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appraisal waiver fee

I paid an appraisal fee of $395, but this is HARP 2.0 and appraisal is not required. When I paid the fee, the lender said $395 would be a part of closing fee if the appraisal was not required, but now they say they will charge $75 inspection waiver fee and the rest of $320 will be used for closing cost. The inspection waiver fee is not listed in GFE. Can they do that?  Isn't this an hidden fee? 
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April 25 2012 - San Leandro
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I'm not sure whether they can do that or not, but I think most GFE are supposed to be within 10% of the final closing costs.  Assuming the GFE and final closing costs are within that 10% it might be okay.

Hopefully a mortgage banker will answer this as they know much more than I do, but you could always ask the lender to waive the fee.

Best of luck
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April 25 2012
Sort of sounds like the great Quiken scam!  They seem to get everyone!  Cancel the loan.
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April 25 2012
We have not charged an inspection waiver fee charged on the HARP loans we have closed.  I am not even sure there is an expense to exercise the inspection waiver for HARP loans.   I would investigate more.  
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April 25 2012
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Thank you, everyone. If they can charge this, where this will go?  #803 appraisal?  It looks bad faith to me because this was never explained. I needed to pay the fee to lock the rate.

This is not Quicken, FYI.
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April 25 2012

I'm guessing it will have it's own line item such as recording fee, doc prep fee, etc...  They may not waive it upfront, but I bet you can get them to waive it on the back end as a lender credit at close.  Does the rest of the GFE look good?

You could always cancel, but odds are that will waste a ton of your time and you could lose your rate, etc...

I hope they waive it for you.

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April 25 2012
I I do not like the sound of where this is going.  Have they run your loan?  Do they have automated underwriting approval? 
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April 25 2012
The $75 fee is an actual fee Fannie Mae charges the lender to execute the waiver. Some lenders will pass this fee onto the borrower and often thus will be part of Box 1 on the GFE and will not be itemized for you on the GFE or HUD. the best place to find the full itemization will be as an attachment to the Truth and Lending Disclosure and if you did not receive one you should request it.
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April 25 2012
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What is Box1 on GFE?  I do have Truth and Lending Disclosure, but I do not see the inspection waiver fee.
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April 25 2012
Box 1 is on the top of page 2 of GFE Our Origination Charge, the charge can be the sum of several items (origination, processing, admin, appraisal waiver). The TIL itself will not itemize anything but some lenders will also disclose an attachment or 2nd page of TIL to itemize all fees used to calculate the TIL.
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April 26 2012
I would also believe that if they disclosed the $395 appraisal and now are only using $75 of it for the waiver this would be in compliance. Since this is still technically a 3rd party fee, it could be shown in the same area as the appraisal and subject to a 10% tolerance. Reducing it from $395 to $75 certainly fits within this tolerance. 
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April 26 2012
When the lender took the application they probably priced-in an appraisal fee because they didn't know if one would be required or not.  If Fannie Mae is OK with the loan without the appraisal, they charge an appraisal waiver fee of $75; this is a real fee that Fannie Mae really charges on loans where the appraisal was waived by their "Desktop Originator" computerized underwriting system.  Would you rather have then do the appraisal and charge you the $395, or charge the $75 and reduce your other fees by $320?
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April 26 2012
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Thank you everyone. I decided to cancel the loan because the lender is asking me to close HELOC even though I already paid off.  I want to keep it open for my home improvement project that I was supposed to start after refi is completed. Chase charges $65 to close HELOC. I am a bit tired of many fees that I didn't notice initially.
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April 27 2012
" Thank you everyone. I decided to cancel the loan because the lender is asking me to close HELOC even though I already paid off.  I want to keep it open for my home improvement project that I was supposed to start after refi is completed. Chase charges $65 to close HELOC. I am a bit tired of many fees that I didn't notice initially."
----
Your choice would have been to close it or re-subordinate it and each would incur a fee. The subordination fee would have been more and they would have frozen it anyway. There is no way you were going to be able to refi and use your HELOC and if you believe you are going to be able to draw on it now I'd bet against that. Sounds like you are cutting off your nose to spite your face. 

I feel sorry for your loan officer!
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April 27 2012
Could also be the lender had a CLTV overlay and if they did not provide the option to resubordinate to the borrower that would be grounds for the borrower to get the HARP loan elsewhere.

Or, could be the CLTV/HLTV resulted in lower approval findings that the lender would not offer financing for, in which case the borrower was provided a very fair solution.

In either event, I agree cancelling a loan over $65 that isn't even a charge from the lender making the loan seems a bit outrageous to me.
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April 27 2012
Based on his other post his LTV is 95%. I'm quite sure Chase would not allow him to draw on a paid off HELOC @ 95% LTV. He's dreaming and probably blew a good opportunity. 
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April 27 2012
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Chase reduced my line, but I can still use it freely. I am not dreaming. My loan was originally 5/1 ARM and the current rate is very low. I'll postpone my refi. HARP 2.0 won't expire until end of 2013 or my LTV will be less than 80 by then. 
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April 27 2012
Why didn't you just re-subordinate it? Chase may not allow the CLTV to do the refi themselves, but they would 100% resubordinate to a new first originated elsewhere. All you need to do is find a new lender. 

Who knows what rates will be when you get around to refinancing and for a $65 fee this seems quite ridiculous. You obviously didn't really want to refinance now anyway.
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April 27 2012
 
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appraisal waiver fee
  • Posted by user5064866
  • In Mortgage
  • April 25 2012
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