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USPAP, does it ban appraisers from collecting fee at the door?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Kim Williams, Oct 8, 2007.

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  1. Kim Williams

    Kim Williams New Member

    0
    Jun 19, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Missouri
    Another appraiser told me that we are not allowed to collect the
    fee at the door from a borrower when the borrower is not the
    client. Has anyone heard this before? If so, where is it in the
    USPAP?
    Thanks !!!
     
  2. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
  3. Joyce Potts

    Joyce Potts Elite Member

    11
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    The ability to collect at the door is one of the few aspects that significantly reduces of any outside influences on the appraiser. That's the first I've ever heard that interpretation.

    In fact, USPAP should mandate COD or pre-payments. Once the fee is paid, the appraiser is free to do his job honestly and ethically without fear that he/she won't get paid if the final value opinion falls short of someone's expectation.
     
  4. Mike Kennedy

    Mike Kennedy Elite Member

    79
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    short answer : No.

    however, keep in mind, per USPAP Definition of CLIENT ......

    CLIENT: the party or parties who engage an appraiser (by employment or contract) in a specific assignment.
    Comment: The client identified by the appraiser in an appraisal, appraisal review, or appraisal consulting assignment (or in the assignment workfile) is the party or parties with whom the appraiser has an appraiser-client relationship in the related assignment, and may be an individual, group, or entity.

    DOES NOT OBLIGATE ANYONE OTHER THAN THE CLIENT FOR PAYING AN APPRAISAL FEE ON AN ORDER THAT ENTITY PLACED.

    In other words, unless the Homeowner IS THE CLIENT, they are under NO legal obligation to pay directly UNLESS you obtain their written acceptance of that responsibility ...i.e. a Contract and Committment/Obligation to pay.
     
  5. Kim Williams

    Kim Williams New Member

    0
    Jun 19, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Missouri
    I agree that I thought it was incorrect.

    It makes more sense to collect the fee at the door of every appraisal,
    which takes the lender pressure off.

    Thanks for your comments.
     
  6. Mike Kennedy

    Mike Kennedy Elite Member

    79
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Just realize if you do not get paid (bounced check, bogus credit card, etc.)..........the Lender is NOT RESPONSIBLE.

    TIP : "CASH IS KING". issue paid in full CASH receipt. send copy SEPARATE from the report to the client and keep copy in the workfile. (i typically photocopy the bills fanned out as proof of payment).
     
  7. Don Clark

    Don Clark Elite Member

    9
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    Uspap

    USPAP does not address any such issue. The only USPAP issue related to a fee is a contingent fee. Who you collect from is a business decision.
     
  8. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Thank You, Don, good answer! I just happen to prefer they try and look it up themselves by reading the dang book first!

    Remember this was who you and I had to compete with in the past. Now that knowing the rules and standards is important, I prefer not to help make them be competitive with me. I know you understand my point. :)
     
  9. Colleague

    Colleague Junior Member

    0
    Oct 30, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    FDIC recommends that the lender pay the appraiser directly and that they be reimbursed by the borrower. Although I have no problem collecting my fee at the door, I feel like it empowers the borrowers by making them feel like we are working for them since they are paying us directly.
     
  10. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina

    Some courts of law would agree!
     
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