Earlier this summer, the U.S. House of Representatives was introduced to the Appraisal Reform Act of 2019 (or HR 3619), which if passed would amend TRID by requiring the appraisal management fee to be disclosed separately from the appraisal fee on both the Loan Estimate and Closing Disclosure.
As lenders know, the Loan Estimate provides consumers with disclosures that are intended to be helpful in understanding their mortgage transaction, while the Closing Disclosure must provide the actual costs of the transaction. Disclosing the appraisal management fee separate from the appraisal fee is only optional under the current legislation and is not required.
But according to an article from Alston & Bird, this could become mandatory if HR 3619 were to become law. The new bill is being sponsored by Rep. William Lacy Clay (D-MO) and was ordered by the House Financial Services Committee “to be Reported (Amended) by Voice Vote.”
For more information and updates as they become available, visit HR 3619’s webpage.