Appraisal Institute: More Transparency on Buyer Forms
November 22, 2011
Buyers should have more upfront information about appraisal costs on settlement forms, the Appraisal Institute, joined by other organizations, wrote in a joint letter to the Consumer Financial Protection Bureau.
In the letter, the Appraisal Institute urged the CFPB to separate appraisal fees from administration and processing fees on the settlement forms that home buyers receive when buying a home.
“We see no consumer benefit with continuing to bundle two separate services and not fully disclosing such information to borrowers,” the letter states. “We urge the CFPB to revise these forms with a separate line for Appraisal Management (or management fees in total) as Congress authorized last year when it enacted the Dodd-Frank Act.”
The letter urged more transparency for borrowers “by requiring full disclosure of costs incurred for appraisal services and costs for appraisal management services. We believe that consumers deserve to know who is providing services relative to their loan and how much was paid.”
Source: “Appraisal Institute Asks CFPB for More Transparency on Homebuyer Docs,” National Mortgage Professional Magazine (Nov. 18, 2011)
Updated: July 15, 2020