Wells Fargo Overcharging For Apprasial?

[chad hampton]

Wells fargo charged you for an appraisal. What they paid the appraiser is between them and the appraiser. Before the banks took over the appraisal business by owning their own management companies, you would have called up a few appraisers, paid one of them about 350 and gotten your PMI removed. Now, the bank adds their fee on to the real appraisal fee.

It's been a huge area of complaints with appraisers over these last few years. I'm actually surprised the appraiser was paid $395. For years, wells fargo has been paying appraisers $250 and charging its customers $550.

Yes, In my opinion you were overcharged for the product you received. But you probably agreed to the fee in the paperwork you signed.

 

[BRCJR]

I suppose an AMC can stipulate not including an invoice in the appraisal report, that it must be a separate document.

Can they stop an appraiser from putting a statement in the report indicating the fee paid to the Appraiser?

Virginia law does not allow an AMC to prohibit the inclusion of the fee.

Sorta, kinda paints a picture for the borrower, in a case such as cited above.

 

[Evincere]

Wells fargo charged you for an appraisal. What they paid the appraiser is between them and the appraiser. Before the banks took over the appraisal business by owning their own management companies, you would have called up a few appraisers, paid one of them about 350 and gotten your PMI removed. Now, the bank adds their fee on to the real appraisal fee.

It's been a huge area of complaints with appraisers over these last few years. I'm actually surprised the appraiser was paid $395. For years, wells fargo has been paying appraisers $250 and charging its customers $550.

Yes, In my opinion you were overcharged for the product you received. But you probably agreed to the fee in the paperwork you signed.

Had an upset Borrower call me 2 times inquiring about my fee. He was livid because he said he was charged $650 for a re-fi appraisal. Apparently, he did some investigation and found a website where I had listed $350 (yes, that was my listed fee and what I was paid) for a standard non complex appraisal and was wondering why he was being overcharged?

Unfortunately, he was not my client and had to take his concerns up with his Lender. The general public really has no idea what's going on.

 

[Meandering]

It is the cfpb that refuses to separate the fees,

borrowers can fill in the cfpb's complaint form online.

But it probably won't do them any good, unless they just feel better about by making a complaint.

Lenders can charge whatever they want.

 

[Terrel L. Shields]

Unfortunately, he was not my client and had to take his concerns up with his Lender. The general public really has no idea what's going on.

Confidentiality applies to certain things, not to fees...I would have told him what I charge and whatever above that is something he can discuss with the lender. Disclosure of confidential information is covered. Your fee is not "confidential' since it is fact and unless the lender says it is confidential in your engagement letter, disclose away. Basically "facts" are not confidential only "opinions" and conclusions are.

 

[chad hampton]

Had an upset Borrower call me 2 times inquiring about my fee. He was livid because he said he was charged $650 for a re-fi appraisal. Apparently, he did some investigation and found a website where I had listed $350 (yes, that was my listed fee and what I was paid) for a standard non complex appraisal and was wondering why he was being overcharged?

Unfortunately, he was not my client and had to take his concerns up with his Lender. The general public really has no idea what's going on.

I've had that happen to me as well. Borrowers will from time to time tell me how they are paying $550+ for an appraisal and ask "why is it so much more than when I refi'd the last time?" I always tell them that isn't my fee.

I'd be pissed too if I were a borrower. An extra $200+/- is a lot of money to most people.

 

[bnmappraisal]

Your fee is not "confidential' since it is fact and unless the lender says it is confidential in your engagement letter

(my bold) And therein lies the rub! Many AMC's have that in their engagement letters - DO NOT DISCUSS YOUR FEE WITH THE BORROWER. I think the OP is a great example why fees should be separated; I've been a long time fan of that and here's a person from the Gen Pub giving us an example why.

To the OP, I would take up the issue with the lender. To be honest, it sounds like SOP for our profession, but you may want to get that clarified from your loan officer. As many stated, often times the appraiser's fee will be $zzz but the borrower will be charged $YYY. The difference often goes to the AMC, bank or both. Good luck

 

[Fernando]

I read an article last week in which Wells Fargo got in trouble and had to pay back millions to homeowners who were overcharged in "appraisal fee".
Wells Fargo used BPO to assess value of these delinquent loans and profited from the homeowners which somehow violated some rule which says they can't charge more than actual costs. At that time I thought that was interesting especially with how AMCs charge.

 

[Fernando]

I don't do appraisals with Wells Fargo but if they were overcharging borrowers appraisal fees (above cost of appraiser's actual fee) excessively, the public would not find that greed mentality acceptable. Wells Fargo is at its low point and strategically a good target now to set an example of excessive lender's profits from high appraisal fees since 2009.

 

[TRESinc]

I read an article last week in which Wells Fargo got in trouble and had to pay back millions to homeowners who were overcharged in "appraisal fee".
Wells Fargo used BPO to assess value of these delinquent loans and profited from the homeowners which somehow violated some rule which says they can't charge more than actual costs. At that time I thought that was interesting especially with how AMCs charge.

AMCs don't charge. the lender sets the fee they are willing to pay the AMC, who then contracts with the appraiser to perform the appraisal for an agreed upon fee.

I don't do appraisals with Wells Fargo but if they were overcharging borrowers appraisal fees (above cost of appraiser's actual fee) excessively, the public would not find that greed mentality acceptable. Wells Fargo is at its low point and strategically a good target now to set an example of excessive lender's profits from high appraisal fees since 2009.

if you read the article then you would know that wells was overcharging for BPOs, not appraisals.