The Federal Reserves new appraisal rules that went into effect on April 1st, turns out to be a money maker for lenders and banks. Charge the home buyer double the cost and pocket the difference. More legislation is now needed to close a gaping loop hole. Makes you wonder if the Fed. Reserve took the time to read their own bull-I mean bill!!
Mathews Realty Group
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Lenders still making big money on home appraisals
When you pay $450 to $550 at settlement for an appraisal on a home purchase or refinancing, do you assume that all or most of the money is going to the appraiser who performs the valuation?
That’s logical, but probably not correct. Despite new Federal Reserve regulations, which took effect April 1, that require lenders to pay appraisers fair fees, growing numbers of them say they are still being offered $200 to $250 — even as little as $134 — for work that gets billed out to consumers on settlement sheets at $450 and higher.
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