How can appraisers and lenders avoid an appraisal fee dispute?
First, HUD allows a tolerance of 10%, however,the 10% is not specific to the appraisal fee, but to the aggregate fees chargedin block 3. If the other charges in the block are accurate, an increase of 50% of the appraisal fee (or $175), is allowed and the lender takes no loss. Second, according to HUD FAQ (page 17),dated December 30, 2009, “after the GFE is issued, it is determined that an additional service such as an additional pest, structural or other inspection, upgraded appraisal, certification or survey is required…” HUD answer, “This could constitute a changed circumstance” – Upgrade of appraisal fee would be allowed not subject to the 10% tolerance. Third, at the time of application, an interview with the borrower to determine whether the property has any unusual characteristics or amenities would allow the opportunity for a quick call to the appraiser for a fee quote, saving time and preserving relationships. Communication between lender and appraiser is the key to avoiding pr
