I am moving this post from the RESPA thread where it had evolved to a non-RESPA Q.

We order appraisals from the AMC.

Our AMC receives up front payment directly from our customers who provide the AMC with their credit card number in order to pay for appraisals.

This would appear not to be per the apraisal rules, and i notified the AMC of this.

They referred me to Fannie Mae FAQ #40:
Q40.
If the appraisal is ordered by the lender in a manner compliant with AIR, are there any specific requirements about how the payment for the appraisal is transferred to the lender?
Except for the requirement that the broker may not be responsible for payment of compensation to the appraiser, AIR does not restrict how a lender obtains fees from a broker. So, for instance, a borrower may write a check to a broker, or provide their credit card information to a broker, for the broker to send to the lender or to an agent authorized by the lender.
Does that work, does that mean it is ok to have our customers provide their credit card number to the AMC to pay the charge?

Frequently Asked Questions on the Appraisal Regulations
and the Interagency Statement1 on
Independent Appraisal and Evaluation Functions
March 22, 2005

Can a borrower pay the appraiser directly for an appraisal that is ordered by the lender?

Answer: Since the regulated institution has engaged the appraiser for its services, the regulated institution should be the party to remit payment to the appraiser. The regulated institution may seek reimbursement from the borrower for the cost of the appraisal. However, the borrower may not recommend an appraiser to the institution or select the appraiser.

What you quoted has to do with the broker and lender, not to the supplier of an appraisal.

...and the fact that the customer is paying the AMC directly and not the appraiser doesn't help, i don't have a source for this but that seems logical. Is there a source?

We were going to be up an running with this system in a week or two, but it sounds like i need to step in and get it modified so that we the lender access the customers credit card and then seperately remit the $ to the AMC. "a needless complication" will be the outcry.

wait a minute - on freddie macs website there is this Q&A that says a borrower can pay a AMC direct:

38.Are borrowers precluded from directly paying a mortgage broker, lender or AMC for an appraisal?

No. AIR does not prohibit a borrower from directly paying a mortgage broker, a lender or AMC for an appraisal. However, the borrower is prohibited from directly paying the appraiser for an appraisal.

http://www.freddiemac.com/singlefamily/appraiser_independence_faq.html#48

This was proposed, but I think it makes it very clear:

http://www.fdic.gov/regulations/reform/comments/ferguson.html

Appraiser Engagement - from HVCC III
A. The lender or any third party specifically authorized by the lender (including, but not limited to, appraisal companies, appraisal management companies, and correspondent lenders) shall be responsible for selecting, retaining, and providing for payment of all compensation to the appraiser. The lender will not accept any appraisal report completed by an appraiser selected, retained, or compensated in any manner by any other third party (including mortgage brokers and real estate agents).