HUD Releases Updated FAQ for Appraisal Fees on FHA Loans
HUD Update
Recently HUD released an updated FAQ about “reasonable appraisal fee’s” for FHA loans, turnaround expectation as well as if the lender is required to report the appraisers fee as separate or as one fee. The FAQ seemed to really validate practices already being done throughout the industry. Most AMC’s do pay reasonable fees to the appraisers and there cut isn’t nearly as much as the industry claims. Overall I think HUD clarified its position which is turning out to be somewhat neutral as long as the appraisal is accurate and reflective of the property.
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I am not sure what market you work in, or what planet you are from, but the idea that the AMC’s can justify a fee of even 25% for what they do and the ultimate liability they take for the qualitry of the appraisal is a ridiculous notion. Ever AMC that I have had any contact with takes at least 50%. That is not a “reasonable” fee for their work. Wake up my friend!!
I cant speak for every AMC but I know we pay 70% and with our preferred appraisers they get 85%. It might be more of who your doing business with as I know other AMC’s that pay out good fees. I also know some that don’t and do think them taking 50% is way too much.
please give me these management companies that pay 70% and 85%, not to say 30% for ordering an appraisal is good, but I would not complain about the 85%, coester I was put on the list with my 25 years experience, and never received and order and the fee was almost 50% as well. So I don’t know what your saying.
Some loan officers do not like FHA loans because of the FHA appraisal guidelines. Many feel they are too hard to meet. But that is not true. These guidelines are to make sure the home is safe and sound. Basically they are ensuring there are not any safety hazards and soundness as far as the structure is concerned.
I agree 100%, the homes need to be in good condition for a loan to be made. What FHA does is ensure that its safe and that the home is livable standards
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