Source - Appraiser News Online Headlines - Updated 4/20/2011
Some banks and appraisal management companies may be misinterpreting Presumption 1 of the Federal Reserve’s Interim Final Rule “customary and reasonable” fee language, the Fed’s staff said April 9 at the Association of Appraiser Regulatory Agencies spring conference in San Antonio.
In a presentation covering the Interim Final Rule, representatives from the Federal Reserve indicated that utilizing AMC-involved assignments when assessing fees as part of a six-part test under Presumption 1 may be inconsistent with the Rule, which became effective on April 1. Federal Reserve officials indicated that AMC fees were not to be included in any assessment of recent fees paid to appraisers.
Further, officials suggested that use of blanket schedules for fees within states may not rise to the requirements to satisfy both “customary” and “reasonable” as defined by Presumption 1.
Separately, the officials also reiterated the provision of the Interim Final Rule that states that just because an AMC requires an appraiser to sign a document indicating that the fee that they are paid for an assignment is customary and reasonable does not necessarily satisfy the AMC’s responsibility to ensure that an appraiser is actually paid a customary and reasonable fee.