Collect appr. fee at door?

[VolcanoLvr]

It's been 8+ years since I accepted 'payment at the door' from someone at the subject property. (Except for Private Assignments.)

A peer asked me this question today....and I'm not quite sure how to respond. I think the GSE's would not approve if the mortgage loan is a refi or purchase, due to the D-F Appraisal Independence Requirements. However, if a lender portfolio loan, maybe so. USPAP is silent on 'fee payment.'

What say you to this......?

"I have a lender I do work with from time to time that just sent me an email that they are now going to have us appraisers collect payment at time of inspection for the appraisal fee and suggested obtaining a service on my mobile device to accept credit card payments. Would I be in non compliance if I began this practice?"

 

[Esox]

Check the Good, Bad, and Ugly forum for another thread.

 

[Riick]

The dear friend of all residential appraisers - Andy Cuomo of New York,
responsible for HVCC called for no COD appraisals.
While not eggszakly dead, HVCC is totally ignored, superseded by dodd-frankly ridiculous

 

[MZ818]

I did a recent appraisal for a lender through mercury and collected payment at the door. It was a nice change. Nowadays everyone makes you wait anywhere from 2 weeks to 45 days to get paid.

 

[Blueprint]

COD is always nice to see. We need more reports of COD on AF. COD growth will be gradual, due to resistance, but will become more accepted with time. AMC was never the solution to the appraiser problem, just a government style step in the so called "learning" process.

 

[Meandering]

It's been 8+ years since I accepted 'payment at the door' from someone at the subject property. (Except for Private Assignments.)

A peer asked me this question today....and I'm not quite sure how to respond. I think the GSE's would not approve if the mortgage loan is a refi or purchase, due to the D-F Appraisal Independence Requirements. However, if a lender portfolio loan, maybe so. USPAP is silent on 'fee payment.'

What say you to this......?

"I have a lender I do work with from time to time that just sent me an email that they are now going to have us appraisers collect payment at time of inspection for the appraisal fee and suggested obtaining a service on my mobile device to accept credit card payments. Would I be in non compliance if I began this practice?"

It is within the Truth in Lending Act that your fee is a 3rd party fee. It has nothing to do with F/D which was "interpreted" by the FRB and then the CFPB. So the law you are following is the Truth in Lending Act which states your fee is a third party fee and really nothing has changed since before HVCC except that there is the lovely F/D and Presumption 1 to wave around as a nice little distraction, but in reality have no meaning to most residential appraisers.

Yes you can collect COD at the door.
You can be paid less than C&R


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[DTB]

Yes you can collect COD at the door.
You can be paid less than C&R


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You can wait until your payment has cleared before paying lender. You can also charge a convenience fee to said lender.

 

[Meandering]

You can also take orders from the secretary at the mortgage brokerage. The only thing that's changed is that the loan officer isn't supposed to order the appraisal, or have input as to the selection of the appraiser. But it doesn't even matter because even if the mortgage broker orders the appraisal, and Fannie Mae knows it, and the lender believes there is nothing wrong with the value, then everyone can still fund the loan.

So tell me why everyone is so upset with F/D?? because the F/D does not impact them at all.

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[Terrel L. Shields]

F/D has impacted most, if not all, of us because it has affected the banks. We have no communication with the lenders anymore. I have one bank client that I know the ordering person only because I knew her when she was a loan secretary to the old LOs. I know one loan officer...the only one of about 6 to survive the purge. But I don't know even when a loan is his loan because of the ordering system.

The larger regionals have all gone from direct ordering to bids via RIMS or their own systems. They are insisting on signed engagement letters, often embedded within the report itself, etc. etc.

All these are a direct result of Dodd-Frank and it was D/F that actually led to the 2010 Interagency guidelines being not only revised but the regulators making a point to actually start writing up banks for lack of procedures (even though some part of those procedures have been in the Interagency Guidelines since 1994.)

Dodd-Frank is affecting us all.

As for collecting at the door. Regardless the fact in a regulated bank they are supposed to contract the appraiser themselves, pay the fee, and collect that fee up front from the borrower; there is an issue why I do not accept payment at the door for any but private appraisals.

Namely, if your name is on the check, then YOU are very much tied to the person who wrote it. The notion of "privity" is gone, totally no defense in a claim. You were paid by the borrower, and thus almost every court would rule you to be beholden to those who pay you. I am not a collection agency for the bank. They can collect themselves. It is their obligation to pay me. And I am not obliged to become tied to the borrower.

 

[Meandering]

Those things you cite are not the result of the F/D. They are the result of the OCC and the IFR. There is nothing within Frank/Dodd that limits your communication with anyone. You can thank the OCC and the federal reserve board for that. The only way they could possibly skew that out as a result of Frank Dodd is to say that by the F/D definition you are not an agent of the lender and they are seeking to prove it by not letting you talk to them. Otherwise, you have other folks to blame for the mess.


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