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Old 07-14-2015, 02:39 PM
 
1 posts, read 906 times
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After applying for a refi loan, the refi company charged me for the appraisal fee, and the appraiser they chose came to my home for the inspection on May 27. The appraisal was never submitted, despite daily promises to the contrary. Finally, on July 2, I was contacted by a different appraiser to perform another appraisal, and he submitted the appraisal on time (today). However, the mortgage company is trying to charge me for 4 weeks of rate lock extensions. Because the delay was entirely due to the delay from the appraiser, I don't think I should have to pay for the extensions.

Also, rates today are at about 4%, and my rate lock is 3.875%, if that helps.

Can someone tell me if I have any way to fight the rate lock extension fees? I want to walk away on general principle, and I don't believe I'd then be out any money but the appraisal fee, but I don't want to threaten to walk if they can charge me crazy fees for doing it.
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Old 07-14-2015, 03:16 PM
 
3,317 posts, read 7,253,255 times
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Walk. The delta to buy your way from 4.000% to 3.875% with a new lender is likely considerably less than acquiescing to such a silly demand.

They cannot charge you a penny for going to another company, and you can get the appraisal assigned to the new lender, as you paid for it, and you own it.

What is the loan amount?
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Old 07-14-2015, 05:02 PM
 
4,787 posts, read 8,754,839 times
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OP- You, as the borrower, do not own the appraisal.

The appraisal is owned by the appraiser's client. The client is the lender. The lender owns the appraisal. Paying for it is a requirement of the loan, much as paying for a credit check.

However, you might be able to get the appraisal reassigned to another lender. If you apply elsewhere you can ask them to use that same appraisal. If they want to that lender will contact the appraiser and ask to have the appraisal readddressed to them.

The appraiser may or may not do this. For sure it won't be done for free. There may be a small fee involved. To an appraiser this is a new assignment and a new relationship with another lender must be established. If the new lender has more overlays or stipulations to an appraisal than your original lender, the fee may be even more ( more additional work for the appraiser ) or the appraiser may even decline to do it . The appraiser probably won't speak to you, so work through your lender.

One more thing. I'm assuming you have a conventional loan. The above applies to that. If you have a VA or FHA loan, then the appraisal is portable for several months. Good luck
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Old 07-14-2015, 05:48 PM
 
3,317 posts, read 7,253,255 times
Reputation: 4095
Quote:
Originally Posted by willow wind View Post
OP- You, as the borrower, do not own the appraisal.

The appraisal is owned by the appraiser's client. The client is the lender. The lender owns the appraisal. Paying for it is a requirement of the loan, much as paying for a credit check.

However, you might be able to get the appraisal reassigned to another lender. If you apply elsewhere you can ask them to use that same appraisal. If they want to that lender will contact the appraiser and ask to have the appraisal readddressed to them.

The appraiser may or may not do this. For sure it won't be done for free. There may be a small fee involved. To an appraiser this is a new assignment and a new relationship with another lender must be established. If the new lender has more overlays or stipulations to an appraisal than your original lender, the fee may be even more ( more additional work for the appraiser ) or the appraiser may even decline to do it . The appraiser probably won't speak to you, so work through your lender.

One more thing. I'm assuming you have a conventional loan. The above applies to that. If you have a VA or FHA loan, then the appraisal is portable for several months. Good luck

MORTGAGEE LETTER 2009-29

Appraisal Transfer and Change of Client Name in Appraisal Report

...

In cases where a borrower has switched lenders, the first lender must, at the borrower’s request, transfer the case to the second lender.

Last edited by Pfhtex; 07-14-2015 at 06:32 PM..
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Old 07-14-2015, 06:22 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
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Walk away, don't look back. Don't pay a dime, don't expect the report. Do expect to pay for the appraisal report upfront at the next place, as that is customary. I am amazed an appraiser even came out, most companies would not even order the appraisal without a deposit.
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Old 07-14-2015, 10:16 PM
 
4,787 posts, read 8,754,839 times
Reputation: 12592
pfhtex- that is a HUD mortgagee letter to which you refer. Isn't that what I just said ? An FHA loan is portable for several months. Portable means transferable. However, it does not apply to a conventional loan. The OP has not said what type of loan is in play.
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