Hi, we have a one-time close construction to permanent product. Sometimes the appraiser will let us know the appraisal fee increased beyond what we disclosed on the CD at loan closing. Our construction agreement states we can pass along the increased appraisal fee to the borrower, however, this seems to violate TRID's requirement that the CD contain final fees and costs associated with the transaction.

I believe we can pass along new fees, like an appraisal recertification if needed due to borrower and/or construction delays, but I do not believe we can increase the costs of fees disclosed at closing.

Thoughts, please? Thank you.

Any such fees charged by the appraiser for services conducted post-closing are finance charges. Whether or not your original final CD was issued in good faith is the issue.

Thanks for the response. If the original final CD was issued in good faith and the appraiser increased fees after closing, could we pass along the increased charges then? Would we need to issue a revised CD?

I think that becomes a contractual issue. Just make sure that those fees for post-closing appraisal services are broken out on your final CD and treated as finance charges.

Got it. Thank you!