Sometimes when you pay a fee up front, the actual cost of the service turns out to be lower. If so, you may get a refund. This is what Ally Bank and Better Mortgage Corporation promised customers who paid an appraisal fee up front with their home mortgage applications. But the complaint for this class action alleges that Ally and Better Mortgage did not fulfill this promise, because, before they made the refund, they deducted not only the cost of the appraisal but also a “management fee” that the complaint alleges “applicants did not agree to pay[.]”
The class for this action is all consumers who paid an Appraiser Fee to Ally Bank or Better Mortgage, during the applicable statute of limitations, in the process of applying for a mortgage loan from Ally Bank.
Ally Bank partners with Better Mortgage to allow customers to obtain a home mortgage online.
Plaintiff Frits van der Hoek, a Captain in the US Army Reserve, used this system when he was to be mobilized in Oklahoma and needed to buy a home there for his family. He found two possible homes and applied for a mortgage on both of the two, although he was only intending to buy one.
The Loan Estimate page for each property showed an Appraisal Fee of $550. The page promised that the deposit for the appraisal “kicks off the appraisal process and lets you lock in your rate. If the appraisal costs less than $550, we’ll refund the difference.”
Van der Hoek eventually paid for both appraisals. For each, he received a refund of $25. He later asked for invoices for the two appraisals. While a representative said that Ally did not provide such invoices as a matter of policy, he was eventually able to get both invoices.
The invoices were issued by a third-party appraisal company, US Real Estate Services (USRES). Both included an Appraisers Fee and a Management Fee. The complaint claims that the Management Fee listed “had never before been disclosed” to van der Hoek.
On both invoices, the complaint says, the Management Fee is explained “as covering tasks and services not related to the actual appraisal, including ‘responsibilities and duties of administering and tracking the appraisal process, ensuring proper selection of appraiser, acting as liaison between appraiser and client, performing a quality audit of every report, and delivering a final copy.’”
While the final price for each was listed as $525, the appraisal and management fees were quite different. For the first home, the invoice listed a charge of $325 for the Appraiser’s fee and $200 for the Management Fee. For the second home, the invoice listed a charge of $500 for the Appraiser’s Fee and $25 for the Management Fee. Both appraisals, however, had been done in the same time period and same area.
The complaint alleges breach of contract and breach of the implied covenant of good faith and fair dealing, among other things.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Ally Bank, Better Mortgage Appraisal “Management Fee” Complaint
May 24, 2021
Sometimes when you pay a fee up front, the actual cost of the service turns out to be lower. If so, you may get a refund. This is what Ally Bank and Better Mortgage Corporation promised customers who paid an appraisal fee up front with their home mortgage applications. But the complaint for this class action alleges that Ally and Better Mortgage did not fulfill this promise, because, before they made the refund, they deducted not only the cost of the appraisal but also a “management fee” that the complaint alleges “applicants did not agree to pay[.]”
Ally Bank, Better Mortgage Appraisal “Management Fee” ComplaintCase Event History
Ally Bank, Better Mortgage Appraisal “Management Fee” Complaint
May 24, 2021
Sometimes when you pay a fee up front, the actual cost of the service turns out to be lower. If so, you may get a refund. This is what Ally Bank and Better Mortgage Corporation promised customers who paid an appraisal fee up front with their home mortgage applications. But the complaint for this class action alleges that Ally and Better Mortgage did not fulfill this promise, because, before they made the refund, they deducted not only the cost of the appraisal but also a “management fee” that the complaint alleges “applicants did not agree to pay[.]”
Ally Bank, Better Mortgage Appraisal “Management Fee” Complaint