Real Estate Professionals Free Trade Coalition (Appraisal/Title/Mtg Agency/Survey)

• Bring to a halt bank owned management companies from collecting appraisal fees and remitting small portions of the fee to appraisers. In addition, stipulate that appraisers collect the entire fee directly.

Eliminate Bank Owned management company subsidiaries.

• ‘Appraiser Independence’ does not exist as bank owned management companies do have an interest in the outcome of the transaction.

• Bank owned management companies deceptively state appraisal fees of $500 and up on closing statements and abate a small portion of that fee to the appraiser. As a result, they are not providing “Truth in Lending” and are profiting on each appraisal fee (which is a clear conflict of interest).

• Furthermore they dictate to the appraiser their desired value, in addition to unreasonable (if not impossible) turnaround times for job completion

• Many bank owned management companies are now filing bankruptcy in an attempt to hide behind a corporate veil. Consequently, appraisers are not paid on jobs performed. Accordingly, they are keeping the fee and are in no way independent of the transaction.

• They are NOT fiduciaries to a transaction, but are interested parties of the first part.

• Put an end to Price Fixing and Collusion by lenders/bankers and Appraisal Management Comapanies through Anti-trust laws.

SOLUTION:

Organize a petition proposing a bill to ABOLISH bank owned management companies – cite the reasons above and insistently push for legislation to bring to an end to insider management companies.