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The Federal Reserve's interim final rule on Customary and Reasonable Fees paid to real estate appraisers was scheduled to be implemented April 1, 2011.  That date has come and gone with little change in the way Appraisal Management Companies (AMC's) pay their appraisers.  Stiff penalties await those lenders and AMC's that do not comply with the law.  The larger AMC's are typically subsidiaries of the lender and when they take a percentage of the appraisal fee it goes straight to the lenders bottom line.  On the HUD-1 the appraisal fee is often shown to be what is collected from the borrower however many times 30% or more goes to the AMC.  This would appear to be a violation of the Real Estate Settlement and Procedures Act (RESPA).  A petition has been circulated for the Federal Reserve to clarify the interim final rule regarding Customary and Reasonable fees so that lenders and AMC's can no longer violate the law.  Please click the link below and join the thousands of appraisers, homeowners, and concerned citizens across the country in putting a stop to the continuing violations that are taking place.

http://www.petitiononline.com/CnR2011/petition.html

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http://screnews.blogspot.com/