If someone other than the borrower is paying the appraisal fee can we collect the fee upfront or do we need to wait until borrower provides intent to proceed after receipt of GFE?

You can't do anything until the intent is received. Even if someone else is paying, the fee needs to be on the GFE because it's a normal cost to the borrower. On the HUD, you'll show it as paid by whoever.

btw, who other than the borrower would pay for an appraisal... unless you're talking about a no cost loan, which changes my answer too.

Can you clarify why the intent is important? I was thinking for MDIA that the lender has to give the TIL before collecting fees other than the credit report.
Where does the intent come in?

See question and answer 10 on page 7 of HUD's RESPA rule FAQs from 4/2/10.

GFE and TIL are given, applicant has not yet expressed intent - May not yet collect fees.
GFE and TIL are given, applicant expresses intent - may collect fees.
GFE is given - intent signed - Lender's TIL not yet givenf...no fees may be collected.

Am I right?
Thanks for helping me understand!

I would say no for this reason: IMO that limits the borrower's ability to shop for a loan. They know the appraisal fee has already been paid by this 3rd party, so are they really going to feel like they can go to another lender and put this 3rd party out a couple hundred bucks? Also like other posters said you can't collect fees upfront until intent is received (although I can't remember if the regulation states that it's just the borrower you can't collect them from or anyone)

Even if the lender is paying it, I still say no. I may be overly conservative, but I don't let LOs order appraisals until intent has been received. Again, I feel like it limits the borrower's ability to shop when they know an appraisal has already been ordered.

Yep! Except in case 1 and 3 you can collect the cost of the credit report

Thank you! That helps alot!!!