We have a loan potentially going bad. The Lender requested a new appraisal and charged the fee to the loan. Do we need to disclose to the customer? Is this the appropriate way to track this type of transaction?
Similarly done by this lender for fees incurred on repossessed vehicles.

Any guidance would be appreciated.

What was the reason for the new appraisal?

Loan is with couple getting divorce; they are not paying. The lender wanted to be sure what's on the books isn't far from the newly appraised value.

I misunderstood your original post. I thought it was a new loan in process needing a second appraisal.

Sorry-can't help on that issue.

Thanks.

Whether you can assess that fee to the loan will be a matter of your loan/security agreement and state law. Any notification requirements would also be noted there. This would also apply to repossessed vehicles or other loans where collection expenses are incurred.

Great, will check our docs right away. i appreciate your time.