Rockville, Md.-based CoesterVMS has implemented what is being billed as the appraisal industry's first-ever flat fee model for residential appraisals. Under the flat fee model, which took effect on Jan. 1, all conventional appraisals are priced at $450 while Federal Housing Administration appraisals are priced at $475.
CoesterVMS says that it 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,’ says Brian Coester, CEO of CoesterVMS (pictured left). ‘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.’
