Okay, so the senior lender of my bank recently received an appraisal from another financial institution and on the engagement letter it stated that “the bank will charge the appraiser 1% of the appraisal fee per business day for each day the appraisal is late”.
My lender, of course, was intrigued! He asked if this is something that we should consider since we struggle to get appraisals in on a timely basis (we provide the appraisers two weeks on residential and six weeks on commercial). Any thoughts? I haven’t found anything on this in my research…can’t say I am crazy about the idea but need to know if this violates anything? Thanks!!
I am also intrigued by the idea. I am no expert on appraisal rules, other than those included in Regulation Z. If you intend to impose the charge it should be a condition established in a contract with the appraiser, or established in an engagement letter accepted by the appraiser.