FOR IMMEDIATE RELEASE
COESTERVMS IMPLEMENTS APPRAISAL INDUSTRY’S FIRST FLAT FEE STRUCTURE FOR MORTGAGE LENDERS
Groundbreaking new fee model helps lenders better ensure RESPA compliance
January 7, 2013 – Rockville, MD – CoesterVMS, a nationwide appraisal management company, has implemented the appraisal industry’s first ever flat fee model for residential appraisals. Under the flat fee model, which took effect on January 1, 2013, all conventional appraisals for mortgage lenders are priced at $450 while FHA appraisals are $475*.
Customarily, appraisal management companies utilize a tiered fee structure, whereby prices are determined based on the property type or the state in which the property is located. CoesterVMS is the first appraisal management company to implement a 100% flat fee structure, regardless of the type or location of a property. In addition to providing the convenience of a consistent, reliable pricing structure, the company’s flat fee model enables lenders to better comply with guidelines under the Real Estate Settlement Procedures Act (RESPA) concerning how loan costs are disclosed to borrowers.
“RESPA guidelines mandate new disclosures to be sent to borrowers when the difference between quoted fees and actual fees is 10 percent or more,” said Brian Coester, CEO of CoesterVMS. “With tiered appraisal fee structures, there tends to be a lot of add-on fees, which can easily put the lender at risk of a RESPA violation. On the other hand, there’s nothing safer than a fixed fee.”
CoesterVMS implemented its flat fee structure after several months of successful testing. Previously, clients would be required to submit a certain number of orders to qualify for the flat fee. As of January 1, the flat fee became available to all CoesterVMS clients regardless of order volume. The change does not affect current CoesterVMS clients with negotiated contractual arrangements.
“Our lender clients prefer a flat fee instead of the typical tiered appraisal management fee structure for appraisal services. They prefer quoting a flat fee for their borrowers, and we have implemented this nationwide. There are obviously outliers such as jumbo, rural and complex properties that will have to be addressed separately. However, 99% of the appraisals nationwide fit into the flat fee model which works for us, our lender clients and the borrower.”
All CoesterVMS appraisals are subject to the industry’s most sophisticated quality control processes. These processes include cData, CoesterVMS’ proprietary searchable appraisal database; an appraisal scorecard that provides findings of CoesterVMS’ qualitative analysis; and an automated valuation model (AVM).
“We’re serious about transforming the appraisal industry from ‘the way it’s always been’ to ‘the way it should be,’” said Coester. “Value is comprised of quality, customer care and price. We already provide the best quality control, the most advanced appraisal management technology and praise-inducing customer service. Now, with our flat-fee model, we provide very best pricing, bar none.”
*Additional restrictions may apply. See CoesterVMS Flat Fee Schedule for full details.