Time to regulate how home appraisers are paid
Appraisers who work on behalf of these companies typically receive less pay than those who do not. Some appraisers say the lower fees mean consumers are less likely to get a high-quality appraisal, which could jeopardize their loans. . . In the New York region, for example, an appraisal of a single-family home will cost around $300 to $500. But independent appraisers say that when a big bank orders an appraisal, it typically pays the appraiser about $200 of that fee and pockets the rest.
Here's what Congress should do: Require that lenders disclose to home buyers how much of the money they pay for the appraisal is actually used for the appraisal -- and how much is just skimmed off for an undisclosed profit for the bank.
Given all the cash that United States taxpayer has poured into Bank of America, I think we deserve better than to be charged $600 for a $200 service and not told about the difference. There's is no way in hell that lenders should be allowed to profit by paying a third party to conduct the appraisal without that being disclosed to the consumer. That just seems obvious. There's nothing wrong with a lender paying $200 for a third-party appraisal and charging the consumer $600 for it: But the consumer should be told that that's what's happening.