakdown to the CFPB, which showed the median average AMC fee being…
AMCs Billing Scheme, Hidden Profits & Deceptive Practices Appraisers who do not agree to their hidden billing methods are excluded from the majority of the GSE lending marketplace…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…

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Fight Unfair AMC Practices – Leverage State Authorities

AppraisersBlogs — Wed, 14 Aug 2024 12:30:38 +0000

Alarmed by predatory practices among AMCs, a peer has drafted letters urging appraisers to call on state authorities to address unfair AMC conduct and potential regulatory violations. As appraisers, we have faced an ongoing challenge with Appraisal Management Companies (AMCs) offering fees that are well below the customary and reasonable rates for standard appraisal assignments. This practice has created a troubling trend of “bid wars” where AMCs pit appraisers against one another, driving down fees to unacceptably low levels. In response to this issue, a peer has provided two draft letters that can be easily modified and used by other...

Violating Appraisal Independence Through Harassment,… It shall be unlawful... to engage in any act or practice that violates appraisal independence... Appraisers, I have written the…
Fastapp AMC Alleged Violations of AIR The following court documents in the case Naftali Horowitz v. [xxx], Fastapp AMC founder v. Fastapp AMC president, confirm what…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…

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CFPB Crackdown: Unfair Practices Hurting Consumers

Guest Author — Wed, 05 Jun 2024 12:30:07 +0000

Bureau is currently investigating various fees associated with obtaining a loan, with the goal of identifying any that may be particularly burdensome or concerning for borrowers. As we all know many AMCs are not paying Customary & Reasonable fee as required by TILA. They have consistently pushed down the pay of Appraisers while making undisclosed profit off consumers and prioritizing cheapest and fastest over quality and competency. The CFPB has been in communication with individuals behind the scenes and are concerned with what has been shown enough to include AMCs in their data collection process. Now is the time to...

AMCs Billing Scheme, Hidden Profits & Deceptive Practices Appraisers who do not agree to their hidden billing methods are excluded from the majority of the GSE lending marketplace…
AMC Fee Impact on Appraisal Fee While the borrower was charged $695 for the appraisal, the appraiser was only paid $301. The AMC fee was $394. …
Fight Unfair AMC Practices - Leverage State Authorities Alarmed by predatory practices among AMCs, a peer has drafted letters urging appraisers to call on state authorities to address…

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AMCs Billing Scheme, Hidden Profits & Deceptive Practices

Guest Author — Wed, 07 Feb 2024 13:30:29 +0000

Appraisers who do not agree to their hidden billing methods are excluded from the majority of the GSE lending marketplace for appraisal orders. Appraisal Management Companies (AMC’s) do not pass on cost savings for reduced appraisal services to consumers. Instead, they keep the savings for themselves without disclosing the amount to the consumer or the appraiser. What should have been cost savings for the consumer are pocketed by the AMC in secret. This is considered a junk fee or unearned fee billing scheme under current law. Appraisers who participate in this system are in violation of The Management Rule of...

Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…
The Appraisal Fee Lawsuit AMCs Can't Outrun The class action lawsuit filed against CrossCountry Mortgage and Class Valuation arrives at a moment when many in the appraisal…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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Mortgage Application Volume Nearing Historic Low

Dave Towne — Fri, 22 Sep 2023 12:30:16 +0000

Appraisers, I’m almost reluctant to distribute this article, but the reality is what it is. Per the Mortgage Bankers Association (MBA), the loan application volume is at another low point in our history. The article in Mortgage News Daily titled “Mortgage Application Volume at Lowest Levels Since 1996” in this link provides context. For a related perspective, the article contains a graph, which can be expanded to show mortgage rates and application volume for decades. The brown line in the graph shows 30 year mortgage rates – since early 1971. The light blue indicates the loan application volume, which corresponds...

'Clean-Slate' Laws, Bad Policy Could Dispatch More… The idea of unlicensed individuals being hired off the streets and paid a pittance to video and photograph the interiors…
Leaving the Appraisal Profession It’s a Great Time to Leave the Appraisal Profession. I can hear the chorus of my fellow appraisers rising up…
AMCs Take a Sizable Cut of the Appraisal Fee It still proves my point: Appraisal Management Companies take a sizable Cut of the appraisal fee... It was March 28th,…

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‘Opportunity’ to Work for Free is Not a Plan

Dave Towne — Thu, 23 Feb 2023 13:30:50 +0000

I gave this ‘opportunity’ further critical analysis in terms of time spent versus the fee income potential. Appraisers, I’d like to disclose a personal ‘opportunity’ that was presented to me last fall, early winter. A company with AMC roots was, or is, recruiting people to become “property inspectors” with the resulting reports potentially fed to other appraisers who do HYBRID, or maybe even DESKTOP reports. The GSEs never intended the DESKTOP report to incorporate separate ‘property inspections’ from a hired third party, but that’s been the evolution because they just look the other way. Last fall, due to the slowdown...

Smartphone Measuring Technology This new measuring technology claims the software to be ANSI compliant. Appraisers, over the past couple of years, there have…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

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AMCs Take a Sizable Cut of the Appraisal Fee

Mark Skapinetz — Wed, 05 Oct 2022 12:30:29 +0000

It still proves my point: Appraisal Management Companies take a sizable Cut of the appraisal fee… It was March 28th, 2018 that I wrote my very first blog post entitled “What’s not in your wallet?” where I went into great detail about how Appraisal Management Companies or AMCs get paid and how the consumer is not aware of the fact that the AMC is taking much of the fee while finding the cheapest and fastest appraiser. In that blog post, I gave many examples of the abuse appraisers and consumers are absorbing by these Appraisal Management Companies. How one borrower...

It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…
Lack of Fee Transparency: Exposing the AMC Exploitation By keeping the borrower in the dark about the true cost of the appraisal, the AMCs are able to charge…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…

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Appraisal Fee Transparency Bill Falls Short

Michael Ford — Thu, 24 Oct 2019 12:30:33 +0000

No system that continues to allow (or limit) defining appraisal complexity to the lender or AMC will ever achieve reasonable, or fair compensation for the appraiser…. We need to do much better than “half a loaf” in our appraisal legislative efforts. Especially when that half loaf does no more than enshrine continued price-fixing by lenders; with the support & blessing of REVAA… WorkingRE published news of recent House of Representatives action. The Bill addresses consumer disclosure of AMC fees among other issues. While the American Guild of Appraisers applauds the efforts of those that worked in good faith on this,...

Full Transparency in Fee Disclosure Requirement to disclose appraisal fees: Uniform Settlement Statement SHALL include the AMC fee AND fee paid directly paid to the…
Fee Transparency, Pivotal Point for Appraisers ...appraisers may finally have a chance at making the goal of fee transparency a reality... Keep your eyes open, events…
Appraisal Fee Transparency Bill H.R.3619 has left the House and is now ready for consideration in the Senate. There are a number of key…

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Customary and Reasonable Fees?

Guest Author — Tue, 23 Apr 2019 12:30:47 +0000

…appraisal firm owners roll up your sleeves & hold the line on fees… I have been the owner of HF Appraisal Ltd since 1993 and I have sat on the sidelines in regards to Customary and Reasonable appraisal fees. I can no longer stand by and read nor hear about this issue. It is amazing to me that over the past five to ten years our fees have remained the same and in some cases are lower than they were 10 years ago. The more that I read about this and talk to appraisers across the country in classes and...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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Another Huckster Enters the Appraisal Arena

Michael Ford — Thu, 28 Mar 2019 12:30:55 +0000

Yet another third party huckster has entered into the real estate appraiser and appraisal arena. It’s that time again! Yet another third party huckster has entered into the real estate appraiser and appraisal arena. Apparently motivated by pure altruism. We identified a need in the marketplace to address a common problem that lenders are regularly challenged with in providing accurate appraisal quotes and then ensuring pricing on the Loan Estimate is consistent and compliant,” stated Vladimir Bien-Aime, president and CEO at Global DMS. (I LOVE this guy, he writes like me!) Global DMS Launches SnapVal to Provide Instant, Accurate, Guaranteed...

Faster Cheaper Appraisals! An appraiser shared the following with us. Vintage Mortgage Firm is offering faster cheaper appraisals. New Faster Cheaper Appraisals! Three…
The Truth is They Don't Hire Professionals! Hybrid hucksters always argue “Why can’t trained professionals like brokers or insurance inspectors” perform the appraiser’s field inspection. The answer…
$599 Waiver to Save the Borrower Money? The consumer is being fed yet another lie! Remember when we heard an appraisal waiver will save the borrower money?…

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Open Letter to Taxpayers

Michael Ford — Mon, 26 Nov 2018 13:30:56 +0000

An Open Letter to Taxpayers Dear Ms; Mrs. & Mr. Taxpayer: In a recent article published by Housing Wire; authored by Ben Lane (November 20, 2018) it was reported that our federal “regulators” are at it again. “At what?” One might ask. Facilitation of increased LOAN FRAUD & consumer deception with Taxpayers yet again left holding the bag. Click here for the article Back in 1994 (actually it started in 1989-91 when FIRREA was being drafted) the Fed agreed that the loan threshold for banks when an appraisal of real estate would not be required was $250,000. That was roughly...

Proposal to End Appraisal Requirement Regulators' Proposal to End Appraisal Requirement on Some Home Sales of $400,000 and Below... The Federal Deposit Insurance Corp., the…
AMC Fees Exceeding Appraiser’s Fee AMC management fees exceeding the appraiser’s fee more frequently Over the past year, the AMC industry growth model – taken…
Working Paper Credibility Questioned NO REAL ESTATE APPRAISER IN THE COUNTRY IS ALLOWED TO MISS THE MARK BY 7.8% WITHOUT RISKING LOSS OF LICENSE!…

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What’s Not in Your Wallet?

Mark Skapinetz — Tue, 03 Apr 2018 12:30:40 +0000

Shouldn’t consumers know where their money is going to? Before the housing collapse, when applying for a loan, you would go to your bank or mortgage broker and apply. Upon approval, they would explain the property would be appraised by a real estate appraiser and as the borrower, the cost of the appraisal was to the borrower (even though the appraisal is for the lender). The appraiser would either bill the lender the cost of the appraisal or coordinate payment when the appraiser was at the house. Sometimes, the lender would pay for it and roll it into your mortgage...

Who is Mark Skapinetz? Mark Skapinetz believes that appraisers are being held captive by AMCs.... Reserved is not a word that anyone would use…
Skapinetz versus Coester BREAKING: David versus Goliath Redux: Skapinetz versus Coester VMS – Case Direction Favors Underdog Court Refuses to Dismiss Lawsuit That…
We Pay the Least & Get the Least Qualified Appraisers In 2013, Brian Coester of the Coester VMS AMC tweets “we pay the least and get the least qualified appraisers.”…

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2017 Fee Survey Analyzing the Data

David Brauner — Mon, 02 Oct 2017 12:30:57 +0000

Surveys Said: Increasing Fees and Turn Times… For the last few years the appraisal industry has been abuzz with talk of rising appraisal fees and longer turn times. AMCs complain of a shortage of appraisers and “price gouging” in certain markets (Colorado and Oregon, for instance); appraisers report modest success at raising their fees after years of frustration (See Fees Rising). With over 7,000 appraisers responding so far, the results of the 2017 Working RE/OREP Appraiser Fee Survey is a current source for fee and turn time data by market and nationwide. To view the survey results for your market,...

Paying Too Much For Appraisals? Why am I paying more than TWICE the amount paid to the appraiser? I was recently charged/paid $750.00 to have…
Lender Must Pay AMC Fee Proposal! Appraisal fee charged to consumer must not include AMC fee This is huge. The New Jersey Department of Banking is…
Let's Talk Fees How different fees can affect an appraiser’s income. OK, before you lob spears and bricks my way, we can. This…

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Paying Too Much For Appraisals?

Guest Author — Tue, 30 May 2017 12:30:51 +0000

Why am I paying more than TWICE the amount paid to the appraiser? I was recently charged/paid $750.00 to have the appraisal completed on the home I was purchasing. With the fees and costs associated with obtaining a mortgage, the appraisal fee was one of little to no concern to me BUT then I received a copy of my appraisal. In accordance with local regulations, the appraiser disclosed the amount he was paid to do the appraisal…$275.00 minus a $15.00 technology fee. I thought to myself why am I paying more than TWICE the amount paid to the person who...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…

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Who is Mark Skapinetz?

Dustin Harris — Thu, 27 Apr 2017 12:30:12 +0000

Mark Skapinetz believes that appraisers are being held captive by AMCs…. Reserved is not a word that anyone would use to describe Mark Skapinetz; at least of those who know him. Shy is not in his vocabulary. Mark is the founder of the “100% Real Estate Appraisers” group on Facebook. He joined me on April 23, 2017 as a guest on The Appraiser Coach Podcast to discuss everything from training the next generation of appraisers to the AMC debacle. Mark believes that appraisers are being held captive by AMCs. Though he works for a handful of AMCs himself (in other...

A Possible Solution to Customary & Reasonable Fees Over the past five years, a major subject of talk in the appraiser world has been that of Customary and…
AMCs Are Not Part of The Appraisal Profession Foreign entities do not get a voice in what legislation is introduced... Let's think about this with an open mind...…
Appraisers Just Say No to Certain Assignments From… Some appraisers just say no and refuse to do assignments for low echelon AMCs fishing for cheapest and fastest appraisers...…

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Clear Capital’s Push For Hybrid VA Appraisals

AppraisersBlogs — Mon, 10 Apr 2017 12:30:41 +0000

Clear Capital suggests that the VA consider the use of a desktop appraisal On April 4, 2017, the House Committee on Veterans Affairs held a hearing on “Assessing VA Approved Appraisers And How To Improve The Program For The 21st Century.” The hearing was designed to “assess VA’s current appraisal process, as well as specific difficulties for timely appraisals in highly rural areas”, as well as to investigate possible technological solutions to mitigate timeliness issues. Much of the hearing focused on two areas: The requirements for becoming a member of the VA appraiser panel, and the baseline requirements for comparable...

Modernizing Appraisals & Being Stuck in 1989 Modernizing Appraisals: It seems we're stuck in 1989... On November 16, 2016, the Housing and Insurance Subcommitte held a hearing…
Appraisers Are NOT Invited! "No room” for any additional expert witnesses representing appraisers' interests... Who are the Valuation Professionals? Appraisers are unbiased and impartial…
Hybrid Appraisal Products & Public Trust Are busy appraisers doing Hybrid Appraisal products? Appraisers, The article titled First American launches new appraisal solutions technology popped in…

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Appraiser’s Response to LRES Order Blast

Michael Ford — Mon, 25 Jul 2016 12:30:17 +0000

LRES Standard Interior Appraisal Request? Your special requirements and micromanagement of the appraisal process dictate that I charge a fee commensurate with the additional, but typically unnecessary work needed to produce credible results. You are the potential client (agent), so that that is your prerogative and it would be my pleasure to accommodate you as long as appropriate compensation is provided. Respectfully, there is little about your appraisal request that is “standard”. Please explain briefly what you consider to be a ‘standard interior appraisal’. That definition does not appear in The Appraisal Institute’s Dictionary of Real Estate Appraisal. To be...

AMCs Bidding Game An appraiser's response to AMCs bidding system. Recently, we came across an interesting story and thought it's something fruitful that…
Appraisers and Their Lack of Fees I feel it’s only prudent to put my ten cents, or more, in on the subject of actual cost, versus…
Requests from Lenders with Specific Statements Lenders' Requests, C&R Fees, Email Blasts, SOW, Unlicensed AMCs and more... What is the best way to ensure you receive…

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Cracking Down on Appraiser Licenses & Higher Fees

VaCAP Board — Fri, 25 Mar 2016 12:30:55 +0000

Now they’re saying your license has to be revoked! The Federal Government is cracking down on appraiser licenses that were issued by the states where the applicant did not meet the “new” TAF requirements. Several states have this problem. Virginia is in that mix. About nine appraiser licenses were issued that the Federal Government is now saying have to be revoked. About half of these people have reached out to me. There is not a lot I can do or VACAP can do. But the state will be addressing this issue over the next couple of board meetings. So if...

Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Promoting False "Racist Appraiser" Narrative Some Lenders promoting false "racist appraiser" narrative to optimize profits via AVMs Like most businesses lenders want to optimize their…

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Where is all the Mortgage Work?

VaCAP Board — Fri, 19 Feb 2016 13:30:12 +0000

We should be busting with mortgage work. Where is all the mortgage work? I talk to appraisers and they all ask the same question. With the looming spring market and low interest rates, we should be busting with mortgage work. But the appraisers I know tend to get a reasonable and customary fee of above $400. So is it going to the bottom third? Now don’t get me wrong; I am quoting 2 to 3 weeks due to our back log. But outside of VA’s it’s everything but first mortgage work. I am fine with it because it’s less hassle....

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…

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Day Laborers Needed…Inquire at any AMC

VaCAP Board — Wed, 25 Nov 2015 13:30:23 +0000

Help Wanted – Day Laborers Needed …. Inquire at any AMC The Dodd Frank act requires the lender to be responsible for their agents. This means the lender is responsible for the actions of the AMC. Do the lenders know what their AMC’S are doing? Probably not. The Dodd Frank act also requires the most qualified appraiser be selected for each and every assignment. What vetting is done by the AMC’S to ensure the most qualified Appraiser is selected? Many AMC’S have the false mentality every appraiser is qualified and competent to appraise every piece of real estate. This simply...

VaCap Speaking out Regarding C&R Fees CUSTOMARY AND REASONABLE FEES When Dodd Frank was passed a few years ago there was much discussion as to what…
VaCAP letter to AG Cuccinelli RE Violation of Virginia Code The mandates override the Virginia CodeRe: Impending Violation of Virginia Statute 18 VAC 130-20-160. Dear Attorney General Cuccinelli, There is…
Fate of Unlicensed AMC's in Virginia Fate of Unlicensed AMC's in Virginia - All Eyes on VREAB Meeting The Virginia Real Estate Appraisal Board meeting on…

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customary - Appraisers Blogs

The Great Debate on Appraisal Fees

Related Posts:

Fight Unfair AMC Practices – Leverage State Authorities

Related Posts:

CFPB Crackdown: Unfair Practices Hurting Consumers

Related Posts:

AMCs Billing Scheme, Hidden Profits & Deceptive Practices

Related Posts:

Mortgage Application Volume Nearing Historic Low

Related Posts:

‘Opportunity’ to Work for Free is Not a Plan

Related Posts:

AMCs Take a Sizable Cut of the Appraisal Fee

Related Posts:

Appraisal Fee Transparency Bill Falls Short

Related Posts:

Customary and Reasonable Fees?

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Another Huckster Enters the Appraisal Arena

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Open Letter to Taxpayers

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What’s Not in Your Wallet?

Related Posts:

2017 Fee Survey Analyzing the Data

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Paying Too Much For Appraisals?

Related Posts:

Who is Mark Skapinetz?

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Clear Capital’s Push For Hybrid VA Appraisals

Related Posts:

Appraiser’s Response to LRES Order Blast

Related Posts:

Cracking Down on Appraiser Licenses & Higher Fees

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Where is all the Mortgage Work?

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Day Laborers Needed…Inquire at any AMC

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