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#2145736 - 09/12/17 08:45 PM Appraisal Fee Question
swiggles Offline
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...possibly a very elementary question.....

We use a third party vendor to order appraisals. The third party vendor also reviews the appraisal and charges a fee for doing so. Must this be broken down on the LE and CD as two separate fees?......appraisal fee to the appraiser and review fee to the vendor?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2145740 - 09/12/17 08:56 PM Re: Appraisal Fee Question swiggles
rlcarey Online
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Two separate services with two separate fees, I think equates to two lines on the LE and CD.
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#2145747 - 09/12/17 09:25 PM Re: Appraisal Fee Question swiggles
swiggles Offline
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They are showing the appraisal fee payable to the vendor, not the actual appraiser. I know that wasn't OK under RESPA (ultimate recipient of the charge), but is it OK now?
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#2145751 - 09/12/17 09:56 PM Re: Appraisal Fee Question swiggles
rlcarey Online
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From the preamble to the final regulation:

Several national trade association commenters representing real property appraisers, as well as a number of individual appraiser commenters, stated that any charge for an appraisal management company (AMC) should be required to be separately itemized in § 1026.37(f)(2). As noted in the Bureau’s proposal, section 1475 of the Dodd-Frank Act permits the optional disclosure of the charges made by an AMC, but does not require separate itemization. See 77 FR 51116, 51134 (August 23, 2012).

However that is talking about the appraisal and not additional services.
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#2145784 - 09/13/17 01:25 PM Re: Appraisal Fee Question swiggles
swiggles Offline
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I read 1026.37(f)(2) and its commentary....then your reference above. So this is saying that the fee for the appraisal CAN be shown payable to the AMC, not the actual appraiser?

And so there should be two fees....an appraisal fee and a review fee, separately itemized under services for which the borrower cannot shop?

Sorry for my denseness.
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#2145788 - 09/13/17 01:35 PM Re: Appraisal Fee Question swiggles
RR Joker Offline
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That's how I understand it, Swiggles. Each service provided would have it's own line.
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#2145792 - 09/13/17 01:46 PM Re: Appraisal Fee Question swiggles
swiggles Offline
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LOL...yes, but can the appraisal fee be shown as payable to the appraisal management company (our vendor) rather than to the actual appraiser? That is my remaining question.
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#2145798 - 09/13/17 01:59 PM Re: Appraisal Fee Question swiggles
rlcarey Online
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Yes - you have no control over who they pay what. Similar to a pass through fee by the title company. You show who you cut the check too.
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#2145799 - 09/13/17 01:59 PM Re: Appraisal Fee Question swiggles
RR Joker Offline
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This ^^^
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#2145811 - 09/13/17 02:02 PM Re: Appraisal Fee Question swiggles
swiggles Offline
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Bless you all. Thank you for your valuable advice.
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#2145908 - 09/13/17 07:27 PM Re: Appraisal Fee Question swiggles
swiggles Offline
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This thread seems to say the opposite.....itemization NOT required. Now, I am further confused.
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#2145912 - 09/13/17 07:34 PM Re: Appraisal Fee Question swiggles
rlcarey Online
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Well it depends - are there one or two fees??
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#2145964 - 09/13/17 09:42 PM Re: Appraisal Fee Question swiggles
swiggles Offline
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Their invoice indicates a fee for the appraisal and a fee for the review. Is that the key?
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#2145968 - 09/13/17 09:53 PM Re: Appraisal Fee Question swiggles
rlcarey Online
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I think it is. If they were doing both for one fee, then I think you combine it as an Appraisal/Appraisal Review Fee. Since they are separating the services, I think you have to itemized them. In that post that you linked, I don't think I focused on the two separate services and was thinking about the appraisal fee/AMC fee being combined without considering the separate review fee.
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#2145974 - 09/13/17 10:17 PM Re: Appraisal Fee Question swiggles
swiggles Offline
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Thanks, Randy. You are big help.
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#2196474 - 10/25/18 06:01 PM Re: Appraisal Fee Question swiggles
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In a scenario where an Appraisal Review was conducted by one company, and then due to an unforeseen event, a second Appraisal Review was conducted by another company, would we be responsible for disclosing two separate Appraisal Review fees?

For example, a Loan Estimate was disclosed showing an Appraisal Review Fee of $200. AMC #1 performed a review, and charged an amount of $150. After an unforeseen event, AMC #2 performed a review, and charged an amount of $100. Because we did not redisclose an LE after the unforeseen event, we have a tolerance cure. But would the $200 we originally quoted apply to only the first review fee, resulting in a tolerance cure of $100 for the second, or would we only owe a cure of $50 because the aggregate amount of the both Reviews exceeded our original estimate by only $50?

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#2196488 - 10/25/18 06:59 PM Re: Appraisal Fee Question swiggles
Dan Persfull Offline
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Zero tolerance fees are per fee and are not not cumulative like the 10% tolerance fees are so you would owe the $100 cure.
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#2196489 - 10/25/18 07:05 PM Re: Appraisal Fee Question swiggles
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Thank you Dan, I appreciate your help.

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#2196671 - 10/29/18 02:34 PM Re: Appraisal Fee Question swiggles
RVFlyboy Offline
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Dan, would that be the case if the second appraisal review was dictated by a valid change in circumstance? I would think if it was a valid CiC, then a revised LE or CD (as applicable) could be issued within 3 business days with the second appraisal review fee included, in which case it would not require a tolerance cure.
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#2196687 - 10/29/18 03:43 PM Re: Appraisal Fee Question swiggles
Dan Persfull Offline
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If they have a valid changed circumstance and redisclosed within the allotted 3 business days they could reset the tolerance.

I'm not sure what would cause an appraisal to have to have a second review by a different review company though. Did the appraisal have to be revised, did they just not like the original review, etc. Even if the appraisal had to be revised why would it have to go to a second review company to have the updated revisions reviewed?
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#2196714 - 10/29/18 06:05 PM Re: Appraisal Fee Question swiggles
RVFlyboy Offline
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I don't know either what would be the circumstances of a valid CiC to warrant the second review, but I just felt the answer that it was a zero tolerance issue and the bank would have to provide the cure discounted the possibility that it could be a valid CiC within the 3 business day disclosure window.
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