Discussion on Lenox Financial Mortgage Only Allows Appraise

Schumpeter Reincarnate Joined: 24 May 2008 Posts: 46268

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Dud? Joined: 07 Jan 2009 Posts: 3 Location: Wilmington, NC

Hello,

There is legal precident set at least by the VA and contained in the North Carolina banking laws that the Appraiser be paid in reasonably timely fashion (upon issuance of the NOV or within 30 days of delivery of the report). Our office policy is to send out invoices with the appraisal (1st notice), send out a second notice close to the 30 day past due date (2nd notice) and then send out a past due notice with a past due late fee as allowed by our state (3re notice (1.5% per month). So far, I have had only one lender not pay the late fee, and they would have paid if I had implimented this policy sooner. After 90 days the NC banking law says we can report any nonpayment to them for collection. Lenders have to post a bond to be in business in a particular state so the appraiser can collect against this bond.

According to USPAP the appraisal is not supposed to be made subject to "closing" so there would seem to be a conflict with this lender rule which many lenders try to get away with. I even had one write me a letter requesting that I return the appraisal fee because the value came in lower than needed to make the loan. Rolling Eyes

It has also been established in the courts that there can be no special lender rule made which subjugates other federal, state, or other governmental agency law / rules. While I have had some lenders tell me in writing that they are not bound by USPAP even though appraisers are, they are bound by state and federal lending laws and will be subject to the new lending regulations.

Therefore, if appraisers refuse to agree to do appraisals under these conditions and or for low fees, the lenders will not have anyone to give value opinions that are willing to subjugate themselves to their abuse. Wink

We have to protect our profession to have one and to stay in business, and it is up to appraisers to be the Vanguards of the system! So, protect yourselves and protect the economy by not agreeing to any abusive lender conditions.