Appraiser is asking for more money in the middle of refinance process, legal?

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xerxes101
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Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Mon May 11, 2020 4:45 pm

Hello All,

I need some advice with this frustrating journey I am in. It has been a nightmare for me honestly and I get even more frustrated every time I read about a smooth refinancing processes on this board.

We started our refinance process late Feb. of this year and after the lender already charged my credit card for the appraisal fee upfront for $645 on 20 April 2020, the appraiser is now asking for an additional $105 dollars ($750 total). I am really unhappy about this because (1) the $645 figure was in the disclosure document issued by the lender (2) with the amount of information which is available online about any house nowadays, there is no reason for the appraiser to renege like this, and (3) the $645 figure I believe is already a very high amount. Before this happened, I did ask the lender to waive the appraisal because of COVID-19, because my loan to value ratio is less than 25%, I am not taking any cash out, and I have no other mortgage on the property.

First of all is this legal? Can an appraiser jack up his fee in the middle of the refinance like this? ...and secondly what is my recourse?

Thanks in advance for any advice you could offer.

afan
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by afan » Mon May 11, 2020 4:49 pm

We had a similar event from an appraiser the last time we refinanced. We said no and the lender ended up waiving the appraisal. The appraiser got nothing and the loan went through.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

Afty
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by Afty » Mon May 11, 2020 4:57 pm

Have you brought this up to the lender? I expect they would be able to smooth this over.

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anon_investor
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by anon_investor » Mon May 11, 2020 5:06 pm

afan wrote:
Mon May 11, 2020 4:49 pm
We had a similar event from an appraiser the last time we refinanced. We said no and the lender ended up waiving the appraisal. The appraiser got nothing and the loan went through.
This made me smile :D .

BillyK
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by BillyK » Mon May 11, 2020 5:14 pm

I am not so sure I would be too keen on potentially ticking off the appraiser for $105 bucks. You want a happy appraiser that lands on the number you need.

veindoc
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by veindoc » Mon May 11, 2020 5:16 pm

BillyK wrote:
Mon May 11, 2020 5:14 pm
I am not so sure I would be too keen on potentially ticking off the appraiser for $105 bucks. You want a happy appraiser that lands on the number you need.
The loan to value ratio is <25%. I think the OP is okay here.

sutemi
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by sutemi » Mon May 11, 2020 5:23 pm

When we refinanced with a local credit union, we were able to convince them to waive an appraisal and use the assessed value of the home instead. We had >50% loan to value. Assessments around here are always lower than appraisals and it was publicly available information.

nolesrule
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by nolesrule » Mon May 11, 2020 6:47 pm

Appraisers are hired by the lender, not the borrower. They should not be coming to the borrower to ask for more money.

stan1
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by stan1 » Mon May 11, 2020 6:50 pm

nolesrule wrote:
Mon May 11, 2020 6:47 pm
Appraisers are hired by the lender, not the borrower. They should not be coming to the borrower to ask for more money.
Right, did the guy show up at the house and demand another $105 or he drives away?

Topic Author
xerxes101
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Tue May 12, 2020 10:28 am

Hey everyone OP here, thanks for your input ...I really appreciate the sanity check. I believe I have enough now to take on the lender and make my arguments, if they say no I will just walk away...plenty of other lenders out there who offer good rates. I think two things may have happened: (1) the appraiser may have gotten ticked off when I asked for a waiver (although I am not sure why the lender would share that info with the appraiser) (2) the appraiser looked at the loan to value ratio and decided to ding me for more money...either way, this is not just the matter of the money, it is a matter of principal to me. I believe what they are doing is unprofessional.

Cheers :sharebeer

TallBoy29er
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by TallBoy29er » Tue May 12, 2020 10:54 am

Is there anything unique about your home, property, or location that could make it more difficult to appraise?
Appraisers take on more work, and more risk, for appraisals that are difficult to comp.

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greg24
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by greg24 » Tue May 12, 2020 11:16 am

You've paid the amount on the disclosure statement from the lender.

Now the appraiser is asking for more.

I don't see how the lender can say "no". You've followed the rules.

LoveTheBogle
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by LoveTheBogle » Tue May 12, 2020 11:32 am

The lender made a disclosure of the appraisal fee as an estimate. The lender, nor the appraiser, know enough about your home from day 0 of the refinance process to know if it may require more money. Look up the term “estimate” in the dictionary.

Is your house large in size, unique in design or considered luxury? These are all items that increase the risk to the appraiser.

Trust me, I am not a big fan of appraisers but what you are experiencing is not unusual. You can always so you won’t pay it and see what the lender does but I wouldn’t quibble and send my sensitive non public information to another entity for the sake of a hundred bucks.

LoveTheBogle
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by LoveTheBogle » Tue May 12, 2020 11:35 am

xerxes101 wrote:
Tue May 12, 2020 10:28 am
Hey everyone OP here, thanks for your input ...I really appreciate the sanity check. I believe I have enough now to take on the lender and make my arguments, if they say no I will just walk away...plenty of other lenders out there who offer good rates. I think two things may have happened: (1) the appraiser may have gotten ticked off when I asked for a waiver (although I am not sure why the lender would share that info with the appraiser) (2) the appraiser looked at the loan to value ratio and decided to ding me for more money...either way, this is not just the matter of the money, it is a matter of principal to me. I believe what they are doing is unprofessional.

Cheers :sharebeer
Both of your assumptions about what happened are wrong.

1. The appraiser has no idea you asked for a waiver. An appraiser is only aware of your house when the appraiser gets an order from an appraisal management company.

2. The appraiser doesn’t know your loan amount so doesn’t know your LTV.

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FIREchief
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by FIREchief » Tue May 12, 2020 11:40 am

xerxes101 wrote:
Mon May 11, 2020 4:45 pm
We started our refinance process late Feb. of this year and after the lender already charged my credit card for the appraisal fee upfront for $645 on 20 April 2020, the appraiser is now asking for an additional $105 dollars ($750 total).
What did the appraiser tell you when you asked what the additional $105 was for?
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

Topic Author
xerxes101
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Tue May 12, 2020 11:50 am

FIREchief wrote:
Tue May 12, 2020 11:40 am
xerxes101 wrote:
Mon May 11, 2020 4:45 pm
We started our refinance process late Feb. of this year and after the lender already charged my credit card for the appraisal fee upfront for $645 on 20 April 2020, the appraiser is now asking for an additional $105 dollars ($750 total).
What did the appraiser tell you when you asked what the additional $105 was for?
OP here, I have never talked to the appraiser directly. All conversations have been with the lender only.

Topic Author
xerxes101
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Tue May 12, 2020 11:57 am

LoveTheBogle wrote:
Tue May 12, 2020 11:35 am
xerxes101 wrote:
Tue May 12, 2020 10:28 am
Hey everyone OP here, thanks for your input ...I really appreciate the sanity check. I believe I have enough now to take on the lender and make my arguments, if they say no I will just walk away...plenty of other lenders out there who offer good rates. I think two things may have happened: (1) the appraiser may have gotten ticked off when I asked for a waiver (although I am not sure why the lender would share that info with the appraiser) (2) the appraiser looked at the loan to value ratio and decided to ding me for more money...either way, this is not just the matter of the money, it is a matter of principal to me. I believe what they are doing is unprofessional.

Cheers :sharebeer
Both of your assumptions about what happened are wrong.

1. The appraiser has no idea you asked for a waiver. An appraiser is only aware of your house when the appraiser gets an order from an appraisal management company.

2. The appraiser doesn’t know your loan amount so doesn’t know your LTV.
OK, this is good to know, but this is still not right to me.

Topic Author
xerxes101
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Tue May 12, 2020 12:02 pm

xerxes101 wrote:
Tue May 12, 2020 11:50 am
FIREchief wrote:
Tue May 12, 2020 11:40 am
xerxes101 wrote:
Mon May 11, 2020 4:45 pm
We started our refinance process late Feb. of this year and after the lender already charged my credit card for the appraisal fee upfront for $645 on 20 April 2020, the appraiser is now asking for an additional $105 dollars ($750 total).
What did the appraiser tell you when you asked what the additional $105 was for?
OP here, I have never talked to the appraiser directly. All conversations have been with the lender only.
The lender is saying that the appraiser claims that it is difficult to find comps for this house. But look, I have refinanced this house many times over the years...at least 5 times. This is unprecedented. It has never happened like this before.

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xerxes101
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Tue May 12, 2020 12:04 pm

LoveTheBogle wrote:
Tue May 12, 2020 11:32 am
The lender made a disclosure of the appraisal fee as an estimate. The lender, nor the appraiser, know enough about your home from day 0 of the refinance process to know if it may require more money. Look up the term “estimate” in the dictionary.

Is your house large in size, unique in design or considered luxury? These are all items that increase the risk to the appraiser.

Trust me, I am not a big fan of appraisers but what you are experiencing is not unusual. You can always so you won’t pay it and see what the lender does but I wouldn’t quibble and send my sensitive non public information to another entity for the sake of a hundred bucks.
What I am experiencing is unusual from the stand point that I have refinanced this house at least 5 times that I remember over the years...maybe more, and this has never happened before.

TropikThunder
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by TropikThunder » Tue May 12, 2020 12:08 pm

xerxes101 wrote:
Tue May 12, 2020 10:28 am
(1) the appraiser may have gotten ticked off when I asked for a waiver (although I am not sure why the lender would share that info with the appraiser)
If I was an appraiser today, I would take for granted that every borrower is asking for a waiver.

CardioMD
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by CardioMD » Tue May 12, 2020 12:13 pm

I have never experienced or heard of this. We always paid the lender and never heard about it again. We once inquired about an expedited appraisal which would have been an additional cost but we chose not to.
“The stock market is a giant distraction from the business of investing.” -Jack Bogle

afan
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by afan » Tue May 12, 2020 12:14 pm

When it happened to us it was during a boom time for purchases and refinancing. The lender had trouble finding any appraiser at all. Apparently the demand for appraisals exceeded the supply of appraisers. In our case the appraiser apparently said that when they took the assignment that they did not know where our home was??? Ever heard of Google?
Anyway, the lender wanted to close the deal, it was low risk for them, so they dropped the appraisal requirement. From your LTV, I suspect the same may happen with the OP.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

MMiroir
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by MMiroir » Tue May 12, 2020 4:07 pm

The "appraisal fee" that you are charged covers three items:

1) The fee paid to the appraiser
2) the fee paid to the appraisal manager to procure the appraisal and manage delivery
3) the fee to review the appraisal.

Banks may hire third parties to do any of these functions, or they may do some or all of them inhouse. If you were charged $645 for the appraisal, the actual appraiser who shows up and measures your house would be lucky to get half of that. The rest goes to the other two functions, whether they are done in house by the bank or not. For all the OP knows, the additional $105 was just pocketed by the lender just because they can.

If the appraiser did this assignment before and is asking for more money, it could be because the assignment was more time consuming than they originally thought and are trying recoup some lost billings. It could also be that the client is a pain to deal with, so the appraiser priced his services higher in the hope they would move on to a different vendor. I have done that plenty of times in my line of business.

mbasherp
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by mbasherp » Tue May 12, 2020 4:15 pm

A similar thing happened mid refinance for me, in February. Appraisal was $505, a week later, before showing up, they charged an extra $80 to my credit card. I contacted the lender and they immediately got the appraiser to reverse the charge.

I expect you’ll have a similar outcome. If an appraiser is making loan estimates look unreliable, the lender will use someone else. Nobody does well by taking advantage of the other in this situation.

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xerxes101
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Wed May 13, 2020 11:41 am

The latest update is that the lender is going to send it back to the appraiser with a "not to exceed $645" note...we'll see.

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TomatoTomahto
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by TomatoTomahto » Wed May 13, 2020 12:09 pm

xerxes101 wrote:
Tue May 12, 2020 10:28 am
...either way, this is not just the matter of the money, it is a matter of principal to me.
Actually, it’s a matter of principle to you; the money is a matter of principal :D

Sorry for being pedantic; is this why I had few friends in high school :?: :sharebeer
Okay, I get it; I won't be political or controversial. The Earth is flat.

daheld
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by daheld » Wed May 13, 2020 12:53 pm

xerxes101 wrote:
Wed May 13, 2020 11:41 am
The latest update is that the lender is going to send it back to the appraiser with a "not to exceed $645" note...we'll see.
Has your lender charged you yet for their processing fees? If not, your lender can eat that $105 increase.

I would not be bashful about asking for what you think is right. I guess it's a bit different now that things have ramped up and lenders have all the business they can handle; we refi'd back at the beginning of this madness. Some numbers came in higher than we were expecting and I basically put my foot down and said I wasn't paying some of it, after being told an estimate of what certain items would cost. Our lender ate some of the cost and got the numbers where they should be.

Mako
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by Mako » Wed May 13, 2020 3:12 pm

My understanding is that appraisal fees are a zero tolerance item, meaning they cannot change from the loan estimate therefore the lender should eat the difference. Google might have more on this, I'm not an expert. I understand the law provides for some exceptions permitting revising the numbers, and I don't know if COVID could provide an acceptable exception. 

Maybe you never hear about it again, but if the lender asks for more $ I would at least ask why they are changing a zero tolerance fee, force them to give an explanation.

clown
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by clown » Wed May 13, 2020 3:34 pm

I doubt the lender selected the appraiser. Because of “sweetheart” relationships between some banks and some appraisers, the appraisal management firms were created to be a buffer between the two. Lender submits appraisal request to appraisal manager who selects appraiser from among its panel of appraisers. My understanding is that the lender submits a price, and any appraiser can decline if they feel the price is not adequate. The scenario OP describes may not be illegal (I am no lawyer) but is surely unprofessional.

Balance
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by Balance » Wed May 13, 2020 3:52 pm

I am an appraiser and a realtor in the Bay Area. I belong to both a local and national association and I hear commentary both in my market area and for the rest of the country.

First of all, most lenders use a middle man called an AMC (Appraisal Management Company) who acts as the firewall between the lender and the appraiser so that there is no undue influence. The AMC establishes a baseline fee upfront with the lender, then they negotiate that fee with the appraiser. Many appraisers report they get 40-60% of the fee charged to the borrower.

Since COVID-19 and the shelter in place order, many appraisers decided to stop doing interior appraisals. The median age of appraiser is 60+ years old so they are the target age that will be most devastated by the virus. Since most appraisers decided to stop doing interiors there has been a huge demand for those willing to take the job. The appraisers who continued to work got backed up with appraisal orders and started charging more for their time since they were working nights and weekends to accommodate lender requests. If the typical turnaround for an appraisal was 7 days prior to COVID, it then turned into 14+ days quickly. Appraisers started charging rush fees to get appraisals out sooner to meet lender improsed deadlines. When I go to my AMC and tell them that I need more time or need a rush fee, I may request $50 more for the appraisal. The AMC then goes to the lender and may add their fee on top of my rush fee which can easily go up to $100-$150.

Depending on your lender, certain banks will eat the rush or complexity fee of the appraisal assignment over and above the original agreed-upon fee. In my area, Wells Fargo eats the additional fees. As I mentioned the AMC middle man is involved with most appraisals these days however smaller lenders and credit unions may self manage their appraisal panel.

I do agree that it's not right that you have to bear that expense as a consumer if everyone already agreed on fees at the beginning. When the lender/AMC asks me for a quote I normally have to respond to them within 24 hours and they notify the borrower right away. I can only count a couple of instances in my career where I got to the house and it was completely different than expected and had a much more complex assignment. However, I never came back and asked for more money, I figure that sometimes I get easy ones and sometimes get tough jobs that cancel each other out.

bikesandbeers
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by bikesandbeers » Wed May 13, 2020 4:07 pm

I just had my house appraised for a refinance. It was a $475 fee paid to the lender. This matched what was on the disclosure.
The appraiser was actually doing another house on my same street, so it worked out well and got done quickly.

I would say its up to your lender to cover anything additional the appraiser asks for. With the low LTV, you shouldn't have to worry about making the appraiser happy, as long as there are reasonable comps.

Good luck.

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xerxes101
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Wed May 13, 2020 5:02 pm

TomatoTomahto wrote:
Wed May 13, 2020 12:09 pm
xerxes101 wrote:
Tue May 12, 2020 10:28 am
...either way, this is not just the matter of the money, it is a matter of principal to me.
Actually, it’s a matter of principle to you; the money is a matter of principal :D

Sorry for being pedantic; is this why I had few friends in high school :?: :sharebeer
ha ha that's funny... :D thanks for the correction...

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xerxes101
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Wed May 13, 2020 5:07 pm

Balance wrote:
Wed May 13, 2020 3:52 pm
I am an appraiser and a realtor in the Bay Area. I belong to both a local and national association and I hear commentary both in my market area and for the rest of the country.

First of all, most lenders use a middle man called an AMC (Appraisal Management Company) who acts as the firewall between the lender and the appraiser so that there is no undue influence. The AMC establishes a baseline fee upfront with the lender, then they negotiate that fee with the appraiser. Many appraisers report they get 40-60% of the fee charged to the borrower.

Since COVID-19 and the shelter in place order, many appraisers decided to stop doing interior appraisals. The median age of appraiser is 60+ years old so they are the target age that will be most devastated by the virus. Since most appraisers decided to stop doing interiors there has been a huge demand for those willing to take the job. The appraisers who continued to work got backed up with appraisal orders and started charging more for their time since they were working nights and weekends to accommodate lender requests. If the typical turnaround for an appraisal was 7 days prior to COVID, it then turned into 14+ days quickly. Appraisers started charging rush fees to get appraisals out sooner to meet lender improsed deadlines. When I go to my AMC and tell them that I need more time or need a rush fee, I may request $50 more for the appraisal. The AMC then goes to the lender and may add their fee on top of my rush fee which can easily go up to $100-$150.

Depending on your lender, certain banks will eat the rush or complexity fee of the appraisal assignment over and above the original agreed-upon fee. In my area, Wells Fargo eats the additional fees. As I mentioned the AMC middle man is involved with most appraisals these days however smaller lenders and credit unions may self manage their appraisal panel.

I do agree that it's not right that you have to bear that expense as a consumer if everyone already agreed on fees at the beginning. When the lender/AMC asks me for a quote I normally have to respond to them within 24 hours and they notify the borrower right away. I can only count a couple of instances in my career where I got to the house and it was completely different than expected and had a much more complex assignment. However, I never came back and asked for more money, I figure that sometimes I get easy ones and sometimes get tough jobs that cancel each other out.
Thanks for your comments and clarifications...I do have a question for you since you said you are an appraiser. In which cases does the lender decide to do without an appraisal, and does the lender consult an appraiser if they decide to do so? Also, do you guys take a look at the property on Zillow, RedFin, or Realtor.com before you go out and visit it or before you take on the job?

Balance
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by Balance » Wed May 13, 2020 7:12 pm

xerxes101 wrote:
Wed May 13, 2020 5:07 pm
Balance wrote:
Wed May 13, 2020 3:52 pm
I am an appraiser and a realtor in the Bay Area. I belong to both a local and national association and I hear commentary both in my market area and for the rest of the country.

First of all, most lenders use a middle man called an AMC (Appraisal Management Company) who acts as the firewall between the lender and the appraiser so that there is no undue influence. The AMC establishes a baseline fee upfront with the lender, then they negotiate that fee with the appraiser. Many appraisers report they get 40-60% of the fee charged to the borrower.

Since COVID-19 and the shelter in place order, many appraisers decided to stop doing interior appraisals. The median age of appraiser is 60+ years old so they are the target age that will be most devastated by the virus. Since most appraisers decided to stop doing interiors there has been a huge demand for those willing to take the job. The appraisers who continued to work got backed up with appraisal orders and started charging more for their time since they were working nights and weekends to accommodate lender requests. If the typical turnaround for an appraisal was 7 days prior to COVID, it then turned into 14+ days quickly. Appraisers started charging rush fees to get appraisals out sooner to meet lender improsed deadlines. When I go to my AMC and tell them that I need more time or need a rush fee, I may request $50 more for the appraisal. The AMC then goes to the lender and may add their fee on top of my rush fee which can easily go up to $100-$150.

Depending on your lender, certain banks will eat the rush or complexity fee of the appraisal assignment over and above the original agreed-upon fee. In my area, Wells Fargo eats the additional fees. As I mentioned the AMC middle man is involved with most appraisals these days however smaller lenders and credit unions may self manage their appraisal panel.

I do agree that it's not right that you have to bear that expense as a consumer if everyone already agreed on fees at the beginning. When the lender/AMC asks me for a quote I normally have to respond to them within 24 hours and they notify the borrower right away. I can only count a couple of instances in my career where I got to the house and it was completely different than expected and had a much more complex assignment. However, I never came back and asked for more money, I figure that sometimes I get easy ones and sometimes get tough jobs that cancel each other out.
Thanks for your comments and clarifications...I do have a question for you since you said you are an appraiser. In which cases does the lender decide to do without an appraisal, and does the lender consult an appraiser if they decide to do so? Also, do you guys take a look at the property on Zillow, RedFin, or Realtor.com before you go out and visit it or before you take on the job?
The lender should be able to run an AVM (Automated valuation model) when it meets a certain LTV threshold. In your case, they should be able to run the AVM program and get a very good idea of the value for the neighborhood within a certain confidence interval. For me personally, I don't use the Zestimate from Zillow. I use my local MLS and run my own statistical analysis for comps since Zillow won't have everything. For the subject characteristics, I will use public records (tax records), look for previous sales, then verify the size, condition, amenities, etc. with the borrower before even going out to the property.

seawolf21
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Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by seawolf21 » Wed May 13, 2020 7:56 pm

xerxes101 wrote:
Mon May 11, 2020 4:45 pm
Hello All,

I need some advice with this frustrating journey I am in. It has been a nightmare for me honestly and I get even more frustrated every time I read about a smooth refinancing processes on this board.

We started our refinance process late Feb. of this year and after the lender already charged my credit card for the appraisal fee upfront for $645 on 20 April 2020, the appraiser is now asking for an additional $105 dollars ($750 total). I am really unhappy about this because (1) the $645 figure was in the disclosure document issued by the lender (2) with the amount of information which is available online about any house nowadays, there is no reason for the appraiser to renege like this, and (3) the $645 figure I believe is already a very high amount. Before this happened, I did ask the lender to waive the appraisal because of COVID-19, because my loan to value ratio is less than 25%, I am not taking any cash out, and I have no other mortgage on the property.

First of all is this legal? Can an appraiser jack up his fee in the middle of the refinance like this? ...and secondly what is my recourse?

Thanks in advance for any advice you could offer.
Did you change anything on then loan application since locking? If not, then lender can not pass on the increased appraisal fee to you as this is a required service borrower cannot shop for.

https://www.consumerfinance.gov/ask-cfp ... te-en-172/

Whoever is asking you about the increased cost is either misinformed or knowingly breaking the law.

Now if lock expired then things could be different since you mentioned this started in late Feb and we already in the middle of May.

Topic Author
xerxes101
Posts: 219
Joined: Sat Oct 14, 2017 11:25 am

Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by xerxes101 » Thu May 14, 2020 9:10 am

seawolf21 wrote:
Wed May 13, 2020 7:56 pm
xerxes101 wrote:
Mon May 11, 2020 4:45 pm
Hello All,

I need some advice with this frustrating journey I am in. It has been a nightmare for me honestly and I get even more frustrated every time I read about a smooth refinancing processes on this board.

We started our refinance process late Feb. of this year and after the lender already charged my credit card for the appraisal fee upfront for $645 on 20 April 2020, the appraiser is now asking for an additional $105 dollars ($750 total). I am really unhappy about this because (1) the $645 figure was in the disclosure document issued by the lender (2) with the amount of information which is available online about any house nowadays, there is no reason for the appraiser to renege like this, and (3) the $645 figure I believe is already a very high amount. Before this happened, I did ask the lender to waive the appraisal because of COVID-19, because my loan to value ratio is less than 25%, I am not taking any cash out, and I have no other mortgage on the property.

First of all is this legal? Can an appraiser jack up his fee in the middle of the refinance like this? ...and secondly what is my recourse?

Thanks in advance for any advice you could offer.
Did you change anything on then loan application since locking? If not, then lender can not pass on the increased appraisal fee to you as this is a required service borrower cannot shop for.

https://www.consumerfinance.gov/ask-cfp ... te-en-172/

Whoever is asking you about the increased cost is either misinformed or knowingly breaking the law.

Now if lock expired then things could be different since you mentioned this started in late Feb and we already in the middle of May.
No, I did not change anything. There were delays due to COVID-19 and they had to extend the lock. The delays have been frustrating on top of everything else. Thank you for the link. It is very good to know. I am now curious if different states could have different rules.
I will be doing some research to find out.

seawolf21
Posts: 670
Joined: Tue Aug 05, 2014 7:33 am

Re: Appraiser is asking for more money in the middle of refinance process, legal?

Post by seawolf21 » Thu May 14, 2020 10:32 am

xerxes101 wrote:
Thu May 14, 2020 9:10 am
seawolf21 wrote:
Wed May 13, 2020 7:56 pm
xerxes101 wrote:
Mon May 11, 2020 4:45 pm
Hello All,

I need some advice with this frustrating journey I am in. It has been a nightmare for me honestly and I get even more frustrated every time I read about a smooth refinancing processes on this board.

We started our refinance process late Feb. of this year and after the lender already charged my credit card for the appraisal fee upfront for $645 on 20 April 2020, the appraiser is now asking for an additional $105 dollars ($750 total). I am really unhappy about this because (1) the $645 figure was in the disclosure document issued by the lender (2) with the amount of information which is available online about any house nowadays, there is no reason for the appraiser to renege like this, and (3) the $645 figure I believe is already a very high amount. Before this happened, I did ask the lender to waive the appraisal because of COVID-19, because my loan to value ratio is less than 25%, I am not taking any cash out, and I have no other mortgage on the property.

First of all is this legal? Can an appraiser jack up his fee in the middle of the refinance like this? ...and secondly what is my recourse?

Thanks in advance for any advice you could offer.
Did you change anything on then loan application since locking? If not, then lender can not pass on the increased appraisal fee to you as this is a required service borrower cannot shop for.

https://www.consumerfinance.gov/ask-cfp ... te-en-172/

Whoever is asking you about the increased cost is either misinformed or knowingly breaking the law.

Now if lock expired then things could be different since you mentioned this started in late Feb and we already in the middle of May.
No, I did not change anything. There were delays due to COVID-19 and they had to extend the lock. The delays have been frustrating on top of everything else. Thank you for the link. It is very good to know. I am now curious if different states could have different rules.
I will be doing some research to find out.
Even if there are state laws, it can’t undo protections afforded by Federal law.

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