FHA Appraisal Fee Collection

[MZ818]

Can we still collect appraisal fees at door from the borrower when engaged by a broker? Or does the borrower have to pay the broker and we collect from client/broker?

 

[Riick]

No brokers for GSE appraisals - unacceptable.
Currently, you can Collect fee from borrrower for an FHA appraisal
After 1/1/10 no Brokers for FHA appraisals, guessing no fee collection from borrower.
As of 1/2/10::: Broker? What's a Broker?

 

[MZ818]

What about pg. 170 from 4155.2

4. Appraisal Requirements, Continued
4155.2 4.4.g
FHA Policy on
Appraisal and
Inspection Fees
The lender is responsible for collecting and promptly paying appraisers and inspectors.

 

[Lloyd Bonafide]

The lender is ultimately responsible to have the fee paid, but we can accept a check directly from the borrower.

 

[MZ818]

Then why don't they just say that we can collect from the borrower? Why go through the trouble of writing this excerpt if it does not apply?

 

[Don Clark]

The lender is ultimately responsible to have the fee paid, but we can accept a check directly from the borrower.

True, but that does not mean you cannot collect from the door.

Just for grins and giggles I had a lender who refused to pay me for an FHA. Dragged on for a year. I notified the state banking commission in North Caroilina where the property is at. They could not help as it was a Federally Regulated Bank. However, they forwarded my complain to HUD, HUD forwarded my complaint to the OCC. The OCC wrote a letter to the lender threatening to bar them from ever doing any federally related work. The damned lender almost broke his leg getting a check to me overnight.

 

[Lee Lansford]

... The damned lender almost broke his leg getting a check to me overnight.

I like a good story that has a happy ending.

 

[William K]

4. Appraisal Requirements, Continued
4155.2 4.4.g
FHA Policy on
Appraisal and
Inspection Fees
The lender is responsible for collecting and promptly paying appraisers and inspectors.

Read what it states, not what it doesn't state.

LO's request a Comp Check and say " I don't need an appraisal, it doesn't say anywhere in USPAP you can't do a Comp Check"- and we as appraisers blast them for bending the real truth of what is written for their own benefit, and then when it benefits us we look at what is written and say " It doesn't say we can't collect from the borrower at the door".

Looks like a Double Standard to me.

 

[Mike Garrett RAA]

FHA doesn't have to say..."you can collect the fee at the door"! What they do say is..."the lender is responsible for the fee and paying the appraiser".

The preferred method is for the lender to collect the fee at the time of application and then pay the appraiser upon delivery of the appraisal report. This still doesn't guarantee the appraiser will be paid.

I have more than $5,000 in unpaid invoices, many of which on VA appraisals and some going back as far as 2006 that are probably un-collectible. If the mortgage broker or lender has gone out of business it's pretty hard to collect anything. One big disadvantage to a system where the appraiser must complete an appraisal and extend credit to parties or companies from all over the country.

The VA does attempt to assist us by sending letters to the lender saying they can withhold loan guarantees if the appraisers are not paid. The worst offenders are those who request liquidation (foreclosure) appraisals.