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Is it OK to order an appraisal prior to receiving the Intent To Proceed as long as the borrower has not been charged?
You can order it but you can’t charge for it until the LE is provided and intent to proceed is given. If you don’t receive the intent you can’t charge the borrower and the bank would have to absorb the cost of the appraisal.
1026.19(e)(2) Predisclosure activity.
(i) Imposition of fees on consumer.
(A) Fee restriction. Except as provided in paragraph (e)(2)(i)(B) of this section, neither a creditor nor any other person may impose a fee on a consumer in connection with the consumer’s application for a mortgage transaction subject to paragraph (e)(1)(i) of this section before the consumer has received the disclosures required under paragraph (e)(1)(i) of this section and indicated to the creditor an intent to proceed with the transaction described by those disclosures. A consumer may indicate an intent to proceed with a transaction in any manner the consumer chooses, unless a particular manner of communication is required by the creditor. The creditor must document this communication to satisfy the requirements of § 1026.25.
(B) Exception to fee restriction. A creditor or other person may impose a bona fide and reasonable fee for obtaining the consumer’s credit report before the consumer has received the disclosures required under paragraph (e)(1)(i) of this section.
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