Who may directly pay an appraiser for appraisal services?
Only the lender or a third party specifically authorized by the lender (including but not limited to appraisal companies, appraisal management companies (AMCs), and correspondent lenders) may directly pay an appraiser for appraisal services. Lenders may charge the broker or the borrower for the appraisal fee. An AMC may accept the appraisal fee from the broker or the borrower, provided: • The AMC is specifically authorized by the lender to act on its behalf, • The AMC accepts the borrower’s/broker’s payment on behalf of the lender and not on behalf of the appraiser, • The AMC selects, retains, and provides for payment of all compensation to the appraiser on the lender’s behalf, (not the borrower’s behalf), • The appraiser’s client is the lender and the appraiser correctly identifies the lender as the lender/client on the appraisal report, • The lender has policies and procedures in place that comply with the Code, and • The lender ensures that the AMC has policies and procedures in pla
Only the lender or a third party specifically authorized by the lender (including but not limited to appraisal companies, appraisal management companies (AMCs), and correspondent lenders) may directly pay an appraiser for appraisal services. Lenders may charge the broker or the borrower for the appraisal fee. An AMC may accept the appraisal fee from the broker or the borrower, provided: The AMC is specifically authorized by the lender to act on its behalf, The AMC accepts the borrower’s/brokers payment on behalf of the lender and not on behalf of the appraiser, The AMC selects, retains, and provides for payment of all compensation to the appraiser on the lenders behalf, (not the borrowers behalf), The appraiser’s client is the lender and the appraiser correctly identifies the lender as the lender/client on the appraisal report, The lender has policies and procedures in place that comply with the Code, and The lender ensures that the AMC has policies and procedures in place that comply
