For those of you who may be unaware, a new phase of the Frank / Dodd regulations went into effect October the 3rd. These are regulations that affect the mortgage and real estate industry.
I won’t go through a complete list of all the new regulations.
I did want to point out one unintended consequence of these new regulations…
Higher priced appraisals.
I have received notices from three different appraisal management companies so far that they are increasing their prices for appraisals due to the new regulations.
The real estate appraisal is a very good example of how lawmakers can actually hurt the very people they think they are helping when they pass new laws.
Consider this… Before Frank / Dodd a mortgage company could get a Conventional Appraisal done in 2 to 5 days, and the cost to the consumer was around $300 to $325.
Now this same appraisal costs around $535 to $550, and it can sometimes take up to 2 weeks (and in some cases longer) to get an appraisal.
I know some of you might be upset an appraisal will cost you more now, but really there’s no need to worry because your government is looking out for you. (humor intended here)
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett
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