Going forward, individual appraisers will have the ability to record their own fee on the appraisal report instead of combining it with the fee charged by the appraisal management company (AMC).
This change comes in FHA mortgagee letter 2009-28, which has yet to be published on the HUD website.
It says, “The fee for the actual completion of an FHA appraisal may not include a fee for management of the appraisal process or any activity other than the performance of the appraisal.”
The new policy essentially separates the fee for the actual appraisal and the fee(s) charged by the AMCs, allowing each to charge what they believe is reasonable and customary.
The question remains whether this will increase the price of appraisals to consumers looking for a loan, or simply adjust it back to pre-HVCC levels. Or perhaps shift the money back toward appraisers and away from AMCs.
The FHA had previously called for the appraiser and AMC fees to be combined based on typical costs for the area, though that meant a huge pay cut, some say 50 percent, for individual appraisers.
The CCO of Lender Processing Services recently shot back, saying AMCs are not to blame for the recent appraisal woes.