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Can The Lender Charge The Borrower?

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Ron in AR

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arkansas
I did an appraisal for a client. No charge. The borrower was a friend of mine and I chose not to charge him for the appraisal. I gave the lender a $0 invoice with the report and they (the lender and the borrower) were aware that there was no charge.

They charged the borrower $350 at closing for the appraisal and never sent me a check.

The borrower is having a difficult time just getting someone to talk to him. He would like to get his money back.

Does anyone know if this is legal?
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
Perhaps they should recind the loan. I did one for a friend I charged full fee. We never got paid and broker totally hosed my friends(not my client)..School of hard Knocks

Actually what that broker did violates RESPA but who's standing gaurd anymore.
Rules are rules but enforcing them is another issue.

You might read up on preditory lending too.

They could/should complain to HUD.

Good Luck
 

Ron in AR

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arkansas
This wasn't a HUD deal. Just a 2055 conventional.

This is a large lender that is pretty solid and usually follows the rules.

The loan closed a month ago so the borrower can't rescind.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
I gots the answer to THIS one... have your friend file a complaint/inquiry request with the banking commission.

Banking commission does take a dim view of this sort of activity in most states...

An they dont' respond/care... then have friend complain to the state Atty General, same basis - ripping off the poor unprotected consumer...

of course neither set of officials (in most states) could not care less about us appraiser-types.
 

Ron in AR

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arkansas
Thanks Lee Ann. In this case it wasn't the appraiser that got ripped - it was the public.

He probably should send them a certified letter asking for a refund then write the Commission or Atty General like you said.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Ron:

My point exactly. The friend has a very good chance of getting action.... now if it was YOU attempting to collect it is another story entirely...

I surely wish more states would develop and abide by rules which require the appraiser to be paid.
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
Since when does desktop underwritting not have to comply with HUD?

So my 2055 and other similar reports dont have to follow the rules>
That would be wonderful!
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
1004 or 2055 I hope you are following guidelines. HUD or not. Most deals are HUD, the fact you are using a 2055/65/75/70 has nothing to do with weather its a HUD product or not. HUD is making it cheaper for the borrower but the work going into the report is almost the same..Only thing missing is the flood panel and perhaps some extra comments.Hope you charge the same for a 1004 as a 2055.

"This wasn't a HUD deal. Just a 2055 conventional"

Im sorry em I missing something here?

What is that?? HUD backs most loans out there...

Guess Ive been appraising in Iraq too long..
 
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