Last month I spoke to and interviewed Tony Pistilli , a certified real estate appraiser on the Minnesota Department of Commerce Real Estate Appraiser Advisory Board. He’s got a possible solution to the current appraiser – appraisal management company conflict. Its all about conforming to RESPA and preventing banks from shifting the burden to appraisers to pay for bank compliance.
Its the first logical solution I’ve heard. The banks are essentially making the appraiser pay for their RESPA compliance by taking it out of the appraiser’s fee, often 50% of the stated appraisal fee. The consumer is being mislead by the appraisal fee stated by the lender at time of mortgage application.
- – Appraisers and borrowers are paying for services the banks receive, not the bank.
- – Banks should pay for the services received from the AMC’s who manage the appraisal process.
- – Appraiser’s fees should be market driven.
- – Banks should be held accountable for the quality of the appraisal.
His views seemed to have been picked up by the Appraisal Institute , the largest appraisal trade organization in the US, in their letter to HUD  looking for clarification on RESPA and the disclosure of fees paid by consumers. Here’s the FAQ on the new RESPA rule .