refusing refinancing offer-responsible for fees?

[bluebookworm]

What is the name of your state?What is the name of your state?Ohio
I am currently trying to refinance my home to consolidate bills and was told by the "broker" that some of the stipulations of the contract had changed. We have to meet at their office, instead of the broker closing at our home.
Also the amount of $$ we wanted has changed as well as some escrow issues.
Are we liable to "have" to pay for the appraisal fee if we do not accept this mortgage? We have signed the first part of the paperwork(all the stuff to begin the whole thing) but not any thing final.
Thanks for your help.
Bluebookworm

 

[SeattlMike]

perhaps you're overreacting?

All states have differing rules on mortgages, so my advice here might be off for Ohio. I know that in my state, fees and stips can truly change up until the last minute, but should not be off by much from your "good faith estimate".

You will have to pay the appraisal, because that is a service that was rendered. However, the appraisal then is yours, and you will be able to have the appraiser transfer it to your new lender for a small fee-though I've seen it be as much as $100 to transfer it.

It doesn't sound like your broker is truly screwing you though, so maybe if you post more details it'll be clear?

 

[FloridaRob]

SEattle, teh appraiser can not transfer that appraisal to another lender even with a release letter. Guidelines changed this year. The only options the appraiser has is to do an "update" which is basically a new appraisal or a complete new order. The appraiser can not even discuss the appraisal with the new lender even with a release. Releases now are not worth the paper they are written on. An appraisal has to be ordered by the lender/broker now. Not by the borrower.


Bluebook, I do not know if you are responsible for the appraisal fee. Did you sign an agreement with the broker stating that you would pay for it? If not, it may be that the appraisal is the responsibility of the broker. I know as an appraiser, The person that orders it and guarantees it are who are responsible to me, not the home owner or borrower unless they ordered it.

 

[SeattlMike]

Sounds like you better contact someone local, because Florida and I are not in Ohio. In my state, you can transfer the appraisal, and you'll have to pay for it. He's right in that the way it was ordered can make a difference, and if you signed anything saying you'd pay, then you have to pay. You need local help on this one.....

 

[MortgageGuru]

Have the new loan numbers been disclosed to you with a Good Faith Estimate and Truth in Lending disclosure? It may be that the original loan that the broker worked up was not doable and he is offering the best he can. The only reason why any loan officer that I know of would float an appraisal like that is if he knew that it would strap you on cash to get it done. Consider the new loan and see if it still benefits you. As for the escrows, 95% of all loan officers are wrong when it comes to figuring the number of months required for establishing that account.

 

[FloridaRob]

Seattlmike, Appraisers in Florida, Ohio, Washington, ORegon, and every other state are under the same USPAP guidelines. The guidelines changed Jan !, 2004. You can not transfer an appraisal even with a release. If an appraiser is doing it, and doing it for you , they are in violation of USPAP standards.

It is not legal anywhere.....

 

[CoolAngel]

I hate to butt in, but FloridaRob is right about the appraisals. I found that out a few months ago when I was refinancing my house. I paid for an appraisal that I couldn't use. I would have had to pay for a new appraisal except the new lender took care of it.

 

[MortgageGuru]

All the new lender has to do is send an appraisal order for the property to the appraiser and request the appraisal as of the date it was performed originally. I have had this happen numerous times over the last few months and it works out well for everyone. In the big scheme of things, most people will still do the right thing, even if it requires creative thinking to get it done.

 

[CoolAngel]

They could do that but it's still illegal from my understanding. I live in MA and was working with a CA morgage company. They told me about the new law and it was backed up by the MA appraiser I had. I had to have a new appraisal done. All the appraiser did was take new pictures and charged half the price since they were the ones who did the original appraisal 2 weeks prior. I still can't find the law in print anywhere tho. I wish I could.

 

[CoolAngel]

maybe this link will shed some light...

http://www.appraisalfoundation.org/html/USPAP2004/ao26.htm