Wells Fargo Overcharging For Apprasial?

[scott durand]

I recently requested a removal of PMI on my wells fargo mortage. I had inquired several times and last year I was told it would be in the range of 400-450 dollars and I could choose my own appraiser. I called back last month and now they said I had to use their appraiser and could not provide my own. I have the appraisal done last week and wells fargo charged me $550. I did receive the official copy from the appointed appraisal and their fee was $395.00, thus wells fargo overcharging $155.


Do I have a right to stop payment on my credit card for this fee?

 

[hastalavista]

Hi, Scott-

Likely you do not have a right to stop payment, nor were you "over-charged".
(I suppose one always has "the right" to stop payment, but I don't think your reasoning would be upheld when the credit card company investigated the claim).

Here's the deal: Many lenders go through what is called an Appraisal Management Company. The Appraisal Management Company is the "outsource managing entity" that manages the appraisal process for the lender. The Appraisal Management Company then engages the appraiser to complete the service.

As a rule, the party responsible for the payment (you) are charged for (a) the appraiser's fee which per your post was $395 and (b) the AMC management fee which is $150.

Unless you documentation that indicates differently, you would be responsible for those fees.

As a side note, most appraisers do not like this arrangement. It used to be that the banks would engage the appraiser directly or allowed the consumer (for PMI removal... not for the original loan) to engage the appraiser. In the old days, you would have paid the appraiser at the door and the fee would have likely been less than $550. The appraiser would have charged you around $400 to $450.
Unfortunately for us and for consumers like you (in this case), those days are gone. Most larger lenders find there is efficiency in using a central management process and much of the in-house cost which they took on (but which you paid for anyway; if not directly by a fee than indirectly in the interest rate you were paying for a loan) is now shifted directly to the AMC/Appraiser and paid for by the consumer.

 

[Walter Kirk]

Did you get your PMI removed?
If not go ahead and challenge the overcharge.

 

[hastalavista]

Did you get your PMI removed?
If not go ahead and challenge the overcharge.

Walter-

Are you advising a member of the public to challenge the credit card charge because the appraisal did not meet his/her desired result?

 

[gregb]

Hate to say this, as Wells is the only westcoast based major lender, but with recent history of Wells, the actual appraisal fee charged would be the least of my worries--how many accounts did they open in my name?

 

[miktay]

Did you get your PMI removed?
If not go ahead and challenge the overcharge.

Walter - What if somebody paid your appraisal fee with a credit card and the PMI was not removed. Then they stopped your payment.
You would scream bloody murder.

 

[scott durand]

Did you get your PMI removed?
If not go ahead and challenge the overcharge.

the whole process will take 3 weeks according to wells fargo. my house did appraise above the minimum well fargo stated the appraisal needed to be in order to remove PMI. I guess Ill wait to see what they say. If they pull some B.S. story that the PMI cannot be removed, I will contest the charge with credit card. I guess i'll gues take the overcharge for the appraisal and move on.

 

[TXTea]

I did receive the official copy from the appointed appraisal and their fee was $395.00, thus wells fargo overcharging $155.

I had this conversation with a borrower a few weeks ago. I charged $475 for his condo appraisal but he was charged $700 as shown on his closing statement. I have a huge problem with this but here's the reality - CoreLogic (the AMC) adds their management fee to my appraisal cost and then Wells Fargo adds their own fee for what I assume accounts for additional review and handling costs. There's nothing illegal about it but from my perspective it seems that lenders are trying to earn a profit off of appraisals. Kinda like the new baggage fees charged by most airlines. It's slimy and I hate it.

 

[Terrel L. Shields]

The $395 fee to the appraiser doesn't constitute an overcharge by the appraiser, the additional fee (which some banks DO NOT charge) is for the AMC and /or the bank to pocket for basically doing nothing but ordering the appraisal.

 

[Eli]

I recently requested a removal of PMI on my wells fargo mortage. I had inquired several times and last year I was told it would be in the range of 400-450 dollars and I could choose my own appraiser. I called back last month and now they said I had to use their appraiser and could not provide my own. I have the appraisal done last week and wells fargo charged me $550. I did receive the official copy from the appointed appraisal and their fee was $395.00, thus wells fargo overcharging $155.


Do I have a right to stop payment on my credit card for this fee?

You have a right as long as you stay focused on the appraisal fee and where it is going. Go for it.