Getting appraisal fees refunded after loan is close/funded

Asked by Nkusima, San Jose, CA Fri Dec 28, 2012

I'm just done with a refi where the mortgage company had agree to cover all cost associated with the refi.(title fees, loan origination fees, appraisal,etc)
I signed the loan document after I received the HUD because I thought I'm getting all the credits I was promised. Little did I know, the appraiser charged my credit card instead of billing the mortgage company directly. By the time I found out, the loan has closed (for about2-3 weeks). My loan agent told me that there's nothing she can do because the loan has funded. Is this right?

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George Raymondo’s answer
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Fri Feb 15, 2013
This is typical with a lot of lenders out there who make promises that can't or don't intend to keep. That's why it's important to do your homework when searching for a Loan Officer. Do you have any emails, advertisements, or anything in writing stating that appraisal would be covered by the lender? If so, I would call the mortgage company and speak with the Branch Manager, and that doesn't work for you, you always have the right to contact the governmental agency that oversee our industry. Those contacts were provided to you on your loan documents. Sorry for the troubles, I assure not everyone in our business lie and cheat.

Best of Luck!
0 votes
FSBOsuccess, Home Seller, 28590
Fri Jan 4, 2013
Are you sure the appraiser charged your credit card and not the mortgage company? I work with a firm that has one of the national mortgage companies under its umbrella and it charges the customer's credit card. Could depend on the area of the country.
0 votes
Libardo Quin…, , Newport Beach, CA
Sun Dec 30, 2012
It is the usual excuse not to refund your money, let me guide you:

- Ask to them for statue of limitations on claims
- Ask their NMLS register number and DRE #
- Give them a time frame to refund the money to you
- Go to google get NMLS page get to it call them and initiate a complaint., them call DRE and initiate a complaint.
Even better tell them what you are about to do and if they are smart and legit they will refund to you on the spot.

NMLS 380933
0 votes
Nkusima, Both Buyer And Seller, San Jose, CA
Sat Dec 29, 2012
Thanks all. You guys are proving me with confidence and conviction that this is not right.
Just to be clear, the agreement was in writing and I was told that the reason I can't get the money because it's "too late" and should've been caught earlier. It's not because they are disputing the fees/credit.
Thanks again everyone
0 votes
Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Sat Dec 29, 2012
No, that is not right.
If your loan agent agreed that the company was to pay all your closing costs, you should have been credit ALL your closing costs.
Review both the GFE and the closing statement.
When the lender drew your loan documents, it must match your GFE.
You may see on the closing statement (HUD) that you were credit all your closing costs plus an additional amount equivalent to your appraisal fee.
Look at your closing statement. Compare all your 'one' time closing costs to the credit the lender gave to you. That credit should cover all your one time fees including your appraisal fee (even though the appraisal fee has already been paid by you). This extra can go toward the interest either on your old or new loan or your escrow account.
If this is not the case, the lender can write a check back to you to cover that appraisal fee.

The borrower should pay for their appraisal up front and then be refunded (credited) at the time of close.

If your loan agent cannot get your appraisal fee back to you from her company, she should be writing you a check for it as that was your agreement. She should be backing up the type of loan she had you agree to originally. cg
0 votes
Barbara Gran…, Agent, Anaheim, CA
Sat Dec 29, 2012
You should have a good faith estimate of the cost of the loan in writing. If you do have it in writing and have made a demand on the mortgage company for reimbursement and still not received your money, you can always take the matter to small claims court.

By the way, John makes a good point. How did the appraiser get your credit card number?
0 votes
Libardo Quin…, , Newport Beach, CA
Sat Dec 29, 2012
Good morning Bmurphy,
The best is for you to ask for the loan officer manager and explain your point, if you think that you are right and they do not comply with what was offered to you at initatial sale call DRE (department of real estate of california, go to google and get the info).
Many realtors and loan officers (specially loan officers) in this industry use a bait to get client in or to secure a deal. That practice is very common and it is our job in this industry and blog panel to help to clean our industry. Our industry as one of the highest in the market and we should be proud of it by doing the right thing.

NMLS 380933
0 votes
Lance King, Agent, San Francisco, CA
Sat Dec 29, 2012
We've had many situations when lenders promised to do things and then didn't, but when you have it in writing it's hard for them to deny the claim. We actually had an instance where a lender sent an email guaranteeing a rate and then tried to back away from it later. This was a TIC refi from group to fractional so there were 4 loans and a sale of one of the units on the line, and one of the refis wasn't going to do the deal with the raised rate.

I basically threatened what Larry suggested and it was resolved rather quickly. Sometimes simply not taking no for an answer and going up the chain gets it done.
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Sat Dec 29, 2012
If you have it in writing that the lender was going to cover all fees (specifically the appraisal which is what you're asking about) then I'd call the loan officer, ask to speak to their supervisor, explain the situation and tell them that they can either write you a check to reimburse you for the appraisal fee or that when you hang up you'll be calling the CA State attorney General Office as well as the CA State Banking Commissioners office and filing a formal complaint with each. In addition you will begin an online negative campaign against the bank and specifically the loan officer who handled your refi.

Then if they still demur on giving you a refund follow through.

I will note that you may be required to resign a modified HUD1 and should not have an issue with doing so.
0 votes
John Souerbry, Agent, Fairfield, CA
Sat Dec 29, 2012
I agree with Connie. If the lender promised (in writing) to cover all the expenses involved in your refi they are obligated to do so and should write you a check for anything you mistakenly paid.
But I have to ask... how did the appraiser get your credit card number? You shouldn't have given it to anyone during this process.
0 votes
Maria Gilda…, Agent, Manchester, CT
Sat Dec 29, 2012
Hello: Have you checked the HUD? If HUD shows that you paid for the appraisal fee as part of the settlement charges, then I would only presume that you paid twice for the appraisal if you are also get charged via your credit card.

If your HUD does not reflect appraisal fee, then your credit card charge is valid. You are responsible for the appraisal fee unless the loan officer waived this for you.

If you are charged twice, call the loan officer and discuss this with her. I had a client who was charged twice and the loan officer addressed this issue by asking for the statement showing the charge. Then my buyer got the refund eventually.

I hope this helps.


0 votes
Connie Bramb…, Agent, Rancho Cucamonga, CA
Fri Dec 28, 2012
No this is not right. Your loan agent can get you back your money, you need to be persistant with her. Do you have anything in writing that says the lender is paying the fees? If so you need to take it to her and request your money back. They are a business like anyone else. They can write you a check if they want to.
Best of luck to you,
Connie Bramble
Prudential CA Realty
0 votes
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