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local edition SERVICING The Rockville, Maryland-based appraisal management company (AMC) explained a tiered fee structure is generally utilized, which determines prices based on the property type or location. However, CoesterVMS' flat-fee structure provides for a flat fee regardless of the type or location of a property. In addition, the nationwide AMC says the flat-fee Washington // Washington's In addition to striking a recent purchase agreement with Bank of America, the company announced a second major acquisition. Florida // Walter Investment Management Corp. announced an agreement with MetLife Bank. The Tampa, Floridabased company revealed plans to acquire MetLife's residential mortgage servicing platform. The company did not disclose the price of the transaction. The CoesterVMS Implements Flat-Fee Model Rolling out a new approach for residential appraisals, the valuations company is offering clients an alternative to a traditional, tiered-fee structure. Maryland // CoesterVMS announced that as of January 1, it implemented the first flat-fee model for residential appraisals. Through the new model, all conventional appraisals are priced at $450 while appraisals are $475. model allows lenders to maintain guidelines under the Real Estate Settlement Procedures Act (RESPA) concerning disclosures on loan costs. "RESPA guidelines mandate new disclosures to be sent to borrowers when the difference between quoted fees and actual fees is 10 percent or more," said Brian Coester, CEO of CoesterVMS. "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." CoesterVMS says that after several months of successful According to research from the CFPB, only a small percentage of American borrowers regularly monitor their credit scores. District of Columbia // Even though credit scores play a key role in whether or not a person can be approved for a mortgage loan, the Consumer Financial Protection Bureau (CFPB) released a report revealing only one in five people actually obtains a copy of their credit report each year. In addition, these overlooked reports that are important in the lending process could also contain errors that go unchallenged. In a recent report, the CFPB advised, "The most effective way for consumers to identify errors in their reports is to obtain copies and review them." According to the CFPB, each year, about 44 million consumers obtain a copy of their credit report, yet estimates show the largest credit reporting agencies—Experian, TransUnion, and Equifax—each maintain files on about 200 million Americans. In 2011, consumers reached out to credit reporting companies about 8 million times to challenge information on their report, according to the CFPB. Overall, the actions led to 32 million to 38 million disputed items. When consumers did dispute information on their credit report, the CFPB found that nearly 40 percent of the disputes dealt with debt in collections, which is five times more likely to be disputed by consumers than mortgage information. The CFPB acknowledged that "some of this may have to do with consumers' incentive to Continued on Page 56 The M Report | 55 se c on da r y m a r k e t Walter Investment Expands with MetLife Deal Consumers Neglect Credit Reports a na ly t ic s Westside Community Bank has the dubious honor of being the first to fall in 2013. The FDIC announced that the Washington State Department of Financial Institutions shuttered Westside, adding that the bank's two branches are reopening as branches of Irvine, California's, Sunwest Bank. According to the FDIC, Sunwest Bank is assuming all of Westside's estimated $96.5 million (as of September 30, 2012) in deposits. Sunwest also agreed to purchase essentially all of the closed bank's $97.7 million in assets. The FDIC estimates Westside's closure cost the Deposit Insurance Fund about $20.3 million. While Westside is the first bank to collapse in 2013, it is also Washington's first failure in more than a year. The last FDIC-insured institution to close in the state was the Bank of Whitman in August 2011. testing, it decided to implement the flat-fee structure. Before the change, clients had to submit a certain number of orders to qualify for a flat fee. s e r v ic i ng The FDIC announced the closure of the West Coast financial institution, revealing California's Sunwest Bank as the acquiring entity. assets to be acquired do not include any loans or mortgage servicing rights. Green Tree Credit Solutions, a wholly owned subsidiary of Walter Investment, will employ about 300 of MetLife's servicing employees. The company also announced it expects to continue operations in the Irving, Texas, location. Or ig i nat ion Westside Community Bank First to Fall in 2013