In as much as it may not be a RESPA violation, the practice of Greenlight Financial Services by overcharging for appraisal services is not uncommon to the industry these days under the Frank/Dodd Financial Reform act. Many mortgage companies like Greenlight Financial Services and Crestline Financial Services will often have their own AMC's (appraisal management companies) and these organizations were initially designed to place a firewall between the home owner/Realtor and the mortgage loan officer. Unfortunatelly mortgage lenders are actually making money with these entities at the expense of homeowners. As the complaint mentions, the appraiser was only paid $200 for the appraisal by Greenlight's Appraisal Management Company when you were charges $400-$450 for the appraisal. It's actually the one of the least worst scenarios because if you go to Bank of America or even Citibank the banks use an outfit called PCV out of Ontario which keeps $225 from each appraisal and hires appraisers which are the low cost provider in select markets. Don't worry about a few hundred dollars, sell your home before the market is in free fall and colapses in 2012. The National Association of Realtors is citing major problems with appraisals as the reason for failed escrows.
Certified Mortgage Planning Specialist
San Diego, California
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