It started this past weekend with Ken Harney’s article in the Washington Post “New Appraisal Rules Come with Costs“. Mr. Harney reported that the cost of an appraisal for the consumer increased approximately $125 (from $325 to $450) as of May 1, 2009.
Now news from Silicon Valley is trumpeting a similar tune. According to an article by Sue McAllister the average appraisal runs $350-$600 up from $250-$400.
Lenders can implement the HVCC in a variety of ways. The most common way is to hire a third party AMC to manage appraisal services. An AMC is a business and a business costs money to operate. It’s fair to say that some of the costs are passed on to the consumer. Of course, lenders could implement firewalls internally and still maintain compliance with the Code. This cost might too be passed on to the consumer – though it’s not clear what this cost would be for the consumer.