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#2057050 - 01/06/16 09:00 PM Data Facts Firewall-Appraisal amount went up!
mdog76 Offline
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Joined: Jan 2007
Posts: 645
We are working on a TRID loan where the cost of the appraisal went up vs what was quoted. On loans that are underwritten to be sold on the secondary market, our appraisals are ordered through the Data Facts Firewall (hope others know what this is). Since the bank doesn't know who the appraiser will be in this process, we based our LE on the highest price ever charged for an appraisal ordered through the Firewall i.e. $460. When the job was finally accepted by an appraiser, the charge came back in at $540. Since this is a 0% tolerance category, is this fixed with a change in circumstance and revised LE?

Hope that makes sense and thank you.

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#2057052 - 01/06/16 09:06 PM Re: Data Facts Firewall-Appraisal amount went up! mdog76
Compl101TX Offline
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Compl101TX
Joined: Aug 2010
Posts: 378
W. TX
What would the CIC be? You have a tolerance issue and will need to cure it at closing.
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#2057054 - 01/06/16 09:10 PM Re: Data Facts Firewall-Appraisal amount went up! mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
Ok but then how does the bank accurately and in good faith estimate the appraisal fee when we have no idea who the appraiser will be in this process?

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#2057063 - 01/06/16 09:27 PM Re: Data Facts Firewall-Appraisal amount went up! mdog76
John Burnett Online
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John Burnett
Joined: Oct 2000
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Cape Cod
You either deal with it (that'll be expensive) or you find another way to obtain appraisals -- a way that allows you to better control the bidding process. If enough lenders are taking hits like this one, the client banks should be clamoring for change.
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