I am working on a case that involves a mortgage loan originator who used her personal credit card to pay for an appraisal for the borrower. She ordered the appraisal from an AMC. The borrower gave the MLO a personal check (made in her name) to pay for the appraisal. She negotiated the check. I read the AIR (Appraisal Independence Requirements) from Freddie Mac in which one of the conditions state: Lenders may charge the broker or the borrower for the appraisal fee. An AMC may accept the appraisal fee from the borrower or broker provided:

- the AMC selects, retains, and provides for payment of all compensation to the appraiser on the lender's behalf (not the borrower's or mortgage broker's behalf.)

The MLO did not have any influence on the selection of the appraiser since the company she works for used an AMC. Where the grey area falls is whether the MLO violated AIR because the borrower compensated her directly for an appraisal report because she used her own personal funds to pay for the appraisal (regardless of whether the MLO ordered the appraisal report from an AMC.)

Any thoughts?

Thanks!