Surely, the appraisal industry landscape is changing, but it might not be the change appraisers are hoping to see. Though some appraisal management companies (AMCs) and banks have moved to a cost-plus model, AMCs continue to thrive — to the chagrin of some appraisers. But the Coester VMS blog warns that AMCs should prepare for changes in appraisal systems and an increase in fees.
“Fees are going to go up, and we are actually switching to a flat fee model as there’s just too much going on for things to remain the same,” said Brian Coester, chief executive officer of Coester VMS, on the Housing Rack blog. “Appraisal fees are going up not just because of regulatory cost but the requirements that lenders have on appraisers.”
Erik Richard, chief executive officer of reverse mortgage appraisal management company (AMC) Landmark Network, agreed that change was coming.
“Supply of appraisers is low and demand is high and it will only get worse,” Richard says. “We already see a significant number of our orders get hit with fee increase requests from the field. Building this cost in upfront will speed up the appraisal process.”
According to Richard, the AMC fee has not increased, but sees an AMC fee increase on the horizon.
For the full story, check out the blog.