Dodd-Frank a Win for Independent Fee Appraisers?

Dodd-Frank and Independent Fee Appraisers

Will Independent Fee Appraisers Recover Under HR4173?

The Dodd-Frank Act may help appraisers and mortgage professionals re-gain some of the footing they lost with last year’s implementation of the HVCC.

Appraisal Ordering (Dodd-Frank - HVCC)

We certainly hope so. 14 months and counting into the HVCC and mortgage professionals and appraisers are struggling. Many appraisers lost their businesses and many others are working like dogs just to keep their heads above water. Appraisals routed through AMCs cost customers more on average and the independent fee appraisers make (significantly) less per report, and frequently have less than 48 hours to turn reports around. Sounds like whining, but is it?

This does not lead to the best quality reports, or the most qualified appraisers selected for assignments. And even with the rush on appraisal orders, we’ve heard that many loans are held up waiting for the reports to come in.

Why is this supposed to be good for the industry? Is it good for your business?

The best summary we’ve found on the portions of the Dodd-Frank Act and how they relate to the real estate appraisal industry can be found in Appraisal Insight’s excellent article called Here’s What You Need to Know about HR 4173, posted the date the bill was signed into law as the Frank-Dodd Wall Street Reform and Consumer Protection Act (HR 4173).

Get Ahead of the Competition

Are you ready to try something different? Can your business survive another year if you don’t? Keep reading!

We are independent fee appraisers and we want to earn your trust and to earn your business. We don’t think your business or your customers should be suffering for the mis-deeds of a few rogue banking industry members.

The HVCC Sunsets in November of 2010

Although the HVCC sunsets in November of this year, we expect that many lending institutions will still route their appraisal orders through some sort of appraisal management company, or vendor management platform. Many of the intentions of the HVCC were reasonable, such as the desire to eliminate pressures on independent fee appraisers to “come in at value” for a transaction (in order to stay on someone’s appraiser roster).

We’ve been signing up mortgage professionals this week for the Mercury Network, a vendor management platform (VMP) from a la mode. A la mode, if you’re not familiar with the name, is behind a huge percentage of the transactions in the real estate industry across the country. We use a suite of software from them to manage our appraisal orders for Austin & Central Texas Real Estate.

The Mercury Network for Appraisal Management

A la mode’s entry into the AMC-alternative appraisal ordering management market is the Mercury Network. This well-crafted appraisal ordering and management platform lets mortgage professionals better manage their own business by giving them pin-point control over the routing of their appraisals and provides real-time status information.

Some of the benefits of the Mercury Network include:

  • We pay the fee, on a per-appraisal basis and we don’t pass this on to you or your customers. This means that our normal appraisal fee is the same whether you order your appraisal directly from us, or via the Mercury Network. If you send us a lot of business, we can also negotiate a discounted rate.
  • You can add us to your appraiser roster, still keep the appraisers you already know and trust and still maintain regulatory compliance. Give us a try – you will be impressed with our professionalism, turn around times and the quality of our appraisal reports.
  • This service is web-based and uses the latest in work flow technology to keep your orders in order. Have you had any deals go south this year because of appraisal problems?
  • The Mercury Network can help you navigate the mountain of regulatory compliance for each appraisal order: HVCC, FHA, GLBA, Interagency Appraisal and Evaluation Guidelines, FHFA’s MISMO XML requirements, etc.

Collateral Valuation Policy

We’re also impressed by the article written for Mortgage Banking Magazine by Adam Calvery, President of the Mortgage Solutions Division of a la mode.

This article, called Three Legs of the Appraisal Management Stool serves to remind mortgage professionals that “lenders need a common sense approach to collateral valuation policy that embraces three key components: regulatory compliance, quality assurance and fraud management“. With all of the fuss about HVCC compliance this last year, some of the other critical aspects of lending have been receiving less attention than necessary.

Is Your Business Ready for the Future?

If you need a certified residential appraiser for Austin & Central Texas Real Estate, you need Appraisal IQ.
We can set you up on the Mercury Appraisal Network in as little as 45 minutes by calling (512) 541-2107, or you can call a la mode at 1-800-434-7260. We’ve had nothing but positive experiences with their client service staff, and we expect that you will receive the same great service, too.

What have you got to lose? What have you got to gain?

Take control, call Appraisal IQ TODAY at (512) 541-2107.


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Independent Real Estate Appraiser in Austin, Texas: Travis, Williamson, Hays, Bastrop and Caldwell Counties