Fees Module Update for UAD 3.6 on Mercury Network®

What’s Changing with Fees?

Historically, vendor fees were calculated using multiple data points, with the appraisal form number serving as the primary factor. With the transition to UAD 3.6, the industry is moving away from using individual appraisal form numbers to define the scope of work for fee calculations. Instead, the scope of work will be defined by the property and loan characteristics supplied at order creation. The data describing the subject property now drives the appraisal report rather than a specific form. Consequently, vendor fees must be reconfigured and calculated within fulfillment platforms to reflect this data-centric approach. These new data fields have been integrated into the manual order forms and the order creation API

Transitioning from Form-Centric to Data-Centric Fulfillment

Several new data points collectively describe the scope of work, replacing an appraisal form number. The following matrix demonstrates how to categorize the scope of work to align with previous legacy standards. These new fields have been integrated into both the order creation API and manual order forms.

Replacing Form Numbers as a Component of Fee Plans

To support UAD 3.6 orders, CMS and Mercury Network have designed a set of "Products" to provide clients with a baseline to start from, like the list of form types/services you use today for legacy forms.

Two of the primary UAD 3.6 data points, Property Valuation Method and Property Type, provide the basis for our UAD 3.6 product list.

Fees Management Within the Mercury Platform

Our new Fees Module lets you save fee schedules that the system will use to automatically calculate the correct fees for each order. You can enter fees paid to service providers and fees charged to customers here, and then configure the system to apply these fees based on the fee plan method, product type, geographic location, assigned vendor, client/client group, and other order characteristics. There are three methods for defining fee plans:

1. Use vendor default fees - Uses the assigned provider’s standard rates as configured in their vendor profile.  

2. Set fees as a percentage of the client price - Calculates fees as a percentage of the client fee for the order.  To utilize this approach, you must establish a Client Price Plan.

3. Manually add fees - Allows the user to specify custom fees for different kinds of orders. The user will need to enter base fees and add-on fees for all applicable products and geographies.

Fee & Price Plans serve as default fee schedules that the system uses to automatically calculate the correct fee for an order. Mercury Network breaks fees into two main types:

• Vendor Fee: The amount paid to a service provider, such as an appraiser or Appraisal Management Company (AMC), for their work.

• Customer Prices: The fee that is charged to the broker or loan officer, or the interdepartmental charge for the appraisal department's services

When the system calculates the fee for an order, it looks up the plan that applies to that product, geographic area, and client/client group, and then calculates the fee.

When you choose the Manually add fees method,  you will enter the specific criteria and associated fees into your fee plan so the system can calculate the fee for an order. The total vendor fee or client price for an order is calculated by adding the base fee + any applicable add-on fees.

For Example:

Product: Traditional Appraisal - Single Family in Dayton, OH

Base Fees*:

*These fees are for illustrative purposes only.

Additional Fees*:

*These fees are for illustrative purposes only

Using these fee configurations as an example, the vendor fee for a Traditional Appraisal - Single Family in Dayton, OH, with an estimated value in the Tier 2 range, that is marked as a rush and has a Construction Method of “Modular,” would be calculated at $225.

Customers who currently differentiate certain order characteristics by product will need to use additional data points for UAD 3.6 orders. For example:

Today, you order a 1004 with 1007 product for a legacy 1004 appraisal with a rent schedule.

For UAD 3.6, you place an order with a Valuation Method of Traditional Appraisal, Property Type of - Single Family. and Rent Schedule Indicator field set to on/yes. The fee will be calculated as the base fee for a Traditional Appraisal - Single Family product plus the add-on fee for the rent schedule.

Customers may use the Property Characteristics field to create custom characteristics that differentiate fees and are not accounted for in any of the standard order fields.

Which order data points can be used for add-on fees?

Further readings

• Mercury Network® UAD 3.6 Fee Templates

• How to Add & Manage a Client Exception Price Plan

• How to Add & Manage Fee Plan Value Tiers

• How to Add & Manage a Vendor Exception Fee Plan

• How to Add & Manage a Client Price Plan

• How to Add & Manage Vendor Fee Plans