25th March 2011

CoreLogic VP speaks on upcoming changes to appraisal fees – customary and reasonable

posted in Dodd-Frank C&R Topics |

Wednesday, March 23rd, 2011, 2:39 pm

David Feldman is vice president, government affairs at CoreLogic Valuations. He sits down with HousingWire to talk about the impending deadline on appraiser fees under new regulation.

HousingWire: On April 1, the new “customary and reasonable” appraiser fees under Dodd-Frank take effect. What are they and is the industry ready?

David Feldman: According to Dodd-Frank and the Interim Final Rule, appraisers must be paid at a rate that is customary and reasonable for appraisal services in the market area of the property being appraised. The IFR interprets the language of Dodd-Frank to signify that the marketplace should be the primary determiner of the value of appraisal services.

The IFR provides two alternative ways in which lenders, their agents, and appraisal management companies will be presumed to be in compliance with the rules.

Presumption one requires that the amount of compensation is reasonably related to recent rates for appraisal services performed in the geographic market of the property. Fees paid by AMCs are specifically included in this approach. Moreover, necessary fee adjustments are to be made for type of property, scope of work and fee-appraiser qualifications, etc. In addition, there can be no anti-competitive action in violation of federal law such as price-fixing or restricting others from entering the market. This is an explicit requirement of Dodd-Frank designed to prevent collusion or market dominance among AMCs to depress appraiser fees.

Presumption two relies on objective independent, third-party information, including fee schedules, studies and surveys. This approach excludes AMC fees.

By April 1, lenders and AMC’s must decide which method or compliant combination/hybrid they will use in determining customary and reasonable fees for fee appraisers.

HW: How are your clients going to determine “customary and reasonable?”

DF: Most clients appear to be selecting presumption one and working in partnership with AMCs to support reasonableness of the fees.

In addition to a base fee by geographical region and product, Dodd-Frank allows for consideration of additional factors including property type, scope of work, time required to complete the assignment, qualifications, experience, professional record, work quality and volume-based discounts.

Some clients are allowing for a percentage approach to reflect the actual dollars. That is, an AMC pays an appraiser a percent of the client fee – say 65%, for example. That would oblige the client to pay the AMC adequate fees or the AMC would choose to take a loss since the appraiser must be paid customary and reasonable fees. From a practical standpoint, the lenders that are leaning towards this approach that work with AMCs will use a “cost-plus” model where “cost” is the fee to the appraiser, determined by either presumption one or presumption two, and “plus” is the fee to the AMC.

HW: What kind of operational issues will this create for AMCs and clients? How real are the risks of fines?

DF: There are a number of operational challenges that will have to be addressed. Lenders will choose varying approaches to determine customary and reasonable fees. This means an appraiser may receive different fees in the same geographic marketplace for similar work. In one sense, this is not surprising because it reflects the current situation and thus fits the basic definition of customary and reasonable. The risk of fines is certainly a real concern for both lenders and AMCs. However, this concern will be significantly mitigated if determination of customary and reasonable is supported by statistical data and professional analysis. In addition, clients have indicated they will probably begin an audit function to be assured that the appraiser is being paid properly.

How much will this increase the cost of appraisals and who will pay for the increase?

For lenders choosing presumption one and relying on AMC data and analysis, it is possible that there will be a minimal increase of cost to borrowers since AMC fees, assuming no anti-competitive activity, are currently the customary and reasonable fees. For lenders choosing presumption two or utilizing a variation of a “cost-plus” model, it is probable that the cost to the borrower will increase.

HW: Over time do you see appraisal business shifting to AMCs or away from them?

DF: AMCs provide essential services to lenders, especially larger lenders, and clients understand this, even if independent appraisers and critics don’t agree.

From an appraiser’s perspective, the appraisal itself is the product and the deliverable and the AMC is often seen as a middleman. From a lender and AMC perspective there are a significant number of services to be performed for the lender including appraisal panel creation and maintenance, integrated technology, quality control, operational efficiencies, including reporting, turn times and communication, education of appraisers and the actual appraisal itself. Depending on which point of view you hold determines how you believe the fee should be allocated.

With continuing consolidation in lending, it is my strong belief that the services provided by AMCs will continue to be in great demand.

Original Article Located here:
http://www.housingwire.com/2011/03/23/corelogic-vp-speaks-on-upcoming-changes-to-appraisal-fees

There are currently 46 responses to “CoreLogic VP speaks on upcoming changes to appraisal fees – customary and reasonable”

Why not let us know what you think by adding your own comment! Your opinion is as valid as anyone elses, so come on... let us know what you think.

  1. 1 /*On March 30th, 2011*/, Sher Johnson said:

    An interesting article from VP of Corelogic and his perspective view. I have had the experience of working with the larger AMC’s and pricing will be interesting because even at 3/29/2011, a request was made to our office for an appraisal in our territory in which a fee was provided for us and ask if we would complete this assignment for $240 for a 1004 with cost approach including 1004MC and when ask if it is a basic type dwelling under 3000s/f; typical city lot with no additional units, CS said yes. We accepted even though the reasonal and customery fee for that service is $375, we agreed to take a 36% reduction in our fee from a company that we may get 1 assignment per month. After pulling up the data on this assignment, we find that it is a SFR in rural area on 13.9 acres with outbuildings and possible 2nd unit on pasture land, septic/well possible irrigation. When we called CS to provide them an increase in fee of $375 which would be a discount of 37.5% of the regular fee of $600. We received a cancelled order due to fee increase. It would be told to you that $600-$650 would be a reasonable and customary fee for this type of an assignment. And the most important thing is that our experience of 22 years in this immediate area for these types of ranchette properties as a certified appraiser isn’t weighed, just the price. So, it will be interesting after April 1 how large banks and AMC’s conform to Dodd-Frank regulations.

  2. 2 /*On March 31st, 2011*/, sandiegohelp said:

    Sher,
    I agree, most Appraisal management companies pay far below what is customary and reasonable. I have recently got in to this practice… Which I am sure will result in getting me blacklisted at some AMCs. I accept most of the orders and then call back to request a fee increase due to complexity. I will start calling back requesting ‘customary and reasonable’. I will let you know how that goes.

    Bryan

  3. 3 /*On March 31st, 2011*/, JOAN HUHN said:

    WHY DID CORLOGIC DECREASE THEIR FEES FOR 2055 FROM $190 TO $137.50? APPRAISERS CANNOT SURVIVE ON THESE KINDS OF FEES. THERE WILL BE NO APPRAISERS SHORTLY. IS THIS WHAT YOU WANT?? DOES THIS MEAN THE FAIR AND REASONABLE FEES WAS JUST A JOKE?

  4. 4 /*On March 31st, 2011*/, sandiegohelp said:

    Tomorrow IS April Fools Day

  5. 5 /*On March 31st, 2011*/, Roy said:

    1. when the market returns to a normal level with more sales activity(and it will eventually) I see the AMCs being unable to manage the volumne and longer TAT. In the meantime, they are taking advantage of low appraisal volumne and a high amount of unbusy appraisers. 2. AMC’s are basically functionally as appraisal departments on a contract basis. They maintain an approved apprasier list, they fee out work, they review the work, they make sure appraisal invoice are paid, etc. 3. it will be interesting to see how amc react to “reasonable and customary”. the fees they pay are going to have to go UP no doubt about that, but will they do, is the question.

  6. 6 /*On March 31st, 2011*/, sandiegohelp said:

    We will see. I don’t see any changes coming at any point. The AMCs are competing on fees to get lender work. The cheapest and fastest will always be preferred by the banks. We must band together for change to happen. I will keep everyone informed.

    Bryan

  7. 7 /*On March 31st, 2011*/, Amy said:

    I am getting orders for complex properties that offer a fee of $175 and in the request it states: Fee is NOT negotiable. I saw the breakdown. Borrower paid $425. AMC took $250 (for what?) and I was offered $175. This is absurd that now the bank can count this kind of thievery as common practice. I knew the whole thing was a joke. They make you think that it will get better, but banks, AMCs (who are mostly owned by the banks)and the politicians all sleep in the same bed and they do whatever it takes to lie to the working people and cheat them out of their income while they smile at their faces and make it look like they are doing us a favor. It will soon be more profitable to work at McDonalds.

  8. 8 /*On March 31st, 2011*/, sandiegohelp said:

    I know what you are saying. It is a royal pain to deal with so many AMCs. Why is it customary and reasonable for one company to pay $175 and another to pay $375. Appraiser Fees need to go back to what determined them in the past, the marketplace, not what cut the AMCs want to take.

  9. 9 /*On April 1st, 2011*/, Peter said:

    4/1/2011 is here and two of the AMC’s I’ve had to work for (I have to live) claim that they can use the same $200 fee they’ve been paying because its now the customary fee for the area. If we all refused to work for so little, they’d have to up their fees. Lets start an appraiser movement. Lets not stand for it any longer. Aren’t you mad enough yet or do you want to wait until they’re right.

  10. 10 /*On April 4th, 2011*/, sandiegohelp said:

    Peter,
    I am more mad about this than ever before. I have a feeling I am going to tarnish any reputation I have with working with appraisal management companies. But at this point what can I do. I can no longer sit aside and watch as the industry continues to crumble.

    Bryan

  11. 11 /*On April 1st, 2011*/, SCOTT LOYER said:

    All NY appraisers!!!!!!! We formed a union and we are going to the NY attorney generals office with complaints after April 1st with the orders given us by the AMC’S that are below the VA fees and demand an investigation into AMC’S AND Lenders in NY they are intentionally suppressing our fee’s. The number to call so you can help yourself and your families well being is 631-680-9556. This number is to an appraiser who had enough of this and we will fix it on a state level one state at a time. By the way the Fed’s attorneys are on our side and its time to take our profession back from these greedy sob’s. The banks fired their QC departments and now charge us for their QC? This is our presendints redistribution of wealth in reverse. Plain and simple.

  12. 12 /*On April 4th, 2011*/, sandiegohelp said:

    I am very interested in hearing more about this. Please keep us all informed.

    Bryan

  13. 13 /*On April 1st, 2011*/, Gregg said:

    Just received CoreLogic new fees. They went DOWN. How is that for customary & reasonable. They went down to an amount that we have been refusing to do. How can that be customary & reasonable(median according to the CEO)? I agree with Amy, they are all in bed together. Originally, Dodd-Frank looked like a good deal for Appraisers, but then came the interim final ruling and that said the AMC’s could use AMC fees as their basis. Appraisers have to have a college degree, 2 years training, do ALL the work and AMC’s make as much or more money. What a screwed up mess.

  14. 14 /*On April 4th, 2011*/, sandiegohelp said:

    Gregg,
    I just got the same fee schedule, lower fees across the board. What a joke.

    Bryan

  15. 15 /*On April 2nd, 2011*/, BULLogna said:

    Appraisers have been getting way to much money since they’ve been in existence. The fact our pay scale was so high for so long, and our profession was just as much a part of the housing problem as anyone, sewed appraisers fate. Lets face the facts, a good part of the appraisal community aren’t “skilled” workers and the ones who are, and do great jobs get the pay that they deserve. All AMC help to weed out the ones who want a way to make easy money and do sub par work, which sure seems like the majority. There are so many appraisers out there that are early in there career, do great work, and willing to work with the AMC’s on all aspects of this business, and those are the ones who are going to rise out of this mess and become the next generation of appraisers…and they’ll actually be good at it! I’m not trying to say the banks or providers are right in any way, and think they do need to pay on a higher scale and more money should go to the folks actually doing the work, but it should be based partially on the quality of work, not just what kind of property type. There is just so many appraisers who are simply bad at what they do, have poor attitudes, and don’t deserve more money. Bottom line out of all this is that if you don’t wanna play the game, get out of the field so the rest of us can show you how its done.

  16. 16 /*On April 4th, 2011*/, sandiegohelp said:

    Bullogna,
    I can’t say I agree with most of your points. Getting paid way too much since they’ve been in existence, and as much as the housing problem as anyone? You must be a really new appraiser. You go ahead and show us how you can make a living doing $150-$200 appraisals all day. There are plenty of bad appraisers, there are also plenty of very good appraisers. The good ones should get a livable wage and decent fees when you are spending 4 hours on average to complete an appraisal.

    Bryan

  17. 17 /*On April 3rd, 2011*/, Taylor said:

    David Feidman is making a large mistake including low AMCs Appraisal fee to Customary and Reasonable. The reason the Dodd Frank Bill was written was to counter-act the low AMC fee. But now, the VP of CoreLogic thinks he can use the fee he already pays as customary and realsonable.
    The area for a non complex appraisal was $350. Now Appraisal Management Companies are trying to pay as little as possible with $200 – $265. The little appraiser has no union and a very upset with a large AMC lowering and lowering their fee.

  18. 18 /*On April 4th, 2011*/, sandiegohelp said:

    Yeah Corelogic is interpreting Dodd-Frank only to benefit themselves, hopefully we will be able to prove they are not doing it the right thing. Only time will tell.

    Bryan

  19. 19 /*On April 4th, 2011*/, Lou Munoz said:

    It is clear Mr. Feldman was contorting himself into a pretzel in this interview trying to spin what is already apparent. As far as lenders are concerned, the legislation under Dodd-Frank addressing C & R is obligatory legislative lip service and does not apply to them. The Federal Reserve effectively is giving them a pass, with a ‘wink-wink here, a wink-wink there, and a wink-wink everywhere’ with their disdainful interpretation of the legislation. As weak as it was. Mr. Feldman basically has said until the lawsuits start flying and penalties start being levied, if then …. the major lenders and their proxy AMC’s have no intent of changing anything. They own the congress, so keep them bail-outs coming, and back off.

    Until enough appraisers simply cease signing up with ANY AMC and refuse to do any work for the AMC’s they already deal with who won’t pay a fair and reasonable fee….they better face the fact the grief will continue. The FED has assured that over the next 2 to 5 years, nothing will change. After that, only a rudimentary level of appraisers will be left standing. At that point ….the lenders will simply request the government remove ALL requirements calling for appraisals done by humans be removed from their lending …. because, …there’s insufficient no. of appraisers !! And the deed will be done: Appraisers gone…. What a farce.

    Appraisers continue to be our own worst enemies. Face it folks, so stop your whining.

  20. 20 /*On April 4th, 2011*/, sandiegohelp said:

    Lou,
    Those with the money seem to be controlling what is being done at this point. At the same point, if all the appraisers would chip in a little time and a little money we will have this resolved in no time. I am looking for some major changes here, and I will keep you updated on what I find and how you can help. Thanks!

    Bryan

  21. 21 /*On April 5th, 2011*/, Mike said:

    BULLogna
    You don’t know what you are talking about. You can’t do a quality appraisal for $200 and make a living. You can boiler plate a piece of trash and if you hit the value they need you’ll never hear from them but that doesn’t mean its a good appraisal or you have any clue what you are doing. The whole industry is a joke right now. Good experienced appraisers are leaving and the only appraisers left will be the ones like you who will pump out 3 or 4 $200 appraisal a day and think that it makes you a good appraiser. This whole management issue is a joke and with people like you taking the $200 orders it lowers the overall fee’s and hurts everyone. Don’t you think it’s odd that the mgt companies never come back with comps saying your value is too high? I mean really? I find it funny that in the 10 years I’ve been an appraiser I’ve never had a management company come back to me even once with a concern about the appraisal when the value was what the lender needed. They come back just about every time I’m below value and give me a list of comps the borrowers realtor gave them. Usually the list includes some of the comps I already used and most are not even close. They are either over 12 months old on nothing at all like the subject. Once you have been doing this for a while and have a family to support lets see what kind of tune you sing after doing $200 appraisal all day. At some point being an appraiser needs to be considered a profession and not a job and people that pump out the boiler plate trash just drag things down for the rest of us.

  22. 22 /*On April 5th, 2011*/, John Appraiser said:

    I have already faced the reality that we are a bunch of ununified Davids and the 4-5 Goliaths have had all rocks banned from the playing field by FED. mandate. The fed’s politicians, etc. have NOTHING to lose by screwing us. We are such a small group of people that most don’t even think about our existence. NAR and the NAMB are powerful organizations with some lobby power. We appraisers have the AI???? All the Appraisal Institute wants to do is help congress mandate tougher standards (which I am not against), sell CE classes, get members to work towards those cool designations like MAI, SRA, XXX, that AMC’s could care less about. AMC’s ARE the new clients for everyone. Lenders have realized that they get to pay the same amount for appraisals and get a whole giant layer of seperation, reviewers, panel management, etc. for FREE! WE appraisers now pay for this service for them out of our fees. CoreLogic now is our union and 36% of every order is our union dues. Sad, I was planning to appraise for the next 30 years now I think it will be 3-5 at the most, then the “Appraisal” process will be agents or runners getting paid $20 to run to 10 houses a day and take a few snapshots to input into the AVM program that will do the appraisal. Most of the data will be what is stolen from our reports by the new UAD report that is optimized for data mining.

    John X
    New Orleans, LA area

  23. 23 /*On April 5th, 2011*/, Jason said:

    I received the email from CoreLogic regarding the Customary and reasonable fees. The attachment states that they are basing what is customary and reasonable on the past 12 months of fees (which were set by the management companies). How is this considered customary and reasonable if the Appraiser has no say in the fees, other than… Accept their low fees and get a little work. or, Decline and get no work. Our fees have not gone up at the same rate as the cost of doing business over the past 10 years, yet Corelogic wants to pay a fee that is lower by at least 30% of what I was collecting 10 years ago. $200 for an appraisal has never been customary in the past 10 years. Every bank, broker and lender in my area was paying at least $325 when HVCC went into affect and the management companies immediately claimed the average for my area was $180 – $280. Now, I’m getting $400 from the in-house appraisal desks, but Corelogic sends me a schedule showing $210 – $245 is customary. This was not done out of ignorance, since any banker or broker can tell you what fees were/are normal, so it is safe to assume that Corelogic and the other AMCs are liars and cheats.

    BTW, anybody else notice that CoreLogic seems to run some of there call centers out of India?

  24. 24 /*On April 7th, 2011*/, sandiegohelp said:

    According to Dodd-Frank fees are not to be determined by AMCs or what has been charged since the AMCs have been running the game. Yes, the India help center drove me nuts to a point that I had to start refusing all orders.

    Bryan

  25. 25 /*On April 6th, 2011*/, okieappraiser said:

    Bullogan must be one of the shady appraisers we are trying to get out of the business. “Getting paid way too much” My a$$. Last time I checked my name and livelihood was at stake everytime I sign my name to a report. That is worth $350 everytime!! The IFR is a joke. It does not change a single thing! Scott Loyer – I never wished to live in NY excpet now, good job on getting a union together. Hopefully you guys can get some real change to take place. I will be pushing our state to make changes that support higher fees. Luckily our appraisal board agrees that low fees equal bad work.

  26. 26 /*On April 7th, 2011*/, sandiegohelp said:

    We need to work with our local coalitions to get things done, make sure to check out my post about the appraiser coalitions and feel free to add more!

    Thanks!

    Bryan

  27. 27 /*On April 6th, 2011*/, Stan said:

    What the Dodd-Frank bill actually says regarding the 2nd presumption of compliance with “customary and reasonable” is:

    Second, a creditor or its agent would also be presumed to comply if it establishes a fee by relying on rates established by third party information, such as the appraisal fee schedule issued by the Veteran’s Administration, and/or fee surveys and reports that are performed by an independent third party (the Act provides that these surveys and reports must not include fees paid by AMCs).

    You will note how simple and certain it is that fees be paid by the published VA fees.
    You will also note that CoreLogic does not mention that all “operational challenges” they list can be eliminated simply by using the 2nd options.

  28. 28 /*On April 7th, 2011*/, sandiegohelp said:

    Yes, it is a very sad case for Corelogic. I hope they come around, but I doubt it.

    Bryan

  29. 29 /*On April 6th, 2011*/, George Jones said:

    I think the only way things will be mitigated is when things are clearly documented on the HUD1! One line for AMC fees and One line for Appraisal Fee. Isn’t that why the government wanted new RESPA laws so fee’s “no hidden fees”! Corelogic is still continuing to under pay appraisers. I received a Full Walkin today that only paid $250.00, please explain how this is reasonable for ANY area. I have been appraising for 13 years and never seen a $250.00 walkin order prior to HVCC. Corelogic is very similar to the Mafia in my opinion, taking their cut when it is unearned!! CORELOGIC AMC = CROOKS!

  30. 30 /*On April 7th, 2011*/, sandiegohelp said:

    Yes, I really liked how corelogic sent out their newly revised LOWER fees on April 1st in response to Dodd-Frank!

    Bryan

  31. 31 /*On April 8th, 2011*/, Upnorth said:

    Has there ever been an industry within which it was essentially made illegal for a supplier to directly solicit business, followed by federal mandates allowing fees to be artificially suppressed by the demand side?
    Yes, Feldman, you are correct… the Marketplace should determine fees. First, look up the definition of marketplace. If we ever got back to a true marketplace, where supply and demand sides move and react outside artificial influences, fees would settle at a level agreeable to both sides. Until then, we’ve no choice but to let you have the fat half, sir.

  32. 32 /*On April 8th, 2011*/, sandiegohelp said:

    I like that ‘federal mandates allowing fees to be artificially suppressed by the demand side’

    I am going to use it when trying to get to the bottom of this. Thank you!

    Bryan

  33. 33 /*On April 8th, 2011*/, Jennifer said:

    We are appraisers in NY and didnt even receive a notice of declining fees from Corelogic. What we did receive was “NO MORE WORK”. It’s been about a month and nothing. No response from emails or letters or phone calls. What gives CORELOGIC????

  34. 34 /*On April 12th, 2011*/, Data Gathering Drone said:

    Dont you get it people?????

    Core Logic DOES NOT care about the quality of the appraisal reports anymore.

    The appraisers function is purely as a data gathering drone.

    Core Logic is garnishing appraisal report data to feed into their computer models and algorithms.

    The data is EXTREMELY valuable and is being sold for 100s of millions of dollars to financial institutions and hedge funds.

    If you work for an AMC youre nothing more than a Pawn on a Chess Board.

  35. 35 /*On April 13th, 2011*/, sandiegohelp said:

    If you work for an AMC youre nothing more than a Pawn on a Chess Board.

    I can’t agree with you here. Not ALL appraisal management companies are bad and the majority of appraisers must work for AMCs if they want to make a living. Not working for them is not an option in most cases. But we do have to refuse low fees as a group.

    Bryan

  36. 36 /*On April 13th, 2011*/, Concerned said:

    At a meeting I attended they recommended that Appraisers state the fee they were paid in the Appraisal Addendum so that the borrower know exactly how much we were are paid for our services. I have entered this info in the addedum with a bunch of other information and the AMC have not found it yet 🙂 If the borrow really wants to know how much I was paid they have to read the report. Reasonable and Customary fees are $350 – $450 especially with the recent gas prices that have gone up .75 in the last few months.

  37. 37 /*On April 13th, 2011*/, Concerned said:

    add this to your addendum I did

    PER HUD WEBSITE: http://www.hud.gov/offices/hsg/sfh/appr/faqs_ML09-28.pdf

    Appraisal Fee Disclosure
    Disclosure of appraisal fees is not required by FHA. However, FHA approved lenders must ensure that appraisers are not prohibited by the lender, AMC or other third party, from recording the fee the appraisal firm or self employed independent fee appraiser was paid for the performance of the appraisal within the appraisal report.
    Does the term fee refer to the amount the appraisal firm is paid for an assignment or the amount the appraisal firm actually pays as income to the FHA roster approved employee or independent contractor for completing the assignment?

    An accurate reflection of customary and reasonable fees does not include fee splits or other internal compensation arrangements in the appraisal fee disclosure. Because lenders must ensure that appraisers are paid a reasonable and customary fee, appraisers are encouraged to record the fee received so the lender may utilize this information as a data point in order to comply with the requirement that appraisers are compensated commensurate with the level of services provided.
    The appraisal fee recorded within the appraisal report must not include:
    • AMC or other third party fees.
    • Management or review fees charged by lenders..

    THIS APPRAISER WAS PAID $240.00 FOR THIS APPRAISAL. THIS APPRAISERS USUAL AND CUSTOMARY FEE FOR A 1004 FORM WITH A 1004MC AND COST APPROACH IS $350.00 – $400.00.

  38. 38 /*On April 20th, 2011*/, James said:

    I feel all of your concerns, Corelogic has totally gone way below what they were paying prior to April 1, 2011. I also have been getting many calls from The CoreLogic Over Seas call center asking for my best fee and my turn time. It appears that fees and quick turn time is more important then quality. How many millions a year are these AMC’s making off or our profession each year. It’s amazing that the Loan Originatar, Lending institution, Realtors etc…are still getting there huge percentages based on the sales price and amount of the loan and appraisers are now getting about 1/2 of what we use to make. why should my fee be reduced to have a middle man and a fee shopping center to try and find someone to put a value on paper instead of a quality appraisal report. What to do??

  39. 39 /*On April 27th, 2011*/, sandiegohelp said:

    James,
    Report low paying appraisal managment compapanies: http://www.notcustomaryandreasonable.com

  40. 40 /*On April 20th, 2011*/, James said:

    The appraisers in my area that do work directly with the banks are getting $ 400.00 for a 1004. There are even some getting $ 450.00 for a FHA appraisal. So where does reasonable and customary fit in. As I sit here putting this in my phone is ringing and it is the CoreLogic call center that is located God knows where over seas, I will not answer it because I can not understand them anyway. They have been calling trying to find someone to do the same assignments for the past couple of weeks. Maybe they will find someone from way out of the area to give them a quick cheap appraisal. HAHA.

  41. 41 /*On April 20th, 2011*/, James said:

    CoreLogic does not have anyone that will talk to you about anything except appraisal problems. You can not complain or question anyone about fees, turn time or customer service. The so called Appraisal Management team is there only to take your information such and W-9, Application and the forms necessary to screw you out of your money and that is it. Money well spent. I need to get off of here because I am getting on a roll. I should be on the corner with a sign that says ” Appraiser being forced out of business” please give cause I’m soon to be homeless.

  42. 42 /*On April 27th, 2011*/, sandiegohelp said:

    James,
    I hear you. Please read the posts on my website about customary and reasonable fees. You can report the low paying appraisal management companies, join local coalitions and national organizations. We must unite to fight!

  43. 43 /*On May 24th, 2011*/, Barry said:

    CoreLogic is cutting fees and appraisers big time. Every time I got a low ball job from them I asked for a fee increase to customary and reasonable fee. I got it some of the time other times they passed it on to another appraiser who took the lower fee. I use to get around 3 appraisals a week from them but now I have gotten 2 jobs in the past 2 months. I also found out that RELS and CoreLogic are now one and the same. How you ask? Corelogic is hiring staff appraisers!! Saw an ad online for staff appraisers for CoreLogic requested information by email and got a direct call from the man in charge of RELS here in California. Its right back to the same thing as before except now we have more to do and less fees. The banks are laughing themselves all the way to their own pockets.

  44. 44 /*On June 27th, 2011*/, Ben said:

    We too have had a reduction in typical fees since management companies have been mandated. A lot of times the low fees are coming from companies that we never work for. I typically will refuse anything under $350 but really most of my work is $375-$425 at least. The worst offender I have seen is Appraiser Loft and USAppraisalgroup.

    USA Appraisal Group tried to have me do a 1004 for a 3500 sq. ft., custom home, on acreage with a ton of outbuildings for $300. When I asked for $400 (my usual fee for just a regular 1004) they couldn’t cancel it quick enough.

    I have also had one company that actually would put on the order that there take was $150 for an order that they paid me $300. So they were taking 33% of the fee!

    If appraisers would stick to their guns these companies would have no choice but to pay what is fair. By accepting low fees, not only are you selling yourself short. You are making the low fee companies more competitive, hence the well paying AMC are more likely to lose there clients to them.

  45. 45 /*On August 13th, 2011*/, Francesca Gaul said:

    I have lost both trainees who cannot work for percentage of these so called reasonable fees. Both college graduates who wanted to make a career of appraising. I also have a bachelors degree and 15 years experience and am currently making 1/4 of what I made 4 years ago. On some reports I barely make minimum wage. How dare you assume that the prices we are forced to work for because we have families to feed and mortgages to pay are reasonable. Reasonable is what I get paid when I work directly with a consumer or with attorneys and if it weren’t for those I would be out of business. Question to AMC’s- what exactly do you do to earn 30-50% of the fee??? The cost of doing business- our programs, insurance and education have all increased and our fees decreased by more than 50%. By the way the # of trainees in appraising dropped from 11,000 to under 1,000. What are you going to do when there are only a handful of appraisers. Your future costs will be huge- might want to think about that.

  46. 46 /*On August 15th, 2011*/, sandiegohelp said:

    Francesca,
    I do not feel the rates that some AMCs charge are fair. I believe that every appraiser should refuse work when they are not properly reimbursed for their work. What I do understand is why some appraisers justify accepting this type of work. I was surprised the other day to find what LSI pays appraisers for appraisal work. No appraiser should work for LSI.

Leave a Reply

You must be logged in to post a comment.



FREE REPORT INCLUDED:
3 Steps to get
More AMC Orders

SECURE & CONFIDENTIAL
Your email will NEVER be rented, traded or sold.
WE GUARANTEE YOUR CONFIDENTIALITY.
We hate spam just as much as you do.


E&O Insurance
Appraisers Club Appraisal Management Companies





Get More Orders - Private Appraisers Club
Get More Estate Work!
Divorce, Bankruptcy,
Date of Death and
Estate orders are
needed in your area!