20th July 2011

Consumers and Appraisers – Grab your ankles : Filibuster in progress

posted in Dodd-Frank C&R Topics |

The senate is in charge and are holding up any nominee to head the Consumer Financial Protection Bureau.

Mike Konzal states

What are the strengths of the way the CFPB is structured in the Dodd-Frank Act? There are many, especially the consolidation of consumer regulation and focus on research. But three structural strengths stand out: it has a single director, there’s been careful attention paid to its budgeting process and it is just like other regulators in terms of accountability but with focus on consumer protection as its primary goal. These three parts of the CFPB were carefully planned, designed and fought for.

….[Those three] major strengths — a director, funding and accountability with a focus on consumer protection — are exactly what the Republicans want to dismantle. No doubt they are trying to stall and annoy the implementation of Dodd-Frank and prevent the CFPB from doing all its work — of course they are — but if there were three critical points where they could significantly weaken what the CFPB can do, these would be those three.

They are essentially violating their oath of office by promising to keep anyone from running the agency unless some changes are made.

So what does this mean to appraisers?

Nothing new and nothing being done about the ‘Customary and Reasonable Fee” provision enacted by Dodd-Frank.

As usual we are in another waiting game with our hands tied.

Troutman Sanders of the CFPB team stated

The appraiser fee and independence provisions contained in Dodd-Frank were designed to address concerns that lenders were using less expensive appraisal management companies (“AMCs”) hired or owned by lenders at the expense of independent, high-quality appraisals. As a result, AMCs may be a regulatory target of the CFPB after the Bureau’s July 21, 2011 transfer date.

The Bureau will assume rulemaking and enforcement authority for Dodd Frank’s appraisal fee provisions after July 21st. Notably, the CFPB will be enforcing Dodd-Frank’s penalties for lenders violating appraiser independence standards which are currently $10,000 a day for the first violation and $20,000 a day for each additional violation.

Again, I urge you to get involved. Stay up to date with the news and join your local appraiser coalitions! Contact your state licensing agency, congress and other regulators. Only together can we win this battle against the appraisal management companies that are destroying our industry.

Bryan Knowlton
California Real Estate Appraiser
http://www.appraiserincome.com

There are currently 12 responses to “Consumers and Appraisers – Grab your ankles : Filibuster in progress”

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 July 21st, 2011*/, David L. Phillips, SRA said:

    Bryan, your assertion that the Congress is violating their oath of office is a little “over the top.” I believe that Congres has oversight of these agencies and can pretty much tell them what they can and can’t do. So it’s really not a question of violating an oath, it’s more an oversight issue. If I’m wrong, someone correct me.

  2. 2 /*On July 21st, 2011*/, sandiegohelp said:

    I was mainly talking about them taking an oath to do what is right for us and to enforce enacted provisions. They were refusing to elect anyone to the post, pretty much ceasing CFBP from moving forward. But it turns out they were just holding out for changes to be made before electing anyone. Now it is a 5 person head. I believe it will give more protection, but the chances of anything ever going through to help appraisers and the enforcement of ‘customary & reasonable’ is most likely not going to happen. That is just my opinion.

  3. 3 /*On July 21st, 2011*/, Cece Steers said:

    I am a little confused. Are you saying beware of the Republicans?

    Cuomo, who gave us this mess is a democrat. Dodd, Frank and Schummer were some of the main proponents in forcing banks to lend to people who could not afford homes.

    It is my understanding that Cuomo owned part of an AMC at the time HVCC went into effect. Take a deeper look, we need to get rid of all of this and go back to each of us being able to get our own clients.

  4. 4 /*On July 21st, 2011*/, sandiegohelp said:

    i didn’t mean to make this a party issue. I have since removed the word ‘Rebulicans’ from my post.

    I shouldn’t even bother covering this customary and reasonable issue, it seems like nothing ever moves forward.

    But I am involved and I will keep trying until I get either a ‘nope, we are not going to do anything about it’ or ‘yes, we are going to help right now’

    bryan

  5. 5 /*On July 21st, 2011*/, Steve Kartchner said:

    The best thing that needs to happen is for congress to withdraw the regulations and let us return to the days of finding our own clients. I never capitulated to pressure from a client to up a value or change a report and it would be easier for me to tell a broker or loan officer to get lost and find a new client then to be subject to a lack of freedom to find additional clients in the free market system due to a tyrannical system. Any competent appraiser could remain in business if he maintained his integrity. Unfortunately, we will always have the bad apples that the regulators root out, bruising the rest of the apples in the process.

  6. 6 /*On July 22nd, 2011*/, Chris Wells said:

    Bryan,

    I understand where you were going with this. Thanks, and keep up the good work.

  7. 7 /*On July 22nd, 2011*/, Sameoldsameold said:

    I actually can’t believe we’re still talking about this.It’s not obvious by now that the lenders have won.They own the AMC’s.If not directly, then by proxy.We have no voice.Does anybody else find it odd that a Anti-Trust suit hasn’t been filed against Lenders who own AMC’s.Washington is owned by big business, and this is very big business.

  8. 8 /*On July 22nd, 2011*/, Retired Appraiser said:

    Loved your comment Steve: “Unfortunately, we will always have the bad apples that the regulators root out, bruising the rest of the apples in the process”.

    HVCC & Dodd Frank can be appropriately compared to removing a brain tumor with a chainsaw. Intelligent individuals are well however that removing bad appraisers was never the true intent. Turning appraisers into banking profit centers to create multi billion dollar cash flow was the point.

  9. 9 /*On August 4th, 2011*/, David Dietrich said:

    When an AMC offers you a job under what you think is customery and reasonable you would need to tell them that you would have to charge a customery and reasonable fee of $____. They always want a reason for a higher fee. Let them know why. I am afraid that neither rep or dems are on our side. The lobby group is the big banks and they own the AMCs. You are going to have to manage the fees yourself. I have requested an upgrade on fees for 90% of my work and I get 90% of those request to come back possitive. The last few months I am getting 50-60 orders per month. I can’t work for $240. If you can’t find another reason use the reason noted above. It is our duty to our profession that you cannot accept lower fees. If a few do not follow this they wil starve out of the business soon anyway. We should be asking for even more this month with UAD. We completed our first one and boy what a mess that is.

  10. 10 /*On August 15th, 2011*/, sandiegohelp said:

    David,
    Thank you for the comments. I counter offer work left and right and I probably make quite a bit more, and do a lot fewer appraisals than if I would have accepted all the appraisal orders at the offered fee. For example, in the last month I have not completed any orders for less than $300. I have had about 5 $800 orders and a bunch around $400. If I never counter offered, I would have never got my fees.

    Thanks again for your feedback.

    Bryan

  11. 11 /*On August 8th, 2011*/, 20 year stretch said:

    An old timer told me this day would come (20+ years ago). Only he never imagined how creative the bean counters could be. Retired Appraiser & Sameoldsameold have it right, the bean counters have figured out how to make money at our expense. Our great hope is DC ? they have always been in the bankers pockets. Every time there is a banking crisis we get a new LOAD of regulations, remember FIRREA. The only reason we got noticed at ALL was because Realtors got angry about the low values and got NAR involved. I am glad I kept up my RE license all these years. I use my contacts and occasionally sell a house or get a listing, looks like my career has come full circle.

  12. 12 /*On January 23rd, 2012*/, Greg Boswell said:

    Just curious if this tactic stated about fining companies for not paying Customary and Reasonable fees has occured? I can not imagine how anyone would go about filing the complaint.
    You are offered an assignment at their fee. You propose your fee, they simply re-assign the order to someone else who will accept it at the fee offered.
    For example, I just had a call from an AMC wanting to get my fee and turn time (sound familiar?). I asked a few questions to get an idea of the scope of work and gave my reasonable fee and realistic turn time. Did I get the order? Nope, never heard back from them and never do. Face facts, all those trainess we trained and paid well are now making at least as much and possibly a better fee split with the AMC.

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