Appraisal Orgs Call for Mandatory Fee Split
Effective 07/08/2024
Appraisal Organizations responded to the CFPB's RFI on "junk fees" in mortgage origination by calling on the CFPB to mandate the separate disclosure of fees paid to appraisers and those paid to AMCs on mortgage closing forms.
Summary
The letter from appraisal organizations urges the CFPB to require separate disclosure of fees paid to appraisers and Appraisal Management Companies (AMCs). They argue that bundling these fees misleads borrowers and harms consumers by lowering appraisal quality. The organizations call on the CFPB to use its authority under the Dodd-Frank Act to fix this issue and ensure better oversight of AMCs by regulated institutions.