Appraisal Fee

Posted By: Patricia

Appraisal Fee - 10/03/12 09:54 PM

The bank I am working at deducts the appraisal fee from the loan proceeds. I have never seen this practice before. Just wondering if any other banks are doing this.
Posted By: Dan Persfull

Re: Appraisal Fee - 10/04/12 12:46 PM

It's done all the time although the practice may change with the new Reg B proposal. I would suspect banks will most likely start requiring the appraisal fee be paid up front due to the proposed changes.
Posted By: Patricia

Re: Appraisal Fee - 10/04/12 01:16 PM

Thanks Dan.
Posted By: YosemiteSamIAm

Re: Appraisal Fee - 11/27/12 03:54 PM

Dan, what about the issues raised under TILA which prohibits even the collection of checks or credit card info prior to the delivery of disclosures to the customer? What would be the workaround other than having the customer come back after the 3 day period has run?
Posted By: Dan Persfull

Re: Appraisal Fee - 11/27/12 04:45 PM

That will depend on how your shop operates. If you hand the disclosures to the applicant face to face there is no prohibition from requesting the fees at that time. If you mail the disclosures you simply put a statement in your cover letter the appraisal fee must be paid by a certain date or no further action will be taken.