Appraisers Can't Charge Broker Transfer Fee per HUD

This was a great email I just received from a broker.  I don’t know about you, but I’m tired of appraisers wanting to charge the borrower an additional fee to transfer the appraisal to a new lender or broker.  The regulators should require an appraisal to be just that, an appraisal with a non-biased determination of value irrespective of who the lender is.  All appraisals should be able to be used for the purpose of valuation regardless of who the lender is.  This is just a scam by the appraisers to charge the borrower more money or have an excuse as to why they valued the property the way they did.

 

Please see email below from Mardi Fahringer…………………..

 

I'm sure many of you are running into problems with FHA loans that require an FHA appraisal to be transferred from one broker to another.  Some of the appraisers are charging additional fees for a retype This is against HUD regulations, and the appraiser can be sanctioned for this.  I have been spending the better part of the last couple days with the lender and appraiser trying to get an appraisal transferred.  I contacted HUD directly, and below is the response I received from HUD with regards to the FHA appraisal.  If you or your borrower has been charged additional fees for the retyping of the appraisal you may turn them into the HUD office in Santa Ana and they will be sanctioned. You will need to go into the FHA connection and change the case assignment to reflect your borrowers name, and your broker and sponsor IDs. Go to up-date existing case to accomplish this.   I hope this information is useful to you in future transactions.

 

HUD/FHA does not allow at anytime an appraiser to retype an appraisal report showing the new lenders name, the new borrowers name or the new contract information. HUD/FHA will accept the appraisal in its present form. The underwriter should use the HUD form 54114 Analysis of Appraisal Report to explain that the case number was reassigned and the lender, borrowers name and contract information contained within the appraisal report is incorrect due to the case transfer.

If the lender has any questions, they can contact me at 1-800-225-5342, ask for the Santa Ana Homeownership Center and my extension is 3401.

Tom Wilke

Technical Support Branch I

U.S. Department of Housing and Urban Development

Santa Ana Homeownership Center

34 Civic Center Plaza. Rm 7015

Santa Ana, Ca. 92701

Responses do not set HUD policy

Refer to HUD manuals and mortgage letters at;

http://www.hud.gov/offices/hsg/keywords.cfm

 

 

Regards,

Brent

 

Brent Houston Bridgelock Capital 22837 Ventura Blvd., Ste. 300 Woodland Hills, CA  91364 Tel: 818.206.0657 xt-1008 Fax: 818.836.6710 Email: brent@bridgelockcapital.com Website: www.bridgelockcapital.com

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