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#1750372 - 10/18/12 05:32 PM Appraisal Review Fee
Believing... Offline
Gold Star
Joined: Apr 2012
Posts: 346
In the mountains
I've searched the older threads on where to place third party appraisal review fees on the GFE. Dan says Block 3 and others state Block 1 as an administrative fee. We are planning to outsource this service soon. I don't want to get into tolerance hot water by not placing the fee in the correct category. Any new opinions/insights on this particular fee?
I appreciate your input!

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RESPA
#1750376 - 10/18/12 05:38 PM Re: Appraisal Review Fee Believing...
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
I agree with Dan, THIRD party would go in Block 3.
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#1751173 - 10/22/12 07:21 PM Re: Appraisal Review Fee Believing...
TNB Offline
Member
Joined: Mar 2008
Posts: 77
Texas
We got written up by our auditors because we did NOT have it in Block 1. They also considered it an adminstrative fee. And since that block has a zero tolerance they made us refund the appraisal review fee back to the customer.

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#1751181 - 10/22/12 07:48 PM Re: Appraisal Review Fee Believing...
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,965
TN
If the bank retained the fee it should be in Block 1. If the fee is paid to a third party it shoulc be in Block 3.
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#1751196 - 10/22/12 08:11 PM Re: Appraisal Review Fee Skittles
Believing... Offline
Gold Star
Joined: Apr 2012
Posts: 346
In the mountains
We decided to take a conservative approach and place the fee in Block 1. Here's my rationale: There doesn't seem to be a specific comment on this particular fee in the FAQs or Round-ups, but I am of the opinion that this would be more similar to the 4506T fee or automated underwriting fees that are supposed to be included in origination charges, even though they are paid to a third-party. The VOE/VOD charges are outside the realm of lender control and really charged by the employer/depository institution, depending upon the situation. I think the appraisal review fee is more administrative in nature, similar to doc prep, tax transcripts, etc, and really under lender control as to how to accomplish them.

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