We are having a discussion about if we are not sure if we are doing an appraisal or an internal evaluation, if we can put both on the LE? We do charge for our internal evaluation. Any guidance would be greatly appreciated.

I'll just tell you what we do, then wait for someone to shoot holes in it:

We start with one or the other. We will go from quoting an appraisal to actually charging for an evaluation, but basically never the other way around. If we are doing the former, then i document in our LOS's tolerance baseline that there is, in reality, no "new" fee--just a fee that migrated from "cannot shop for" to "origination charges", and this migration benefits the consumer (because the evaluation fee is much, much less than an appraisal fee).

IOW, we don't cure because we started with a $450 'cannot shop for' appraisal fee that turned into a $100 'origination fee' evaluation fee.

raitchjay: Do you consider it a CofC and give a new LE or just correct on the CD?

Just show the actual fee on the CD.......but for tolerance purposes, i guess you could say i "treat it like a changed circumstance"....because the only way my LOS will let you change your tolerance baseline is by hitting the "changed circumstance" box first. I'm not 100% sold that my way is TRID kosher, but i feel ok with the risk at this point. Was totally a non-issue at my last exam......but i am curious what others think or are doing differently, which is kinda why i posted it.

Would that affect the APR and maybe get out of tolerance on small dollar loans? Or doesn't that apply anymore?

An appraisal or evaluation fee is not a finance charge.

So, typically you get an appraisal - so you disclose one. Then later after further review, based on the known facts, the bank decides that only an evaluation is necessary. You have a changed circumstance as long as the inclusion of the appraisal fee was in good faith and something was new or changed:

(2) Information specific to the consumer or transaction that the creditor relied upon when providing the disclosures required under paragraph (e)(1)(i) of this section and that was inaccurate or changed after the disclosures were provided;

Now, if you have a policy that only an evaluation is necessary for transactions less than $100,000 and you disclose an appraisal fee on a $80,000 application and change it to an evaluation later - then you have a problem.

Sorry to bring this back up.... So would an in house evaluation fee go on A. Origination Charges or B Services you cannot shop for?

Thank you!

A. Origination Charges.

ETA: ANY fee that your bank is the ultimate recipient of goes in A., whether it's labelled as an "origination charge' or not.