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Homeowner Wants Refund From July 2003

Discussion in 'General Appraisal Discussion' started by eyemeasure, Dec 21, 2004.

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  1. eyemeasure

    eyemeasure Junior Member

    0
    Feb 12, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    I just received a call from a homeowner who said that I did a COD appraisal in July of 2003. She said that the bank told her that the appraisal fee was built in to the loan program and that she should of not paid direct for it. They told her to get a refund from the appraiser.

    My first question was which mortgage broker was this through. It was through a broker I have not spoken to since late 2003. I told her the rules and regualtions about the broker being my client, yada, yada, yada.

    It took me a while to get through to her , to get her to call the broker.

    It appears that the broker put her into a loan program with higher fees than she could of gotten if she went directly to the bank. What these brokers do still never stops to amaze me.

    Last week, and irate home owner called saying that he got a copy of the report from the lender and it had black and white pictures. He wanted me to send him color pictures. He was getting angry at me when I told him to get them from the lender.

    Although I am in the right, I do get concerned that these people could go and complain to the state.

    How about that, a refund of the fee from 2003. Hey, Target only has a 90 return policy!!


    Happy holiday's to all!!


    :beer:
     
  2. Edd Gillespie

    Edd Gillespie Senior Member

    0
    Oct 16, 2004
    If the expanded FANNIE MAE universe of intended users gets passed, then Katie bar the door. I don't think it will matter any more who the client is or what the contract said or what the intended use was, because FANNIE wants it said that just about everybody you can think of can rely on the report. I told FANNIE just let it be like it is, hope they listened. If not, which is possible, my appraisals will be everybody's business and I will be forever beholden to them.
     
  3. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    Was that another one where the broker added the appraisal fee in at closing and kept it??? For some, that's why they don't mind the appraiser getting paid by the HO. Appraiser won't be hounding them to get paid and they get the appraisal fee on top of all the other fees they charged at closing.

    Hope that HO does get to nail the broker if that's what he did!!!
     
  4. Randy Beigh

    Randy Beigh Senior Member

    0
    Jan 16, 2002
    Bruce,

    A homeowner that got his loan a year and a half ago and now wants the fee refunded is an idiot.

    On this, I would have quoted a fee for my time and materials, then sent them the photos if they paid. This isn't a USPAP or confidentiality issue.
     
  5. Mike Boyd

    Mike Boyd Elite Member

    0
    Jan 18, 2002
    Professional Status:
    Retired Appraiser
    State:
    California


    Look at your WRITTEN appraisal order for that property. Did the client tell you to collect COD? Did you invoice the lender or at least send them a paid invoice?

    You should never collect COD unless that is the written agreement with your client.
    Some lenders do, indeed, pay for the appraisal.

    Always get a written appraisal order which includes the fee agreement to avoid such problems.

    Hey! It's the Holiday Season. Let's lose some of that hostility to mortgage brokers. I would bet there are as many incompetent appraisers out there as there are incompetent mortgage brokers. Some of you may work in states that have no laws governing mortgage brokers and if that is the scenario with you, lobby your state legislature to change that and you might have fewer situations that warrant your anger.

    Mike
     
  6. Non Sequitur

    Non Sequitur Elite Member
    Supporting Member

    50
    Feb 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Louisiana
    With this line of thinking he would have been paid twice, but that isn't the case. The HO's argument is with the LO or the title company.

    This is a very common occurance. Most HO's are just happy that the whole mess is over and don't add the numbers up. As a RE agent I insist on a HUD the day before closing and double check the numbers. Many times the the "computer" ;) can't add.
     
  7. Willie

    Willie Senior Member

    0
    May 30, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Tennessee
    Mike, I normally respect your opinion, but 80%-90% of brokers are worthless cheating slugs. I do know there are exceptions. But for the most part, these people probably are treating brokers the way they should be treated, and are probably being to easy on them. I haven't read the entire thread though.

    Just as I read this, I just pulled up an old file to clone. It reminded me of a sore subject.

    I did one for a broker and I charged $275 for a 2055 Int. They upgraded to a 1004. I added $150 to the original bill, and sent it with the 1004.. They sent me the original 2055 $275 in an effort to cheat me out of $150. It worked. I let it go, as hassling with these lower down than slugs creeping on the gournd, (that is low) which happen to be about 80% of brokers, is not worth the $150 of my blood pressure skyrocketing.

    Cheated my kids out of some gift, or me out of $150. I know I let them do it, but again, they knew what I would likely live with it, to not have the hassle.
     
  8. Mike Phillips

    Mike Phillips Senior Member

    0
    Dec 16, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    1. You should have an engagement letter in file that details who was responsible for paying the appraisal fee. That settles it. If the owner was billed twice the problem is between the owner and the lender. Needlesss to say, if you collected twice someone deserves a refund.

    2. Call the lender and request permission to release a complete copy of the appraisal to the owner. Of course, make a note of who you talked to and when.

    3. Send a copy of the engagement letter and the appraisal to the borrower to be on the safe side, certified mail.

    That's what I would do.
     
  9. eyemeasure

    eyemeasure Junior Member

    0
    Feb 12, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    All of the work done at that time for this broker were COD.

    She had lost my billing privilege due to lying about payment. Now its

    report = COD with all brokers.

    She had wanted me to bill it and wait for it to close, and then the bank would pay. A few times in the past, this bank always "lost" the invoice and paid months late. I cannot tolerate this.

    Also, on all COD's I always give a receipt.

    This is just another case of the broker pulling a fast one. The brokers are OK when they are first in business for themselves and are naive. Then they learn fast how to get you in their scams.

    In this case, this homeowner must of been nuts. Although it was difficult, I was respectfull with her.

    :banana:
     
  10. eyemeasure

    eyemeasure Junior Member

    0
    Feb 12, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Randy,

    In the case of the color pictures, the borrower wanted them for free. He told me he paid me for the report. I had to tell him 5 times that he paid the bank for the report. He never had contact with me. I had no idea who he was.

    He wanted to know why "they were keeping the report hostage". He was actually staying with the bank.

    I don't know why they are reluctant to unload on the loan officer.

    :peace:
     
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