The Appraiser and the Mortgagee or Mortgagee-designated third party will negotiate the appraisal fees and due date. FHA does not establish appraisal fees or due dates. The Mortgagee must ensure that it does not:
- compensate the Appraiser at a rate that is not commensurate in the market area of the property being appraised with the assignment type, complexity and scope of work required for the appraisal services performed;
- withhold or threaten to withhold timely payment or partial payment for an appraisal report;
- prohibit the Appraiser from recording the fee paid for the performance of the appraisal in the appraisal report;
- condition the ordering of an appraisal report or the payment of an appraisal fee, salary, or bonus on the opinion, conclusion or valuation to be reached, or on a preliminary value estimate requested from an Appraiser
The Mortgagee may engage an Appraisal Management Company (AMC) to perform services related to the obtaining of an appraisal. The Mortgagee remains responsible for the acts of its AMC or third-party contractors. The Mortgagee may not pay the AMC and other third-party contractors fees in excess of what is customary and reasonable for such services in the market area where the property being appraised is located. Any management fees must be for actual services related to the ordering process, or review of appraisal for FHA financing.
The Mortgagee must ensure that all fees charged to the borrower comply with all applicable federal, state and local laws and disclosure requirements.
For additional information see Handbook 4000.1 I.B.1.d.iv and II.A.1.a.iii(B)(6)(c) and II.A.6.a.x at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh