With the lender ordering the appraisal from the AMC’s we are seeing some troubling issues regarding accurate HUD 1’s, delivery of appraisals to customers (and us) and credit card billing to the customers.

With one lender that we broker to we close in our name.  However, they have no procedure in place to deliver a copy of the appraisal and paid invoice to us.  We need a copy of the appraisal to meet state auditing requirements as well as a copy of the paid invoice to provide to the closer so that it can be reflected as POC on the HUD 1.  We had a closing and found out that the customer hadn’t received a copy of the appraisal.  They are supposed to receive it 3 days in advance of the closing or waive their rights.  We went back to the lender to get a copy.  We then took it out to the customer and had them sign and waive their rights to the 3 day period since they had signed on this refi the day before.  They then looked at the stamped paid invoice and compared it to their credit card statement.  The credit card statement was for more than the invoice.   We are told after the fact that this is for the processing fees charged by the credit card company.   The customer believes that the paid invoice should match their credit card bill.  They also said that when they filled in the credit card information online and assumed that they would be given the opportunity to print out the page and confirm the order, just like they do with any other internet service, that they weren't given that option.  

I just noticed on a recent refi that there was no appraisal fee listed on the HUD I---I informed the Lender and the response was "did you list it on your doc request?  HUH?  I didn't get a copy of invoice until after docs had gone out and had put question marks in the space for appraisal fee.  Assuming that since it's "on the Lender" per HVCC that it would be accurately accounted for. Oh---invoice made out to Lender.

Hmmmm... is HVCC promoting a RESPA violation?  Per HUD's website, "Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or any thing of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed."  Are AMC's splitting the appraisal fee?  I don't see it listed seperately on the Settlement Statement. 

What say you?

Kent - I think that you are making a good point.  The only party that I am aware of that can split fees and not reflect it on the HUD 1 is the real estate agent.  They commonly send a referral to another real estate broker and earn a percentage of the commission for essentially passing along a name and some basic information.  It is never reflected on the HUD 1.  Mortgage Brokers/lenders are held to a much higher standard.  If we do split a fee it can't be for the mere act of passing along a name, we must prove the work we did was commensurate with the compensation and be licensed in the state the loan is done.  I don't know where the AMC's fit into it.  But if they are a key element to the transaction it would seem that their fee should be disclosed.  It would be intersting to know what percentage of closed transactions aren't reflecting the apprisal as POC.  If it is reflected then is it the actual amount that the borrower was billed.  There might be a class action lawsuit in the making.

I think this issue is being looked at very carefully along with.

AMC's being unregulated???

Appraisals portability .  Most if not all Lenders will not accept another appraisal from another lender.  Even though the ruling states appraisals should be portable?

AMC's run by some who lost their license as an appraiser?

Cuomo found misconduct with AMC's

WaMu and e appraise it investigation and lawsuit.

Cuomo's own website said, he investigated fraud in the appraisal and mortgage industry, involving some of the country's largest BANKS!  NOT BROKERS, BANKS. It's on the NY AG website under "about the AG."

http://www.oag.state.ny.us/about.html