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house Bill H.R. 3619

Should Appraisal Fees & Management Fees for Mortgage Applications be Disclosed to Consumers Up Front?

Argument in favor

Prospective homebuyers should receive as much transparency as possible about the fees associated with their home purchase. Therefore, they should receive separate estimates of the appraisal fee and appraisal management fee. Preventing creditors from charging customers the amount disclosed on the LE will protect customers from unscrupulous creditors who may try to raise appraisal management fees on customers midway through the loan process in order to make an extra buck.

jimK's Opinion
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09/19/2019
Years ago, we moved to different homes in different states several times and were often surprised at requirements to pay seller fees when purchasing, weird bank charges and other things- with the threat of not being able to complete the purchase unless we agreed since the 'seller' could not be reached or the brokerage lawyer was not available to make corrections. Being somewhat contrary, I resisted - threatening to walk out only for them to suddenly find the seller or the lawyer that was not available. Still split some costs we should not have- but we were not trampled. Latter moves were either in States that had better oversight or else abuses had been cleaned up generally. I don't know which. The point is that first time home buyers in particular, can be taken advantage of by costs that suddenly appear and threaten their new ‘dream home’ purchase; and who do not know that they are being taken advantage of. Yes, assure these purchases entail no ‘closing’ surprises.
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burrkitty's Opinion
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09/19/2019
When is transparency ever bad? I don’t give a flying F#€£ about banks being inconvenienced or losing money from being honest. They are effing vultures anyway.
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Patricia's Opinion
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09/19/2019
Why wouldn’t it already be disclosed!?!? The reason to hide it would be to rip off the consumer. Once again whose side is Congress on? the consumer or big business!?!?
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Argument opposed

This bill would effectively lock in appraisal management fees at the time of a mortgage application, and while that’s good for prospective homebuyers, it increases pressure on lenders and AMCs. This could lead to one of two undesirable situations: either lenders and AMCs lose money if they underestimate their appraisal management fees or lenders and AMCs respond to this bill by raising appraisal management fees to give themselves leeway on the fees, leading to higher costs for potential homebuyers.

Carmine's Opinion
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09/19/2019
This bill would effectively lock in appraisal management fees at the time of a mortgage application, and while that’s good for prospective homebuyers, it increases pressure on lenders and AMCs. This could lead to one of two undesirable situations: either lenders and AMCs lose money if they underestimate their appraisal management fees or lenders and AMCs respond to this bill by raising appraisal management fees to give themselves leeway on the fees, leading to higher costs for potential homebuyers.
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Darlene's Opinion
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09/19/2019
A better mechanism is approximate fees. This give both parties ballpark figures but does not lock down the fees.
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Doug's Opinion
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09/19/2019
These items are already disclosed, if you know where to look or ask for the documents to be explained to you.
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    Years ago, we moved to different homes in different states several times and were often surprised at requirements to pay seller fees when purchasing, weird bank charges and other things- with the threat of not being able to complete the purchase unless we agreed since the 'seller' could not be reached or the brokerage lawyer was not available to make corrections. Being somewhat contrary, I resisted - threatening to walk out only for them to suddenly find the seller or the lawyer that was not available. Still split some costs we should not have- but we were not trampled. Latter moves were either in States that had better oversight or else abuses had been cleaned up generally. I don't know which. The point is that first time home buyers in particular, can be taken advantage of by costs that suddenly appear and threaten their new ‘dream home’ purchase; and who do not know that they are being taken advantage of. Yes, assure these purchases entail no ‘closing’ surprises.
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    When is transparency ever bad? I don’t give a flying F#€£ about banks being inconvenienced or losing money from being honest. They are effing vultures anyway.
    Like (25)
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    Why wouldn’t it already be disclosed!?!? The reason to hide it would be to rip off the consumer. Once again whose side is Congress on? the consumer or big business!?!?
    Like (18)
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    No one should ever borrow money without full disclosure of all fees along with all other terms of the loan agreement.
    Like (15)
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    Informed consumers is important.
    Like (13)
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    Yes. And if not, the seller and lawyer and realtor should be held liable and accountable. It is an outrage
    Like (11)
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    All fees not absolutely visible to the buyer or seller should be disclosed and explained to seller/sellee...why wouldn’t if or shouldn’t it be!!!
    Like (8)
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    Full disclosure should be the law. All other aspects of reality transactions require full disclosure or risk of breach of contract.
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    Lenders will just raise fees.
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    Hidden fees of any sort are wrong. Why is this a question?
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    Prospective homebuyers should receive as much transparency as possible about the fees associated with their home purchase. Therefore, they should receive separate estimates of the appraisal fee and appraisal management fee. Preventing creditors from charging customers the amount disclosed on the LE will protect customers from unscrupulous creditors who may try to raise appraisal management fees on customers midway through the loan process in order to make an extra buck.
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    Yes. Disclosure up front is essential.
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    We should encourage the most transparency for prospective homeowners, especially for first time buyers who are unfamiliar with the process.
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    Of course. How else can you plan?
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    Of course
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    Yes and the only reason somebody would not want to do it it's because they're trying to pull something over on the people!
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    Yes of course. Is this not already the case? People shouldn’t be surprised when purchasing a home, having a medical procedure or buying a pair of shoes.
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    Transparency always a good thing.
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    Transparency is key. Why wouldn’t one want that?
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    All fees should be disclosed up front on home mortgage applications! People should not be blindsided by financial institutions who loan money to consumers. Full disclosure should be required to protect the public.
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