Groundbreaking new fee model helps lenders better ensure RESPA compliance
January 7, 2013 – Rockville, MD – CoesterVMS, a nationwide appraisal management company, has implemented the appraisal industry’s first-ever flat fee model for residential appraisals. Under the flat fee model, which took effect on January 1, 2013, all conventional appraisals are priced at $450 while FHA appraisals are $475.
Customarily, appraisal management companies utilize a tiered fee structure, whereby prices are determined based on the property type or the state in which the property is located. CoesterVMS is the first appraisal management company to implement a 100% flat fee structure, regardless of the type or location of a property. In addition to providing the convenience of a consistent, reliable pricing structure, the company’s flat fee model enables lenders to better comply with guidelines under the Real Estate Settlement Procedures Act (RESPA) concerning how loan costs are disclosed to borrowers.
“RESPA guidelines mandate new disclosures to be sent to borrowers when the difference between quoted fees and actual fees is 10 percent or more,” said Brian Coester, CEO of CoesterVMS. “With tiered appraisal fee structures, there tends to be a lot of add-on fees, which can easily put the lender at risk of a RESPA violation. On the other hand, there’s nothing safer than a fixed fee.”
CoesterVMS implemented its flat fee structure after several months of successful testing. Previously, clients would be required to submit a certain number of orders to qualify for the flat fee. As of January 1, the flat fee became available to all CoesterVMS clients regardless of order volume. The change does not affect current CoesterVMS clients with negotiated contractual arrangements.
All CoesterVMS appraisals are subject to the industry’s most sophisticated quality control processes. These processes include cData, CoesterVMS’ proprietary searchable appraisal database; an appraisal scorecard that provides findings of CoesterVMS’ qualitative analysis; and an automated valuation model (AVM).
“We’re serious about transforming the appraisal industry from ‘the way it’s always been’ to ‘the way it should be,’” said Coester. “Value is comprised of quality, customer care and price. We already provide the best quality control, the most advanced appraisal management technology and praise-inducing customer service. Now, with our flat-fee model, we provide very best pricing, bar none.”
CoesterVMS is a nationwide appraisal management company that specializes in providing comprehensive management of appraisal operations for mortgage lenders. Headquartered in Rockville, Maryland, CoesterVMS was founded in 1970 as a local appraisal company and has since grown to a formidable nationwide force in the appraisal management segment. For more information please visit CoesterVMS online at www.CoesterVMS.com.