An appraisal fee was disclosed on the Loan Estimate. When the appraisal was ordered, the appraisal was paid POC by the borrower.
When the initial CD was given to the borrower, the processor did not disclosed the appraisal fee. Is this a violation? Did the appraisal fee have to be disclosed since it was paid POC.
When the processor did the closing CD the appraisal was disclosed. The lender had to do a tolerance cure.
Please help me out on this, there has been some discussion about this.
Based on what you are describing the answer is yes. Even if a borrower is paying for the appraisal, it had to be on the initial CD. Since the fee is in the zero-tolerance category it needed to be disclosed and shouldn’t have been left off. Without having it on the initial CD the borrower didn’t have an accurate understanding of total loan costs/fees even though they wanted to pay it. Based on what you described it sounds like it was handled appropriately.
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