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Customary and Reasonable Fees— Still Breathin’
Fannie Mae: Non-Arm’s Length Red Flags
The issue of Customary and Reasonable Fees may not be dead. Staff from the Federal Reserve Board recently requested survey results from the OREP. org/Working RE Customary and Reasonable Fee Survey, with over 16,500 appraisers participating. Why? Because customary and reasonable fees and other issues related to the Dodd-Frank Financial Reform Legislation are not settled, according to the Federal Reserve, who is tasked with implementing the law—sort of. The Fed was tasked with implementing Dodd-Frank initially. Its Interim Final Rule was released in 2010 but instead of finding a way to enforce the intent of the C&R fee provision in the Legislation, it rendered it impotent by way of convoluted logic that permits the status quo—appraisals to the lowest bidder. As a result, the issue of fair fees is dead in the minds of most appraisers. But maybe not quite. The Consumer Financial Protection Bureau (CFPB) took over from the Fed in July 2011—well, not exactly. According to a Fed staffer (Fed staff are not permitted to be quoted by name), “As explained in the testimony of Division Director Sandy Braunstein, in the last paragraph of the section on appraisal independence (p. 12-15), authority for issuing permanent rules to revise the Interim Final Rule is shared by the Board with several agencies, including the CFPB. The Board and the other agencies are also required under Title XIV of the Dodd-Frank Act to issue several other rules related to appraisals which must be finalized by January 2013. Thus, we are focused on those rule-makings but are also actively assessing the Interim Final Rule and will consider whether changes should be made in issuing permanent rules in the future.” Take the Working RE/OREP.org Customary and Reasonable Fee Survey and find results at WorkingRE.com (left column “surveys”). Find the Testimony by FED Division Director Sandy Braunstein at WorkingRE.com, click sidebars and FED Director Testimony (pages 12-15).
This from Kim Ellison, on behalf of Bill Brewster, Director, Mortgage Fraud Program, Fannie Mae, presented at Valuation 2010 late last year. • Purchaser has previous or current ownership of the subject property. • Purchaser address matches the borrower’s address. • Purchaser’s name is similar to the borrower’s. • Purchaser employment address matches the borrower’s employment address.
Editor’s Note: This story first published in Working RE’s email News Edition
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Homeowner Loan Reduction • Borrower has had a strong payment history and no clear reason for default. • Borrower requests a short sale before exploring workout options. • The reason for default given for loss mitigation is not consistent with reasons provided to collections. • A bid is received at the short sale price immediately. • Cash for “repairs” is returned to the buyer at closing. • The proposed buyer has commonalities with the borrower (e.g.,last name, address, etc.). • The buyer and real estate agent are the same person.
FHA Appraising Easier, More Efficient Excellent material—will help me get to the next level—well worth the money! Thanks, J Joslin FHA work is booming. Here’s an opportunity to make your FHA appraising faster and more efficient. The FHA Appraiser Inspection Checklist and eBook are designed to get you up to speed and more efficient at FHA appraising. The Checklist serves as a field guide for completing your reports. The eBook saves you time and money by summarizing and organizing the material you need to know. Author/appraiser Lore DeAstra says, “We reviewed more than 450 pages of HUD materials and spoke with several HUD officials to compile the FHA Appraiser Inspection Form, course materials, and eBook. It will save you time and money.” The guide is updated with the following: formatting updates for improved ease of use: more concise information in an easy-to-follow eBook searchable by topic; web links to topics for easy access; symbols and pictures included by topic for at-a-glance comprehension to FHA Checklist; FAQ from appraisers and lenders by topic with detailed index by page; over 10 new ways to access information and contact FHA to check competencies and get help fast! For more, go to WorkingRE.com and click FHA Checklist, and eBook (top left column). “Differentiating yourself from others improves your business and marketing efforts,” says author Lore DeAstra. “These revised materials will help you
obtain additional avenues of income pertaining to your FHA expertise now and into the future.” OREP insureds enjoy a discount.
New 7 Hour USPAP CE Online: Convenient, Affordable Enjoy an OREP/Working RE discount on Mckissock’s new 7 Hour USPAP online continuing education course, approved in most states. Taking this mandatory continuing education coursework is now affordable and convenient with this new online course. Visit WorkingRE.com and click New 7 Hour USPAP CE (left column) to learn more or scan code with any QR Code Reader Application.
OREP.org/WorkingRE.com Blogs & Surveys Challenging Low Fees This blog is an information exchange by and for appraisers seeking help with the customary and reasonable fee appeal process. Visit WorkingRE. com and under Blogs click Challenging Low Fees (left column).
Filing C&R Fee Complaints This from the Appraisal Subcommittee (ASC. gov): The appropriate agency to receive your concern about a creditor’s compliance with the Truth in Lending Act (TILA), including the creditor or the creditor’s agent paying an appraiser a customary and responsible fee, is the agency that enforces TILA for the creditor. If the agent or appraisal management company (AMC) is affiliated with a federally regulated creditor, the appropriate agency to receive complaints against the AMC is the affiliated creditor’s federal regulator. If the agent (or AMC) is not affiliated with a federally-regulated creditor, the appropriate agency to receive the complaint is the Federal Trade Commission. There are two websites that you can use to find the federal regulator for a creditor: Federal Reserve System—National Information Center website: http://www.ffiec.gov/ nicpubweb/nicweb/nichome.aspx; and FDIC website at the “Bank Find” webpage: http://www2.fdic. gov/idasp/main_bankfind.asp. Questions regarding the appropriate interpretation of the Truth in Lending Act, including those on customary and reasonable fees, should be directed to the Federal Reserve Board at http://www.federalreserve.gov/ feedback.cfm. WRE
More at WorkingRE.com
Winter/Spring 2012 Working RE 33