(Cue Rocky Theme Music)
In what seemed like an uphill battle for appraisers across the nation, there is a bit of a light at the end of the tunnel in the fight against Appraisal Management Company fees. Nearly five years after Dodd-Frank set forth rules regarding Customary & Reasonable fees (C&R) for appraisers, an agreement between a state board and a Louisiana AMC is the first evidence of enforcement that gives appraisers hope that they may finally be on their way back to customary and reasonable fees.
On June 4, 2015, the Louisiana Real Estate Appraisers Board (LREAB) issued a Stipulations and Order Memorandum (SOM) wherein Coester Appraisal Management Group, also known as Coester VMS, has agreed to follow the current Louisiana fee schedule for a period of 12 months and pay $5,000 in administrative costs. Coester will also have to submit quarterly reports to the board for a period of 12 months, which list all appraisal orders in Louisiana, the fee paid and the date payment was made to the appraiser.
This memorandum could potentially be the beginning of a movement to enforce fair fees across the nation and place appraisers back in control of their income.