Is this the end of the Free Market?
Can you imagine living in a world where the government tells consumers that they will no longer be allowed to order pizzas from their favorite pizza parlor? The government then tells you to order your pizza from a Pizza Management Company who charges you for a top quality pizza and send you the cheapest pizza they could find in the area.
Well... that has already happened in the appraisal industry! Lenders, Brokers and Consumers are not ALLOWED to contact and hire the most qualified appraiser. Everyone who wants an appraisal must use an Appraisal Management Company who charges for a quality appraisal and sends out the appraisal order to bid - hoping to find the cheapest appraiser in the area. The Appraisal Management Company collects the full fee from the consumer and pays the least amount possible to the actually licensed appraiser.
The Appraisal Management Companies have ordered appraisers not to discuss appraisal fees... but, I think it’s time we spill the beans.
We keep all information private so you don’t need to worry about being “disciplined” by AMC’s
The information contained on this map was gathered from real estate appraisers and not independently verified.
Federal Trade Commission
Free and open markets are the foundation of a vibrant economy. The FTC's competition mission is to enforce the rules of the competitive marketplace — the antitrust laws. These laws promote vigorous competition and protect consumers from anticompetitive business practices. The FTC's Bureau of Competition, working in tandem with the Bureau of Economics, enforces the antitrust laws for the benefit of consumer.
Anticompetitive business practices. Can you still operate your appraisal business in a competitive marketplace? Does the HVCC promote vigorous competition and protect consumers?
To Learn More... Watch the video below!
Question to all appraisers: Why did we need the guys from ThinkBigWorkSmall to start the HVCC Petition and stand up for us? Isn’t it time that we stop bickering and unite?
In 1986, FHA MANDATED the appraisal fee of $225 be paid to all FHA appraisers. FHA realized that a fair wage was required to produce quality appraisal reports. If you adjust the 1986 mandatory appraisal fee for inflation, a current appraisal fee would be $436 (which was approximately the amount appraisers were charging prior to the HVCC)
Now, due to current “government” regulations, appraisers are being paid PRE-1986 wages.
HUD has addressed the issue of “reasonable and customary” appraisals fees. Their definition is “Customary and reasonable appraisal fees are reflective of those fees established and negotiated by an FHA approved self employed independent fee appraiser...”
BUT - We have evidence that, on average, AMC’s are only paying 60% of the reasonable and customary appraisal fee.